Pain & Profit Podcast

Everything Is Calculated: Lululemon, Options Timing & Market Maker Games

Pain & Profit Episode 8

This week on Pain & Profit, we kick things off with one of the hottest stories in the market — Lululemon. With the CEO stepping down and the founder attempting to reclaim control of the company, we break down what this kind of corporate drama really means for traders and why, as Mike says, everything in the market is calculated.

From there, we reflect on last week’s takeaways and outline what we’re focusing on moving forward, diving deep into options contracts and timing. We unpack premium decay, the Greeks (delta, theta, gamma), the decay curve, and why trading options is ultimately a bet against time. Mike explains why at-the-money contracts give gamma and delta the chance to work in your favor, and why your contract choice must align with what you believe the market will do — and how fast it will do it.

Tony pushes back on trading style, claiming he doesn’t trade like Mike — but Mike challenges that idea, emphasizing that Tony actually does trade similarly, just without giving the Greeks the respect they deserve.

We also get into our daily trading routines and how we ease into the trading day. Tony walks through his checklist-driven approach: setting up his workspace, reviewing night scans, and guidance notes before even loading charts. Mike relates how he puts himself in a state of gratitude as he starts off his trading day before firing up the charts. Then he looks a his benchmarks, the news, and writes up his analysis for the day all before the market opens.

We break down this week’s market movement, the late-week selloff, and the true narrative behind why the market failed to close strong. We touch on the reason December price action is often highly volatile, with inflated premiums and aggressive moves, and raises the question of whether market makers engineer wide ranges to maximize returns. Mike closes with key futures price levels to watch and his outlook for the rest of the year.

This episode is packed with market psychology, options education, and real trader insight — the pain, the profit, and everything in between. 📉📈

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Disclaimer:
The Pain & Profit Podcast is for educational and entertainment purposes only. We are not financial advisors. Nothing discussed in this podcast should be considered financial or investment advice. We’re just traders sharing our experiences, lessons, and perspectives on the markets and performance mindset.

Always do your own research, manage your own risk, and never trade or invest money you can’t afford to lose.