The Premise In the world of options trading, traders often bet on directional moves based on probability and volatility. But what if you could apply a similar mindset — without actually buying an option (or paying a premium that makes you cry later)? With the new MAS Strategy, I approach the top 10 U.S. S&P 500 companies using Standard Deviation (StDv) and moving averages as probability anchors. It's like options trading — only with fewer Greeks and more sleep. Entry Signal: Below the Averages To simulate the "undervalued premium" approach: I filter for stocks trading below both the 30-day and 90-day moving averages . These represent discounted entries , comparable to buying an option when implied volatility is low. I think of it as catching a high-quality stock on clearance — minus the shopper's remorse. Why the 30-Day Standard Deviation? The 30-day StDv captures near-term volatility, giving me: A probability range for price action. A ...
A periodical exploring the art of investing, financial knowledge, and the stories that shape a meaningful life.