Overview: This post tracks the progress of the March 2016 CIB Trade. I’ll be updated the post as the trade progresses with written notes and video. The Greeks in the spreadsheet below will be updated daily. As always, the information is being presented for educational purposes only and this is not a recommendation to take […]
As income traders we’re always evaluating strategies and ways to trade that increase profitability, reduce risk, or are just easier. This post looks at some of the characteristics of Broken Wing Butterflies and how they can be used to construct positions with little directional risk and a potentially wide range of payoff. Normally when we […]
Overview: The video below walks through a Reverse Harvey adjustment that was made to the February CIB. With the move lower in RUT, we had an open profit and it made sense to protect the position in case of a fast move higher. The Reverse Harvey knocks in the wings of the Butterfly and reduces […]
Overview: Just a couple of short weeks ago as we were getting ready for the Santa Claus rally that wasn’t, the February CIB almost needed an upside adjustment. (See this video) After falling short of the upside adjustment point, the market traded lower the following week and tumbled another 2.3% today. In the video below […]
As options income traders, we’re always looking for edge. Normally we like to look for edge in technical analysis, volatility, and strategies. While I certainly agree that all of those things help, the reality is that, as long as we’re the ones sending the orders, some portion of edge comes back to us. Trading and […]
Overview: As is frequently the case in my trading, the market moved higher shortly after opening a position. The February CIB trade is getting close to an upside adjustment point. In the video below, we walk through the market environment in the Russell 2000 as it relates to the trade. That discussion includes some longer term […]