In a word, no . . . The other day I presented the CIB to the Capital Discussions audience. One of the things I mentioned is that it seems like the CIB tends to benefit from an increase in Implied Volatility despite the fact that it’s a negative Vega trade. Based on a few anecdotal […]
For those of you who were unable to make the Capital Discussions Round Table yesterday, you’re in luck! This link takes you to a page where you can view a replay of the discussion. While you’re over there, I’d recommend joining Capital Discussions as a free member and checking out some of their resources. Tom Nunamaker […]
Overview: The video below gives you an idea of what I look at when I’m getting ready to enter a Core Income Butterfly (CIB) trade. The video walks through technical analysis of the Russell 2000 Index ($RUT) where we look at multi-year trend lines, areas of consolidation, and where I think the market might go. […]
The other day I received an email from a reading asking about position sizing. His basic comment was that position sizing is sort of confusing and I can see why it might seem that way. The bad news is that if you’re having questions about position sizing, it means you have a much bigger problem than […]
Overview: Normally on the weekend, I’d write a market commentary, but the December CIB was closed on Friday and I went into the weekend flat. The December expiration was a slightly less than ideal environment for the CIB, but it wasn’t too bad overall. The trade was initiated when RUT was chopping around and not really going […]
Overview: The November RUT CIB is closed and it was a good month despite a rocky start. The trade was entered on September 24, 2015 with 56 DTE when RUT was around 1136. Shortly after entry, RUT traded lower to test the August lows and I rolled the position lower twice. After rolling the position […]