Last week, I posted a couple of trade ideas on RUT following it’s stellar run. A couple of people called me crazy for placing a bearish trade in a run away bull market. So far the trade has worked really well, and if you took the trade, I would be looking to take profits when ...…
To say markets have had a pretty decent run lately would be a bit of an understatement. The RUT has rallied 10.7% in the last 19 trading days. Truly amazing. Friday was options expiry for stocks and ETF’s and I got the feeling that market makers were really trying to punish the shorts and inflict ...…
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 ...…
