Trade Structures
Posts about choosing between flies, risk reversals, condors, calendars, and other multi-leg structures.
Get these in your inbox every market day.
The premium is the stop
I generally don't use stop losses on long option positions.
The vol level picks the shape
Quick one on structure selection.
Grinding into new highs on falling vol (AAPL case study)
I would rather not just buy the calls and hope
Say you spot one. Heavy call activity, stock starting to move, vol has popped a bit but hasn't gone insane yet.
One of my Delta framework setups
Live example from this week. XLI has pulled back, and the question is whether to lean bullish into the pullback or stay out.
The usual way you lose in long vol
In long volatility, the usual way you lose is by being early.
The trader who learned VIX from GFC floor blogs
Sat down this week with Jason Ruschel from Three Peaks Trading.
Long VIX as a permanent book with two engines
Long VIX works better as a permanent book with two engines running at once
Single stock upside is priced too cheaply this season
Single stock upside is being priced too cheaply into these prints.
The VIX contract that misses your event
Here's a technical point on VIX futures that costs people money every election cycle. It's completely non-intuitive.
Match the expiry to your thesis
The most expensive mistake I see people make on options is picking the wrong expiry.
Before you buy the call, look at the term structure
Before you buy that call, spend thirty seconds on the term structure
The 30-second symmetry check
Here's a check I run on any structure someone shows me. It takes about thirty seconds.
The collar that pays you instead of charging you
The collar trade behaves differently in different asset classes. Find out why...
The call ratio trap: bullish view, short-vol trade
Here's a trap that catches people all the time.
This earnings season was different
The multidimensional trap in options
Options are multidimensional. That's the part that trips most people up.
The earnings calendar trap on retail platforms
The single biggest mistake I see on earnings calendar spreads makes a good trade look twice as good as it actually is.
How I teach options
Quick note on how I teach options.
Trading options for a living looks different from what people picture
My actual day is much closer to a series of check-ins spaced an hour or two apart.