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 […]
Overview: A few weeks ago I discussed the returns on the CBOE Put Write Index, which has historically outperformed the S&P 500. That index sells cash secured ATM puts every month and invests the cash in short term (1-3 month) interest bearing investments. Today we’re going to look at a new index and ETF that gives […]
Trade Details: Yesterday I posted on Twitter that I sold a March Put in $GDXJ the Junior Gold Miners ETF. The video below goes through the trade entry, my reasons for taking the trade, and the roll point. I sold a slightly higher delta than normal partially because $GDXJ is a low priced stock. Since […]
Casual investors are usually discouraged from selling naked options because naked options are considered “risky.” The occasional exception is selling naked puts, however, naked puts are frequently presented as a strategy to buy stock at a lower price. I’m not totally sure why it’s less risky for a causal investor to buy a stock that’s […]
Overview: This is brief overview of the $SPY naked put I sold Monday. The trade was tweeted shortly after entry and on Monday was down a little bit of money. Yesterday $SPY was stronger and that moved the trade back into positive territory. $SPY Naked Put (pTheta Trade): On Monday we were 95 days until […]
Overview: Short gamma trading strategies are frequently described as picking up pennies in front of a steamroller. While I realize that intuitively it sounds like a bad idea to hang out in front of heavy equipment, I decided to take a look back at 2013 to see what would have happened if I spent the […]