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…

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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…

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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…

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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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FTSE 100 Companies List

The ‘Financial Times Stock Exchange 100 Index’ contains 100 different companies that have the highest market cap in the London Stock Exchange. The FTSE 100 was established back in 1984…

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What Is A Rounding Top Pattern

Today we’ll talk about what is a rounding top pattern;  a chart pattern used in technical analysis. Many reversal patterns give an early indication of the reversal of the trend….

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Reward to Risk Ratio and Win Rate

Contents Relationship Between Win Rate and Risk-to-Reward Lower Probability Trades No Holy Grail Unprofitable Strategies It Is A Spectrum Iron Condor Example Determining The Minimum Win To Be Profitable Derivation…

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How To Set Up A Synthetic Short Put

You may not have heard of a synthetic short put. Despite this, you have almost certainly traded one. This article will break down the synthetic short put trade, which creates…

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Bullish and Bearish Separating Lines

Today we’ll cover two technical analysis candlestick patterns: The Bullish and Bearish separating lines candlestick pattern. Candlestick patterns help the traders to understand the price action. Therefore, such patterns, when…

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Put Option Delta

Today we’ll discuss an important topic for any option trader: put option delta. All options that have any value will have a delta. Delta reflects the change in the value…

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