Myth #2 of Options Trading

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Options traders who don’t understand options synthetics will often get confused and believe that they can buy a synthetically equivalent trade for “a bargain price”. In this video, we explain why economically equivalent trades will always fill at the same price.

Trader review with Dr. S

Merritt BlackFree Daily Trading Video, Futures

In this video, Dr. Brett Steenbarger conducts a live trader review with a futures trader from our community. Get an inside look at a real coaching/mentoring session at SMB Futures. See what a great weekly review process includes. Understand the importance of process goals for focused improvement

Myth #1 of Options Trading

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Market neutral options traders fall into the trap of believing many myths about successful trading. Today’s video is the first in a series of videos on the myths of options trading.

A major mistake that options traders make is to fail to recognize the huge psychological difference between trading small amounts of capital and large amounts of capital.

Should I trade GLD Options?

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In this video, Seth Freudberg reviews the qualities that must be present for trading vehicles to be traded in a scaleable way. It is a good idea for traders to diversify their trading portfolio so as not to be too heavily dependent on one trading vehicle. However, it can be dangerous to trade market neutral options strategies without making sure that the trading vehicle has certain qualities that make it tradeable.

Dumping Losing Trades

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In this video, Seth Freudberg gives a recent example of just such a situation in the July and August Bearish Butterfly trades. Often times, in options trading, the conditions that will cause one trade to lose are the exact conditions that will allow another trade to win.

Controlling the implications of a downside move

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This video covers a technique for cutting a position’s exposure to increased options volatility under these circumstances. Options trading in a low volatility environment is not without danger. If the market sells off, options volatility will increase causing a larger than normal drawdown on positions opened in a low volatility period.