In the past few days there have been a few updates to my credit spread positions. As of now, the only position I still have open in the Nov 2013 expiration is the trade in TLT. As I briefly mentioned in this video, last Friday I was able to close the IWM spread for a […]
This post explains the philosophy of trend following, why an options trend following system makes sense, and how to get started trading. The philosophy of trend following trading: Trend following is a way of trading that attempts to capture large market trends. Trend following systems can take place on any timeframe or holding period, but […]
In the video below I go over how I setup my charts for options trend following with credit spreads. I primarily use an Average True Range Trailing Stop to identify both trend trading direction and my stop level, but I also look at moving averages and the relationship of implied and historical volatility. After going […]
Gold gapped down at the open this morning and the limit order I had in place to close the call credit spread was filled. The fill details are in the image below and the position spreadsheet has been updated on the Credit Spread Trades page. After commission the trade showed a net $23 profit.
I decided to do a comparison of some prior months trades to see if there is anything that could be done differently to improve the bottom line. In general, Theta Trend works when trends continue or don’t reverse sharply. In thinking about the problem I came up with two things I want to consider. First, […]
The video below is a discussion of a new trade that was opened on FXE yesterday. The trade is based on the Theta Trend system and is a standard trend following options trade. I use a 5 point wide put credit spread and am effectively long the Euro. In the video I discuss trade selection, […]