Tag: licensed financial adviser
Controlling the Vega of Calendar Spreads
From our previous study, we know that calendar time spreads have positive vega. Vega is one of the options Greeks use to inform us of how the trade will profit…
Read More »Triple Tops and Bottoms: What Are They And How To Trade Them
Triple tops and bottoms are powerful chart patterns that signal potential reversals in the market. These patterns can help traders either enter new trades to capitalize on the potential reversal…
Read More »Decreasing the Risk Of Credit Spreads With Iron Condors
As options traders or investors, we must be aware of the trade risks and learn how to control them. Whether we are trading a short-term credit spread or investing in…
Read More »Calendarizing a Butterfly Spread
Last time, we showed the adjustment technique, using a calendar to defend an iron condor. This time, we use a calendar to defend a non-directional butterfly. In the condor case,…
Read More »What is the maximum risk of a calendar options spread?
The max risk in a calendar options spread is the debit paid for that calendar, provided that the trade is exited at or before the expiration of the near-term option….
Read More »Cup and Handle: A Timeless Trading Setup
The Cup and Handle is a popular technical trading setup that investors have used for several decades. The chart pattern is simple; it consists of a large “U” shaped body…
Read More »Sell in May and Go Away! Really?
Contents Is It Still True Today? Conclusion This financial saying “Sell in May and go away” is really really old. It is not even clear when exactly this adage originated….
Read More »How to Manage an Iron Condor for Profit
Iron Condors are a staple among option traders but setting them up and correctly managing them can be a bit challenging. Some people assume it’s as simple as just selling…
Read More »When Do Calendar Spreads Have Negative Theta?
Calendar spreads are typically thought of as having positive theta, meaning they gain value over time. This is true only of calendars where the strike price of their options are…
Read More »What is the AIC22 Trade?
Contents Introduction AIC22 Trade Configuration Frequently Asked Questions Final Thoughts The AIC22 is a market-neutral options strategy that is designed for all market conditions. It is not a completely new…
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