What is working for YOU

adminGeneral Comments

When I receive emails from new and developing traders they often dwell on what is not working with their trading.  They recite with precision exactly what they are doing poorly and with thoughtful reasons for this.  Inevitably, they ask for help with these issues. My first response generally is to ask them what they do well.  And we then build … Read More

When you are trading too big

adminGeneral Comments

When are you trading too big? Recently, while heading outside for a trading break, a developing trader stopped me near the elevator.  He gave me a progress report on a new strategy that he was running.  I love it.  It is unique.  He has backtested the strategy and it has edge.  No one else on the desk is trading it. … Read More

The Myth of “Financing” a Long Option

smbcapitalFree Daily Trading Video

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.