Real-time options education and strategies
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
There are plenty of references to the RS+ trade on the blog and in my twitter feed. It’s certainly one of my favorite option structures. Basically, a RS+ is a version of a 1×2 (or 1×3) Ratio Spread in one expiry plus 1 (or 2) long options in a later expiry. It could also be … Read more
Even though K.I.S.S. stands for Keep It Simple Stupid it’s not my intention to refer to anyone reading this post as stupid! It’s a reminder to all, myself included, that we can often make things more complex than they really have to be. In this post I’m going to present a potential trade that was … Read more
When I trade any short term time spread in SPX or SPY I almost always use the 3-day rule. When I say short term I mean that the expiration of both the spread’s short and long options is generally within the following 30 days. The 3-days refers to the amount of days between the expiration … Read more
On Monday, Paul had a good exchange with a Twitter follower about structures for trading upside moves, particularly in $SPX. Paul mentioned both Broken Wing Condors and the RS+. These structures work to the downside and the upside, but they are particularly effective on those grinding moves to the upside. The RS+ is Paul’s brainchild … 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