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Category: Butterfly spread

  • 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.…

  • Trading Directionally Using Butterfly Spread

    Options is a versatile asset class and offers a lot of opportunities. Though most people think options are risky, if understood and done properly options can offer a wide variety of choices for retail traders including consistent monthly income. This post exhibits a powerful strategy for being long using Butterfly spread that limits the risk dramatically while increasing yield significantly. Take…

  • A Bearish Broken Wing Butterfly on Russell 2000 RUT

    The Jackson hole  2012 surprise is over. You may want to either read numerous websites to find out what Chairman Ben thinks (as per their conclusions) or read the speech text yourself to draw your own conclusions. As of this writing, markets are rallying (though pulled back from the intraday high). For now, at least, Russell 2000…

  • Apple Computers (AAPL) Earning Trade +139%

    The big news today is Apple Computers’ (AAPL) miss on earnings. Who could have thought that they will miss. I certainly didn’t. Yesterday I shared a brief post on how we played Apple (AAPL) earnings in addition to a few other that I highlighted in that post. Basically, for AAPL,  there were two scenarios we started…

  • How to Play AAPL, ISRG Earnings

    It was first posted for the OPN Income Newsletter’s Members. Before you read further- please assume 100% loss upfront on whichever trade you take. Even though we might have win numerous times during the past (like GOOG recently), the chances of being correct are no better than flipping a coin. After screening all the tickers…

  • OPNewsletter Oct’10 Up 7.7%, Gear-up for Earnings

    Undoubtedly GOOG earning play was a star trade generating over +800% gains in a day. It wasn’t sheer luck, we prepared ourselves for it. I shall share our exact trade after earning season is over as we plan to use similar strategies for AAPL and later for some more counters during this earning season. For…

  • How to Play Google (GOOG) Earnings

    How to play Google (GOOG) earnings and how to benefit from Implied volatility crush post google earnings is on the minds on almost every option traders I have met or spoken to. But before I proceed further let me share that earnings are usually 50/50 at best i.e. in-spite of complete detailed research you may still end-up being wrong.…

  • OPNewsletter Aug +8.4% (closed), Sept +4.3% (Open)

    OPNewsletter delivered +8.46% for the Aug 2010 Income portfolio on a 51% portfolio capital investment. As you may know, since mid of April 2010 we reduced our capital allocation to trading as we were anticipating this market meltdown which started around 3-4th week of April. For Sept 2010 opened portfolios, we are up +4.3% and…

  • OPNewsletter Jul 2010 Up +8.3%

    We are on track for our 28th positive month of OPNewsletter phase-2, as of last Friday close OPNewsletter Jul 2010 portfolio is up +8.3% on the maximum investment of almost 60% of portfolio capital. We have started opening Aug 2010 portfolios and our first portfolio is already positive. Let’s talk consistency first, especially on trades…

  • What Exactly is Option Trading?

    A Fascinating Friday ! That’s how I can think about Market’s action on Friday. Option trading is not only about attending a seminar, do some paper trades, get some winning trades and the stage is set. It is also about constantly evolving your own trading style and continue to sharpen your saw. With this post…