An Options Tribe Member asks: Given that we’re about 55 days out from the July monthly options expiration, I was playing with a July 770-820-870 put butterfly on the RUT (when it was trading around 840). Usually the bid/ask spread for ATM and OTM puts on the RUT is narrow enough, but the spread on the 870 put ($51.80 by … Read More
Traders Ask: Is it better to neutralize a double butterfly or simply close it?
Martin asks: I have a question about one of your first webinars involving the February butterfly. At the end of the trade it appears that instead of closing the trade completely you just neutralized it. What was the reason that you handled it that way ? What is the advantage of neutralizing the trade instead of closing it?: Martin is … Read More
Traders Ask: About that SYY Trade
Hi Mike, I just read your blog post on the SYY trade you guys made the other day. It was basically a play for an opening drivethat you wanted to add to your traders’ playbook. Just a quick couple of questions, if you don’t mind: 1) Would you be more aggressive if you see the bid hold at 30.63, drop, … Read More
Trader’s Ask: A Good/Safe Broker?
hi mike, what sould i look for in a good and safe broker, and what broker do you guys use (lightspeed ?) p.s loved your book ! one of my top 10 (along with livermore’s, humphrey B. neill ,o’neil ,wyckoff and all the best) Mr. Spencer Responds We just launched SMB Trading. If you are looking for a great place to trade … Read More
Traders Ask: What is your deal with overnights?
Hello Bella, My name is Jonathan, and I am a day trader and fan of your SMB Blog and Twitter feeds. I have a trading question for you that I am confident you can help me with; you guys have some serious experience. I understand your style of trading sometimes involves holding day-trade-intended setup overnight. I notice myself, several times, … Read More
Traders Ask: Does Every Options Strategy Work with Every Stock or Index?
One of our readers, Cecelia, sent in the following question after watching our SMB Options Trade of the Week which, covered the bearish butterfly trade that has become popular recently: “Will this trade work for indexes only? Do you recommend this for individual stocks such as AAPL?” We get this question a lot and the answer is important for many … Read More
Traders Ask: How do you find levels “you love”?
Hi Mr. Bellafiore, I read your book and have been a daily reader of the blog ever since. I especially appreciate your and Adam Grimes’s posts. I trade the e-mini (ES) but would like to trade more stocks if I can figure it out. The recent post on execution was pointed. I suspect the difference in the trader who was shaken … Read More
Traders Ask: Stocks In Play of a Basket?
Question: Hello Mike, My question concerns mostly to stock selection and tactic of monitoring the market during the trading session. I’m thinking about it a lot last time and I’m very interested in your opinion on that. There are always a lot of opportunities on the market, especially during the earnings season. So we have 2 choices: 1) The first … Read More