How To Defend a Problematic Jade Lizard on XLV
In this post, I want to walk you through an XLV position I opened a little while ago. I’ll show you each step I took — from the initial entry to the adjustments and finally to closing out the trade. I’ll also drop in some screenshots along the way so you can see exactly what […]
AMD Jade Lizard Strategy – $177 Profit
In this article, I’ll walk you through a recent trade I executed using the Jade Lizard options strategy on Advanced Micro Devices ($AMD) via the TastyTrade platform. This strategy is particularly effective in neutral to slightly bullish market conditions, especially when implied volatility is elevated. Let’s delve into the step-by-step process of this trade, from […]
Turning $80 Into $195 With a Calendar Spread Strategy
A calendar spread is a popular options trading strategy involving the simultaneous purchase and sale of options with the same strike price but different expiration dates. This strategy profits from time decay and changes in implied volatility, making it particularly effective in sideways or moderately trending markets. In this article, we’ll dissect a practical example […]
100% Profit of a Goldman Sachs Calendar Spread
Options trading offers a range of strategies, each suited to different market conditions and objectives. One such strategy, the calendar spread, stands out for its potential to leverage time decay and implied volatility differences. In this article, we’ll explore the mechanics of a calendar spread, when to use it, and walk through a real-life example […]
01/13/25 – Weekly Outlook: SPX & GEX and Options Insights
Despite last week being a shortened trading week due to Thursday’s market closure, it still managed to deliver significant volatility dure to economic news. SPX Below is the SPX daily chart showing its declining trend channel. he macroeconomic data on Tuesday and Friday were not well-received by the markets. Friday’s Non-Farm Payrolls (NFP) report came […]
Top 20 Trading Psychology Traps and How to Avoid Them
I’ve been involved in options trading since 2006. During this time, I’ve uncovered a ton of cognitive biases in myself and in others as well. Below, I’ve compiled the TOP 20 most common phenomenas. You could also call these trading psychology mistakes, but they aren’t necessarily mistakes. Instead, they’re general tendencies that are worth being […]
0DTE Options Poised for Another Big Year
The U.S. equity options market has been on a five-year hot streak, with 2024’s trading volume shattering last year’s record of just under 10.1 billion contracts, according to the Options Clearing Corporation. As more traders—both seasoned pros and enthusiastic newcomers—discover the thrill (and risk) of short-dated options, so-called “0DTE” (zero days to expiration) contracts have […]
What Happened in 2024 and What’s Ahead in 2025?
When a year comes to an end, I like to pause for a moment, look back, and see where we stand. I always review the yearly charts during this period. Of course, beyond the yearly candles, it’s worth checking the weekly and monthly charts too, just to see the big picture more clearly. S&P500 – […]
SPX Calendar & Diagonal Case Study
In this case study, I want to share a recent SPX options trade in which I combined Calendar and Diagonal spreads. The idea behind such a hybrid trade is to benefit from certain expected price movements and time decay, while maintaining some flexibility to adjust or partially close positions as market conditions evolve. My initial […]
IBIT – New Bitcoin ETF with Options
The IBIT Bitcoin ETF has been available since early 2024, and in recent weeks, it has also become optionable. Issued by BlackRock, this exchange-traded fund (ETF) is set to revolutionize Bitcoin investing by merging cryptocurrency exposure with the familiarity and security of traditional markets. What Exactly is the IBIT ETF? The IBIT (BlackRock USD Institutional […]
