A Broken Wing Butterfly for Trading Russell 2000

How do you trade downside, while still not losing much if the underlying continues to go up? This is a question I am often asked by many. There isn’t any better instrument than options, that I know of, to trade such a scenario. Albeit, the answer actually depends on how much do you understand options. […]

Read the full article →

Out-performance Continues, OPN Jan’15 +3.6% (Open)

Dow, S&P500 and Nasdaq, all major US indices are back into red for 2015 so far, while OPNewsletter Jan’15 portfolios are up +3.65% so far. After booking +30% gains on VXX (a volatility play), we have also gained +7% on our Russell 2000 or RUT Iron Condor. We are comfortably placed for our 12-15% target for […]

Read the full article →

Is Crude Oil Bottoming?

Crude oil has fallen more than 50% since May of 2014. It is now approaching a 15 year supportive trend line that can be traced back to 1999. This line says that support may be found in the vicinity of $45-$47. This is also a price range OP has been mentioning on his tweets. As […]

Read the full article →

OP Income Newsletter Dec’14 +4.8%, Jan’15 +1.3% (Open)

Dec 2014 was, what I call, a “mis-direction” month. First there was a pullback leading some to believe that this year Santa may not visit with plenty of gifts, then on Dec 16th, SPX found a support and powered another rally taking SPX to new high around Christmas. After hitting the upper resistance line at […]

Read the full article →

A Trader’s Second Most Important Virtue

In the first part, we reviewed VIRTUE OF PREPARATION i.e. that the very first quality to succeed in financial markets is PREPARATION which includes everything e.g. know-how, practice, patience and continuous improvement process for increasing your odds of success. Once your are well prepared, the next quality that will shape a trader’s success is PERSEVERANCE. So lets […]

Read the full article →