Real-time options education and strategies
Most of the comments in this post are written on the charts. You’re welcome to download and save them to refer back to them periodically when you need a reminder about the importance of patience in trading! Lack of patience and over-trading is likely one of the biggest causes of losing money in trading. You’ll … Read more
This post is for every type of trader but especially those who either don’t have the time or the ability to trade all day long. Even those traders who can trade at any time it’s good to have a primary position that is in the direction of the underlying trend that doesn’t need to be … Read more
Who doesn’t like to buy less expensive stuff and sell more expensive stuff? Everyone loves buying stuff on sale, especially if they can turn around and sell it for a higher price, right? In fact, I can honestly say if you don’t like buying less expensive and selling more expensive things then you’re going to … Read more
When back-testing an options strategy I want to first test the potential profitability of the strategy against the best possible outcome. The home run outcome. If it doesn’t perform well under the best potential outcome then I can safely abandon the strategy and continue my search for a better one. Of course I also need … Read more
There’s no question in my mind that algos trade the Fibs. Keep in mind that there are Fib retracements & Fib extensions and they compliment each other. The 50%-61.8% Fib retracements are more important to my work since they offer good location for trade initiation. I then use a process of Delta Hedging (DH) to … Read more
Below is the current SPX position in the account that I refer to as the PDT (Pattern Day Trader) account. It is a smaller account (less than $25K) that is limited to a maximum of 3 round-trip trades within the same day over a 5 day period. PDT accounts are especially well-suited to using longer … Read more
A common strategy by ‘professional‘ option traders and strategists is to buy a 60 Delta option to initiate a new trade. The reason I put quotes around the word ‘professional’ is because having a YouTube channel doesn’t necessarily mean they are a professional or someone you should listen to. That also applies to blogs, including … Read more
One of my favorite and most profitable strategies is buying a directional Diagonal spread for a debit and then rolling that Diagonal into a Calendar spread when the opportunity to get to zero cost arises. Simple! No? Ok, let me translate that for you! It means when I can sell the Vertical spread that ‘converts’ … Read more
The title of this post is a little deceiving, it should read ‘Risk On…Risk Reduced’. The only truly ‘risk off’ trade is an exited trade! If that’s not clear what I mean by that it should be clear after you’ve read the post. Over a period of just less than 48 hours I made 7 … Read more
Lots of ‘experts’ are calling for a market crash but I don’t know of any traders who’ve had long term success following the ‘experts so what do the charts say? SPX had a strong rally in the final hour of trading on Friday but still ended the week down about 200 points. The Friday afternoon … Read more