Blockhead Traders Weekly

In this week’s episode, trader sprocket888 looks at “The Short Put.” For a trader who has not sold options before but is used to going long stock, the short put is one of the best entry points. It is similar to a limit order, except your order will not fill immediately once the strike is…  Read More » The Short Put: Getting paid to wait.

In this week’s episode, trader sprocket888 looks at life after assignment. Sprocket888 entered an earnings strangle on $SBUX at the end of April. This trade quickly turned against him, and he could only pick out one roll before the assignment. Since that assignment, he has been selling covered calls strategically against the 200 shares he…  Read More » $SBUX: There is life af...

In this week’s episode, trader sprocket888 takes a look at hedging. Hedging is trading something opposite your other holdings to help protect you in case you are wrong in your assumption. Lately, the markets have been going up and up and up. This has caused sprocket888 to remember legendary investor Warren Buffet’s advice: “Be fearful…  Read More » Hedging: Fearfu...

In this week’s episode, Trader Sprocket888 extends the back-to-the-basics series and discusses how he screens for the premium selling plays. Two main components drive the premium quantity: time and volatility. He targets a sweet spot when it comes to time and targets extended volatility in hopes of a mean reversion. The basics are covered first,…  Read More » Back to the basi...

In this week’s episode, Trader Sprocket888 simplifies the complex world of options trading by returning to the basics. Selling options, Sprocket888’s favorite trade, is relatively straightforward. It’s like selling insurance- the seller hopes they don’t need to fulfill it, and the buyer participates for protection. Sprocket888 first covers the difference between a Put and a...

This week, trader sprocket888 shares his lone trade on $DAL earnings. The trade, which initially followed a traditional setup with extended volatility, took an unexpected turn. Sprocket888 decided to roll the put and bet up the level of the put deeper ITM, a move that was purely speculative. The speculation was based on an interesting…  Read More » Earnings with a twist: $DAL exten...

In this week’s episode, trader sprocket888 covers two earnings trades he placed that played out in the worst-case scenario. The first trade is treading on thin ice nearing assignment (although not assigned yet). This is $FDX and the price breached the short call and is pretty deep in the money as of this recording. The…  Read More » Come on baby, don’t fear assignment.

In this week’s episode, trader sprocket888 covers two earnings trades he placed. The first trade is on FedEx ($FDX). The setup was not his favorite, but it did tick the boxes that needed to be confirmed before entering. The second was on Micron ($MU). This company is caught up in the AI fever, and volatility…  Read More » Chips and ship: Earnings on $MU and $FDX.

In this week’s episode, traders sprocket888 and viperxl007 share their thoughts on compounding growth. The format of this episode is more of a fireside chat, and no fireside chat is complete without a beautiful whiskey pour =). Each trader uses a different strategy, which they cover in this episode. Despite their different approaches, they agree…  Read More » Compounding Grow...

Sprocket888 discusses the thought and plan behind his $GME trade in this week’s episode. The focus of the episode is to highlight how something so violent and volatile can be traded so that significant risk can be mitigated. However, in the end, there is a direct correlation between risk and potential reward. The secret and…  Read More » What do you meme?: Mitigating meme sto...

In this week’s episode, traders sprocket888 and viperxl007 share their thoughts on the $GME craze. Rather than focus on the wild speculation, they take it and break down what it means in raw mechanical application. There are theories out there that allude to a share shortage based on the Call positions held by the famous…  Read More » $GME Hype: Breaking it down.

In this week’s episode, seasoned traders sprocket888 and viperxl007 share their insights. First up, sprocket888 quickly reviews a recent earnings trade on $OKTA, demonstrating his deep understanding of market dynamics. This trade was very similar to last weeks $NVDA earnings trade, strong volatility contraction. Then, viperxl007, known for his astute market observations, updates us on…...

In this week’s episode, sprocket888 goes through his recent trade on $NVDA earnings. Premium selling is Sprocket’s favorite trade, and earnings are when premiums can be ripe for selling. $NVDA has been a company that has been on a continuous up and to the right kind of stock lately on the back of the AI…  Read More » Strangling the monster: $NVDA earnings

In this week’s episode, sprocket888 is joined by viperxl007. In this week’s episode, the meme stocks are BACK. At the time of this recording, $GME and $AMC were ripping again, making a tear for the stars. Viper couldn’t resist the temptation and did a little trading with options in the $AMC name. On the other…  Read More » Two opposing forces: Meme stock trades an...

In this week’s episode, sprocket888 reviews the earnings trades that he took this past week. His trades on earnings are always targeted at names with very extended volatility. The play here is to sell the volatility that is very extended as the probability for a mean reversion is very high. This strategy can turn 10-15%…  Read More » Earnings: The fastest path to volatility c...

In this week’s episode, sprocket888 is joined by viperxl007. Together, they take a look at some of the recent news about inflation and federal funds rates. As mentioned, history does not repeat itself but often rhymes. The traders take a look at the raw data that can be behind the news stories these days. They…  Read More » Don’t take the news at face value. Check the f...

In this week’s episode, sprocket888 takes the helm solo. Sprocket has a set of open trades that still need to hit the unwinding targets. They are working against him in various capacities. In this episode, he looks at each open trade that has been undergoing management. This will highlight that despite trades going in the…  Read More » In downtimes, keep on rolling.

In this week’s episode, sprocket888 is joined by viperxl007. A rare event is nearly here: The Bitcoin halving. The halving is when the amount of bitcoin awarded for finding a block is cut in half. This will be the 4th occurrence of this. The Blockhead traders discuss what this means to the traders and look…  Read More » The Halving is nigh

In this week’s episode, sprocket888 is joined by viperxl007. It can be difficult for some to become interested in capital markets. There are a lot of words that don’t make a lot of sense; some people sound like they know it all and speak above the ‘common’ man. However, there is room for all kinds…  Read More » Thematic Investing: An engaging way to particip...

In this week’s episode, sprocket888 is joined by viperxl007. It is April in the United States, and while some people view it as the arrival of spring, it is also the arrival of the US tax season. In the US, taxes are to be filed by April 15th. In this episode, viperxl007 and sprocket888 discuss…  Read More » Taxes, Taxes, Taxes.

In this week’s episode, sprocket888 is joined by viperxl007. viperxl007 is finally back on the show after several weeks of absence. In this week’s episode, the two hosts chat about how their trading has evolved over the years of the show. This is week 159 of the show, meaning the show has been going on…  Read More » A fireside chat.

In this week’s episode, sprocket888 runs through the open trades he has yet to close out as winners. Five falls in this category and are treading water collecting premium as he awaits the trade to gain ground in his favor. These are: $/NG, $FL, $DG, $JWN, and $WOLF. This episode is intended to highlight that…  Read More » When a trade is not a winner, you don’t have to...

In this week’s episode, sprocket888 had an expiring CC that was squarely in the money (ITM). However, he could still collect more premium if he pushed out the option another month. This would keep him eligible for the next dividend payout. The episode calls out how the play can look done, but you can keep…  Read More » Keep pushing the wheel even if it looks uphill.

In this week’s episode, sprocket888 played three earnings trades: $FL, $JWN, and $MDB. The three all took different paths. sprocket888 looks at these three trades and discusses the setup, the event, and the management afterward. The worst situation was $FL, where the trade went deep into the money when the move far exceeded the expected…  Read More » The Good, the bad, and th...

In this week’s episode, sprocket888 takes a quick look back on an earnings trade this week. Selling premium is the trading style of choice for sprocket888, and four times a year, he gets to turbocharge the plays during the earnings season. Earnings are a known binary event. Leading up to the announcement, there are a…  Read More » Textbook Earnings: Reflection on $AAP Earning...