This week's article takes note of the inverse relationship of the U.S. Dollar, and the equity market and how you could use both to make a delta neutral trade.
Going Delta Neutral with DX and SPY
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Some Thoughts About Trading and Other Answers
In this article, I will comment on several emails that I have received from students on various topics relating to option trading
Overly Aggressive Trades on the Weeklies
Recently, I received an email asking me to comment about the selection of weekly credit spreads. One glance at it made me realize that there was so much more to this than meets the eye.
Being in a Wrong Trade
The name of this newsletter comes from an email that I received just the other day. The subject line of the email read: Please help.
Iron Condor Trade Analysis
The point of this week's article is to analyze last week's trade. In order to do that, I will dissect last week's trade into two pieces and explain the logic behind it.
Getting a Better Fill
In this article, I will go over a lesson about complex spread execution on the weeklies.
The Rise and Fall of Apple's I.V.
As I was working with a class on the topic of short vertical spreads looking for an example, the students insisted on using AAPL. I obliged.
Placing a Covered Call with TradeStation
The other day I received an email from a reader who had taken time to read two of my covered call articles. The email stated a great disappointment for not providing an example of how to execute a Buy-Write Covered Call strategy on TradeStation; hence, this article.
What Just Hit Me? VZ!
The name for this article is due to a losing trade which a student emailed me to analyze. She knew that she was losing money on it yet when she was assigned almost two full weeks before expiry, she needed some explanation.
A Repair Strategy (Debits)
I have covered in these newsletters the topic of debit, as well as credit spreads in great detail. However, I have not dabbled into the repair aspect of a trade and that is exactly what Curtis, a Kansas option student, asked me to do
50 Cent Strike Spreads?!?
Recently, I was teaching an option class in Overland Park, Kansas, and we were looking at placing a short vertical (Bear Call) on JPM. We noticed that the underlying did not trade over 42 for awhile, hence, we selected the 42 zone as the correct place to sell the short call.
Derivatives of Derivatives
In this article, I will look at the E-minis, which are a derivative of the S&P Cash Index, and at the options on the E-minis, which would in turn be a derivative of the derivative. I will explain how they each work in isolation, which will help demystify how the other one functions as well.