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 . . […]
Recap: I recently posted the rules for Theta Breakout, an Options Trend Following Trading System. The system sells out of the money naked options (or credit spreads) following a new 50 day Donchian Channel breakout. For example, a new 50 day high would trigger the system to sell out of the money puts. I’m currently in […]
Overview: One of the biggest challenges in trading is knowing how big to trade or how to size positions. If you knew with 100% certainty that your next trade would be a winner, you could theoretically go full tilt boogie with leverage and have a big payday. The reality of trading is that we don’t […]
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 […]
Overview: Well, it’s the Tuesday before Thanksgiving and the markets are pretty quiet. This is a video recap of the open positions at Theta Trend as we go into the holiday weekend. If you just watch the video and don’t read anything else on this page, you should still probably check out the Donchian Trade […]
What you’ll find below: I’ve had a few emails asking me about the Donchian Channel Breakout Thinkscript strategy I use in Thinkorswim. Specifically, people have been asking for the code so I thought I’d pass it along with a little caveat. I wrote the Thinkscript Strategies below for the entry and exit, but I found […]