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…