The Modern Stock & Options Trading Show

During this Episode, Russ discusses the Large Unprotected Covered Call or L.U.C.C trading strategy.  Large in that the share price is large (think Costco, Netflix, Intuitive Surgical, etc.).  Unprotected in the sense that the strategy doesn't buy insurance in  a protective put option at a lower price (like a collar trade).  It is essentially a large, In The Money (“ITM”) covered call.  It is protected from volatility and the large upfront cost by how far down in the money you select, and you give back some of the premium (the intrinsic value portion) - though give back is a misnomer in that it all happens automatically at the brokerage.  Several examples are given.    Don't forget to subscribe to the show!

In this episode, Russ explains the current volatility in today’s equity markets.  He gives some context with data points over the past 150 years.  He also lays out the analysts who are bullish and bearish (from the Money Show in Las Vegas, etc.) and their views.  He explains his actions and lays out what he is doing now (seeling cash backed puts, etc.)   Don’t Forget to subscribe to the show!

In this episode, Russ explains what to do on a covered call trade when you are wrong and trying to protect your shares and the stock takes off.  He uses what happened to Tesla since the US Election results as an example (the stock has gone up 85% since the election and we had written a $15 up covered call expiring in December 2024).  Russ discussed how you can roll out and up profitably when a stock gets away from you.  He discusses also how the adjustment works on selling a cash backed put option as well with Coinbase as an example.   Don’t Forget to subscribe to the show!

Season #6 begins.  In the episode, Russ explains whether thins rally has legs and can continue as well as the top 5 themes for stocks (& their options) for 2025. The investment landscape we are in is covered. Then the 5 themes covered include: 1.)   AI – and the 4 sub areas of this trend 2.)   Cryptocurrency – boom 3.    EV’s (& Robotics 4.) )   Healthcare Innovation and the aging population & 5.)   Infrastructure refresh – Roads, Bridges, Airports, etc.   Russ discusses what he is doing now.  Don’t Forget to subscribe to the show!

In the episode, Russ explains what to do now with a Presidential election about 26 days away.   Market indexes are also at or near all-time highs.  What do we do? Russ covers 5 topics on this episode (or five courses of action) including: 1.) Writing covered calls – at higher (sometimes stretched) prices - OTM (out of money) by 3%-5%. 2.) Selling (or writing) cash backed put options (at a strike price that is 95% of today’s stock price). 3.) Tighten up Stop Loss Orders to 4%-5% down from today’s stock prices.  4.) Ride out the volatility in diversified long-term ETF’s &  5.) Go short (by buying long puts) to bet down - the riskiest strategy… but it is a choice.  What Russ discusses what he is doing now.    Don’t Forget to subscribe to the show!

In the episode, Russ explains why the stock market is 50% science and 50% art.  Everyone seems to want to use logic and mathematical formulas to control (or solve) the stock market.  What they don’t realize is that there are millions of individuals all playing in the same place at the same time with different ages, objectives, risk tolerances, etc..  Add in their emotions (of fear and greed) and you quickly realize you can’t reduce the stock market to a predictable outcome or a mathematical formula.    Don’t Forget to subscribe to the show!

In the episode, Russ explains the Box Spread options strategy.  This strategy is another 4 -legged options strategy in that it puts two spread trades together.   It is like the Iron Condor options strategy on the credit spread side, but the Box strategy is two debit spreads put together.  Russ discusses the type of interest rate environment to use this strategy in and also shows two examples to bring the strategy to life.

Russ discusses this adjustment / ptotection strategy with markets at all-time highs.   He discusses when and why one may want to adjust and protect their covered call trades.  If the underlying stock (or ETF) has gained and is strongly above the call strike price written when you are already into a trade, is there anything you can do if you wish to protect your covered call trade?  The answer is yes and Russ discusses what the adjustment mechanics are and gives an example.     Don’t Forget to subscribe to the show!

Russ discusses how to use a combination of options strategies to simulate the risk & return graph of a stock.  He also discusses the wrinkle he adds to the core strategy to cut off the downside below a certain percentage.  He also gives an example.  You can use this strategy to simulate multiple stocks as well in a portfolio.  Don’t Forget to subscribe to the show!

Episode #91: Reg-T Margin vs. Portfolio Margin Russ discusses the types of accounts margin is used for, the pros and cons of each and the differences between Regulation-T margin and Portfolio Margin.  The origins of Portfolio Margin are covered and the types of strategies to use this type of leverage on.  Remember margin, of all types, is a loan from the broker-dealer to you based on your assets.   This means margin loans can magnify your winners or magnify your losses.  Be careful... but with careful use of margin you can speed up the growth of your account.     Don’t Forget to subscribe to the show!

Episode #90: Mega ROTH Ira vs. The Backdoor ROTH IRA Russ discusses the differences between the Mega ROTH IRA and the Backdoor IRA.  Overfunding your workplace retirement plan and funding your Traditional IRA conversion to a backdoor ROTH IRA.  Why you would want to do this and the mechanisms how to do so.  The income limitations for Contribution limits for the workplace retirement plan and the income limits on the ROTH IRA and how to get around them.  Don’t Forget to subscribe to the show!

In the US, the government passed Secure Act 2.0 on December 29th, 2022.  It was the most important and expansive piece of legislation affecting retirement savings since ERISA in the 1970’s.  In this episode, Russ unpacks the key questions he gets from clients and others about: the age increases, contribution limits, RMD changes, 529 (college savings plan changes), automatic wokplace retirement plan participation qequirements, qualified charitable distributions, etc.  This podcast is not designed to be a comprehensive review of Secure Act 2.0, but rather hit a few highlights Russ gets asked the most.  Don’t Forget to subscribe to the show!

To accumulate wealth, you must learn more than "Buy and Hold."  In the is episode of the Modern Stock & Options Trading Show, host Russ Mathews, goes through some key ideas for generating cash flow and how to keep more of what you generate.  He covers: the types of tax preferred accounts to trade in, how to use the leverage of options, concepts of margin and how it can turbo charge your accounts (though it can be a double edge sword), how to get paid in debt etc.  He also covers how conservative options trading concepts can also generate cash flow - writing covered calls, selling cash-backed puts to buy stocks we like at cheaper prices and get paid now, etc.  Don’t Forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ lays out the 8 trends / themes that he is currently focused on.   He covers where we have been and where we are going into 2024.   Context is key to investment performance as we have seen volatility since the summer.  Don’t forget to subscribe to the show!

Episode #86 – Can You Predict Earnings Season Ahead of Time  In this episode of the Modern Stock & Option Trading Show, Russ lays out the 3 Step process to get a read on whether Earnings Season will be good, bad, or neutral ahead of time.  Q4, 2023 earnings season is about to start (Oct. 18th – Nov. 8th), and many investors are wondering will earnings be good?  Should I remain defensive or start to get positioned for a year-end, ‘Santa Clause’ rally?  Russ lays out a way (in advance) to determine if the earnings season is expected to be strong.     Don’t forget to subscribe to the show!

EBITDA is one on the most used measures of earnings for stocks.  In this episode, Russ covers what EBITDA is, how it is calculated, why investors care and the pros and cons of this earnings measurement.  Don’t forget to subscribe to the show!

In this episode, Russ explores the standard portfolio construction / asset allocation structure of 60% stocks / 40% bonds.  This portfolio structure has been around for 50+ years and is a standard for investing.   A series of 'bear markets' since the year 2000 and changing interest rates has pressured this ‘standard’ structure.  Russ explores what thsi portfolio is and how new investment products have changed the nature of this allocation today.   Don’t forget to subscribe to the show!

In this episode, Russ explores the 7 largest mistakes investors & traders make.  From taking too much risk to trading without a written plan with an edge, each risk is discussed and how to overcome each one.  Helping traders to avoid these mistakes is key to long term success in investing.    Don’t forget to subscribe to the show!

In this episode, Russ explores how your investment timeframe determines many other investment decisions.    Investment timeframes are described, and then the decisions that are influenced.  From asset class selected, to the amount of reliance on technical vs. fundamental analysis, chart timeframes, news, macroeconomics, etc.    He also discusses how investment timeframes can influence each decision.  Don’t forget to subscribe to the show!

In this episode, Russ explores the multidirectional & murky investment environment now.  From what is happening with inflation, to the FED pausing interest rate hikes, to unemployment to real estate to cash and cash alternatives.  The economy is difficult to get a read on right now.  How do you invest in this multidirectional, confusing environment?  Russ explores a 3-step process that helps bring some certainty to the confusion.  He also discusses the narrow rally to date and how it appears to just now be broadening out to other stocks (from the 7 stocks in the AI boom carrying the indexes in 2023).   Don’t forget to subscribe to the show!

In this episode, Russ explores the definitions and pros and cons of stock buybacks vs. dividends.  There is some debate about what the best way is to return capital to shareholders.  Russ explores the definitions, the pros and cons of each way to return capital and provides his perspective on which is best in which type of account.   Don’t forget to subscribe to the show!

We are in the heart of earnings season.  What are the different ways to play earnings?  Russ goes through the different option strategy choices and then focuses on one of his favorite ways to play earnings.  He covers the Iron Condor with the short strike prices outside the expected price move.  The example he goes through from this week is on Amazon.  Don’t forget to subscribe to the show!

In this episode, Russ discusses several scenarios for waiting to add the protection leg to your trading strategy.  In other words, when you have strong directional conviction in how an underlying stock or ETF will move, Russ shows how you can wait (delay) legging into the trading strategy.  You can wait to add the second leg (or protection leg) to the trade.  This delay, when you are directionally correct, can increase your returns and improve your outcomes.  Russ shows examples for three strategies: The Bull Call Debit Spread, The Collar trade and The Long Straddle. Don’t forget to subscribe to the show!

A listener asked – is Direct Indexing a good idea?  This is a topic that many people have been getting pitched by many Wall Street Firms.  Is this a good strategy? In this episode, Russ covers: What is direct Indexing; the Pros and Cons of Direct Indexing, where Direct Indexing fits in the portfolio. Plus he shares his views on the regional banking crisis over the weekend. Don’t forget to subscribe to the show!

There are several ways a company can access the public markets to raise capital.  Russ covers the pros and cons of each – the Initial Public Offering (IPO), the Special Purpose Acquisition Company (SPAC’s), Regulation CF, etc.  In addition, he presents his 5-point checklist for when investing in these companies is a YES and when it is a NO. Don’t forget to subscribe to the show!

The hottest new technology causing discussion and a global shock is Chat GPT (& its competitors) and how such conversational AI (artificial intelligence) is changing the game for many industries.  Russ explores his thoughts on how AI will affect the world of investing and trading.  What it is good at and what its limitations are.  He provides a framework for how to think through the various applications of the new technology.        Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ takes a view on how to measure the risk of a stock.  While Russ concedes that there are many ways to measure the risk of an investment – he covers the top 5 ways he uses – BETA, ALPHA, The P/E RATIO, STANDARD DEVIATION & R-SQUARED and how he uses each.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ covers alternatives to holding cash in the bank (from least risky to most risky).  From money market funds and high-yielding money markets to preferred stock ETF’s, many of the alternative choices are covered based on Russ’s recommendations and experience. The trade-offs and decisions between liquidity, risk and guarantees (FDIC, the full faith & credit of the US Government, etc,) are covered as well.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ covers how to put a bear marker year (like 2022) into context and offset taxes through a concept called Tax Loss Harvesting.  The Wash Sale rule is also covered.  In addition, Russ lays out the consensus view for 2023 and covers timing strategies for how to position your portfolio if you are Conservative, Moderate growth or Aggressive.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ lays out the 9 points to the bullish / more constructive case for stocks today.  As everyone seems to bearish.  Virtually all analysts, hedge fund managers and Wall Street firms are tripping over themselves to lay out the ‘bearish’ case.  Russ presents the other side, not to indicate that he is all in here or there is nothing to worry about... but as a contrast to the bear case which seems to be all you hear.  No one is making the bullish case so Russ lays it out. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ delves into why the macroeconomic picture matters and how it affects you.  In other words, why should you care about terms such as CPI, PCE, Unemployment levels, Inflation, etc.  Russ breaks down the areas of impact to you when these macro-economic areas change. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Option Trading Show, Russ describes the strategy to  best recover one’s portfolio.   If you have ever wondered, is there a way to possibly recover your next egg from down 30%-40% fairly quickly while further defining the downside risk, Russ describes how others do that.  Most importantly, you can define any further draw down risk and you can calculate this maximum risk up front before ever entering the trade.  The key is keep the risk level to a very low percentage (say 3%-5% of your portfolio) with an uncapped upside.   Don’t forget to subscribe to the show!

In this episode of the Modern Stock specific action steps are illustrated.  Don't forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ takes a look at efficient market theory today.  He explores the three forms of efficient market theory (the Strong, Semi Strong & Weak forms) and covers the implications for tactical stock & options trading.    Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ takes a macro perspective.  He covers how to make your money work harder for you.  Both for the rest of 2022 & in future years.  Four key steps are covered.  1.) Use the right strategies. 2.) Have a risk management process. 3.) Do equal size trades.  4.) Scale into positions and scale out. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ discusses how inflation expectations seem to have peaked with the August CPI Report and how inflation expectations seem to be driving stock markets, bond markets and other assets.  Russ Discusses what it means for stock markets and whether he thinks the bottom is in for markets for the 2022 correction.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ recaps one of the most misunderstood and reliable sentiment indicators – the Put / Call Ratio.   He discusses how this is a ‘contrarian’ market sentiment indicator, how to use it, how it is calculated and where it is found.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ recaps the first half of 2022 in the stock market.  He then asks the question, should we invest in stocks & options in the second half of 2022 at all?  Four reasons are given why investing and staying in are the best alternative vs. hiding out in cash. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, you will learn about a trading strategy that is very popular on social media in 2022.  It is a variation on one of host Russ Mathews favorite trading strategies – and it called the 1:1:1 Trade.  Russ’ teaches a variation of the trade (called the put ratio spread).  Russ will teach you what the 1:1:1trding strategy is, why it is so powerful, and how the mechanics differ from the traditional put ratio spread trade.  Eli Lilly & Company is used as an example.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, you will learn about a variation on one of host Russ Mathews favorite trading strategies - the Poor Man’s Covered Call Trade.  Russ will teach you what it is, why it is so powerful and how the mechanics differ from the traditional covered call.  The covered call is one of the bread-and-butter strategies to generate income safely and this variation uses less cash but also adds complexity.  The Poor Man’s Covered Call is illustrated with two examples.    Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ teaches the definition of ‘capitulation,’ and provides two ways to measure capitulation and tell if the equity markets are at or near a bottom.  In addition, Russ provides the macro-economic landscape and where we can potentially go from here.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ teaches on how to think about quarterly earnings announcements. He teaches his favorite trading strategies for playing quarterly earnings – whether you are ‘bullish,’ ‘bearish,’…. or even what to do when there is a large, bifurcated outcome coming of which you are unsure.  Russ covers how to get positioned before quarterly earnings are known and how to play the implied volatility spike in the run up into earnings and then the ‘vol crush’ once earnings come out. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ reflects on the past two years in the markets.  40%-42% of traders started in the past 2 years.  A lot has changed.  Trading mechanics have become deceptively easy.  But it has forced many to skip the ‘homework.’  Russ goes through the 5 steps to what doing the homework means.  This is how you get positioned with the correct mindset for the future. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ revisits the outlook for the markets and the upcoming Federal Reserve pivot from QE (Quantitative Easing) to QT (Quantitative Tightening).  Russ introduces a new trading strategy – the Put Ratio Backspread and when and how to use it.  He provides context and perspective on how to use this strategy when your outlook is mixed to negative. In addition, he provides his view on how to position your portfolio today in light of world events in case of a negative surprise. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ looks at the current volatility in the markets and provides his view.  From Russia invading Ukraine to the Federal Reserve pivot from QE to QT, to the 10-year Treasury Note hitting a 2% yield.  Russ provides context and perspective on it all.  In addition, he provides his view on how to position your portfolio today in light of world events. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ looks at a topic skipped by most traders – practice.  In trading this means simulated trading or paper trading.  Stories from Michael Jordan, Jerry Rice, & Bruce Lee are shared.  In addition, the top 5 things to look for in a good simulated trading broker-dealer platform are shared. Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ looks at the January market pullback – and provides perspective from both a logical and emotional point of view.  He also covers the 3 key risks to the market and provides his view on where to focus.  The game plan of buying the dip’ but scaling in is shared.    Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, Russ looks into the crystal ball and shares his outlook for 2022.  He covers the key macro factors and what it can mean for stocks, fixed income, crypto’s etc.   He also then shares a game plan and action steps for how to position portfolios for 2022.    Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, you will learn the ‘how-to’ practical steps to make trade adjustments to loosing options trades.  Russ shares his philosophy and rules for making trade adjustments by strategy.  Examples are given to bring the rules to life.  Don’t forget to subscribe to the show!

In this episode of the Modern Stock & Options Trading Show, you will learn the psychology and key rules for determining ‘if and when’ to make trade adjustments to loosing options trades.  Russ shares his rules for determining if a trade is worth adjusting.  Two examples are given to bring the rules to life.  Don’t forget to subscribe to the show!