Real-time options education and strategies
This will be a short post but it’s an important one. I build reasonably large and often complicated looking positions in SPX. I do most of my larger trading in SPX because index options aren’t subject to the ‘wash rule’ (google it if you don’t know what I’m referring to) and they have better tax … Read more
Short post here about a trade that I made in AAPL today. I had a short setup on the hourly chart so I looked for a good option structure to trade. Here’s my tweet describing why I chose a Diagonal spread. The Put that I was selling was much more expensive than the one that … Read more
Below is a list of the transactions that I’ve made in the SPX options with an Apr14 expiry. There was a total of 8 trades with 9 fills (1 order required 2 fills to complete). The first 3 trades resulted in a net loss of $5,580. Oops. 😕 This is an expected outcome in trading! … Read more
During the overnight session on 02/20/2022 the following setup in Bitcoin presented itself. I decided to do this post because the setup is as textbook as they come! All comments in this post are referring to the hourly chart but these setups work on all timeframes. First, price had experienced a sharp (impulsive) decline from … Read more
Anyone who follows me @VegaOptions on twitter knows that my charts look different than most anyone else! First, I don’t use RSI or MACD or any other second derivative of price. I follow price instead of some derivative of it. It’s true that I use moving averages also but I have found over the years … Read more
Almost every option ‘expert’ will tell you that any trade that has a high reward/risk ratio will have a low probability of profit or success. And they’d be partially right. But they wouldn’t necessarily be profitable. In fact, I think there’s a high probability that most high probability traders are not profitable in the long … Read more
It’s not uncommon to see a candle with a long wick appear at the high or low of a price move. Often that’s a great opportunity to initiate a position but how do I know if that candle is a true reversal or not? The answer is that I don’t as of the close of … Read more
I often refer to building a position rather than making a trade. Sometimes a trade is just a trade and sometimes it’s the cornerstone of a new structure. The particular position I’m about to discuss has components of both a trade and the building of a larger position. I hope you’ll find it useful. On … Read more
We have a certain technique that we utilize at Vega Options to help identify a good trade location if a candle (on any time frame) appears to be a significant reversal or continuation candle. We’ve introduced it before in this post called The Law of the Large Candle. It essentially looks at any significant candle … Read more
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