The Trials and Tribulations of a Trader

It has been nearly two months since my last post and I know that readers are wondering what happened to me. Did I blow up my account? Did I jump off a building? Is Aram just another one in the long list of flash-in-the-pan here today, gone tomorrow gurus? I have received countless emails from…

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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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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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Crash on Black Monday

Followers of this blog may wonder where I disappeared to just as the markets collapsed in what will likely be another historic day in stock market history. Did my account blow up? Did I survive to see another day? Did I jump out of a 20-story building? Fortunately, none of those scenarios is how things…

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SPX Trading Blunders

The short-lived increase in volatility this past Wednesday offered great opportunities for the disciplined and mechanical trader. On the other hand, it also presented great challenges to those of us that were holding short put options set to expire on Friday.  The past couple of days put my trading skills to the test. I failed…

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