Welcome! Here’s how to get the most out of the site:
Theta Trend focuses on consistent options trading with an awareness of trend, but we never attempt to predict where the market is going. We prefer positive Theta strategies meaning we’re net sellers of options and our positions benefit from time decay.
The site discusses two broad categories of options trading systems: non-directional and directional.
Positive Theta Non-Directional Systems:
Non-Directional options trading systems benefit from the passage of time and over a range of prices. We trade systems that keep directional risk at a minimum and aim to make money regardless of where the market goes. Two of the more common non-directional strategies are Iron Condors and Butterflies. Our focus is largely on the Butterfly because the trade is easy to adjust and has a range of profit that rivals the Iron Condor. Additionally, Butterflies tend to take much less heat during large market moves.
Non-Directional Strategy Posts:
- Consistent Income Butterfly – Another Options Strategy for Small(er) Accounts
- How To Trade A Butterfly In A Small or Very Small Account – The Migrating Butterfly
- Capital Discussions Presentation On The Core Income Butterfly Strategy
- Core Income Butterfly Trade Entry Analysis
- 3 Steps For Timing Your Butterfly Trade Entry
- Broken Wing Butterfly Trade Recaps and Trading Rules
- Range of Profit On Things With Wings – A Comparison of RUT Iron Condors and Butterflies
- The Shocking Range of Profit on Butterflies
- Implied Volatility Riddles – Do I Stand Corrected On Vega?
- 4 Low Risk Butterfly Trades For Any Market Environment
- Iron Condor Trading Rules and Stalking a RUT Iron Condor
To see how an actual Live Non-Directional trade is managed, you should check out this page.
Positive Theta Directional Systems:
Directional systems seek to make money when price either moves in the right direction, stays the same, or doesn’t move against the position too much. There are quite a few directional systems mentioned on the blog that you can access using the “Directional” link in the menu above, through the links below, AND make sure to download a copy of the Original Theta Trend System below.
Directional Strategy Posts:
The Original Theta Trend System – A Positive Theta, Trend Following System:
Click here to get the 20+ page PDF explaining the full system including entry, exit, and risk management rules.
Other Positive Theta Directional Strategies:
- pTheta – Naked Options Trend Following
- Trend Following With Options – An Overview
- Look Inside a Trend Following Options Portfolio
- How to Analyze Potential Credit Spreads
- Chart setup for trend following with credit spreads
Trading Psychology Posts:
One more thing:
If you ever have any questions, don’t hesitate to get in touch. My name is Dan and I run the site. You can reach me via email at info[at]thetatrend.com. I read all of my emails and I’m happy to hear from you. Thanks for dropping by!
8 thoughts on “Start Here”
Hello, I ran across your Thinkscript indicator ‘ZScoreVolatility’ and have found it very useful. Is it possible for you to add a sound and visual alert when the ZScore histogram bar crosses above/below the one/negone lines? I’ve found that trading Futures intraday that I can scalp several points by entering when the ZScore crosses +/- .7 on the ‘one/negone horz lines. I combine with the TDAmer. bar sequence counter. I usually exit when it hits bar #6 or 7.
Can you add some information (o a link with some more information) on your
CIB Trading Strategy Course ?
is a video course with some added materials?
a live “virtual class” with possibility to interact with some questions ?
Can you consider a kind of “tutoring” to analyze some “living” CIB position on the market
for newby “CIB traders”?
Thanks anyway for your valuable analysis.
This may be a rookie issue, but I am confused over the correlation between P/L and Net Liq in TOS when trading butterflies. I rolled up half my shorts, and when order is filled I find myself underwater on P/L but Net Liq is ok. Same thing when doing a reverse Harvey. Is there any way I can calculate this in advance instead of getting a surprise after order have been filled?
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