Should I trade GLD Options?

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In this video, Seth Freudberg reviews the qualities that must be present for trading vehicles to be traded in a scaleable way. It is a good idea for traders to diversify their trading portfolio so as not to be too heavily dependent on one trading vehicle. However, it can be dangerous to trade market neutral options strategies without making sure that the trading vehicle has certain qualities that make it tradeable.

Dumping Losing Trades

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In this video, Seth Freudberg gives a recent example of just such a situation in the July and August Bearish Butterfly trades. Often times, in options trading, the conditions that will cause one trade to lose are the exact conditions that will allow another trade to win.

Controlling the implications of a downside move

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This video covers a technique for cutting a position’s exposure to increased options volatility under these circumstances. Options trading in a low volatility environment is not without danger. If the market sells off, options volatility will increase causing a larger than normal drawdown on positions opened in a low volatility period.

Using Filters for Options Trading

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In this video, Seth Freudberg discusses the considerations in trading options strategies using filters. Some traders like to use filters to find trading candidates for particular strategies. There are some dangers in using filters to set up options trades for strategies for unfamiliar ticker symbols.