I like to hold companies’ stocks for the long term growth potential, but I am not the person to buy the stock outright. A portfolio of some of the companies I like for a long-term play. I am not focusing on buying stock but stock substitution, a LEAP (Long Term Equity Anticipation Security). That is …
Get ready, let’s go!!! A weekly option advance combination position. The theta trade and the adjustment guideline. What are the best points to adjust, just apply common sense? The RUT flirting with 1600 level and it’s have been underperforming the SPx and NDX. Rut may be ready to make a move. Either way, can I …
In the past few weeks, the SPX has made 165 pts move and has blown through its upper limit of the expected weekly price range. This kind of movement highlights the weakness in the option model. The option model predicts that 68% of the time, SPX should trade within its forecasted range. I am going …
Managing risk by the Geeks The key to consistency when trading any option strategy is knowing the Greeks of the option position. I am sharing one of my current position. There 8 days left before the expiration day. I have left the symbol out to focus on the concepts. From the snippet below, I have …
The size of your trades relative to the amount of capital in your trading account is critical to the success of a trader or investor. The difference between a successful trader or investor, and a losing trader or investor can be summed up to the size of the trade relative to the value of your …
MANAGING AND PROFITING FROM DELTA, VEGA, THETA, GAMMA RISK THE ‘GREEKS’ RISK MANGEMENT GRID Line Max Profit? * VEGA POSITION DELTA POSITION Max Profit? * PORTFOLIO BIAS** 1 Down ← Long Vega Short Delta → Down BEARISH 2 Up ← Short Vega Short Delta → Down NEUTRAL 3 Down ← …
As the market changes, I will use one follow strategies to keep my account growing. Strategy Conditions Duration Strategy Adjustment Risk Areas Probability Factors Technical Factors Strategy Tool Black Butterfly (BB) Express Expiration Front Week Layer on a CALL or a PUT Black butterfly if more than 4 day remaining. Adding Risk with second butterfly …
