Real-time options education and strategies
I’m putting my conclusion at the top of this post since I know at least some of you won’t make it to the end. It’s a simple bit of advice from someone (me) who has made every dumbass trade that can be conceived of at least 100 times in my long trading career. Here’s the … Read more
I’m going to show some posts from X describing the chart setup of Google that caused me to take a long Delta (bullish) position, how I traded that bullish bias and why I exited. Along the way I’ll be showing a option strategy that you’ve likely never seen before so read on! At the time … Read more
A treader needs the courage to trade when the setup is good but it feels bad. Shorting AAPL while it appeared to still be in an uptrend felt bad. I don’t like shorting stocks in an uptrend but when the price action is telling me, no, not telling me, screaming at me, that this rally … Read more
There is no excerpt because this is a protected post.
If I handed you a book and said that it had information in it that could potentially make you a great deal of money I’ll assume you’d open it with great anticipation. You might think “I’ll just read the book and start making money right away, what could be easier than that?” You open the … Read more
Some traders may use the SPX short Call Diagonal simply as a way to collect premium and focus less on the potential directional implications of that trade. That isn’t the way that I trade them because I have certain directional expectations based on chart setups. On the chart (below) I show 2 setups. There are … Read more
One of the hardest things for most, maybe all traders, is to stick with a trade that is trending in the direction they expected. The answer to that dilemma is to find and utilize a method for determining when a trade has stopped trending. Let’s explore a few possibilities in this post. Below is my … Read more
If I could summarize the overall theme of this blog in one sentence it would be this: spend most of your time figuring out how you’re going to reduce portfolio risk! I think most traders put on a trade and then stick with it until it either goes bust or the pain of holding it … Read more
To address some questions regarding my current position. I’ll add more to this post later. First, let’s look at the PDT account’s combination position of Jan3/6 SPX 6045/6050 short Call Diagonal and 6050 Call Calendar with a $780 cost that was bought when it was a bullish OTM position. Now it’s perfectly centered with an … Read more
Below is an approximation of the values of a Call Calendar spread vs. a 5-point wide short Call Diagonal. I’ve compared the 2 strategies over a 1 week period of time. If I bought a 1% OTM Fri/Mon spread with 14 DTE and held it for 1 week what could I expect the value to … Read more