Recent content by Kurt_From_RVA

I second thinkorswim for being a great platform to trade options, and tasty-trade for learning how.

Yes their strategies can lead to severe drawdowns, but also outsized returns when the market allows, because of margin. I think you are on the right track though if small and consistent returns are what you're after. Consider all high probability, defined risk, low reward structured setups...

I like td ameritrade paper money. Free and easy to set up and thinkorswim caters to options traders

There is a lot to be learned from tastytrade in addition to the recommended books. McMillan, cottle, etc. you will see the same books referenced over and over and those are the ones to check out.

Shorter term index strangles will give you the best R/R, in my opinion. Check out tastytrade they've done a lot of studies on this. but at the same time you are being compensated for the risk. The gamma is really high towards the end of an options life so things can turn bad quickly.

Ya I'm pretty sure they are. I see what you're talking about in McMillan's book and I'll read up on it. Thanks for pointing me in the right direction. I'm not punting any trades anytime soon haha.

It's all on the platform. I attached a screenshot.

Returns on an investment in excess of the risk adjusted return. It's supposedly a way to differentiate lucky managers taking higher risks from those with true skill. For example a manager outperforms the S&P one year. While 100 invested in the S&P becomes 110, 100 invested in his fund becomes...

Alright here's a new question.. MDLZ is releasing earnings 7-27-16 and you want to make an IV related trade, and you have a bullish bias. You log into thinkorswim or whatever you use, and see that you can sell a put spread immediately for a .37 credit with a maximum risk of 263, and a 78% chance...

I recommend "AHG a method for struggling traders". It's a lot about price action, if that interests you at all.

Just to finish up this trade, I ended up closing the 208 call for a .72 debit a little while ago. so I basically lost another .51 trying to roll this up and recovering .30. i basically spent 2.01 to close. I had the chance to close the short call for 1.50, at the time I was looking to set up the...

That's the method I usually stick with. I was interested to see the possibilities that rolling can offer. I can see some instances where it could be useful, but on the whole it's probably better to admit you are wrong and get out..

I understand what your saying about not trying to outsmart the situation, that you are only fooling yourself, and I understand that this is a common thing among options traders. In this scenario would you just cover when one of the strikes goes ITM, and leave the other one open? How would you...

Hey folks, Here's the deal.. Sold a weekly strangle on SPY Monday 6/27 roughly 1 stdve out with a short put @ 194, and a short call @ 205. Sold the strangle for .88. Obviously this one went against me and the call went ITM. I rolled up the put option to 202 for a credit of .30 this morning. Now...