Posted
on October 28, 2010, 6:24 am,
by Selling Puts,
under Selling Puts.
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A great tactic for income traders who want to sell theta but are not keen on just selling puts – could be the butterfly spread .
This theta positive option trading method produces profits when the stock or index that is getting traded remains within a contained area on the graph or ends up on expiration day at or near the sold strikes of this trade.
Here is a trade illustration of this strategy:
Buy 5 contracts of QQQQ 44 put. Sell 10 contracts of QQQQ 46 put. Buy 5 contracts of QQQQ 48 put.
Much like the selling puts strategy in an up market – these trades can generate quick gains for the investor due to the fact that the short strikes of the position (the strikes which are sold) deliver so much premium into the traders account for the reason that they are being sold ‘at the money’ – which are the strikes that have the greatest amount of time premium in them.
While there are numerous variations of the butterfly strategy, the two most common are the regular butterfly spread which are put on for a debit, and the iron butterfly, which is placed for a credit. While these are two different versions of the butterfly spread, if you were to look at the risk graphs of each they look identical and or the most part they act act identical as well. With both versions of this strategy, it is the sold strikes that deliver profits to the trader as those short options decay in value over time.
The butterfly option strategy is a ‘delta neutral’ strategy, meaning that investors who use this technique do not have an opinion on market direction or believe that the underlying being traded will remain in its general location on the chart for the duration of the trade.
With the proper knowledge, the butterfly spread can be as lucrative as selling puts – as well as a low pressure, and pleasant investing system that doesn’t require one to be glued to their computer screen stressing out over every tick of the market all day.
Posted
on October 21, 2010, 2:50 am,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com S&P 500 Index Huge Put Buying Options Trading Active Buying on the 1170 Puts and 1200 Calls Chart. HUGE DROP in the “Dow Jones Index” Plunge down 210 points as people riot in France. Stock Market Drop Dow Jones Technical Analysis Video. This is how market tops are put in. This is a big shake down as the Dow Jones crossed below the 11000. We’ll be buying put options if they want to take these markets lower. We were down over 200 points on the Dow Jones Index. Stocks declined on Tuesday as financial results from Apple (NasdaqGS – News) and IBM (NYSE:IBM – News) disappointed investors after the recent run-up in technology shares. A sudden flurry of selling pressure has taken the S&P 500 back to its session low. The slide coincides with a sharp drop by financials, which are now down 1.0%, following headlines that PIMCO and the New York Fed want Bank of America (BAC 12.05, -0.29) to repurchase mortgages. Shares of BAC are not at their worst level of the session. French retirement protests take violent turn as countries brace for austerity measures. “Dow Jones Index”. Another factor weighing on Wall Street was China’s decision to hike interest rates, effective on Wednesday. Investors worry about the impact from the world’s biggest fast-growing economy seeking to cool its growth. Stock Market Technical Analysis trading video on the weekly chart of the Dow. All of the Dow Jones Industrial Average Index componets were lower with the exception of “Coca …
Posted
on October 8, 2010, 11:35 pm,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com S&P 500 Index Trend Trading Chart Analysis Technical Analysis Sell Off Analysis. S&P 500 Index Chart Training Analysis Part 1 Live Weekend Investment Training Management Video on Online Stock Market Trading Trends for our SMF Pro Traders. Watch the trend trading, analysis and stock market chart analysis. NYSE companies, Dow Jones Industrial Average, S&P 500 Index, Nasdaq technology stocks, emerging markets such as China, forex and interest rate derivatives, short selling, put options, call options, commodities, commercial real estate, buy homes with no money down, or sell your house? Who will win the next election — the Democratic or Republican party? Watch this free video and compare it to what you hear on tv shows, radio programs, Googling the web, or your favorite dvd, Youtube channel or online blog. Or Google “The Great Depression” and educate yourself about “deflation” to save your money and financial well being. It’s a mad world of conflicting opinions about oil and energy prices, billionaire wealth, billion dollar earnings and merger and acquisition news, and trillion dollar debts. Yesterday’s sell off followed by today’s rally on equities (despite the war on terror) leaves both buyers and sellers confused. What’s the big idea? Small caps, market cap, recap, refinance? Wait, there’s GM, GE, HSBC, UBS, RBC, CIBC, TD, BMO – and plain old BS. I know this sounds like a George Carlin rant, but I bet he could make more sense of the confusing …
Posted
on October 6, 2010, 11:39 pm,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com S&P 500 Index Chart Training Analysis Part 2 Live Weekend Investment Training Management Video on Online Stock Market Trading Trends for our SMF Pro Traders. Watch the trend trading, analysis and stock market chart analysis. NYSE companies, Dow Jones Industrial Average, S&P 500 Index, Nasdaq technology stocks, emerging markets such as China, forex and interest rate derivatives, short selling, put options, call options, commodities, commercial real estate, buy homes with no money down, or sell your house? Who will win the next election — the Democratic or Republican party? Watch this free video and compare it to what you hear on tv shows, radio programs, Googling the web, or your favorite dvd, Youtube channel or online blog. Or Google “The Great Depression” and educate yourself about “deflation” to save your money and financial well being. It’s a mad world of conflicting opinions about oil and energy prices, billionaire wealth, billion dollar earnings and merger and acquisition news, and trillion dollar debts. Yesterday’s sell off followed by today’s rally on equities (despite the war on terror) leaves both buyers and sellers confused. What’s the big idea? Small caps, market cap, recap, refinance? Wait, there’s GM, GE, HSBC, UBS, RBC, CIBC, TD, BMO – and plain old BS. I know this sounds like a George Carlin rant, but I bet he could make more sense of the confusing world of finance than most Wallstreet “experts”, reporters and journalists. A …
Posted
on October 4, 2010, 10:15 pm,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com S&P 500 Index Chart Training Analysis Part 1 Live Weekend Investment Training Management Video on Online Stock Market Trading Trends for our SMF Pro Traders. Watch the trend trading, analysis and stock market chart analysis. NYSE companies, Dow Jones Industrial Average, S&P 500 Index, Nasdaq technology stocks, emerging markets such as China, forex and interest rate derivatives, short selling, put options, call options, commodities, commercial real estate, buy homes with no money down, or sell your house? Who will win the next election — the Democratic or Republican party? Watch this free video and compare it to what you hear on tv shows, radio programs, Googling the web, or your favorite dvd, Youtube channel or online blog. Or Google “The Great Depression” and educate yourself about “deflation” to save your money and financial well being. It’s a mad world of conflicting opinions about oil and energy prices, billionaire wealth, billion dollar earnings and merger and acquisition news, and trillion dollar debts. Yesterday’s sell off followed by today’s rally on equities (despite the war on terror) leaves both buyers and sellers confused. What’s the big idea? Small caps, market cap, recap, refinance? Wait, there’s GM, GE, HSBC, UBS, RBC, CIBC, TD, BMO – and plain old BS. I know this sounds like a George Carlin rant, but I bet he could make more sense of the confusing world of finance than most Wallstreet “experts”, reporters and journalists. A …
Posted
on September 30, 2010, 4:50 pm,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com Stock Market “Flash Crash 2010″ HD May 6th 2010 (High Quality). Stock Market Crash 2010 Biggest Stock Market Crash Dow Jones History. “Wall Street” 5-6-2010 “Flash Crash” AKA “Fat Finger” “6 May 2010 Stock Market Crash (Live Coverage)!! Incredible!” “Stock Crash” Stock Market Crash at SMF we were Shorting Indexes and Overbought Sectors Stock Market Crash Biggest Stock Market Crash Dow Jones History Stocks set up for huge drop. This is what happens when you get back into bear markets. Stocks can give the move back in 1 day. The Dow Ticker was down almost 1000 points. That’s a big shake out! They’re probably going to halt trading “Jim CRAMER DOESN’T EVEN KNOW WHAT TO THINK!” “we can’t stop the selling” “Take them all out for the big bounce of the bottom!” “CANCEL ALL, CANCEL ALL ORDERS!” “stock market crash” “stock market” short shorting index indexes trading chart education training goldman sectors stocks trade traders S&P spx djia crash stock market 05 may 2010 meltdown dow jones nasdaq s&p cnbc bloomberg jim cramer today 1987 plunge selloff p&g apple black thursday EURO “EURO CRASH” dollar “US dollar” The sub-prime mortgage crisis has led to the bursting of the US housing bubble. What’s next? Craig Brockie and New York Times best selling financial author and economic forecaster Robert Prechter share how to survive & prosper in a deflationary depression. Find answers to these questions Bull market boom or bear market bust ahead? Recession or …
Posted
on September 28, 2010, 6:36 pm,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com Dow Jones, S&P 500, Nasdaq Opening Bell Massive Selling Hitting the NYSE Tape as Major Names Breakdown. We saw “stock market volatility” hit the tape immediately on the “Opening Bell” as big “wall street” traders moved into start selling on major leadership stocks like Google, Apple, Priceline and others. “CANCEL ALL, CANCEL ALL ORDERS!” “stock market crash” “stock market” short shorting index indexes trading chart education training goldman sectors stocks trade traders S&P spx djia crash stock market 05 may 2010 meltdown dow jones nasdaq s&p cnbc bloomberg jim cramer today 1987 plunge selloff p&g apple black thursday EURO “EURO CRASH” dollar “US dollar” The sub-prime mortgage crisis has led to the bursting of the US housing bubble. What’s next? Craig Brockie and New York Times best selling financial author and economic forecaster Robert Prechter share how to survive & prosper in a deflationary depression. Find answers to these questions Bull market boom or bear market bust ahead? Recession or depression? Inflation or deflation? Buy or sell? US dollar, Yen, Euro, Amero, gold or silver? Equities or bonds? Can the Fed save the day? Will Ben Bernake and the Federal Reserve print the greenback into oblivion and create a repeat of the German Weimar Republic? Or will we experience another stock market crash followed by a repeat of The Great Depression? Avoid foreclosure of your home, protect your retirement savings by selling your mutual funds and …
Posted
on September 19, 2010, 7:17 am,
by Selling Puts,
under Selling Puts.
www.StockMarketFunding.com “Wall Street” 5-6-2010 “Flash Crash” AKA “Fat Finger” “6 May 2010 Stock Market Crash (Live Coverage)!! Incredible!” “Stock Crash” Stock Market Crash at SMF we were Shorting Indexes and Overbought Sectors Stock Market Crash Biggest Stock Market Crash Dow Jones History Stocks set up for huge drop. This is what happens when you get back into bear markets. Stocks can give the move back in 1 day. The Dow Ticker was down almost 1000 points. That’s a big shake out! They’re probably going to halt trading “Jim CRAMER DOESN’T EVEN KNOW WHAT TO THINK!” “we can’t stop the selling” “Take them all out for the big bounce of the bottom!” “CANCEL ALL, CANCEL ALL ORDERS!” “stock market crash” “stock market” short shorting index indexes trading chart education training goldman sectors stocks trade traders S&P spx djia crash stock market 05 may 2010 meltdown dow jones nasdaq s&p cnbc bloomberg jim cramer today 1987 plunge selloff p&g apple black thursday EURO “EURO CRASH” dollar “US dollar” The sub-prime mortgage crisis has led to the bursting of the US housing bubble. What’s next? Craig Brockie and New York Times best selling financial author and economic forecaster Robert Prechter share how to survive & prosper in a deflationary depression. Find answers to these questions Bull market boom or bear market bust ahead? Recession or depression? Inflation or deflation? Buy or sell? US dollar, Yen, Euro, Amero, gold or silver? Equities or bonds? Can the Fed save the day …
