Learn to Trade Options | #1 Options Trading Education

Category: Iron Fly

  • 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.…

  • What is a Butterfly Option Trading Strategy

    A long Butterfly Option Trading Strategy is a limited risk, non-directional options strategy that is designed to earn big (but limited) profits but with a low probability. The long Butterfly spread also wins when the future volatility of the underlying is expected to be lower from the current implied volatility. Just as there are several…

  • How to Play Gold, Market Crash

    Since I last shared BYDDF, the stock is up +40%. After a sharp run in a very short span, it is now overbought and may take a breather around $7.5-$7.7 level ($6.3 if the pause is a bit more stretched) before a new surge begins. What if there is a market crash? as we are…

  • GOOG Iron Fly : Paper Trade/29% Profit

    Profit from Google options expiration due to pinning, with reference to my earlier post here : As this was my first time to test this, I did a paper trade. I played GOOG via an Iron Fly: sold Jan 07 490call, bot 500 call, sold 490 put, bot 480 put. Overall credit $3.30 at the…