More retail traders means faster, more sophisticated, and more successful methods.

Tech specifications

Only requires a laptop and an internet connection.

We'll use OpenBB's research platform for data/analysis.

Pricing and execution on Options-Quant

Background

You don't need to know the arithmetic details to use this method.

Black-Scholes is a popular option pricing model. It's best for pricing European options. European options are only exercisable at expiration, unlike American options. American options are always exercisable.

American options carry a premium to cover for the risk of early exercise. The Black-Scholes model doesn't account for this premium, hence it can't price genuine, traded American options.

Barone-Adesi-Whaley (BAW) model. BAW modifies Black-Scholes. It accounts for exercise risk premium and stock dividends. It adds the option's early exercise value to the Black-Scholes value.

The trader need not know the formulaic derivations of this model.

https://ir.nctu.edu.tw/bitstream/11536/14182/1/000264318900005.pdf

Strategy

This strategy targets implied volatility. First, we'll locate liquid options that expire within 30 days and have minimal implied volatility.

After selecting the option that meets the requirements, we price it to get the BAW implied volatility (we choose BAW because it's a more accurate Black-Scholes model). If estimated implied volatility is larger than market volatility, we'll capture the spread.

(Calculated IV — Market IV) = (Profit)

Some approaches to target implied volatility are pricey and inaccessible to individual investors. The best and most cost-effective alternative is to acquire a straddle and delta hedge. This may sound terrifying and pricey, but as shown below, it's much less so.

The Trade

First, we want to find our ideal option, so we use OpenBB terminal to screen for options that:

• Have an IV at least 5% lower than the 20-day historical IV

• Are no more than 5% out-of-the-money

• Expire in less than 30 days

We query:

stocks/options/screen/set low_IV/scr --export Output.csv

This uses the screener function to screen for options that satisfy the above criteria, which we specify in the low IV preset (more on custom presets here). It then saves the matching results to a csv(Excel) file for viewing and analysis.

Stick to liquid names like SPY, AAPL, and QQQ since getting out of a position is just as crucial as getting in. Smaller, illiquid names have higher inefficiencies, which could restrict total profits.

We calculate IV using the BAWbisection model (the bisection is a method of calculating IV, more can be found here.) We price the IV first.

According to the BAW model, implied volatility at this level should be priced at 26.90%. When re-pricing the put, IV is 24.34%, up 3%.

Now it's evident. We must purchase the straddle (long the call and long the put) assuming the computed implied volatility is more appropriate and efficient than the market's. We just want to speculate on volatility, not price fluctuations, thus we delta hedge.

The Fun Starts

We buy both options for $7.65. (x100 multiplier). Initial delta is 2. For every dollar the stock price swings up or down, our position value moves $2.

We want delta to be 0 to avoid price vulnerability. A delta of 0 suggests our position's value won't change from underlying price changes. Being delta-hedged allows us to profit/lose from implied volatility. Shorting 2 shares makes us delta-neutral.

That's delta hedging. (Share price * shares traded) = $330.7 to become delta-neutral. You may have noted that delta is not truly 0.00. This is common since delta-hedging means getting as near to 0 as feasible, since it is rare for deltas to align at 0.00.

Now we're vulnerable to changes in Vega (and Gamma, but given we're dynamically hedging, it's not a big risk), or implied volatility. We wanted to gamble that the position's IV would climb by at least 2%, so we'll maintain it delta-hedged and watch IV.

Because the underlying moves continually, the option's delta moves continuously. A trader can short/long 5 AAPL shares at most. Paper trading lets you practice delta-hedging. Being quick-footed will help with this tactic.

Profit-Closing

As expected, implied volatility rose. By 10 minutes before market closure, the call's implied vol rose to 27% and the put's to 24%. This allowed us to sell the call for $4.95 and the put for $4.35, creating a profit of $165.

You may pull historical data to see how this trade performed. Note the implied volatility and pricing in the final options chain for August 5, 2022 (the position date).

Final Thoughts

Congratulations, that was a doozy. To reiterate, we identified tickers prone to increased implied volatility by screening OpenBB's low IV setting. We double-checked the IV by plugging the price into Options-BAW Quant's model. When volatility was off, we bought a straddle and delta-hedged it. Finally, implied volatility returned to a normal level, and we profited on the spread.

The retail trading space is very quickly catching up to that of institutions.  Commissions and fees used to kill this method, but now they cost less than $5. Watching momentum, technical analysis, and now quantitative strategies evolve is intriguing.

I'm not linked with these sites and receive no financial benefit from my writing.

Tell me how your experience goes and how I helped; I love success tales.

This season's three best money moves.

“Millionaires are made in recessions.” — Time Capital

We're in a serious downturn, whether or not we're in a recession.

97% of business owners are decreasing costs by more than 10%, and all markets are down 30%.

If you know what you're doing and analyze the markets correctly, this is your chance to become a millionaire.

In any recession, there are always excellent possibilities to seize. Real estate, crypto, stocks, enterprises, etc.

What you do with your money could influence your future riches.

This article analyzes the three key markets, their circumstances for 2023, and how to profit from them.

Ways to make money on the stock market.

If you're conservative like me, you should invest in an index fund. Most of these funds are down 10-30% of ATH:

In earlier recessions, most money index funds lost 20%. After this downturn, they grew and passed the ATH in subsequent months.

Now is the greatest moment to invest in index funds to grow your money in a low-risk approach and make 20%.

If you want to be risky but wise, pick companies that will get better next year but are struggling now.

Even while we can't be 100% confident of a company's future performance, we know some are strong and will have a fantastic year.

Microsoft (down 22%), JPMorgan Chase (15.6%), Amazon (45%), and Disney (33.8%).

These firms give dividends, so you can earn passively while you wait.

So I consider that a good strategy to make wealth in the current stock market is to create two portfolios: one based on index funds to earn 10% to 20% profit when the corrections end, and the other based on individual stocks of popular and strong companies to earn 20%-30% return and dividends while you wait.

How to profit from the downturn in the real estate industry.

With rising mortgage rates, it's the worst moment to buy a home if you don't want to be eaten by banks. In the U.S., interest rates are double what they were three years ago, so buying now looks foolish.

Due to these rates, property prices are falling, but that won't last long since individuals will take advantage.

According to historical data, now is the ideal moment to buy a house for the next five years and perhaps forever.

If you can buy a house, do it. You can refinance the interest at a lower rate with acceptable credit, but not the house price.

Take advantage of the housing market prices now because you won't find a decent deal when rates normalize.

How to profit from the cryptocurrency market.

This is the riskiest market to tackle right now, but it could offer the most opportunities if done appropriately.

The most powerful cryptocurrencies are down more than 60% from last year: $68,990 for BTC and $4,865 for ETH.

If you focus on those two coins, you can make 30%-60% without waiting for them to return to their ATH, and they're low enough to be a solid investment.

I don't encourage trying other altcoins because the crypto market is in crisis and you can lose everything if you're greedy.

Still, the main Cryptos are a good investment provided you store them in an external wallet and follow financial gurus' security advice.

Last thoughts

We can't anticipate a recession until it ends. We can't forecast a market or asset's lowest point, therefore waiting makes little sense.

If you want to develop your wealth, assess the money prospects on all the marketplaces and initiate long-term trades.

Many millionaires are made during recessions because they don't fear negative figures and use them to scale their money.

Technical books aren't like novels. We need a new approach to technical texts. I've spent years looking for a decent reading method. I tried numerous ways before finding one that worked. This post explains how I read technical books efficiently.

What Do I Mean When I Say Effective?

Effectiveness depends on the book. Effective implies I know where to find answers after reading a reference book. Effective implies I learned the book's knowledge after reading it.

I use reference books as tools in my toolkit. I won't carry all my tools; I'll merely need them. Non-reference books teach me techniques. I never have to make an effort to use them since I always have them.

Reference books I like:

• Design Patterns: Elements of Reusable Object-Oriented Software

• Refactoring: Improving the Design of Existing Code 
  You can also check My Top Takeaways from Refactoring here.

• Practical Object-Oriented Design in Ruby: An Agile Primer

Non-reference books I like:

• The Pragmatic Programmer: your journey to mastery

• Clean Code: A Handbook of Agile Software Craftsmans

The Approach

Technical books might be overwhelming to read in one sitting. Especially when you have no idea what is coming next as you read. When you don't know how deep the rabbit hole goes, you feel lost as you read. This is my years-long method for overcoming this difficulty.

Whether you follow the step-by-step guide or not, remember these:

• Understand the terminology. Make sure you get the meaning of any terms you come across more than once. The likelihood that a term will be significant increases as you encounter it more frequently.

• Know when to stop. I've always believed that in order to truly comprehend something, I must delve as deeply as possible into it. That, however, is not usually very effective. There are moments when you have to draw the line and start putting theory into practice (if applicable).

• Look over your notes. When reading technical books or documents, taking notes is a crucial habit to develop. Additionally, you must regularly examine your notes if you want to get the most out of them. This will assist you in internalizing the lessons you acquired from the book. And you'll see that the urge to review reduces with time.

Let's talk about how I read a technical book step by step.

0. Read the Foreword/Preface

These sections are crucial in technical books. They answer Who should read it, What each chapter discusses, and sometimes How to Read? This is helpful before reading the book. Who could know the ideal way to read the book better than the author, right?

1. Scanning

I scan the chapter. Fast scanning is needed.

• I review the headings.

• I scan the pictures quickly.

• I assess the chapter's length to determine whether I might divide it into more manageable sections.

2. Skimming

Skimming is faster than reading but slower than scanning.

• I focus more on the captions and subtitles for the photographs.

• I read each paragraph's opening and closing sentences.

• I examined the code samples.

• I attempt to grasp each section's basic points without getting bogged down in the specifics.

• Throughout the entire reading period, I make an effort to make mental notes of what may require additional attention and what may not. Because I don't want to spend time taking physical notes, kindly notice that I am using the term "mental" here. It is much simpler to recall. You may think that this is more significant than typing or writing “Pay attention to X.”

• I move on quickly. This is something I considered crucial because, when trying to skim, it is simple to start reading the entire thing.

3. Complete reading

Previous steps pay off.

• I finished reading the chapter.

• I concentrate on the passages that I mentally underlined when skimming.

• I put the book away and make my own notes. It is typically more difficult than it seems for me. But it's important to speak in your own words. You must choose the right words to adequately summarize what you have read. How do those words make you feel? Additionally, you must be able to summarize your notes while you are taking them. Sometimes as I'm writing my notes, I realize I have no words to convey what I'm thinking or, even worse, I start to doubt what I'm writing down. This is a good indication that I haven't internalized that idea thoroughly enough.

• I jot my inquiries down. Normally, I read on while compiling my questions in the hopes that I will learn the answers as I read. I'll explore those issues more if I wasn't able to find the answers to my inquiries while reading the book.

Bonus!

Best part: If you take lovely notes like I do, you can publish them as a blog post with a few tweaks.

Conclusion

This is my learning journey. I wanted to show you. This post may help someone with a similar learning style. You can alter the principles above for any technical material.

My 12-day results look good.

Twitter seemed for old people and politicians.

I thought the platform would die soon like Facebook.

The platform's growth stalled around 300m users between 2015 and 2019.

In 2020, Twitter grew and now has almost 400m users.

Niharikaa Kaur Sodhi built a business on Twitter while I was away, despite its low popularity.

When I read about the success of Twitter users in the past 2 years, I created an account and a 3-month strategy.

I'll see if it's worth starting Twitter in 2022.

Late or perfect? I'll update you. Track my Twitter growth. You can find me here.

My Twitter Strategy

My Twitter goal is to build a community and recruit members for Mindful Monday.

I believe mindfulness is the only way to solve problems like poverty, inequality, and the climate crisis.

The power of mindfulness is my mission.

Mindful Monday is your weekly reminder to live in the present moment. I send mindfulness tips every Monday.

My Twitter profile promotes Mindful Monday and encourages people to join.

What I paid attention to:

• I designed a brand-appropriate header to promote Mindful Monday.

• Choose a profile picture. People want to know who you are.

• I added my name as I do on Medium, Instagram, and emails. To stand out and be easily recognized, add an emoji if appropriate. Add what you want to be known for, such as Health Coach, Writer, or Newsletter.

• People follow successful, trustworthy people. Describe any results you have. This could be views, followers, subscribers, or major news outlets. Create!

• Tell readers what they'll get by following you. Can you help?

• Add CTA to your profile. Your Twitter account's purpose. Give instructions. I placed my sign-up link next to the CTA to promote Mindful Monday. Josh Spector recommended this. (Thanks! Bonus tip: If you don't want the category to show in your profile, e.g. Entrepreneur, go to edit profile, edit professional profile, and choose 'Other'

Here's my Twitter:

I'm no expert, but I tried. Please share any additional Twitter tips and suggestions in the comments.

To hide your Revue newsletter subscriber count:

Join Revue. Select 'Hide Subscriber Count' in Account settings > Settings > Subscriber Count. Voila!

How frequently should you tweet?

1 to 20 Tweets per day, but consistency is key.

Stick to a daily tweet limit. Start with less and be consistent than the opposite.

I tweet 3 times per day. That's my comfort zone. Larger accounts tweet 5–7 times daily.

Do what works for you and that is the right amount.

Twitter is a long-term game, so plan your tweets for a year.

How to Batch Your Tweets?

Sunday batchs.

Sunday evenings take me 1.5 hours to create all my tweets for the week.

Use a word document and write down your posts. Podcasts, books, my own articles inspire me.

When I have a good idea or see a catchy Tweet, I take a screenshot.

To not copy but adapt.

Two pillars support my content:

1. (90% ~ 29 tweets per week) Inspirational quotes, mindfulness tips, zen stories, mistakes, myths, book recommendations, etc.

2. (10% 2 tweets per week) I share how I grow Mindful Monday with readers. This pillar promotes MM and behind-the-scenes content.

Second, I schedule all my Tweets using TweetDeck. I tweet at 7 a.m., 5 p.m., and 6 p.m.

Include Twitter Threads in your content strategy

Tweets are blog posts. In your first tweet, you include a headline, then tweet your content.

That’s how you create a series of connected Tweets.

What’s the point? You have more room to convince your reader you're an expert.

Add a call-to-action to your thread.

• Follow for more like this

• Newsletter signup (share your link)

• Ask for retweet

One thread per week is my goal. 

I'll schedule threads with Typefully. In the free version, you can schedule one Tweet, but that's fine.

Pin a thread to the top of your profile if it leads to your newsletter. So new readers see your highest-converting content first.

Tweet Medium posts

I also tweet Medium articles.

I schedule 1 weekly repost for 5 weeks after each publication. I share the same article daily for 5 weeks.

Every time I tweet, I include a different article quote, so even if the link is the same, the quote adds value.

Engage Other Experts

When you first create your account, few people will see it. Normal.

If you comment on other industry accounts, you can reach their large audience.

First, you need 50 to 100 followers. Here's my beginner tip.

15 minutes a day or when I have downtime, I comment on bigger accounts in my niche.

My 12-Day Results

Now let's look at the first data.

I had 32 followers on March 29. 12 followers in 11 days. I have 52 now.

Not huge, but growing rapidly.

Let's examine impressions/views.

As a newbie, I gained 4,300 impressions/views in 12 days. On Medium, I got fewer views.

The 1,6k impressions per day spike comes from a larger account I mentioned the day before. First, I was shocked to see the spike and unsure of its origin.

These results are promising given the effort required to be consistent on Twitter.

Let's see how my journey progresses. I'll keep you posted.

Tweeters, Does this content strategy make sense? What's wrong? Comment below.

Let's support each other on Twitter. Here's me.

Which Twitter strategy works for you in 2022?

This post is a summary. Read the full article here

A reading list for successful people

Elon Musk reads and talks. So, one learns. Many brilliant individuals & amazing literature.

This article recommends 3 Elon Musk novels. All of them helped me succeed. Hope they'll help you.

Douglas Adams's The Hitchhiker's Guide to the Galaxy

Page Count: 193
Rating on Goodreads: 4.23

Arthur Dent is pulled off Earth by a buddy seconds before it's razed for a cosmic motorway. The trio hitchhikes through space and gets into problems.

I initially read Hitchhiker's as a child. To evade my mum, I'd read with a flashlight under the covers. She'd scold at me for not sleeping on school nights when she found out. Oops.

The Hitchhiker's Guide to the Galaxy is lighthearted science fiction.

My favorite book quotes are:

• “Space is big. You won’t believe how vastly, hugely, mind-bogglingly big it is. I mean, you may think it’s a long way down the road to the chemist’s, but that’s just peanuts to space.”

• “Far out in the uncharted backwaters of the unfashionable end of the western spiral arm of the Galaxy lies a small unregarded yellow sun. Orbiting this at a distance of roughly ninety-two million miles is an utterly insignificant little blue-green planet whose ape-descended life forms are so amazingly primitive that they still think digital watches are a pretty neat idea.”

• “On planet Earth, man had always assumed that he was more intelligent than dolphins because he had achieved so much — the wheel, New York, wars, and so on — whilst all the dolphins had ever done was muck about in the water having a good time. But conversely, the dolphins had always believed that they were far more intelligent than man — for precisely the same reasons.”

the Sun Tzu book The Art Of War

Page Count: 273
Rating on Goodreads: 3.97

It's a classic. You may apply The Art of War's ideas to (nearly) every facet of life. Ex:

• Pick your fights.

• Keep in mind that timing is crucial.

• Create a backup plan in case something goes wrong.

• Obstacles provide us a chance to adapt and change.

This book was my first. Since then, I'm a more strategic entrepreneur. Excellent book. And read it ASAP!

My favorite book quotes are:

• “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”

• “Engage people with what they expect; it is what they are able to discern and confirms their projections. It settles them into predictable patterns of response, occupying their minds while you wait for the extraordinary moment — that which they cannot anticipate.”

• “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained, you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

Peter Thiel's book Zero to One

Page Count: 195
Rating on Goodreads: 4.18

Peter argues the best money-making strategies are typically unproven. Entrepreneurship should never have a defined path to success. Whoever says differently is lying.

Zero to One explores technology and society. Peter is a philosophy major and law school graduate, which informs the work.

Peters' ideas, depth, and intellect stood out in Zero to One. It's a top business book.

My favorite book quotes are:

• “The most valuable businesses of coming decades will be built by entrepreneurs who seek to empower people rather than try to make them obsolete.”

• “The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. And the next Mark Zuckerberg won’t create a social network. If you are copying these guys, you aren’t learning from them.”

• “If your goal is to never make a mistake in your life, you shouldn’t look for secrets. The prospect of being lonely but right — dedicating your life to something that no one else believes in — is already hard. The prospect of being lonely and wrong can be unbearable.”