Big Picture: Did anyone else like how I called that bottom last week?! Right after I said I was bearish we had a nice roughly 2% higher week. Sometimes I’m just wrong. This is one of those times. I want to talk about a ratio that I’ve started following. That ratio is the VIX/VXV ratio, […]
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 […]
Big Picture: Context is everything. This week the markets fell a few percent, but it didn’t seem like that big of a deal. Following the big tumble lower two weeks ago, being off a measly 2-3% isn’t that significant. The Russell 2000 ($RUT) continues to hold up better than the S&P 500 ($SPX), but there’s […]
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 […]
Note: The following is an excerpt from a guest post that appeared at Steady Options. Steady Options offers a subscription service for traders with an impressive track record and their blog is filled with high quality information. Make sure to check them out if you haven’t already. —————- The other day I was having a conversation […]