This is probably one of the best videos I have seen that articulates the application of theory to the real world. Thanks Mark. Please keep making more of such videos.
And lemme just add I also haven’t gotten a haircut since about 3-4 days before the quarantines began here in the SF Bay Area…so I have solidarity with you in the “I’ll get a haircut after I don’t need to first get my Last Rites before setting foot into the barber shop” sense, Dr. Meldrum…we are not alone!
@@tellurium96 I broke down my studies in the order of CFA Level II topics that Dr. Meldrum prescribes in his videos. I have a whiteboard where for each topic I'll lay out *day-by-day* the readings/video lectures/notes/practice problems I need to do. I insert a good deal of "break" days either for actual breaks or to act as shock absorbers if I fall behind, say three break days per month. Periodically I'll re-write whatever portion I have left for each topic to re-calibrate/re-adjust what's remaining, all with a realistic eye of finishing on time per the schedule I originally prescribed myself. This way I'll have gone through everything thoroughly by, say, mid-October and have way more than the minimum recommended four weeks to review. The postponement of the exam came as a blessing to me, I would absolutely have NOT been ready for June.
I wish I watched this video 4 years ago before I blew up my trading account. I probably wouldn’t have listened anyway but I learned the hard way. Thanks for doing this.
Bit late to the party on this video as it’s a couple of years old - but this is hands down one of the best videos on investing I have ever watched. Focusing on one industry to become an expert is something I had never considered but it makes perfect sense. Many thanks for sharing your wisdom! 👏👏
This one completely changed one's mindset as a retail investor - Long term approach, volatility is opportunity, passive approach is like slow & steady wins race.
Thank you Dr Mark for taking the time to make this video. It would be great if you could create more videos with applicable contents. I studied Finance and Economics but ALL the courses I took was so abstract. Your university students were really lucky.
Really enjoyed that analogy of drawing a parallel between the risks of investing in the market and the risks of starting your business. Lots of people see investing in the market as a "casino", sometimes including myself and I have to watch out for that bias. Appreciate tying the CFA content into practical day to day investing as a retail investor, it helps see that knowledge in action!
This video was awesome. Super interesting to not just hear your opinions on markets, but to also hear what strategies you use based on those opinions, how to adjust if the market is moving against you. I also really like how you talk about options, and say why you buy them at X strike and Y expiry. During my undergrad, it was a lot of "here is what a call is, and here's why you would want to buy/sell them, and here's how to value them", with little guidance on when you should consider ITM/ATM/OTM, when you'd prefer certain expiration dates over others etc.
Thank you very much professor. This video is gold, teaches us how to think and how to use options in different market conditions. I can't tell you how many times I sold covered calls on down days and lost all the upside when the stock recovered few days later. Please make more videos like this when your time permits and thank you again for sharing your knowledge with us.
This is the 4th time (I think) I am watching this video and I still learn from it. Uh.. I wish we could get more of these videos! Thanks again Dr. Mark
CS grad with a new found interest in finance. I guess I'm lucky to have found your channel early in life. I'm not from the US but I find your videos insightful nonetheless. Thanks Mark!
@@gwills9337 yes I have realized that if it was actually possible to make money, many smart people would already be very rich. I'd like to dream I could somehow be *that* guy, but I have quickly become wary of the *chaotic* nature of markets that you talked about. Also, I think psychology plays an even bigger role than I read about right now. There are a HUGE number of people who are totally unaware about how the market functions (including me, till a while back) and I actually feel that herd mentality is understimated. I am realizing slowly that there is a LOT to learn in this field, and tbh it excites me. It also seems funny how people try to use basic machine learning models and a couple of headlines to make 'stock market prediction' projects (without basic financial knowledge) when there are actually too many factors to consider. I'll check out the link you mentioned, thanks!
Good Morning Professor! Glad to see coverage over residential/commercial REITS this morning. I am also long REITS for the time being as I see a reversion to mean especially in office space. I have exposure to New Residential, Invesco mortgage, MITT, pennsylvania trust. etc.
I don't comment on many videos, but the fact that you provide this quality of content for free to the community is amazing. Glad to have been recommended to you for my CFA level 1 study material.
Hello professor. What in your opinion would be a great rate of return for a portfolio? Do you like comparing it with the benchmark? What target return in your opinion is not delusional and realistic? 20%? 15%? Is the realistic return different for full time traders and part time traders? Would be great you to get your views on this!
the S&P returned 10%+ per annum . and it depends on your age, goals, experience, time horizon, risk attitude and tolerance. MM isnt a trader, he's an investor first and foremost.
As always much appreciated Mark! This channel along with your CFA courses provide more value than anything I have ever come across. Please keep these sorts of videos coming.
Cannot sell a put in a registered account - no. But you can in a taxable account. And you can contribute shares to your TFSA and RRSP each year for those that are put to you.
Very insightful and priceless Dr.Mark, thanks so much! It's a shame that non-EU countries from Eastern Europe (i.e. my homecountry of Serbia) are too constrained with the extraordinary trading fees through various platforms, some of which are even affiliated with Interactive Brokers. This is especially true for the options, with the usurious fees and demotivation of even trying to think about various option strategies! I have a huge problem implementing my CFAI knowledge due to mentioned reasons. Alternatively, if we want to open account directly on IB, there are problems with foreign transfers and withdrawals, which are again, ultimately complicated and expensive.
I cannot believe I watched the entire video. It didn't feel very log, either. I'm not even involved in the CFA, although I do manage my own portfolio full-time. I wish I saw this earlier - it would have reduced the duration of my learning curve substantially.
Thank you Mark! I always learn something new listening to you. I’ve just ordered all the books you recommended on the previous video. Didn’t even have to pay for them. I know what I’m reading this summer for sure! I’m 19 and I aspire to have your kind of knowledge one day. A special thanks from Italy. See you in the next video. Lorenzo.
Just want to give a huge thanks to your video. Ive been able to climb myself out of the gutter ever since watching your video. Thanks. I hope you could give more tips on managing portfolios
Thank you for this video. It has opened my eyes to the other side of options. I've been a buyer up to this point but selling could be a great way to buy some of the companies I've had my eye on
Wow! Excellent video, you got a new subscriber. Please add more videos showing this type of hands on, practical stuff. Specific examples would be appreciated. Thanks again!
Thanks for the time you spent for us Sir,All the puts and calls are calls are without any hedge so selling requires huge margin how will you finance them. will you give the shares as colletral or pay the margin required.
Securities in the portfolio act as margin. I also stand ready to buy anything that is put to me. Further, all the calls are covered call, when I do sell calls.
Such a fantastic video, a sophisticated yet graspable strategy for a retail investor (like myself). Two questions I was hoping you could answer Professor: 1. Looked at like a business, what initial investment would a strategy like this require? 2. What indicators do you use to determine a likely up or down trend? (macro, news related, technical etc?)
1. That is all relative to the person. 2. That is a book chapter, not a comment. Plus years of experience. And even then, its just a best educated guess.
This video really made a lot of things click for me. Have watched it several times and it is surely one of the most valuable videos I've ever watched. Thanks very much Dr Mark. I do have a question if you ever come back to these old comment sections: Would it still be wise to use puts to add positions in a small-mid sized retail portfolio (say $50-100k)? For instance if I was into the tech sector and I wanted to add an AAPL position, selling a put and getting put the 100 shares at say, $175, would use almost 20% of the account's capital. I could just purchase shares but then I lose out on premium, or I could target lower priced stocks, but then I feel like I'm not really targeting the stocks I'd want to own most.
Thank you very much Dr Meldrum, great video! I just had two questions please; 1. I noticed you were discussing securities you own across both Canada and the US. Do you hedge for currency exposure and would you recommend retail traders do this? 2. I am interested to know why a mortgage REIT would trade at a premium or a discount to Tangible Book Value at certain times. Would you have a video on this or any book recommendations on the REIT sector that would touch on this also? Thank you for your time!
1. I can hold multiple currencies in my account, so no, I don't hedge since I don't need to. 2. mREITs are basically worth the value of their net assets. Unless they have a business model on top of the assets, there is little reason to pay a premium.
Hi Professor, could you recommend some interesting finance papers from time to time. For example, the retail behavior papers you mentioned in this video.
Here is one that is a review paper - it cites some of the major studies - so look at the references for links to the more influential ones. faculty.haas.berkeley.edu/odean/Papers%20current%20versions/behavior%20of%20individual%20investors.pdf
For all the time and energy you put to come up with rich content videos like this and for sharing your deep knowledge and experience with others: THANK YOU! As much as I try to skip many other so-called investing videos out there that RUclips recommends, I am always waiting to watch your next. I hope I/we can do something to increase your number of audiences. If there is anything, I would love to do voluntarily.
Mark, thank you for taking the time to share your strategy with the markets. I was wondering if we could get your thoughts on the popularity of technical analysis and CFAI concluding that it isn't really a proven alpha generation methodology. The other question I had was, are you selling naked calls and puts or do you always own the underlying? I know alot of brokers don't allow the naked option strategy.
I typically own the underlying to sells the calls, unless I am engineering a synthetic short on a name. Naked puts however. But if they are put to me I have the ability to buy them. I typically never sell more than 40bps or 50bps in put premium against equity value. So $100K in equities for example, I will sell up to $500 in put premium per month.
Hi mark! Awesome content! Not my main job but I ve sat for CFA I and II, candidate for Level III now. Haven't taking your courses but i know your focus is on making the students learn the concepts and not only pass the exam. Given the angle of this video, have you thought about creating a course for CFA holders dedicated to retail trading strategies? Would definitely subscribe to that one given the professional approach you take to teaching :) thanks again!
Hi Dr. Mark, How much liquidity do you maintain? Specifically, I wonder how you decide on a cash position that allows you to take advantage of opportunities, build positions, etc.? Thanks and regards!
Mark, thank you for another incredibly useful video. However, although very tempted, I am really struggling with the idea of selling options, especially naked puts. I am a big fan of Taleb's work and ideas on black swans, and although I completely agree with you on the concept of selling puts on an underlying that I would want to buy anyway at a lower price, the risk of ruin in the highly unlikely event of the underlying's price collapsing for whatever unexpected and unforeseeable reason is quite frightening. I always have in the back of my mind the expression "picking up pennies in front of a steam roller". It would be great if you could provide your thoughts and maybe a different point of view on this issue. Thank you very much again for the great videos.
Yes that totally makes sense, but if I owned the stock I would have a stop loss in place (but of course that wouldn't eliminate gap risk). Do you ever use a stop loss strategy whereby you close the option position before expiration if it moves too much against you? Or alternatively short the stock once it hits the strike price? I know you might want to own the stock anyway but maybe some new negative information might have come up that doesn't make you want to own the stock anymore. Thanks again, very helpful.
Many thanks for the valuable information. I have made several notes during the video, because I am currently facing a similar career decision (asset class focus vs generalist)
@@MarkMeldrum I apologize, it was a reference to users from reddit. However, I edited the comment! :) WallStreetBets is a Reddit community of traders who share high-risk investment strategies, many of them posting screenshots of their 95% loss.
Not really. Maybe with exposure to grains, livestock, or palladium, you can make the case that these are global themes. But there is plenty of opportunity in a North America - and I know these markets.
5:13 Looking back, though inexperienced retail investors created the most recent market turmoil, "noise traders" are necessary to an economy in the sense that they help the movement of capital. In other words, they are more likely to lose money to more experienced retail/institutional investors who are able to make good decisions and allocate resources well.
All portfolios have factor exposure, whether they know it or not. They may not be optimized for it, but it is there. Unless you have a reason to care, I don't see the added value for a retail investor.
Thanks for the video Professor. Would request you to provide some insights / video as to how do you structure a portfolio - number of stocks , weightages and drawdown acceptable and when to book profit. Do we grow the corpus size or book a percent of the profit and balance reinvest? Have read about all this but in actual practise have not found any great leads on this matter.. basically the end goal is to beat the benchmark but how to manage that consistently?? Would be of immense help if you could guide on this matter! And thanks for the great work you provide!
Thank You Mark for Your time and insights! Really enjoyed the idea of acting according to the market movement and not trying to forecast it. What alternatives would you recommend as risk management besides options strategies, mainly for those people who have lower capital in their investment portfolio and just cannot to buy/sell at least 100 shares on each position?
hi Mark, 1. any reason you see in the market behind the mortgage reit downward trend (specially in ABR) in the past couple of weeks? 2. where (which document) would you find tangible BV per share? 3. which calender do you recommend for monitoring major events such as US company earnings? i remember seeing it in one of the applied series video but i cannot recall the which one is it.
ABR is downward, yes, but AGNC is holding up. The belief is that ABR will eventually cut its dividend. Tangible BVPS is reported by the company. ABRs is not that important since it has an earning generating business, not just a passive holder of MBS. As of a calendar, just google economic calendar - lots of decent ones out there.
@@MarkMeldrum thanks. the thing that scares me is i would compare it to NRZ (not sure if it's the right comparison in your opinion) which has already cut its dividend and price keeps dropping. makes me think if ABR will drop even more.
Mark, how do you go about searching for special situations? Are you just reading the news constantly? Or do you have other methods of receiving information about new spinouts, takeovers, etc.? I've been lucky enough to hold some positions that became special situations, but often when I learn about these sorts of events in the news it seems that the profit had been squeezed out days before public disclosure -- or, at least, before the information hits the news.
I used to sell puts and calls until I realized I was limiting my upside too much. Another negative to this strategy to me is that some of the stocks I would be put turned out not good investments.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Now I know who's taking my money in the options' market
lol
wow my most liked comment on youtube. thx boys & girls
@@qiyangxu7872 haha great one :))
Epic comment haha
This is probably one of the best videos I have seen that articulates the application of theory to the real world. Thanks Mark. Please keep making more of such videos.
@@akankshakumari0708 I would like to help you. But unfortunately I am not qualified enough to answer your questions. Thanks.
This is God's work. I'd love to see you having a podcast, selling merch, etc...
I second this
A mark meldrum podcast would be amazing
Second this
He already sells merch on his website
Kind and humble of you Dr Mark. You didn't put a pic of Lamborghinis and chicks on your left right yet you made a best content
Yes! Today is a scheduled break in my CFA Level II prep, but I still get new Mark Meldrum content to consume…Thanks Dr. Meldrum
And lemme just add I also haven’t gotten a haircut since about 3-4 days before the quarantines began here in the SF Bay Area…so I have solidarity with you in the “I’ll get a haircut after I don’t need to first get my Last Rites before setting foot into the barber shop” sense, Dr. Meldrum…we are not alone!
Hey, how is your prep going so far?
How do you do your prep?
@@tellurium96 I broke down my studies in the order of CFA Level II topics that Dr. Meldrum prescribes in his videos. I have a whiteboard where for each topic I'll lay out *day-by-day* the readings/video lectures/notes/practice problems I need to do. I insert a good deal of "break" days either for actual breaks or to act as shock absorbers if I fall behind, say three break days per month.
Periodically I'll re-write whatever portion I have left for each topic to re-calibrate/re-adjust what's remaining, all with a realistic eye of finishing on time per the schedule I originally prescribed myself.
This way I'll have gone through everything thoroughly by, say, mid-October and have way more than the minimum recommended four weeks to review. The postponement of the exam came as a blessing to me, I would absolutely have NOT been ready for June.
some of Mark's videos deliver catharsis to me. This one is of that kind. Mark is definitely a teacher in a wide meaning of that word.
He definitively knows the stuff...genius level....he does not need the CFA charter, the CFA charter needs him
I wish I watched this video 4 years ago before I blew up my trading account. I probably wouldn’t have listened anyway but I learned the hard way. Thanks for doing this.
I'm glad you talked about options, Mark. It seems most have not seen the beauty that they offer.
The best takeway from this entire business is the "treat it like a business" advice.
Exactly that.
Bit late to the party on this video as it’s a couple of years old - but this is hands down one of the best videos on investing I have ever watched. Focusing on one industry to become an expert is something I had never considered but it makes perfect sense. Many thanks for sharing your wisdom! 👏👏
wow! One hour video, we are in it a for treat boys.
ah! I am so addicted to Mark!
Xu Tan me too! Dr. Meldrum is a badass. Really grateful for his content
This one completely changed one's mindset as a retail investor - Long term approach, volatility is opportunity, passive approach is like slow & steady wins race.
Thank you Dr Mark for taking the time to make this video. It would be great if you could create more videos with applicable contents. I studied Finance and Economics but ALL the courses I took was so abstract. Your university students were really lucky.
Really enjoyed that analogy of drawing a parallel between the risks of investing in the market and the risks of starting your business. Lots of people see investing in the market as a "casino", sometimes including myself and I have to watch out for that bias.
Appreciate tying the CFA content into practical day to day investing as a retail investor, it helps see that knowledge in action!
You are so wise. It's a privilege to watch your videos.
This is truly God's work. You opened my eyes and my mind! Thank you Dr. Mark!
Great Fathers Day gift. I am L1 Dec-2020 student. Thank you very much Mark.
Thank you, sir. This really helps. Gonna be a rewatch for me on a monthly basis to measure where I improve.
This guy is the real deal. Thank you for sharing your knowledge, Mark.
This video was awesome. Super interesting to not just hear your opinions on markets, but to also hear what strategies you use based on those opinions, how to adjust if the market is moving against you.
I also really like how you talk about options, and say why you buy them at X strike and Y expiry. During my undergrad, it was a lot of "here is what a call is, and here's why you would want to buy/sell them, and here's how to value them", with little guidance on when you should consider ITM/ATM/OTM, when you'd prefer certain expiration dates over others etc.
loved every minute of it. Thanks for giving back Mark, as always
The best instructional video I've ever seen
Simply put ......you're just awesome......This video is superb.........such wisdom
Thank you very much professor. This video is gold, teaches us how to think and how to use options in different market conditions. I can't tell you how many times I sold covered calls on down days and lost all the upside when the stock recovered few days later.
Please make more videos like this when your time permits and thank you again for sharing your knowledge with us.
This is the 4th time (I think) I am watching this video and I still learn from it. Uh.. I wish we could get more of these videos! Thanks again Dr. Mark
You can register at www.markmeldrum.com for free - you will get the complete Applied series there for free.
Professor You are best. Never miss your video. Too informative
CS grad with a new found interest in finance. I guess I'm lucky to have found your channel early in life. I'm not from the US but I find your videos insightful nonetheless. Thanks Mark!
@@gwills9337 Can you recommend other youtuber related to this topic? :)
@@gwills9337 yes I have realized that if it was actually possible to make money, many smart people would already be very rich. I'd like to dream I could somehow be *that* guy, but I have quickly become wary of the *chaotic* nature of markets that you talked about. Also, I think psychology plays an even bigger role than I read about right now. There are a HUGE number of people who are totally unaware about how the market functions (including me, till a while back) and I actually feel that herd mentality is understimated.
I am realizing slowly that there is a LOT to learn in this field, and tbh it excites me. It also seems funny how people try to use basic machine learning models and a couple of headlines to make 'stock market prediction' projects (without basic financial knowledge) when there are actually too many factors to consider.
I'll check out the link you mentioned, thanks!
Thank you for this video Professor, Really enjoyed watching and taking notes on your approach to PM.
Mark, this is brilliant. I can't believe it's free content haha! Thank you
Good Morning Professor!
Glad to see coverage over residential/commercial REITS this morning.
I am also long REITS for the time being as I see a reversion to mean especially in office space.
I have exposure to New Residential, Invesco mortgage, MITT, pennsylvania trust. etc.
This is a fenomenal video. I just discovered your channel Mark, and you’ve instantly drawn me in. Keep up with the incredibly useful content!!
I don't comment on many videos, but the fact that you provide this quality of content for free to the community is amazing. Glad to have been recommended to you for my CFA level 1 study material.
Just a wealth of information! Thanks, Mark!!
Hello professor.
What in your opinion would be a great rate of return for a portfolio?
Do you like comparing it with the benchmark?
What target return in your opinion is not delusional and realistic? 20%? 15%?
Is the realistic return different for full time traders and part time traders?
Would be great you to get your views on this!
the S&P returned 10%+ per annum . and it depends on your age, goals, experience, time horizon, risk attitude and tolerance. MM isnt a trader, he's an investor first and foremost.
As always much appreciated Mark! This channel along with your CFA courses provide more value than anything I have ever come across. Please keep these sorts of videos coming.
I love watching your videos Mark. Absolutely solid stuff - All the way from Singapore
37:20 - correct me if im wrong but you can't sell put(even cash covered) in canadian registered accounts
Cannot sell a put in a registered account - no. But you can in a taxable account. And you can contribute shares to your TFSA and RRSP each year for those that are put to you.
You call sell covered calls in a registered account in Canada (TFSA,RRSP etc)
Very insightful and priceless Dr.Mark, thanks so much! It's a shame that non-EU countries from Eastern Europe (i.e. my homecountry of Serbia) are too constrained with the extraordinary trading fees through various platforms, some of which are even affiliated with Interactive Brokers. This is especially true for the options, with the usurious fees and demotivation of even trying to think about various option strategies! I have a huge problem implementing my CFAI knowledge due to mentioned reasons. Alternatively, if we want to open account directly on IB, there are problems with foreign transfers and withdrawals, which are again, ultimately complicated and expensive.
I cannot believe I watched the entire video. It didn't feel very log, either. I'm not even involved in the CFA, although I do manage my own portfolio full-time. I wish I saw this earlier - it would have reduced the duration of my learning curve substantially.
42:14 how do you manage your cash. Is your cash sitting there waiting for opportunity......and it's not earning much. Just curious
This is absolutely gold!
Mark , you are such a great teacher.
Thank you for sharing knowledge to those who were never taught, new subscriber here
Great video! Interesting, inspiring and even funny 22:38 "Hertz,.... the stock is worthless, we have no idea why people are buying this...."
Thank you Mark! I always learn something new listening to you. I’ve just ordered all the books you recommended on the previous video. Didn’t even have to pay for them. I know what I’m reading this summer for sure! I’m 19 and I aspire to have your kind of knowledge one day.
A special thanks from Italy.
See you in the next video.
Lorenzo.
Hi, I completely agree, his videos are extremely valuable. May I ask you which are the books he recommended? Thank you very much in advance!
Just want to give a huge thanks to your video. Ive been able to climb myself out of the gutter ever since watching your video. Thanks. I hope you could give more tips on managing portfolios
Excelent video, thank you for sharing your approach. Respectfully.
Great content Mark. Please keep these videos coming. Thank You for Your valuable insight and willingness to share with us!
simply brilliant , thanks Mark ! greetings from France
Thank you for this video. It has opened my eyes to the other side of options. I've been a buyer up to this point but selling could be a great way to buy some of the companies I've had my eye on
Truly appreciate your great work to share and help people~ Thankyou Professor🌻
Wow! Excellent video, you got a new subscriber.
Please add more videos showing this type of hands on, practical stuff. Specific examples would be appreciated. Thanks again!
Thanks for the time you spent for us
Sir,All the puts and calls are calls are without any hedge so selling requires huge margin how will you finance them.
will you give the shares as colletral or pay the margin required.
Securities in the portfolio act as margin. I also stand ready to buy anything that is put to me. Further, all the calls are covered call, when I do sell calls.
@@MarkMeldrum
Thanks for the reply.
Thanks for great content. Please keep them coming. Super informative!!
Pure gold! Very well put and great advice.
I think I'd find it more difficult not to watch all of this video, such great value.
Thank you for this video. I did not watch it yet, but you are a LEGEND so...
We love you Dr. Mark
Such a fantastic video, a sophisticated yet graspable strategy for a retail investor (like myself).
Two questions I was hoping you could answer Professor:
1. Looked at like a business, what initial investment would a strategy like this require?
2. What indicators do you use to determine a likely up or down trend? (macro, news related, technical etc?)
1. That is all relative to the person.
2. That is a book chapter, not a comment. Plus years of experience. And even then, its just a best educated guess.
This video gave me ton of knowledge and insight!
Outstanding content, as always
This video really made a lot of things click for me. Have watched it several times and it is surely one of the most valuable videos I've ever watched. Thanks very much Dr Mark.
I do have a question if you ever come back to these old comment sections: Would it still be wise to use puts to add positions in a small-mid sized retail portfolio (say $50-100k)? For instance if I was into the tech sector and I wanted to add an AAPL position, selling a put and getting put the 100 shares at say, $175, would use almost 20% of the account's capital. I could just purchase shares but then I lose out on premium, or I could target lower priced stocks, but then I feel like I'm not really targeting the stocks I'd want to own most.
Thank you very much Dr Meldrum, great video! I just had two questions please;
1. I noticed you were discussing securities you own across both Canada and the US. Do you hedge for currency exposure and would you recommend retail traders do this?
2. I am interested to know why a mortgage REIT would trade at a premium or a discount to Tangible Book Value at certain times. Would you have a video on this or any book recommendations on the REIT sector that would touch on this also?
Thank you for your time!
1. I can hold multiple currencies in my account, so no, I don't hedge since I don't need to.
2. mREITs are basically worth the value of their net assets. Unless they have a business model on top of the assets, there is little reason to pay a premium.
Hi Professor, could you recommend some interesting finance papers from time to time. For example, the retail behavior papers you mentioned in this video.
Here is one that is a review paper - it cites some of the major studies - so look at the references for links to the more influential ones.
faculty.haas.berkeley.edu/odean/Papers%20current%20versions/behavior%20of%20individual%20investors.pdf
Thank you so much, professor. I would definitely read it. wouldn't it be great if you do videos on interesting finance papers you read recently?
@@yanbowang4020 Time is money.
Fantastic video as always Mark !!!
For all the time and energy you put to come up with rich content videos like this and for sharing your deep knowledge and experience with others: THANK YOU!
As much as I try to skip many other so-called investing videos out there that RUclips recommends, I am always waiting to watch your next.
I hope I/we can do something to increase your number of audiences. If there is anything, I would love to do voluntarily.
Mark, thank you for taking the time to share your strategy with the markets. I was wondering if we could get your thoughts on the popularity of technical analysis and CFAI concluding that it isn't really a proven alpha generation methodology. The other question I had was, are you selling naked calls and puts or do you always own the underlying? I know alot of brokers don't allow the naked option strategy.
I typically own the underlying to sells the calls, unless I am engineering a synthetic short on a name. Naked puts however. But if they are put to me I have the ability to buy them. I typically never sell more than 40bps or 50bps in put premium against equity value. So $100K in equities for example, I will sell up to $500 in put premium per month.
Hi mark! Awesome content! Not my main job but I ve sat for CFA I and II, candidate for Level III now. Haven't taking your courses but i know your focus is on making the students learn the concepts and not only pass the exam. Given the angle of this video, have you thought about creating a course for CFA holders dedicated to retail trading strategies? Would definitely subscribe to that one given the professional approach you take to teaching :) thanks again!
Hi Dr. Mark,
How much liquidity do you maintain? Specifically, I wonder how you decide on a cash position that allows you to take advantage of opportunities, build positions, etc.?
Thanks and regards!
I don't use margin, so even if I use all my cash, I have a very large amount of margin to use (at 30% margin, I have 3.33X leverage).
This is amazing. Thank you so much!
Thanks man
Mark minirvini and you are my fav
Your North View Apartment REIT example reminds me deeply of Warren Buffett’s “risk arbitrage workouts” during his partnership years back in the ‘60s.
Mark, thank you for another incredibly useful video. However, although very tempted, I am really struggling with the idea of selling options, especially naked puts. I am a big fan of Taleb's work and ideas on black swans, and although I completely agree with you on the concept of selling puts on an underlying that I would want to buy anyway at a lower price, the risk of ruin in the highly unlikely event of the underlying's price collapsing for whatever unexpected and unforeseeable reason is quite frightening. I always have in the back of my mind the expression "picking up pennies in front of a steam roller". It would be great if you could provide your thoughts and maybe a different point of view on this issue. Thank you very much again for the great videos.
What would be the difference if you owned the stock? If it crashed - you would lose more. The put premium covers some of that loss.
Yes that totally makes sense, but if I owned the stock I would have a stop loss in place (but of course that wouldn't eliminate gap risk). Do you ever use a stop loss strategy whereby you close the option position before expiration if it moves too much against you? Or alternatively short the stock once it hits the strike price? I know you might want to own the stock anyway but maybe some new negative information might have come up that doesn't make you want to own the stock anymore. Thanks again, very helpful.
You can use a stop loss on a put, and since the delta is less than 1, you actually lose less than holding the shares.
Thank you for this amazing video. what day to expiration do you choose for selling your Puts and Calls ?
Thank you Mark Meldrum!
Many thanks for the valuable information. I have made several notes during the video, because I am currently facing a similar career decision (asset class focus vs generalist)
I don’t know what this means.
@@MarkMeldrum I apologize, it was a reference to users from reddit. However, I edited the comment! :) WallStreetBets is a Reddit community of traders who share high-risk investment strategies, many of them posting screenshots of their 95% loss.
Hi again Dr. Mark, Do you diversify globally, and if so, how? through ETFs? what percentage do you recommend?
Not really. Maybe with exposure to grains, livestock, or palladium, you can make the case that these are global themes. But there is plenty of opportunity in a North America - and I know these markets.
5:13 Looking back, though inexperienced retail investors created the most recent market turmoil, "noise traders" are necessary to an economy in the sense that they help the movement of capital. In other words, they are more likely to lose money to more experienced retail/institutional investors who are able to make good decisions and allocate resources well.
Would love to hear your opinion on factor products/portfolios (Value, momentum, size, etc)
All portfolios have factor exposure, whether they know it or not. They may not be optimized for it, but it is there. Unless you have a reason to care, I don't see the added value for a retail investor.
@@MarkMeldrum for what reason do you see no added value for long term exposure to something like value?
Thanks for the video Professor. Would request you to provide some insights / video as to how do you structure a portfolio - number of stocks , weightages and drawdown acceptable and when to book profit. Do we grow the corpus size or book a percent of the profit and balance reinvest? Have read about all this but in actual practise have not found any great leads on this matter.. basically the end goal is to beat the benchmark but how to manage that consistently?? Would be of immense help if you could guide on this matter! And thanks for the great work you provide!
Man, I miss these videos! Mark, please make them more...
Thank You Mark for Your time and insights! Really enjoyed the idea of acting according to the market movement and not trying to forecast it. What alternatives would you recommend as risk management besides options strategies, mainly for those people who have lower capital in their investment portfolio and just cannot to buy/sell at least 100 shares on each position?
Thanks Mark that helps a lot! always inspiring
Thank you for this video Mark!
Mark's the best!
Thank you Dr. Mark, very helpful!
hi Mark,
1. any reason you see in the market behind the mortgage reit downward trend (specially in ABR) in the past couple of weeks?
2. where (which document) would you find tangible BV per share?
3. which calender do you recommend for monitoring major events such as US company earnings? i remember seeing it in one of the applied series video but i cannot recall the which one is it.
ABR is downward, yes, but AGNC is holding up. The belief is that ABR will eventually cut its dividend. Tangible BVPS is reported by the company. ABRs is not that important since it has an earning generating business, not just a passive holder of MBS. As of a calendar, just google economic calendar - lots of decent ones out there.
@@MarkMeldrum thanks. the thing that scares me is i would compare it to NRZ (not sure if it's the right comparison in your opinion) which has already cut its dividend and price keeps dropping. makes me think if ABR will drop even more.
Great content. Thanks professor!
Thank you professor mark .
Fantastic! Sage advises! Thank you very much!
Always very insightful. What's the typical expiration horizon for the options? 1wk? 1mo? 1yr?
I see how you said rolling 1mo. for SPG, but does it apply to other stocks as well?
I typically sell short: premium per day at the highest, theta at the fastest.
Hey Mark, would you be able to do a video (or link one if you already did) that explains how to read options chains?
Hi Dr. Mark, do you also have any investments in physical assets? like physical gold or properties? do you recommend it?
Real estate and private business. That’s it. No art, wine, cars, comic books, metals, etc.
@@MarkMeldrum I'm sure you have some good wine in the cave somewhere.. don't you Mark
How this video not have a million views is beyond me!!
Mark, how do you go about searching for special situations? Are you just reading the news constantly? Or do you have other methods of receiving information about new spinouts, takeovers, etc.? I've been lucky enough to hold some positions that became special situations, but often when I learn about these sorts of events in the news it seems that the profit had been squeezed out days before public disclosure -- or, at least, before the information hits the news.
Thank you for sharing your knowledge
I used to sell puts and calls until I realized I was limiting my upside too much. Another negative to this strategy to me is that some of the stocks I would be put turned out not good investments.
This is great🙌
What would you do if you more focused on growth rather than income? thank you