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…

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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…

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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…

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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…

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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,…

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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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