Active investment management’s weekly magazine for fee-based advisors

Larry McMillan

Professional trader Lawrence G. McMillan is perhaps best known as the author of “Options as a Strategic Investment,” the best-selling work on stock and index options strategies, which has sold over 350,000 copies. An active trader of his own account, he also manages option-oriented accounts for clients. As president of McMillan Analysis Corporation, he edits and does research for the firm’s newsletter publications.

The ‘ultimate’ tail-risk trade?

O​n Oct. 6, someone bought 50,000 $VIX March (22nd of 2023) 150 calls for $0.19. So, that’s 50,000 contracts on the CBOE. Strike is 150 for $VIX—or, technically, for the March (2023) $VIX futures. And the expiration date is roughly six months from now....

Remembrances of the 1973–1974 bear market

At the beginning of 1973, the Dow (no one paid much attention to $SPX back then) made a new all-time high, trading up to 1,067. The Barron’s Roundtable, a survey of top money managers and brokerage firm analysts, was published at the beginning of 1973...