Do Options Income Traders Make Money Every Month?

smbcapitalFree Daily Trading Video

The term “Options Income Trading” misleads new traders into thinking that they can realistically make money every month through this style of options trading. New traders may not realize that there will undoubtedly be losing months when adopting any of these strategies. In this video, we explain the realities of this style of trading, so that a new trader can plan his trading activities and cash flow realistically.

Making money in a low options volatility market

smbcapitalFree Daily Trading Video

Most options traders have a defeatist attitude about earning profits in low volatility environments. The truth is that in many cases, low volatility environments are the best for making money in market neutral options trading. In this video, we cover the reasons behind this phenomenon.

Why SMB is putting millions behind this market neutral options system

smbcapitalSMB Options

Over the past five years, we have built out a successful options trading desk at our firm. The options strategy that SMB originally backed still represents the highest capital allocation with the highest percentage of traders implementing it. That strategy is John Locke’s M3 Options Trading System. Here are some key reasons why we believe in the M3. It has been successfully replicated … Read More

The Myth of “Financing” a Long Option

smbcapitalFree Daily Trading Video

Options Traders are often lured into believing that the less cash they pay for an options structure, the better. You must look at the full structure of an options trade to understand its risk and reward characteristics. In this video, we discuss an example of a “free option” that contains a huge risk, not obvious from the amount of cash that the position initially costs.