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!