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July 26, 2020 24 mins

Last week we talked about Tesla’s potential to qualify for the S&P 500 Index. Post earnings, some new option traders were surprised by the stock and options prices post positive earnings release. Plus, a paper recently updated called “Day trading for a living?” compile data on day traders trading futures contracts.  The results were not too promising but what did the paper leave out?

 

Tesla options implied volatility in premiums post earnings release

Robinhood traders on Reddit message boards – do they know what they are doing?

“Day Trading for a Living?” a paper recently updated sheds light on futures traders

What is the trading risk of ruin table?

Position sizing and percent of capital put at risk for traders

Mini Ibovespa futures contracts in Brazil

High volatility of returns cited in day trading paper

97% of traders lose money day trading according to paper

What is the risk of ruin? 

Comparing risk of ruin across different payoff ratios

 

Mentioned  in  this  Episode:

 

“Day Trading for a Living? “ paper https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423101

 

How are options priced podcast https://brokenpiechart.libsyn.com/how-are-options-priced-and-what-is-short-volatility

 

Book: A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin by Bennett McDowell , Forward by Steve Nison https://amzn.to/32WqJ8W

 

Free Chapter from my book Broken Pie Chart https://www.book2look.com/book/YcqUhbCrtN

 

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

 

Contact Derek www.razorwealth.com

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