A little background: As some of you know, I’m a CPA (Certified Public Accountant) and work as a Tax Accountant by day. In other words, I spend most of my time at work either preparing tax returns, doing tax planning, or coming up with ways to do something market related (aka daydreaming). Sure, you can […]
What it’s about: The video below goes through a naked put trade in $GLD and then moves to the $IWM butterfly. The December IWM Put Butterfly is within two weeks of expiration and the Gamma, Delta combination is getting a little risky for my taste. I take a look at two expiration week adjustments that […]
Quick Overview: As I mentioned in the Weekend Market Commentary, I’m looking for a naked put to sell in Gold ($GLD). My personal opinion is that Gold looks fairly neutral with a good amount of non-directional volatility. The Parabolic SAR for the pTheta system was hit last week and price has fallen a bit from that […]
Big Picture: As US Stocks continue to grind higher, markets around the world seem to be moving in a big way. Specifically, I’m talking about Oil, Commodities, Gold, and the Dollar. The Dollar has been strong against the other majors (Euro, Yen, Swiss Franc) and is also beating up on Commodities. Remember that our commodity […]
Video update: We’re about two weeks from the December expiration and $IWM is up above 117 again, which is creating a potential problem for the December Options Butterfly. In the video below I go through two potential Butterfly Adjustments for the December position. Specifically, I consider a long call and rolling up some of the […]
When we begin trading Vertical spreads, Iron Condors, and Butterflies we learn that the trades are short vega. In other words, they benefit from a decrease in implied volatility. The opposite also generally holds true, meaning an increase in implied volatility should hurt the positions. However, complex options positions are made up of individual options […]