Overview: Yikes, the week ending November 8th, 2013 was not gentle to Theta Trend. I closed out two trades for losses after having the stops hit. Both the EEM and GLD vertical spreads were closed and the only option trade still running is the QQQ vertical. There is also a quick mention of the FAN […]
Overview: The ETF’s below fill the three top spots in the ETF monthly rotation system. Because this is the first month that I’m trading the system and initiating new positions, there is a little *gasp* subjectivity involved. Opening Trade: Bought 265 shares of FAN at 11.20 on 11/1/13 As part of the diversified trend following […]
Note: The system itself is not original and borrows heavily from the ideas presented by Mebane Faber in his book, “The Ivy Portfolio,” and his paper, “Relative Strength Strategies for Investing.” There is a similar monthly ration system presented on the CXO Advisory website. Discussion of the Monthly Rotation System Towards the end of every month, I’ll go through and […]
Intro: I have a long history and something of a love/hate relationship with Iron Condors. One of my first option trades was a DIA iron condor during the financial crisis. I went back and looked and at the time I opened that trade, implied volatility was in the low 50% range and it fell to […]
Trend Following Overview: Trend Following trading generally makes use of a large number of underlyings (think markets) and trades all markets with a mechanical system. As I mentioned on this post, Donchian channel breakout systems can be used across numerous markets. There are countless other trend following systems that can be used to trade numerous […]
Overview: Yesterday (October 31, 2013) I was filled on an EEM options trade about 30 minutes before the markets closed. Price broke down intraday and the risk reward became favorable enough to sell a put spread. See the trade details below chart. Details: Sold the EEM 42/38 December Put vertical for an .82 credit. EEM […]