In our SMBU Daily Video, Seth Freudberg discusses why losses are inevitable in this kind of market. Options traders struggle in volatile markets like we are experiencing. It’s important to keep a proper perspective in these circumstances–losing on trades is expected–as long as you stayed disciplined through the trading process then you didn’t fail–you simply lost money on a trade. … 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
Tweaking Our Strategy During Market Volatility
In our SMBU Daily Video, Seth Freudberg explains how SMB’s Options Trading Desk tweaked its portfolio of monthly trades to adjust to this market environment. Traders need to realize that the market has changed–2016 is much more volatile In these environments, tweaking your portfolio of trades is recommended for retail traders * no relevant positions
SMBU’s Options Tribe Webinar: Doc Severson of Tradingconceptsinc.com: The Top Ten Lessons for Trading a Small Options Account
This week Doc Severson of Tradingconeptsinc.com returns to the Options Tribe to discuss his tips for traders who are managing smaller options trading accounts.
A Tale of Two DOWs
Yesterday, the Dow Jones Industrial Average declined over 250 points while DOW chemical rose over 5%. This was a textbook “stock in-play”. It was gapping higher, the desk identified clear levels to buy from (as mentioned in Trader90 AM meeting and Big Picture Game Plan), and the potential trade back to resistance was greater than the potential risk below support. … Read More
A Perfectly Ineffective Hedge
In our SMBU Daily Video, Seth Freudberg explains a perfectly ineffective hedge. Many options traders buy puts in a panic thinking they will control downside risk in their trades We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year In fact, traders would have made much more money SELLING … Read More
SMBU’s Options Tribe Webinar: Frank Fahey, Optionvue Systems, International: Trading Volatility Events—building a recurring earnings event portfolio
This week, Frank Fahey returns to the Options Tribe to discuss his approach to trading earnings events.
The Market Pays You For Volatility
In our SMBU Daily Video, Seth Freudberg discusses how market volatility can pay you. Everyone knows that the market has been selling off hard since the turn of the year. Many traders of market neutral options strategies are struggling in this environment However, initiating trades in this environment historically provides the trader with an edge. This video discusses one of … Read More