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 edge is not just in the chart
During mentoring sessions after the open with our newer traders, I ask each of them what they traded. First up today was a trader who shorted a failed breakout in ENOC. He likes that chart pattern. But is that simple chart pattern enough to trade this pattern with edge? No. There was more to this trade than a failed breakout. … Read More
Market Edges Come and Go
There are two truths that I’ve observed about trading over my trading career. 1. Trading edges come and go 2. Great traders last For these two truths to exist simultaneously, it means that great traders cannot depend on a few edges that currently work. Mike Bellafiore has said many times before that the most important aspect of success in … Read More
Pre-Market Trade Prep–TWTR TYC SBUX
Each morning before the market opens we outline a series of trading ideas. There is a written “game plan” to make it easier to follow along. We identify the best stocks to trade before the opening bell as this puts us in a better position to execute in the heat of the moment. Here is a screen cap of the … Read More
Selling the dream- I will pass
I got asked to do a podcast to discuss one of the books I wrote. I like doing podcasts. I did one with my friend ChicagoSean for StockTwits here. I did one with Chatwithtraders here. I like listening to podcasts. Soundcloud is an app on my phone, which I frequently use on my walk from the west side to the … Read More
One Benefit of Intraday Trading
The following is a simulated back test of a simple short term momentum system on SPY. It generally has positive performance but the draw down periods are a little deeper and wider than I would prefer. Now, I’ve taken the same system but coded it to go flat at the end of each day. Then it waits for a fresh … Read More
The sloppy, the good, the same trader
Let me share actual trading events from our prop desk this week. It’s Tuesday, the market is selling off hard and Trader A thinks the market should bounce and VXX decline. He fades the market and VXX all day for a net result of -10k. Let’s call this The Sloppy (in his trading). It’s Thursday, the oil has sold off … Read More