This isn’t your grandparents’ trading world.
With access to smartphones, online trading marketplaces, and more, today’s investor is more tuned in and has more control over their investments than ever before. But the ability to make trades in a matter of seconds can be both a blessing and a curse in today’s world, where getting the right information fast is paramount.
That’s where Ally Invest’s “Stock Play of the Day” comes in.
The new web series on YouTube Live speaks to the seasoned investor and focuses on options trading strategies, making the right investment moves, and more. During the 30-minute program, Ally Invest’s Senior Options Analyst and author of “The Options Playbook” Brian Overby and Chief Investment Strategist Lindsey Bell will provide real-time market insights and break down trading strategies step by step.
Brian shares his thoughts on how to become successful in the options trading world and how the new show will help.
How did you become an expert in options trading?
I really thought I was going to become a math teacher, because my brother, mother, and father are teachers. But instead, I looked for other career opportunities where a math background would be helpful, and one of the first things that came to mind was finance. I gravitated toward options trading right away. I have worked at Charles Schwab & Co. and the Chicago Board Options Exchange. I was also one of the early employees at TradeKing, an online brokerage and robo-advisory firm (which was later acquired by Ally).
What is your “Stock Play of the Day” show all about?
Several years ago, I authored a book called “The Options Playbook,” which contains more than 40 different strategies. But, even after learning about the strategies, investors are sometimes left wondering, “When should I use this specific strategy with this specific stock?” That’s where “Stock Play of the Day” can help.
The program will look at a selected stock each Monday and show investors how to execute a trading strategy based on what’s happening with that particular stock and with the market at large.
Ally Invest’s Chief Investment Strategist Lindsey Bell will co-host the show and provide a more fundamental approach to market analysis (less about the charts, more about the basics), and then I’ll walk through a trading strategy. The show is going to be upbeat and informative, and we’re going to talk about investing and options trading in a fun, exciting way. We’ll cover particular stocks, the market as a whole, and options strategies based on Lindsey’s forecasts.
The show will air on YouTube Live starting on January 13, 2020. We’re excited about the live format, because viewers can tune in to watch us make trades in real time, watching from their computer or mobile device, if they’re on the go. They can also ask questions and engage with other listeners.
What value are you hoping to bring to viewers of the show?
Everybody likes to see what the outlook for the market is today, what happened last week, and what the market looks like in general. We’ll pair that discussion with timely, actionable options trading ideas based on the current market. We won’t tell you to use a specific strategy. Instead, we’ll talk about a strategy that would fit based upon the forecast at the time.
How will the show help turn viewers from good investors to great ones?
One of the most common investing mistakes is to hold onto losers too long and to sell winners too fast. This is particularly true when it comes to options, because they have an expiration date. A lot of people play the “hope game” when the market starts going against them: “I hope my investments will come back.” They’re too scared to close out the trade early and take a loss.
To become a great options trader, you must figure out how to take the emotion out of the trading. The best way you can do that is to develop a plan and stick to it. This show will explain strategies step-by-step, helping investors build and execute their plans with confidence.
I have a friend that’s an options mentor, and he says jokingly that he’d rather teach options trading to a fifth grader than to an adult, because if you tell them to do something, they’ll do it. Adults tend to overthink. They say, “I was going to sell here, but this happened, and then this, and I thought the stock was going to come back,” but it doesn’t.
Options trading works best when you have a plan: “This is what I’m going to do if the market goes with me; this is what I’m going to do if it goes against me.”
Lastly, will you discuss options trading failures as much as the successes?
Yes, definitely. Everybody knows what to do when a trade goes well, right? But if a trade goes poorly, for example, I might say, “Here I would have turned this call spread into a butterfly. Why? Because the market went that way, and the options went this way. This strategy would’ve allowed me to hedge it.” Viewers certainly learn a lot when the trade goes wrong.
“Stock Play of the Day” airs live on Mondays at 12 p.m. E.T. beginning January 13, 2020.