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tastylive's Weekly Roundup: Post-CPI Bonds Trade, Trading Cheaply with Options and Major Trading Mistakes

By:Eric Villa

Our best stories on YouTube this week

  • Chris Vecchio and Tom Sosnoff explore a potential trade as the tides of inflation recede. 
  • Jenny Andrews gives her take on strategies for cheaply-priced stocks in small portfolios.
  • Tom Sosnoff and Dylan Ratigan pinpoint the most critical factor in the upcoming United States presidential race.
  • The tastylive research team explores six painfully common trading mistakes.

As inflation seems to cool and volatility in major equities rises, these are the videos every trader needs to see before next week.
Quantitative traders HATE him! This CFA’s bizarre trick for picking his next trade

In this week's episode of Let Me Explain, Chris Vecchio, CFA, delves into how the fluctuating inflation landscape could signal a potential trade in bonds. Intriguingly, his fundamental analysis and Tom's Sosnoff's quantitative trading approach clashed but still agreed on what might be one of today's most lucrative trades.

  1. Bonds tend to bottom prior to the final rate hike in every Federal Reserve hike cycle, making it a potentially good time to shift allocation into bonds.
  2. Used car prices have been a significant component of inflation in the past year, but recent data shows a significant drop, indicating a deflationary impulse.
  3. The market may treat a 2% inflation reading as a signal to stop, although the Fed may continue with plans for rate hikes.

Strapped for cash? Jenny and Errol have your back.

How can a trader with a small portfolio leverage options, small-cap stocks and micro-futures to build a winning trading strategy? This is the question Errol posed to Jenny Andrews, a seasoned trader with over 20 years of experience.

Some takeaways from their conversation include: 

  1. Jenny prefers trading low-priced, high-volatility stocks as they tend to have the best returns for selling options with tasty mechanics. 
  2. Spread trading is recommended for trading large cap stocks with less capital. Selling a put spread can be a more affordable alternative to buying shares.
  3. Beginner traders with small portfolios may want to consider low-priced products, naked options (selling puts), and indexes due to higher probability and ease of understanding. 

Tom Sosnoff announces presidential run on a digital assets platform

This week on Truth or Skepticism, Tom Sosnoff and Dylan Ratigan delve into what is likely to be the pivotal topic of the 2024 presidential election: the economy. Always an innovator, Tom offers a unique perspective on the election. He poses the question: Why is nobody exploring the massive economic implication of digital assets? Join them as they debate this compelling topic..

How many of these trading mistakes are you making?

Bias is an inevitable aspect of trading. However, failing to manage this bias sets you up for problems. This week, Tom Sosnoff and Tony Battista delve into the behavioral finance mistakes that unnecessarily cost traders thousands. Use stock symbols alongside company names to stay informed and motivated. Remember, our target audience is you, the traders!

Here are a few of the common logical fallacies mentioned in the video:

  1. Confirmation bias leads people to seek and interpret information that aligns with their pre-existing beliefs, which can affect their trading decisions.
  2. Loss aversion causes investors to prefer avoiding losses over acquiring gains, leading to irrational decision-making.
  3. Overconfidence bias leads traders to overestimate their abilities and take excessive risks.

Eric Villa is a YouTube specialist at tastylive.For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

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