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One of the most common stock analysis tools, stands for Price to Earnings Ratio. It is the stock price relative to the companies earnings per share.
Risk is real, but opitons let you specify and control risk. Our position sizing, scenario analysis, and defined-risk spreads can be safer than margin stock.
IV is a forward looking measure of market risk premium. RV is what actually happened. Profit comes from correctly forecasting the gap.
No. Vol spikes, tail events, and poor risk controls can erase years of small wins in a single trading day. Stress disciplined sizing, hedging, and staying out of front month gamma traps will help in avoiding this.
History shows that those who try to time the market with equities are typically under-exposed to the 10 best days in the market. Missing those 10 best days can cut your portfolio's gains by about 80%.
Healthy companies are those that can weather any storm thrown at them. Companies with strong balance sheets with heavy assets and cash typically fit this mold. You want to see a path to revenue growth, understandable business moat, and dedicated leadership with a vision.