The Vega Options blog is an educational blog covering all aspects of price action and chart analysis as well as understanding option trade structures. Nothing contained in this blog should be taken as investment advice or a recommendation to trade! The information provided here is free for all to use but it’s important for any and all investors or traders to understand that options trading is extremely risky and a total loss of capital is not only possible but likely! The vast majority of traders are unprofitable and it’s my opinion as a several-decades long option trader that much of that is due to the fact that they aren’t taught how to properly limit or reduce risk. Before you move on to another blog because risk reduction sounds about as exciting as filling out your tax return, look below at the risk profile of one of my typical option position’s. It consists of 2 trades shown in the time-stamped order fill box below the risk profile.

Hopefully you’ve noticed that the position has no area where I can lose money. The worst that can happen is I breakeven and who doesn’t like not losing money? This is just one of many positions that can be Delta Hedged (DH) to reduce or eliminate the initial cost of a position. Now, if you’re intrigued about how I go about creating positions like that or what price action I look for before initiating those positions then you’re in the right place! There’s lots to read and learn from in the blog and there are two moderators and content creators, myself and Travis (TM). Some of what we discuss is theoretical but most all of the content is based on our actual trades! We always do our best to answer any and all questions that are posed in the comment section at the bottom of each post. Enjoy!

Paul (PF)