It’s funny how non-directional options trading differs from many other kinds of trading. For example, most forms of trading require price change to be taken advantage of by the trader. Day traders salivate when they look at charts that are vertical, in either direction. Directional options traders are the same way. But, non-directional options traders normally do best when … Read More
The key to winning options strategies is how well you handle the losing months
All great options strategies will have losing months. There is no getting around this simple fact, and it is critical to your mindset as a successful options trader that you accept these months as part of the game. While non-directional options spread strategies are also known as “income options trades” (giving some traders the mistaken idea that the strategies will produce … Read More
SMB Options Trade of the Week: A Bearish Butterfly Campaign
Seth Freudberg discusses the closing of a bearish butterfly.
Insights from Wharton School’s Investment Management Club
I gave a talk in Philadelphia on options strategies to the Wharton School Investment Management Club last Thursday. My daughter Halima, who is an undergraduate student at Bryn Mawr College in suburban Philadelphia, sat in on the the talk as well. In addition to wanting to be a supportive daughter, she was my intern four summers ago, backtesting options … Read More
SMB Options Trade of the Week: Bearish Butterfly
Watch Seth Freudberg in this video discuss SMB’s Option Trade of the Week. Seth Freudberg, Director of SMB’s Option Training Program, discusses a “Bearish Butterfly” designed to profit regardless of whether or not the market is selling off. Seth will show the flexibility this bearish butterfly. The trade can work out if the market sells off or if market runs … Read More
Is it Possible to Day Trade AND Employ Non-Directional Options Spread Strategies?
On the surface, the intraday trading strategies of equities and non-directional options spread trading would seem to be mutually exclusive. Day trading depends to some extent on strong directional movement that allows the day trader to get long or short a stock at at the right time and then ride that direction until an opportune time to exit emerges. Non-directional … Read More
Can I Trade Options While Holding Down a Busy Full-Time Job? How About While I’m Asleep?
While there are common themes to every kind of trading discipline, there are of courses differences as well. Options spread trading, for example is a very different world in many respects from day trading. At SMB, our intraday equity traders tend to focus on the opening hour and the closing hour of trading, with sometimes very high speed activity and decision-making … Read More
SMB Options Trade of the Week: Heart Friendly Butterfly Sequel
Seth Freudberg discusses an option trade on the SPX.