Theta Trend

Welcome!  Here’s how to get the most out of the site:  

Theta Trend focuses on consistent options trading with an awareness of trend, but we never attempt to predict where the market is going.  We prefer positive Theta strategies meaning we’re net sellers of options and our positions benefit from time decay.

The site discusses two broad categories of options trading systems:  non-directional and directional.

Positive Theta Non-Directional Systems:

Non-Directional options trading systems benefit from the passage of time and over a range of prices.  We trade systems that keep directional risk at a minimum and aim to make money regardless of where the market goes.  Two of the more common non-directional strategies are Iron Condors and Butterflies.  Our focus is largely on the Butterfly because the trade is easy to adjust and has a range of profit that rivals the Iron Condor.  Additionally, Butterflies tend to take much less heat during large market moves.

Non-Directional Strategy Posts:

• Consistent Income Butterfly – Another Options Strategy for Small(er) Accounts
• How To Trade A Butterfly In A Small or Very Small Account – The Migrating Butterfly
• Capital Discussions Presentation On The Core Income Butterfly Strategy
• Core Income Butterfly Trade Entry Analysis
• 3 Steps For Timing Your Butterfly Trade Entry
• Broken Wing Butterfly Trade Recaps and Trading Rules
• Range of Profit On Things With Wings – A Comparison of RUT Iron Condors and Butterflies
• The Shocking Range of Profit on Butterflies
• Implied Volatility Riddles – Do I Stand Corrected On Vega?
• 4 Low Risk Butterfly Trades For Any Market Environment
• Iron Condor Trading Rules and Stalking a RUT Iron Condor

To see how an actual Live Non-Directional trade is managed, you should check out this page.

Positive Theta Directional Systems:

Directional systems seek to make money when price either moves in the right direction, stays the same, or doesn’t move against the position too much.  There are quite a few directional systems mentioned on the blog that you can access using the “Directional” link in the menu above, through the links below, AND make sure to download a copy of the Original Theta Trend System below.

Directional Strategy Posts:

The Original Theta Trend System – A Positive Theta, Trend Following System:

Click here to get the 20+ page PDF explaining the full system including entry, exit, and risk management rules.

Other Positive Theta Directional Strategies:

• pTheta – Naked Options Trend Following
• Trend Following With Options – An Overview
• Look Inside a Trend Following Options Portfolio
• How to Analyze Potential Credit Spreads
• Chart setup for trend following with credit spreads

Trading Psychology Posts:

• How to Improve Your Trading With Meditation and Incantations

One more thing:

If you ever have any questions, don’t hesitate to get in touch.  My name is Dan and I run the site.  You can reach me via email at info[at]thetatrend.com.  I read all of my emails and I’m happy to hear from you.  Thanks for dropping by!