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 […]
Overview: The October RUT Butterfly is now closed and I learned a few good lessons over the course of the trade. I opened the trade on Friday, August 21, 2015, which was fairly poor timing considering it was the Friday before the big push lower on Monday. At the time, I thought RUT was oversold and […]
I’m generally somewhat poor at predicting market direction on a daily timeframe. As a result, I frequently have the opportunity to learn from market moves and adjust options trades. In the past few days the Russell 2000 has rallied a few percent and that move has put my October $RUT Butterfly under pressure. As a […]
Have you ever taken a big loss on an Iron Condor or a Vertical Spread? Do you know what it feels like to sell a weekly vertical spread (DANGER!) only to see the market rip towards your short strike and tear your face off? Alternatively, have you sold an Iron Condor right before the market went […]
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 […]
A while back we discussed some tips for trading options with a small account. This post builds on that material and provides a specific Butterfly trading strategy for small accounts. Overview: If you trade a small account, you probably know that one of the biggest challenges is that commissions eat up a good chunk of your […]