Tuesday, February 21st, 2017

1.NDX  IRON CONDOR – 93% probability - Is doing great and is very safe -time decay is  taking its toll on the spreads. 2. RUT BULL PUT SPREAD – 97% probability  and has more than 30 % profits, and is very safe at the moment. Remember we closed calls side for 0.15 taking profits when RUT dipped […]

NDX bounced off its 50 day moving average at 1877 levels and RUT bounced off 720 levels at its 200 day moving averages. Had we broken down, than we could be seeing some serious downturns here and the whole market would have turned bearish. The good news today is that my McClellan Oscillator and Summation Index has […]

 How much profits I should risk? Lets say you have a trade and your target was to earn $1 gain till expiration. Sometimes things go your way and what happens is you are in an enviable position where profits just fall in line long before expiration day. Many traders will do what is easy, they […]

Closed  call side of RUT IRON CONDOR. RUT is down 16.31 today. Now the risk is on the downside. BUY RUT 810 SEPT CALLS SELL RUT 820 SEPT CALLS NET DEBIT= 0.15      Net profit =0.40                     Yield =0.4/5= 8 % Initial Trade : SELL RUT 810 SEPT CALLS BUY RUT 820 SEPT CALLS    NET CREDIT= $0.55             Iron Condor total […]

All September trades are listed in the members area. We have 4 income trades two on indexes and 2 on stock options. 1.  RUT Index Iron Condor– September expiration 92% probability 2. NDX index iron condor– September expiration 90% probability 3. AAPL bull put spread– 93% probability of success. 4. POT speculative trade- income generation […]

SECTION 1256 CONTRACTS I think we discussed all the other benefits of trading index options in another post. This basic tax advantage is always ignored when it should be the foremost. This post is not an attempt to provide you any tax advise, please consult your tax professionals for  further information. The IRS has a […]

Index options trading is focused on major indexes wholly and not on individual stocks. The same principles can be applied to stock trading but often with different results. Indexes are an aggregate sum of stocks and move with the general trends prevailing in the markets, depending on the economy, oil, wars, and world events. 1. […]

August 8th , 2008 What a lucky day with all eights in the date! After successfully closing all trades on IWM for profits, here is the new trade with just one week to go. This will gather theta in 4 trading days and if the index stays around 73.5 area should yield some good results, […]

With the market up second day in row NDX at 1900 levels and hitting 50 day moving average above, closed the NDX put spread for 0.05 cents. The theta on the spread was far less than next months at the same strike or above. Will look for new set ups in the making. Closed NDX […]

With a strong rally today DOW up 331 and NDX up 64.92, the bull put spread has diminished in value down to 25 cents. Because the markets are in rally mode, completing an IRON CONDOR is risky and and counter productive. The markets will start reaching your short strikes and there is not enough premiums. […]