You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to

make smarter trades learn how the stock market really works and generate consistent

monthly income. Now your host and head trader at

option alpha.com Kirk depluses.

Hey one this is Kirk here again from option alpha.com working every single week to make this the most popular

podcast offered online because it's based on one thing and one thing only and that's helping

you guys make smarter trades.

So thanks so much for tuning in today.

We've got an awesome show today talking about stock beta and underlying asset correlations.

And you're probably thinking to yourself, whoa Kirk, what are we going to be talking about today?

Sounds really high level, like I need a degree from MIT, but I'm going to try to break it down for you

guys so that you understand this whole concept of managing a portfolio and using beta as a great way to manage

your positions but also to hedge other positions in your portfolio and so by the

end of this podcast I want you guys to understand this like you've never

understood it before and so that's really my goal. So let's kind of break down

exactly what we're going to do today. First we're going to do a quick review of what beta is and how it really

works. Then we're going to talk about beta weighting your portfolio and what that really means. And

we're going to also look at how a beta-weighted portfolio helps you make smarter decisions on how

much you should or shouldn't trade.

And that's actually a key point.

Sometimes it lets you know when you shouldn't be making a trade.

And then we're going to look at some underlying asset correlations in oil technology and social

...