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 […]
Trade Analysis Video: I recently received an email from a reader wondering what short delta and how many days to expiration I recommend when trading the Theta Breakout system with credit spreads. I replied to the email, but I thought it would be helpful to do a video walk through of the analysis. The short […]
Happy Holidays everyone. Yesterday, Christmas eve, was a short session for the markets, but I was filled on a Donchian Channel breakout trade. The details for the trade are below. I also wanted to mention that two of the results pages are up and you can find them through the Capital Allocation choice in the […]
Overview: First, I’d like to thank everyone for the great feedback on my Weekly Market Recap, it was extremely helpful. We’re moving into 2014 soon and it’s a good time to put together a big picture look at how I see 2014 playing out. Since launching Theta Trend, I’ve introduced several systems including: Top Performing […]
Overview: This short video goes over the mechanics of trading the Theta Breakout system. Essentially the system sells out of the money naked options or credit spreads following a Donchian Channel breakout. The Theta Breakout system uses a 50 day breakout with a 3.5 x average true range trailing stop to manage risk. In this […]
Overview: Finally. The manual backtest of the Theta Breakout system produced some pretty interesting results and the general take away is that the system “works.” That being said, this is by no means a recommendation to take a trade and the results are being presented for educational purposes. I will also note that the system […]