Overview: The Russell 2000 pushed up to close at a new all time high yesterday, which is just a few points shy of the next adjustment point. In the video below I take a look at the next adjustment for the position if the market continues higher this morning. At this point, I’m planning to […]
$IWM December Put Butterfly Update: We had a nice gap lower in the Russell 2000 this morning and that put price right in the middle of the expiration break even points for the December position. In the video below I take a look at an adjustment that cuts the downside risk and closes out part […]
What it’s about: The video below goes through a naked put trade in $GLD and then moves to the $IWM butterfly. The December IWM Put Butterfly is within two weeks of expiration and the Gamma, Delta combination is getting a little risky for my taste. I take a look at two expiration week adjustments that […]
Quick Overview: As I mentioned in the Weekend Market Commentary, I’m looking for a naked put to sell in Gold ($GLD). My personal opinion is that Gold looks fairly neutral with a good amount of non-directional volatility. The Parabolic SAR for the pTheta system was hit last week and price has fallen a bit from that […]
Video update: We’re about two weeks from the December expiration and $IWM is up above 117 again, which is creating a potential problem for the December Options Butterfly. In the video below I go through two potential Butterfly Adjustments for the December position. Specifically, I consider a long call and rolling up some of the […]
The 10 Second Overview: The video below goes through the open $IWM Options Put Butterfly positions for the December 2014 and January 2015 expiration cycles. The December expiration has been very challenging for neutral options trading, but the recent sell-off left the position in great shape. The January position looks very good for only being […]