Range of Profit on Things With Wings: A Look at $RUT Iron Condors and Butterflies

Overview: Many options traders like to trade non-directionally and gravitate towards Iron Condors because they provide a wide profit range without having a directional bias.  The general philosophy is that if you can sell some out of the money vertical spreads and price doesn’t move as far as your short strikes, you can make money […]

TLT Options Donchian Breakout Trade

Options Trend Following Portfolio Update With a New Theta Breakout Trade

Overview: Today I’m doing a video recap of the open Theta Trend options positions and the monthly rotation system position.  Equity markets have been moving slowly and seem to be consolidating around all time highs.  Fortunately, we’re short options on both sides of the market and the decay is coming into the positions . . […]

Theta Breakout: Selling Options on a Donchian Channel Breakout

The General Idea: Better, faster, stronger?  My initial thoughts about combining Trend Following and Options trading came about a few years ago after the 2008 crash.  At the time, I was trading Iron Condors on SPY and IWM and trying to figure out why it was so hard.  Apparently, when you trade a delta neutral […]