SteadyOptions Trading Blog

It is widely acknowledged that the price of the underlying directly impacts the premium of the option. Therefore, options are termed derivatives. Their current value is directly derived from movement of the underlying price. Is the opposite also true? Does movement of the option value affect the underlying price?

Iron Condor and Iron Butterfly are both very popular strategies. Both of them are usually used as non-directional strategies (although butterflied can be used as a directional trade as well). Both trades are vega negative and gamma negative, but there are also few important differences between those two strategies.

2021 marks our 10th year as a public trading service. It was our best year since inception. We closed 192 winners out of 270 trades (71.1% winning ratio). Our model portfolio produced 201.0% compounded gain on the whole account based on 10% allocation per trade. We had only one losing month in 2021. 

2021 was another banner year for Anchor and Diversified Anchor, with both strategies beating the target indexes. Because SPY was the best performing of SPY, QQQ, IWM, and EFA, "Regular" Anchor outperformed Diversified because SPY was the best performing of the 4 indexes we use.

Steady Futures launched in mid-2019 giving us approximately 2.5 years of performance data.  We look at our performance on an absolute basis based on a 50k portfolio size and a relative basis versus the SocGen Trend Index

Trading is a core economic concept that includes the purchase and sale of assets, be it products or services, where the buyer compensates the price to the seller. In other circumstances, trading partners may want to exchange goods and other services.

While running a business and investing are two very different things, there are a number of parallels that apply to both. If you are looking to start trading and you are running a business, or vice-versa, there are some lessons that you can carry from one to the other.

As we all think about investing as a way to keep ourselves financially afloat, there is one group of people that the whole idea of trading and investing may seem more of a risk than normal. Self-employed people, who have to run their own business, trade as themselves, and essentially live a feast or famine lifestyle, could find themselves looking to invest or start trading but fall at the first hurdle because they do not have enough money or they are not able to put up with the risk. 

Steady PutWrite (SPW) launched in early 2019, so we now have close to three years of performance to evaluate on both an absolute basis and relative to the strategy’s benchmark, PUTW (WisdomTree CBOE S&P 500 PutWrite Strategy Fund). 

Earlier today I distributed a press release with the results from the Trading Industry Survey we conducted in November. First off, I want to thank all of you who took the time to complete the survey. I greatly appreciate your participation and, as you’ll soon see, the results were intriguing.

Everyone has heard the success stories of people making tons of money from investments, retiring early, and living a life of luxury. But, before you start tying up all your cash in investments, it is crucial to understand more about what is involved.

Gamma measures the rate of change for delta with respect to the underlying asset's price. The gamma of an option is expressed as a percentage and reflects the change in the delta in response to a one point movement of the underlying stock price. Like the delta, the gamma is constantly changing, even with tiny movements of the underlying stock price.