The tastylive network Risk & Reward - November 6, 2025 - Trade Ideas of the Week
Nov 6, 2025
Hosts dive into market volatility and share intriguing trade ideas. A bearish stance on Affirm highlights valuation issues and BNPL risks. Rivian's strategic moves with NVIDIA and potential AI advancements are discussed, alongside insights on its financial struggles. The fast-food sector faces pressures, with DoorDash emerging as a promising long-term play. They also explore trading tools like VWAP and volume profiles for better risk management, and share thoughts on Robinhood's restrictions for professional traders.
AI Snips
Chapters
Transcript
Trade Against Absurd Valuations
- If a stock's valuation looks absurd, consider taking a bearish options position rather than holding long exposure.
- Errol sold naked and long-dated puts on Affirm after seeing ~527x PE and expecting BNPL stress.
Sell Premium On Rangebound Names
- Use neutral strategies like sold strangles when a stock repeatedly swings inside a range.
- Gus recommends harvesting premium on Rivian while acknowledging its frequent range-bound swings.
Neutrality Beats Constant Directional Bias
- Errol admits a personal bias toward directional trades and highlights neutrality as an underused approach.
- Recognizing neutrality can prevent repeated frustrated directional positions in stocks like Rivian.