#716 - Opportunities Are Closer Than You Think

The "Daily Call" From Option Alpha

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about why opportunities are closer than you think. Look. The reality is that you’re running out of time right now because you think that the opportunity that you need might be in some far distant time in the future, but in many cases, it’s the preparation, it’s the setup that will allow you to find that opportunity which actually might be closer than you think. It might be just around the corner. People all the time talk about luck and they talk about just good fortune and being in the right place at the right time, but it’s all the right opportunities and all the preparation that led to that one moment of being lucky or being in the right place at the right time. Right now, I think it’s a great opportunity for options traders because what we’ve seen over the last decade plus is we’ve seen very much, most of the market go towards this very laze fair passive lazy portfolio approach which we know does not work long-term and especially doesn’t work in such a consistent stream of time.

We are going to be entering a time in the next five to 10 years where we’re going to see returns for broad market indexes, for broad market portfolios start to average in the low single digits and that means lots more volatility, that means a lot more flash crash type situations that might potentially pop up, that means a lot more black swans. Whatever the catalyst ends up being, there’s going to be a lot of choppiness and so, the opportunity to learn how to transition your portfolio if you were so lucky and beneficial as to have been in a stock only, long stock index passive fund towards more of an option selling premium aggregation type model is right now. This is the time period where you have to start actually making that transition, start turning the ship if you will. You think that you have time, but you may not because the flash crash of major market event could happen at any moment and we’ve started to see kind of the cracks in the hall of more volatility starting last year at the end of 2018 and we’re starting to see it even more so this year in 2019. Take this opportunity. Heed this warning to start transitioning your portfolio to something that’s a little bit more stable, that at least you have a little bit more control over than not. Hopefully this helps out. As always, if you guys have any other questions, let us know and never forget, your life should have options because options give you freedom. Until next time, happy trading.