This trader was tested with size and became stronger

Dr. Steenbarger wrote an illuminating post about improving your trading confidence and sizing through being tested. We saw this yesterday on our trading desk, powered by KTG, with a top trader.  He sure was tested and won. Trader wrote of this trading session in his daily review: Today, I had one of my largest swings going from down almost 45k … Read More

Do Options Income Traders Make Money Every Month?

The term “Options Income Trading” misleads new traders into thinking that they can realistically make money every month through this style of options trading. New traders may not realize that there will undoubtedly be losing months when adopting any of these strategies. In this video, we explain the realities of this style of trading, so that a new trader can plan his trading activities and cash flow realistically.

Making money in a low options volatility market

Most options traders have a defeatist attitude about earning profits in low volatility environments. The truth is that in many cases, low volatility environments are the best for making money in market neutral options trading. In this video, we cover the reasons behind this phenomenon.

The Myth of “Financing” a Long Option

Options Traders are often lured into believing that the less cash they pay for an options structure, the better. You must look at the full structure of an options trade to understand its risk and reward characteristics. In this video, we discuss an example of a “free option” that contains a huge risk, not obvious from the amount of cash that the position initially costs.