Yesterday we talked about how market neutral options traders usually generate their best returns when directional equities traders are struggling to find opportunities. Here’s one practical way you can begin to add market neutral options to your playbook. Action: Use midday as options time The best opportunities for short term equities trading is at the open and close of each … Read More
How this Bearish Strategy Beat the Index by 288%… Even in a Bull Market
Please note: Trades discussed below are hypothetical and simulated for educational purposes only. Review the options risk disclosure. The graph below compares the Bearish Butterfly vs. the S&P 500 index. If you had traded the rule-based Bearish Butterfly Strategy for the past 5 years, you could have outperformed the index by 288% — even though the market was bullish during … Read More
Heightened Volatility is a Double-Edged Sword
Volatility (both real and implied) has been stepping higher. While not at extreme levels, the S&P 500 Volatility Index ($VIX) is at a precarious point. Volatility is one of the more reliable market segments for a mean reversion bias. Most of the time, the VIX lives somewhere between 10 and 30. However, when it gets above 30, the index can … Read More
Which Options Strategies Is SMB Invested Into?
A few years ago, we partnered with a hedge fund, The Kershner Trading Group, to expand our resources and capital for trading. At about the same time, the partners were noticing that John Locke’s options strategies had been showing great results for several years. The natural next step for SMB was to connect these great strategies (and great traders) with the capital … Read More
SMBU’s Options Tribe Webinar: Dave Freitag: The DAVE Options Trade—Delta and Vega Neutralized
This week, Dave Freitag returns to the Options Tribe to present his unique DAVE (Delta and Vega neutralized) trade which he developed personally and trades each month
SMBU’s Options Tribe Webinar: Steve Papale of Optionvue Systems, International: How Implied Volatility affects the Options Greeks
This week, Steve Papale returns to the Options Tribe to discuss the often misunderstood topic of how the options greeks are affected by options implied volatility.
SMBU’s Options Tribe Webinar: John Locke: What is holding you back from becoming a successful options trader?
Today, John Locke returns to the Options Tribe to discuss his view as to what are the necessary steps options enthusiasts must take to become successful options traders.
SMBU’s Options Tribe Webinar: Options Tribe Member Brian Larson Presents the Rhino Trade
This week, Options Tribe member Brian Larson appears for the first time on the Options Tribe to present the signature “Rhino” trade that he personally developed. It should be a great presentation and we are looking forward to your attendance!