A few years ago, I created a trading indicator to help me get an edge. In options trading there are other parts to a trade besides being bullish or bearish on a stock. You’ve gotta choose the right option strikes, duration, and strategy to make sure you get the best risk/reward on your trades. The […]
The One Thing That Can Take This Market Down
What a grind higher. The QQQ (Nasdaq 100 ETF) has rallied about 5% since the beginning of the year. A slow, steady march higher as entirely too many people got stuck leaning the wrong way as the market broke out to new all time highs. And what have we seen to start 2020? Political risk. […]
How I Was Early On The Short Bond Trade And Still Earned Nice Profits
Back in August, we saw an absolute collapse in yields. Remember, when yields tank, TLT runs higher… And if the market is expecting deflation to grip the markets, it will get priced in by a spike in TLT. Strongest move we’d seen in years. Here was the full video of why I thought TLT was […]
How to Pull 1k Out Of The Market Using This One Weird Options Trade
Let’s play a game. Say I have a coin, and you bet heads or tails. If you guess right, you win $1. If you guess wrong, you lose $1. This is basically a “breakeven system.” After all, with 50% odds, it’s going to be a wash. Yet what if the coin wasn’t fair? What if […]
How to Trade the “Free Trading” News
Robinhood was the catalyst. An upstart broker targeting a younger demographic with the promise of “free” trading… on stock and options. Personally, I thought it was a gimmick and not sustainable. Looks like I was wrong. Last week there was a “race to zero” with the major brokerages — SCHW, ETFC, AMTD, IBKR. Looks like […]
My Favorite Kind Of Technical Setup For Iron Condor Trading
What do we know when we start an iron condor trade? Let’s take a look at the two of the option greeks. First… Delta. I’ve talked about this plenty of times, but iron condors are not “market neutral” trades. They start off slightly bearish. The other greek you have is vega. This is related to […]