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.
Steady Options has now been tracking the Leveraged Anchor from the unlevered version for three months.The results so far have substantially beat expectations, though there is a possibility for improvements discussed at the end of this piece.
Many individuals are curious as to the testing process for a new fund. With the plethora of funds continually being developed, having some insight into this process can be helpful for investors. At the very least, it can provide a series of questions which should be asked in conducting due diligence on fund managers.
A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.” These types of headlines may make little sense to some investors, given that a “point” for the Dow and what it means to an individual’s portfolio may be unclear.
For the third installment of our IVolatility for SteadyOptions series, we’re going to use the PnL calculator to explore a new Micron Technology, Inc. (MU)idea going into the March 20 earnings report. As a reminder, all SteadyOptions members get a FREE access to IVolatility Tools ($468/year value).
Which stocks do you pick for options trading? In fact, does the underlying really matter? Many options traders ignore or overlook the critical importance of deciding which underlying to use for options trading. Focus often is on the richness of option premium as the sole factor determining which stocks to use for options trading.
According to Investopedia: Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio.The following set of charts are a great visual aid to help investors plan and set expectations for investing in the stock market.
Many options traders choose to write short puts as a way to take advantage moderate-to-high implied volatility and neutral-to-bullish price movement. This setup is a basic type that can be used by options traders at any level, requiring very little experience to manage.
All investors need to be wary of inflation. After all, it poses a risk to your portfolio, and it can adversely affect your bottom line. To be fair, inflation isn’t necessarily bad all the time. As the MoneySense article ‘How to Inflation-Proof Your Portfolio’ notes, inflation can be a positive, especially given today’s economic climate.
“The only thing new in the world is the history you don’t know.” -Winston Churchill.
“It is critical to understand human nature if you want to succeed at investing. Basing their decisions on short-term results is in fact the biggest mistake investors make.” - Jim O’Shaughnessy.
Options traders often overlook the nature and role of diversification. In picking one strategy over another, and in deciding which companies to use for options trading, diversification should be one of the attributes worth study. Why do options traders need to think about diversification?
One of the most common questions Steady Options receives relates to managed accounts. Lorintine Capital is offering managed accounts for both Anchor Trades and Steady Momentum. This post will detail the current Steady Options managed account offerings and how they work.
