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 […]
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 […]