Trading with Futures Options

Trading with Futures Options

About thirteen years ago, as I was approaching retirement from the U.S. Air Force, I knew I would have more time to devote to trading. I have a friend in Australia with two PhDs who built his own trading software in the 90s. His software exclusively used the ES...
Tom’s Trading Update for July 29, 2014

Tom’s Trading Update for July 29, 2014

The video below reviews my SPX and ES futures options broken wing butterfly trades. I was filled on a put debit spread on the ES futures options after the regular market was closed. I'll update the trade with the new charts in the forums. Enjoy the video! Join us in...
SPX Aug 23 (W4) Broken Wing Butterfly

SPX Aug 23 (W4) Broken Wing Butterfly

Time for a new trade in SPX. Another broken wing butterfly trade expiring on Aug 23rd with 33 days to expiration. The ten lot of puts are at 1945/1920/1860. The 1920's were about a -19 true delta (in OptionVue). I sold two lots at a $1.90 credit and eight lots at a...
Rotating a Risk Chart

Rotating a Risk Chart

One of the reasons I like option trading is you can be so creative. Buying a stock or future is one of two lines: sloping up at 45 degrees or sloping down and -45 degrees. That's it. With options, we have so much more flexibility. I gave a presentation on option...

What you don’t know about options synthetics CAN hurt you

I recently wrote a primer on option synthetics. To continue the discussion on option synthetics, I talked to Seth Freudberg at SMB Training about presenting for the Options Tribe about Option Synthetics. Here's the replay of the meeting: You can download the...

Anybody Can Trade Options

My wife and I have suddenly become addicted to My Kitchen Rules and MasterChef Australia. Naturally, this has us constantly thinking about the cooking world and perhaps visiting Australia to partake of the outstanding food found there!  I read a really good article on...