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
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
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
Over the past couple years on this blog I’ve shown countless option strategies and chart setups with the goal of educating traders on ways to reduce risk in trading. Still, there are many, actually I’d say most, traders who are confused and suffering from information overload and I may be guilty of adding to that. … Read more
This SPX chart reflects my current analysis of the daily time frame. The 8 SMA bands are still upsloping which represents a price uptrend although good location for a new long is currently down around 4050. That’s well below Friday’s closing price of 4105 but I’m not basing my current trade on the rising lower … Read more
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