Predicting Alpha

The Only 4 Investing Rules That Actually Matter

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POV of your first day running a professional grade portfolio.

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Here's why CAGR is the most important number in .

The 5-Minute Hedge Fund: https://www.predictingalpha.com/5-minute-hedge-fund

I love covered calls, but I would never trade a short put. They are too risky".

The ironic thing is, a covered call is a synthetic short put.

By pricing options around IPOs, it allows you to go in and try to price it your self, and if the market puts it off at a lower price than what you had thought its worth, you can then make money off trading them📈

By taking an average of the volatilities of related companies, you can estimate the company's volatility.

This creates a massive trade for you just because you looked at the situation and were one of the first ones to price it💰

is a go-to guide on pricing options around IPOs! ⛳

You need to create realistic and reasonable goals as a trader📈

As a trader, you can't make money every week, as the only way to make money is to lose money occasionally ✅

All good trading strategies have a drawdown component to them. This is why they make money💰

To become a good trader, you NEED to accept the risks🟢

You should not be spending your whole day delta hedging✅

Here's what we recommend;
1️⃣Either you hedge your deltas on a select time frames
2️⃣Set a threshold for your deltas

By doing this, delta hedging becomes very easy for you📈

For more advice like this, follow and make sure to sign up for our course for free💰

Unless you are going to work at a hedge fund or have a very large capital base, you should not be trading full-time ✅

1️⃣ Some weeks you may make money, some you may not💰
2️⃣ Banks are hesitant to loan money due to the risks of trading📈

Understanding the options skew can create amazing trading opportunities 📈

The Predicting Alpha education covers options skew and skew trading strategies in depth. Try us out free for 30 days!🟩

STOP trying to roll out to get rid of a loss! 🟥

Rolling just closes your losing position and opens a new, bigger trade.

Rolling out only makes sense when you are running a systematic strategy or if you want to double down ✅

Follow us at for more trading tips! 🧐