Real-time options education and strategies
Over the years I’ve developed my own methods of analyzing price action and that has helped me stay on the right side of the trade most of the time. Of course there are going to be failures along the way that aren’t necessarily due to a misreading of the chart but rather a news events … Read more
Yesterday I tweeted that there was an opportunity to add long /ES (bullish) Deltas on the potential 30-minute bullish reversal. The buy zone was 3971-74 and the stop was 3964.50. That’s 10 points of risk. That’s important because I didn’t know that it was a bullish reversal, only that it had the potential to be … Read more
Even though K.I.S.S. stands for Keep It Simple Stupid it’s not my intention to refer to anyone reading this post as stupid! It’s a reminder to all, myself included, that we can often make things more complex than they really have to be. In this post I’m going to present a potential trade that was … Read more
That was quite the bullish reversal last week! Below is the SPX daily chart. The green, yellow and red lines represent last year’s high, HB (Half-Back or midpoint) and low. For weeks now I’ve been expecting SPX to reach 3662 because that was last year’s low and price had already dropped below the 61.8% retracement … Read more
On Monday, Paul had a good exchange with a Twitter follower about structures for trading upside moves, particularly in $SPX. Paul mentioned both Broken Wing Condors and the RS+. These structures work to the downside and the upside, but they are particularly effective on those grinding moves to the upside. The RS+ is Paul’s brainchild … Read more
The S&P 500 has been in a strong downtrend along with almost every stock trading on the NYSE. Many stocks are down in excess of 50% so there’s been a lot of damage done. I’ve been trading profitably to the short side for awhile now and I continued to maintain short SPX Deltas as of … Read more
As this post brings the Vega Options blog one post closer to it’s 100th I realize how hard it is to reach most people and traders are certainly a special breed of people. Many are simply gamblers looking to make huge profits the easy way. What could be easier than buying a bunch of Calls … Read more
Below are my 4 SPX trade fills from today’s trading. I was bearish and expecting price to move lower but price is already very oversold so I didn’t want to take a large amount of Delta (directional) risk. Look at the fills and then keep reading to see what the risk profiles looked like and … Read more
Over the many years that I have been a trader I have talked to and/or observed literally hundreds of other traders and in all that time I can think of maybe a handful of option traders that I know who were successful. Most every other option trader has lost money and many of those have … Read more
This post is about how any size account, even a relatively small one, can increase the efficiency of their trading method while alternating from full-risk to reduced-risk over and over again. Travis @RaadiaCapital has been kind enough to add important context to this post and his comments are in red. Get ready to learn some … Read more