Framework Investing

Will Framework teach me to be a better trader?

Many sites teach the tactics of “skimming” like floor traders used to do in the open pits. Framework is not in that business. We teach how to conceive of options as tools to balance risk and reward in a portfolio, show how options are priced and transacted, and offer vital information about the essential topic of leverage. Our goal–unlike many fly-by-night subscription sites–is not to give you a fish but to teach you how to cast your net in a sensible way.

Will Framework teach me about Iron Condors and Long Call Butterflies?

Most floor trader strategies–like Iron Condors and Long Call Butterflies–seek to limit the most attractive feature of options: the ability to profit from stocks’ movements over time. The percentage returns of floor trader strategies may seem attractive, but to make a decent dollar return, you have to use a lot of leverage. Framework will allow you to analyze these types of strategies, to really understand leverage, and to see clearly the risks and potential rewards of any option overlay or complex option position.

Why should I learn about options?

Great question! Options are peerless financial tools, allowing you to boost returns, protect gains, and generate income. Understanding how options work and how they are similar and different to stocks will change the way you visualize and think about risk and return in investing. Option markets are essentially huge, real-time, open-source calculators showing what other investors expect to happen to stocks in the future. Just knowing how to read those tea leaves represents a huge win for you as an intelligent investor.

Are options as dangerous as everyone says?

Cars are dangerous tools when driven by someone who does not know how to operate a car, hasn’t learned the rules of the road, and who has both eyes closed. Options are tools. Valuable tools. To use them well and safely, you need to know how they work. Most of the pain “caused” by options actually stem from a lack of understanding about how options work combined with a profound lack of appreciation for the dangers of overleverage. Framework will teach you how to drive responsibly–whether you are behind the wheel of a Kia (a private investment account) or a double decker