Tag: licensed financial adviser
What Is a Bear Trap Pattern?
Contents Not All Bears Lost Conclusion On May 20, 2022, the market set up a bear trap pattern, and by the next week, the trap had sprung. Bears were caught…
Read More »Butterfly Setup – How To Thin Out A Butterfly
Butterflies come in all sizes, wide or narrow. Today, we’re looking at a specific butterfly setup known as “thinning the butterfly”. It is possible to adjust a wide butterfly into…
Read More »Diagonal Put Spread Example – Taking A Loss On Boeing
Today we’re looking at a diagonal put spread example of Boeing (BA). In this example, you will learn why it’s important to stick to your trading rules and cut losses…
Read More »Layering Iron Condors – HD Earnings Example
Today, we’re looking at an example of layering iron condors. We will first look at a standard adjustment, then look at an example of layering. Enjoy! Contents Standard Adjustment Layering…
Read More »Picking Up Pennies In Front Of A Steamroller – Responsibly
Contents Example Run Over By A Steamroller Add Risk Management Conclusion The image of picking up pennies in front of a steamroller is a scary image, and rightfully so. It…
Read More »Calendar Spread Example – AAPL Stock
This calendar spread example is an income trade that involves selling a short-term option and buying a longer-term option at the same strike. Usually, this is done with monthly options,…
Read More »RUT Iron Condor Example
Let’s look at an iron condor example on RUT. We like doing iron condors on indices such as the RUT (Russell 2000 index) and the SPX (S&P 500 index) because…
Read More »Hedging Short Vega With Short Delta
Contents Bull Put Spread The Bear Call Spread The Iron Condor Non-directional Broken Wing Butterflies What Happens If The Price Goes Up Conclusion This article will look at why it…
Read More »Iron Condor Earnings – AMD Example
AMD (AMD) is showing elevated implied volatility with an IV Percentile reading of 98%. That means that the current level of implied volatility is higher than 98% of all other…
Read More »Short Put Versus Covered Call
Contents Scenario 1: Covered Call On A Bullish Stock Scenario 1: Short Put On A Bullish Stock Scenario 2: Covered Call On A Stock Moving Sideways Scenario 2: Short Put…
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