There sure are numerous ways of trading and adjusting iron condors. Today, we will look at an interesting case study where the condor ended up as a butterfly. We are not saying this is the best way to trade an iron condor. However, it always helps to look at different ways of trading and learn … Read more
Today, we will look at a completely risk-free options collar trade. Risk-free collars are not synonymous with zero-cost collars. The zero-cost collar just means that you can add an options collar around a stock for zero additional cost. Those are common, but they are not risk-free. The options collar we are discussing is less common, … Read more
Contents On August 4th, 2024, the VIX was at 45.30 as the trading session closed for the week. In a general sense, we know that the higher VIX goes, the greater the fear in the marketplace and the greater the volatility of price movements. Hence the nick-name, the fear index. In today’s article, we will … Read more
When it comes to playing stock earnings announcement events with options, there are pre-earnings trades that enter and exit the trade before the earnings event. Contents There are earnings trades, meaning we initiate a trade right before earnings and exit the trade after the event. There are many strategies out there that attempt to capitalize … Read more
Is there an optimal wing width for iron condors? Yes, there is, according to the research team at Tastylive, which backtested over 1000 trials of iron condors from 2013 to 2024. Contents The wing width size depends on the underlying assets’ price. The larger the asset, the larger the wing width needs to be. So, … Read more
A zero-cost collar consists of buying a put option and selling a call option to finance the cost of the put option. When the correct strikes and expiration are chosen, this incurs no extra cost to the investor. The option collar will hedge downside risk during earnings season, which can be volatile, as unexpected results … Read more
We will assume you already know that a put credit spread has a positive delta, positive theta, and negative vega. Today, we will dive deep into how these Greeks change with different configurations of the put credit spread. Contents Questions like: How does moving a put credit spread closer to the money affect the delta? … Read more
Once upon a time, there were two double diagonal spreads on SPX. Contents One looked like this: Which was initiated on December 6, 2024, through this order: Buy one December 30 SPX 6125 call @ $42.20Sell one December 27 SPX 6120 call @ $41.50Sell one December 27 SPX 6055 put @ $36.99Buy one December 30 SPX … Read more
In a world where prop trading has become one of the fastest-growing sectors in finance, a firm is connecting trading capital with real education and changing how traders succeed. That firm is Y4Trade, and in partnership with platforms like ChartLearning, it’s helping traders move from theory to real profit. Combining Knowledge and Execution Today’s traders … Read more
Forecaster.biz is an online financial software for assisting traders and investors in analyzing various financial assets in the market, including stocks, ETFs, indices, Forex, commodities, and even crypto-currencies. Its designers attempted to make the user interface clean, simple, and intuitive, reminiscent of the spare look of the original Google search engine. Contents Just start typing … Read more