Let’s take a look at some of the factors when considering “Should I trade SPY or SPX?” COMMISSIONS This is the big one for me. If you have a broker (such as Interactive Brokers) who charge per contract, then it makes much more sense to trade the index options. SPY is basically 1/10 of the ...…
Butterfly spreads are an excellent income strategy, but they are one of the most frequently misunderstood and poorly traded strategies among retail traders. Have you had any success or failures with this strategy? I would love to hear from you in the comments section below. I see a lot of traders using Butterfly’s and looking ...…
Hi everyone, just wanted to let you know that I am running another FREE promotion for my book – Bullsh*t Free Guide to Iron Condors. You can download the book from Amazon for free on May 7, 8 and 9. Enjoy! Here is the link to the page on Amazon: http://amzn.to/10geDMF G.…
Divergences in the market can be a powerful tool, but the really important ones can be hard to spot. Carter Worth is someone I have followed for a long time. His analysis has been spot on in the past. I remember in March 2009 he called the bottom due to a divergence he was seeing ...…
There are number of different factors you could take into consideration when choosing strikes on your iron condor trades. Some people tend to over analyze and then are overcome with analysis paralysis. Others try to take a rules based approach and take the emotions out of the decision making process. For those suffering from the ...…
Diversification is a fools game. I’d rather risk my entire account on one trade. Before you start thinking I’ve gone crazy, hear me out. Warren Buffet once famously said: Wide diversification is only required when investors do not understand what they are doing I remember doing a coaching call with a client one time and towards the ...…
I received a great email recently from a reader about cutting out the noise. It really rung true and is something that everyone can benefit from. Here is the email: “I have personally spent far too much time following Twitter traders, StockTwits, bloggers and watching CNBC looking for great home run trade. I almost never follow ...…
I wanted to say a quick thank you to everyone who has purchased my iron condor book – Bullsh*t Free Guide to Iron Condors. I’m absolutely blown away with how successful it has been and the feedback has been simply amazing. I’m very grateful to everyone who has given me feedback, both positive and negative ...…
Make 10% per month!! Sounds great doesn’t it? That’s what a lot of option trading websites are claiming these days. Are they false claims? No, you can actually make 10% per month with iron condors. What they don’t tell you about though are the risks… A typical iron condor trade will bring in around 10% ...…
I received an interesting email this week from Hari Swaminathan from Option Tiger concerning the Flash Crash of 2010. The Flash Crash is something I talk a lot about here on the blog and I am always looking at ways to protect against something like this happening again. Hari had an interesting experience during the Crash in ...…
