Real-time options education and strategies
If I could summarize the overall theme of this blog in one sentence it would be this: spend most of your time figuring out how you’re going to reduce portfolio risk! I think most traders put on a trade and then stick with it until it either goes bust or the pain of holding it … Read more
To address some questions regarding my current position. I’ll add more to this post later. First, let’s look at the PDT account’s combination position of Jan3/6 SPX 6045/6050 short Call Diagonal and 6050 Call Calendar with a $780 cost that was bought when it was a bullish OTM position. Now it’s perfectly centered with an … Read more
Below is an approximation of the values of a Call Calendar spread vs. a 5-point wide short Call Diagonal. I’ve compared the 2 strategies over a 1 week period of time. If I bought a 1% OTM Fri/Mon spread with 14 DTE and held it for 1 week what could I expect the value to … Read more
I’m expecting a grind up in SPX over the next 2 months so I’m layering on mostly inexpensive positions (and a few expensive ones) in multiple Fri/Mon expirations to add size and build a position. Below is my current position as of Dec4. I’ll likely be adding the trade below at some point in the … Read more
This SPX risk profile shows the maximum potential value of this 10-point wide short Call Diagonal is more than $1,500. Since it’s a 1-lot position that means that if SPX is exactly at the 6090 short strike at Friday’s Dec6 expiration then the Monday, Dec9 long Call at the 6100 strike will be 10 points … Read more
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
Let’s say I’m looking at the daily candlestick chart of Apple (AAPL). The IF/THEN of chart analysis goes something like this: IF the prior candle is bullish THEN price should find support at or above the Fib support zone of that prior candle. IF price opens the following day below the Fib support zone THEN … Read more
Below is my post on X showing a position comprised of multiple short Call Diagonals, a position that is very long (positive) Vega on the risk profile, which was showing a profit on a day when the VIX was down over 20%. How can that be? Risk profiles are often a inaccurate representation of the … 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
Some charts below that allow me to base an opinion on the current state of the stock market. In answer to the question posed in the title, I have no idea which way this resolves. All I can say is, as of yesterday’s close, it appears that the price action in the major indexes is … Read more