Episode 280 of the Trading Justice podcast will feature a discussion on inverted Butterflies surrounding earnings. Volatility from earnings can be tough but there are trades to use, an inverted butterfly is one option. Description Episode 280 of the Trading Justice podcast will feature a discussion on Inverted Butterflies. Volatility from earnings can be tough…
Archives for July 2018
Inverted Butterfly Options Strategy
Philosophy This trade is used when you have no directional bias, but you believe a stock will move up or down enough to capture a profit. It’s commonly used as an earnings strategy. Construction Trade Identification: -3,-2,+2,+3 Technicals: Bi-Directional Strategy Type: Vega and Gamma Delta: Buy +2 at .50 delta and sell -1 @ .25…
Cash Flow Strategy Outlines
Iron Condor Philosophy Neutral Cash-Flow Bearish Volatility Negative Gamma (you don’t want the stock to run too far) Construction Use options in the 3rd expiration month Sell a call and put at balanced distance from the stock price Use options that are low delta Spend 2% of your account in margin Management Exit if the…
Episode 279: Short Strangle Trading
Episode 279 of the Trading Justice podcast will feature a discussion on short strangles. While the water is a bit murky with earnings season underway, volatility trading is a must. Description Episode 279 of the Trading Justice podcast will feature a discussion on short strangles. While the water is a bit murky with earnings season…
Options trading theory question: Do you tend to buy or sell options, and why?
Do you tend to buy or sell options, and why? Chief Operating Officer at Tackle Trading (2014-present) __________________________________________ I do both, but I blend them together in my overall portfolio design. I break strategies into groupings I call ‘Bread and Butter’ and ‘Bag of Tricks’ strategies. Buying options can be as simple as buying a…
Quora Question: 403(b) returns?
Why has my 403(b) only earned $492 in 19 months with $8,400 in contributions? It says 7.79% personal return rate, but it seems disappointing. Is this a good rate? The nature of most 403(b), 401(k) and other retirement programs is to push people into traditional allocations based on their age and target retirement date. Investment…
Develop your Daily Processes
In life, business and trading it’s important to develop systems and processes to make sure you’re moving forward efficiently. As a mentor, one of the most important things I can do is show a new student how to systematically approach the market, each trading strategy and their education. Let’s take each one of those topics…
Episode 278: Futures Trading with Grant Larsen
5 Study Tips for New Traders
As a new member of our team, you’ve made a great choice to join like-minded driven and successful people who are taking control of their investing. Here are some things to keep in mind as you get started. 1. Be Patient. You don’t have to master everything right away. This one’s self-explanatory, but let’s discuss…
Episode 277: Enhancing System With Dividends
Episode 277 of the Trading Justice podcast features system design. Host Matt and Tim justice invite system designer Greg Holmes to talk about the how to enhance your systems with dividends Episode 277 of the Trading Justice podcast features system design. Host Matt and Tim justice invite system designer Greg Holmes to talk about the how…