Options & Derivatives

Is margin trading & leverage a smart strategy, or is it just added risk? In this video, Ryan O’Connell, CFA, FRM, breaks down the real impact of margin trading on portfolio returns using a data-driven Excel analysis and Monte Carlo simulation. You’ll learn how margin works, leverage ratios, and margin interest rates affect investment growth—and whether the potential higher returns outweigh the risks.

We start by explaining the fundamentals of leverage and margin trading, followed by a step-by-step portfolio growth model comparing leveraged vs. non-leveraged strategies. I used Interactive Brokers’ margin rates for this analysis, but you can apply the same approach using Fidelity, Robinhood, or Binance margin rates as well.

📊 *Margin Rate Calculator →* https://ryano.finance/ibkr-margin

💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/margin-trading-return-simulator/

Chapters:
0:00 – What Is Leverage?
0:50 – Setting Expectations: Return & Risk
2:05 – Margin Trading Explained: How It Works & Costs
4:18 – Understanding Leverage Ratios & Their Impact
4:57 – Predicting Portfolio Growth With Margin Trading
9:22 – Comparing Portfolio Growth: With & Without Margin
10:15 – Monte Carlo Simulation: Testing Margin Trading Performance
11:49 – Is Using Margin Worth It?

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.

Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.

Margin Trading:
Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest

Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Should you buy leveraged ETFs for the long term? In this video, Ryan O’Connell, CFA, FRM, explains leverage decay and how it impacts the performance of leveraged ETFs over time. Using Excel, you’ll learn to calculate expected returns, randomize daily returns, and analyze leveraged portfolio outcomes through examples and Monte Carlo simulations. Discover whether leveraged ETFs are a viable long-term investment strategy or better suited for short-term trading.

📈 *This Broker Has The Best Margin Rates For Leverage:* https://ryano.finance/ibkr-overview

💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/leveraged-etf-leverage-decay-simulator/

Chapters:
0:00 – Definition of Leverage Decay
0:36 – Expected Return & Standard Deviation in Excel
2:07 – Randomizing Daily Returns on Index
4:34 – Calculating Leveraged Returns
5:12 – Leveraged Portfolio Outcome Examples
5:54 – Monte Carlo Simulation of Leveraged Portfolios
9:24 – Volatility Decay of Leveraged ETFs Explained

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Dive into the world of derivatives with Equity Swaps Explained! This video covers the types and features of equity swaps, including a detailed breakdown of total return swaps. Perfect for CFA and FRM candidates, you’ll learn how equity swaps work and their key characteristics in under five minutes. Enhance your understanding of these essential financial instruments and get exam-ready with Ryan O’Connell, CFA, FRM.

🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – Types of Equity Swaps
1:15 – Total Return Swaps Explained
1:44 – Features of Equity Swaps

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn all about gamma squeezes in this comprehensive video by Ryan O’Connell, CFA, FRM. Titled Gamma Squeeze Explained | The Role of Delta & Market Makers, this video breaks down key concepts like the option chain, at-the-money vs. in-the-money options, delta, gamma, and the impact of market makers and hedge ratios on stock prices. With detailed chapters such as Option Delta Explained and Option Market Makers Explained, you’ll gain a clear understanding of how gamma squeezes occur and their market impact. Watch now to master the mechanics behind this powerful trading phenomenon!

📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options

🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – The Option Chain Explained
0:49 – At-the-Money, In-the-Money & Out-of-the Money Explained
1:56 – Option Delta Explained
3:00 – Option Gamma Explained
4:33 – Option Market Makers Explained
6:43 – Hedge Ratio’s Explained
8:28 – Delta Squeeze Explained

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Join Ryan O’Connell, CFA, FRM, as he explains how equity futures contracts can be powerful tools for financial risk management and portfolio hedging. Discover the fundamental concepts of equity futures, including their key uses in adjusting portfolio beta and managing investment risk. Learn the essential formula for calculating the optimal number of futures contracts needed to achieve your desired market exposure. Through a detailed portfolio hedging example, see how to effectively implement equity futures strategies to increase or decrease your portfolio’s beta, making this complex topic accessible for finance professionals and students alike.

🎓 *Get 25% Off CFA® Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – Equity Futures Contracts Defined
0:45 – Uses for Equity Futures Contracts
3:02 – # of Futures Contracts Formula
4:54 – Portfolio Hedging Calculation Example

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn how to create a covariance matrix in Excel with this step-by-step guide. Covariance matrices are essential for portfolio analysis, risk management, and financial modeling, helping you understand relationships between multiple assets. This tutorial is perfect for finance professionals and students. Master Excel techniques and improve your financial analysis skills today!

💾 Download Free Excel File:
► Grab the file from this video here: https://ryanoconnellfinance.com/product/free-covariance-matrix-in-excel-file/

👨‍💼 *Freelance Financial Modeling Services:*
► Custom financial modeling solutions tailored for your needs: https://www.ryanoconnellfinance.com/freelance-finance-services/

*Seeking Alpha Deals*
💰 *Get $50 OFF Alpha Picks:* https://ryano.finance/alpha-picks
📈 *Get $159 OFF Seeking Alpha Premium and Alpha Picks Bundle:* https://ryano.finance/seeking-alpha-bundle
🔥 *Get $30 OFF Seeking Alpha Premium:* https://ryano.finance/seeking-alpha

Chapters:
0:00 – Intro to “Covariance Matrix In Excel”
0:27 – Enable Analysis ToolPak Add-in
0:53 – Create a Covariance Matrix in Excel
1:47 – Fill in the Blanks

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn everything you need to know about collar options trading strategies in this detailed video by Ryan O’Connell, CFA, FRM. We’ll cover the collar strategy, step-by-step examples, and dive into key concepts like the collar profit diagram, max profit calculation, and how to calculate collar profit intuitively. Perfect for beginners and experienced traders alike, this video breaks down complex topics with clear explanations and a practice problem walkthrough. Watch now to master the collar strategy and enhance your options trading skills!

🎓 *Get 25% Off CFA® Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – Collar Options Trading Strategy Explained
1:49 – Collar Strategy Example
2:45 – Intro to Practice Problem
3:09 – Collar Profit Diagram Explained
4:45 – Calculate Max Profit for a Collar
6:35 – How Collar Profit is Calculated Intuitively

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Join Ryan O’Connell, CFA, FRM, as he demystifies the Bear Put Spread Strategy in this comprehensive video guide. Learn the ins and outs of this vertical debit spread, starting with a clear definition of put options and advancing through the mechanics of executing a Bear Put Spread by buying a put with a higher strike price and selling a put with a lower strike price. Gain insights into how long put option profits are made and explore detailed examples of potential profits and losses with this strategy. Whether you’re a novice looking to understand this bearish trading technique or an experienced trader refining your skills, this video will equip you with the knowledge to utilize the Bear Put Spread as an effective vertical and debit spread strategy.

🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course

📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options

📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa

Chapters:
0:00 – Intro to Bear Put Spreads Explained
0:30 – Put Option Definition
0:53 – Long Put Option Profits Explained
3:35 – Bear Put Spread Definition
4:26 – Step 1: Buy a Put W/ Higher Strike Price
4:57 – Step 2: Sell a Put W/ Lower Strike Price
6:15 – Bear Put Spread Profits & Losses

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Dive deep into the Bull Put Spread Strategy, also known as the put credit spread, with Ryan O’Connell, CFA, FRM, in this comprehensive guide. Discover how this popular vertical spread technique can enhance your trading portfolio by learning the critical steps of selling a put with a higher strike price and buying a put with a lower strike price. This video breaks down each component of the Bull Put Spread, from basic put option definitions to the detailed analysis of profits and losses. Whether you’re a beginner or an experienced trader, this tutorial will equip you with the knowledge to effectively implement and benefit from the Bull Put Spread Strategy in your trading activities.

🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course

📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options

📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa

Chapters:
0:00 – Intro to Bull Put Spreads Explained
0:35 – Put Option Definition
0:52 – Short Put Option Profits Explained
4:12 – Bull Put Spread Definition
5:00 – Step 1: Sell a Put W/ Higher Strike Price
5:29 – Step 2: Buy a Put W/ Lower Strike Price
6:34 – Bull Put Spread Profits & Losses

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Dive into the world of options trading with “Put Options Explained: Learn to Buy & Sell Puts,” hosted by Ryan O’Connell, CFA, FRM. This video kicks off with a clear and concise definition of put options, setting a solid foundation for beginners. Follow along as we delve into detailed explanations of buying put options, showcasing how investors can leverage these for potential profits. We also cover the strategies behind selling put options, providing you with the essential knowledge to start trading puts effectively. Whether you’re new to trading or looking to refine your understanding of put options, this guide is designed to demystify the process and boost your trading confidence.

🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course

📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options

Chapters
0:00 – Put Option Definition
0:13 – Buying Put Options Explained
3:04 – Selling Put Options Explained

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.