This post originally appeared here on SeeItMarket where I’m a contributor. Investors and options traders sell puts and put spreads to generate additional income or acquire stock. In many cases, traders attempt to time their entry by waiting for oversold extremes. Once the market is oversold, they sell out of the money spreads with the […]
Overview: This post tracks the progress of the March 2016 CIB Trade. I’ll be updated the post as the trade progresses with written notes and video. The Greeks in the spreadsheet below will be updated daily. As always, the information is being presented for educational purposes only and this is not a recommendation to take […]
Overview: One of the more common questions I receive is how to display multiple, different positions on the Analyze Tab in ThinkOrSwim. For example, we might have a position in SPX or RUT and want to see what happens if we add a SPY or IWM option. The video below walks through the process of […]
Big Picture: It goes without saying that 2016 has been challenging for most non-directional, short gamma traders. Anytime you’re short premium in front of a freight train, things can get dicey. If you don’t know when to step off the tracks, you’ll eventually get hit. The market is not, “Out to get us,” but we […]
As income traders we’re always evaluating strategies and ways to trade that increase profitability, reduce risk, or are just easier. This post looks at some of the characteristics of Broken Wing Butterflies and how they can be used to construct positions with little directional risk and a potentially wide range of payoff. Normally when we […]
A hammer isn’t the only thing you need to build a house, but it would be pretty hard to build a house without one. Understanding volatility is an essential part of options trading and there are so many ways of describing it that it can feel overwhelming at times. Fortunately, visualizing some of the measures […]