Real-time options education and strategies
Unless you’re brand new to option trading you’ve likely heard of the Iron Condor trade. That’s a trade where you typically sell an OTM Call and Put Vertical credit spread as a way of initiating a non-directional position. I rarely utilize an Iron Condor but I often have it’s cousin, the Condor, in my portfolio. … Read more
I often refer to price acceptance in my posts and tweets. In many cases it’s quite obvious whether or not price has been accepted or rejected at a certain level and there are other cases where it’s not as clear. If that sounds a little frustrating, welcome to the world of trading! If everything in … Read more
Anybody who was long FB had a good week. After price appeared to be breaking down on Monday when it closed below the previous week’s low (blue box showing the previous week’s high, low and half-back prices) it rallied strongly into Friday’s close. I labeled 2 candles with a number; Tuesday’s candle is #1 and … Read more
Part 1 This post will outline a step by step process where I’ll show you when a trade setup would have been triggered and how it could have been traded. Even though I use this strategy literally hundreds of times in a year with my own trading, this is not one of my actual trades. … Read more
How do we know if buyers or sellers caused a price spike? If price is rising it’s due to buyers and if price is falling, it’s sellers. Yes, it’s that simple but, as always, there are nuances. Look at the SPY market profile from 10/19. Buyers took it higher right from the open. Sellers took … Read more
Bottom line: on 10/19/2020 I began the trading day with $0 of risk and no asset value in a SPX position. At the end of the trading day I had $0 of risk and 1 asset that had the potential to be worth as much as $25 in a SPX position. I came into the … Read more