2016 Year End Analysis

This year presented many interesting challenges for me both with trading and events not involving trading. One of the more interesting challenges that I had this year was the opportunity to participate in a somewhat informal and friendly “trading competition”. Details of the trading competition can be found here. All of us that were involved…

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The Kelly Criterion – A Game Changer

Successful options trading is based on understanding the statistical probabilities and using those probabilities to create an “edge”.  The Kelly Criterion is one method that traders use to determine the appropriate position sizing for a given trade. The underlying principle is that you should not put all of your money into a single trade, but…

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OptionAlpha Podcast Interview

Readers of this blog know that I endorse very few trading websites or services, most of which were discussed in the blog post, Trading Mentors. One website in particular stands out when it comes to offering comprehensive daily training videos on options trading at an affordable price – OptionAlpha.com. When I began my recent foray…

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Trading Straddles in /ES

In last week’s Portfolio Analysis I briefly discussed an at-the-money straddle that I sold last week in /ES which proved to be extremely profitable. Today, I opened another /ES straddle, this time placing a protective put since I think this market still has significant downside risk. Sold $ES_F Oct 1920 straddle w/protective put for $84.50. No downside…

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Option Trade Adjustments

Over the past six trading sessions, volatility in both equities and crude oil has expanded considerably due to the financial crisis in Greece and, to a lower degree, China. Coupled with the increase in volatility has been substantial moves lower in both equities and oil. On June 29th, the S&P 500 Index ($SPX) opened at 2098.63. Since…

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