Predicting Alpha

04/04/2023

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.

04/03/2023

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! ⛳

04/02/2023

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🟢

04/01/2023

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💰

03/31/2023

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📈

03/26/2023

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!🟩

03/24/2023

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! 🧐

03/21/2023

Options are usually expensive to compensate the seller. It's like insurance💰

At Predicting Alpha, we build a business around pricing risk premiums. Make sure you're selling insurance at the right prices today!

03/18/2023

In every trade, it's you against another trader. 🤔

Ask yourself why the other person is hoping for the opposite outcome. This will help give you a fuller picture of your trade 🖥️

Follow for tips and tricks to make sure you're always leading with the right steps.

02/21/2023

Retail traders can beat hedge funds - we just have to play a different game ⚽️

Smaller accounts and fewer risk limits mean we can take trades that the big firms can't 😎

Learn how at Predicting Alpha now!

06/15/2021

Want to interact with quant traders and learn more about professional trading? Join us on reddit for free at:

https://www.reddit.com/r/PredictingAlpha/

This is a forum where members and other traders with quantitative trading interests gather to share insights and ask questions!

Make sure to follow the subreddit for high quality option trading insights and education.

Option trade analysis, option trading strategy, PA Terminal questions, option trading education. https://predictingalpha.com/