Real-time options education and strategies
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
Today is Monday, 4/11/22 and the trading day is over. Prior to last Friday’s close, I had a bearish bias on SPX. The price action that led me to that bias is well documented here in the blog post Understanding Price Action. Based on that bearish bias I initiated 2 new positions. In the first … 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
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
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
This post is about one of my favorite strategy’s for attempting to profit from a grind higher in SPX. It likely seems a little complicated to someone who hasn’t had any experience with the strategy so this is a reminder here that all of the posts on this blog are strategy’s that Travis and I … Read more
All charts in this post are the weekly time frame. For most of 2021, $AMZN has been consolidating under last year’s high. Five times, $AMZN has broken last year’s high and failed. Four times, the breakout failed within the week. Once, in July, the breakout held for three weeks before collapsing back into range on … Read more