Real-time options education and strategies
The option chain (below) shows the value of TSLA Calls with 1 week until expiration. If I had bought a Call Calendar spread with short Calls expiring 1 week prior to the long Calls then I can estimate the value of that Calendar spread at the time the short Calls expire. Tesla’s closing price at … Read more
Something I need to address before I get into the details of this post. Nobody who reads this post should ever attempt to trade this, or any strategy, based on my or someone else’s experience! I’m here to educate traders based on my many years of trading experience, not to recommend trades. Take what you … Read more
Below is a description of how I traded Tesla this week. This post, as well as all of my other posts on this blog, are for educational purposes. They aren’t trading advice. You should never risk your capital based on how someone else trades. Learn from others then develop your own trading style which suits … Read more
Most traders are familiar with the long Straddle or Strangle option strategy. A Straddle buys the same strike Put and Call in the same expiry and the Strangle buys a different strike Put and Call in the same expiry. The strategy often appeals to novice traders because it appears that the position can be profitable … Read more
I went on a small rant this week on my X timeline (@VegaOptions) about paid advisory services that don’t disclose their actual results. Many traders follow those services and think it’s their fault that they can’t make a profit when the system that they’re trading is flawed and nobody could make money trading it. If … Read more
Over the past couple years on this blog I’ve shown countless option strategies and chart setups with the goal of educating traders on ways to reduce risk in trading. Still, there are many, actually I’d say most, traders who are confused and suffering from information overload and I may be guilty of adding to that. … Read more
Just a reminder that this, or any post on this blog, is based on trades that I have either placed or considered placing and should not be taken as a recommendation for anyone else to trade! Below is the Daily chart of RUT (Russell 2000 Index). Previously I viewed this chart as a very bearish … Read more
There’s quite a few people on Twitter (X) who are generous with their time and knowledge and Cem Karsan is certainly one of those people. The fact that his tweets (posts) are often cryptic and highlighted by emojis require readers to spend a little time understanding what he is actually saying. In the tweet below … Read more
A quick post regarding a TSLA trade I made this week. I was bearish the stock based on the chart so I made 3 separate trades initiating a new bearish position. The last 2 trades were more expensive than the prior one because I was cost averaging UP. I often use that strategy to increase … Read more
That did not go as expected! When I tweeted posted this on Thursday little did I know that this bearish engulfing candle was only just a stop run as opposed to the beginning of a pullback in SPX! It no doubt shook out many of the ‘late to the party’ traders who tried to jump … Read more