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 […]
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 […]
It’s great to talk about winning trades, but we can usually learn more from our losing trades. A little time has passed since August 24th and I want to talk about my biggest losing trade of the year. The trade was intended to be an unbalanced Iron Condor in the RUT. I began the process […]
Pain. I’m always looking for ways to reduce pain when I’m trading and by pain, I really mean heat. I know that I’m not alone in that pursuit because I see credit spread traders waiting and waiting to fade big moves. For example, they might want the market to sell off as much as possible […]
Do you want to learn to trade Iron Condors and Vertical Spreads? If you’ve been following Theta Trend for a while, you probably know that I talk more about Buterflies than Iron Condors. While I do trade Iron Condors, the majority of my energy and focus is on Butterfly strategies. However, if you fancy yourself more […]
The market is crashing, the market rallied, it’s earnings week, Greece is in trouble, the banks are failing, and the list, quite frankly, is endless. There are really only a few things that matter in trading and none of them show up on CNBC, Bloomberg, or any other news outlet. On a very basic level, […]