Dumping Losing Trades

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

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.

Is it bad to sell options premium in low volatility times?

In this video, we review the myth that trading in low volatility times is unfavorable. Most options traders complain when volatility is low because they are getting paid less well for options risk. But the evidence seems to show that low volatility times are actually more profitable than high volatility times.

7 ideas for improving your trading consistency

I was recently a guest lecturer at Stony Brook University sharing my knowledge of trading and trader development with interested students.  At the end of my lecture, a student approached and asked, “How can I improve my trading consistency?” We have polled our trading community for the top trading issues they would like to solve, and trading consistency consistently makes … Read More

What’s Your Culture?

In this video Mike Bellafiore discusses why it’s vital to develop your own culture whether you are running a trading firm or trading for yourself.