General Idea: A little while ago I mentioned that I was working on and testing a longer term options trend following system called pTheta. Essentially, I wanted to take a step back from the daily market noise and create a simple solution for selling naked options. The pTheta system trades from a weekly chart and […]
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 […]
Update – Sold the March 2014 139 Call described below for .53 What I’m Thinking: Does anyone remember the Naked Options post about the Russell 2000 (IWM)? Specifically, I was looking at selling options based on the technicals of a weekly chart using a Parabolic SAR to determine trend direction. I’ve been doing some initial […]
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 […]
Recap: I recently posted the rules for Theta Breakout, an Options Trend Following Trading System. The system sells out of the money naked options (or credit spreads) following a new 50 day Donchian Channel breakout. For example, a new 50 day high would trigger the system to sell out of the money puts. I’m currently in […]