SMB’s Options Tribe: Free Webinar Today at 5pm: Butterflies With Weekly Options

Seth FreudbergOptions Education, Seth Freudberg's BlogsLeave a Comment

SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of options trading. This week, Mike Adam, who works with Charlie … Read More

December 55 day $RUT bearish butterfly options trade: The finale

Seth FreudbergGeneral Comments, Options EducationLeave a Comment

On  Wednesday,  the market  gapped down and  continued it’s downward trek of the previous  5 trading days.  According to the guidelines of the   bearish butterfly strategy,  the reduced profit target of $1000 comes into effect  21 days to expiration on this lot size.  As 21 days to expiration was yesterday, and the position was up $1800, I  previously stated that … Read More

What is your “bread and butter” options trade?

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's Blogs8 Comments

Yesterday we held our second Options Tribe  webinar on the subject of an  SPX  butterfly trade that I  was involved in developing.  This trade has become my “bread and butter” trade  –the approach  that I am comfortable trading under almost all market conditions and which provides  a stable pattern of returns. Almost every great options trader that I know  has his … Read More

The Right Way to Adopt a New Options Strategy for Your Playbook

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's BlogsLeave a Comment

In our last blog post we discussed the reasons that options traders should take it slowly when adopting a new  income strategy. Here are some simple steps you can take  to assure that your adoption of a new options strategy is sound: Communicate with  the developer of the strategy and see if he or she is still actively trading the … Read More

Are you REALLY willing to get back on the horse?

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's Blogs, Trading Psychology7 Comments

  In    Friday’s  options   post,   we talked about the tendency of options traders to become enamored of a particular strategy  simply because the trader is   on   a   brief  winning streak with that specific strategy.  This propensity is particularly dangerous because market neutral income options strategies typically are entered monthly. So   even a mere  four month winning streak—only four successful trades in a row–allows … Read More

Avoiding Pitfalls: Safeguard Your Options Trading Journey

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's Blogs, Trading Psychology4 Comments

In a speech delivered to the American Enterprise Institute in late 1996—in the middle of the formation of the dotcom bubble of the 1990s—then Federal Reserve Board Chairman Alan Greenspan coined the term “irrational exuberance” to describe an illogical optimism about the economy that was pumping up stock prices well beyond any reasonable level. History shows that he was correct, … Read More