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Market Analysis for May 4, 2015
Jerry Furst from Traders Education Network hosted the meeting. Jerry reviewed his outlook for the markets, including the upcoming economic events. Himanshu Raval agreed with Jerry's assessment of the SPX and RUT. Near the end of the session, Jerry demonstrated how he uses the spread finder in OptionVue and talked about repairing a long put position that is in trouble.
New Tool: Option Position Sizer
I've been following Bill Ghauri's Alpha Alerts‘s short put and call trades on SPX and doing very well. I really like the simple approach of selling options similar to a directional trader but also getting a trading edge with volatility and time decay.
A few years ago, I created a Naked Option Margin Calculator that's been very popular. One thing that calculator doesn't do is help you decide how many contracts to sell.
How do you know how to size your option trade?
Two key principles all traders should be aware of are risk and money management. Directional traders like to keep the risk of any one trade to 1% to 2% of the total portfolio. This helps avoid blowing out your account.
Option Traders Generally Don't Use Fractional Risk
REPLAY: QuantyCarlo Education on April 28, 2015
Larry Richards, from QuantyCarlo, walked through a trade scenario by establishing a baseline for the trade and then starting to build a trading plan within QuantyCarlo software.
Enjoy the replay!
Market Analysis for Apr 27, 2015
Jerry Furst from Traders Education Network hosted the meeting. Himanshu Raval joined on the panel. Jerry and Himanshu discussed the current market and speculated if it would continue higher or not.
Market Analysis for Apr 20, 2015
Jerry Furst from Traders Education Network hosted the meeting. Jerry covered recent market action including technical analysis of Fibonacci lines and chart. Himanshu Raval showed his Woodie's CCI analysis of SPY and IBM
REPLAY: Round Table with Bill Ghauri
Bill Ghauri presented his new “Alpha Service” where he will provide real time trading alerts to follow his live trades. Bill does extensive automated testing and analysis and is focused on risk management and money management. In Bill's trading, losses are small and wins create a very nice equity growth chart. The Expectancy of his recent trades is over 2.0! Visit http://a.capitaldiscussions.com/bill-alpha-service/ for information about Bill's new service.
Enjoy the replay!
REPLAY: Round Table with Steve Lentz
Steve Lentz, from OptionVue and Discover Options, presented “Volatility Edge Analysis of the Russell 2000.” Steve's data was very intriguing and showed how ofter option sellers have an edge on in the RUT. Steve is trying to use technical analysis to improve the edge and his results are promising.
Enjoy the replay!
Market Analysis for Apr 6, 2015
Jerry Furst from Traders Education Network hosted the meeting. Jerry covered recent market action including technical analysis of Fibonacci lines and chart
REPLAY: Round Table with Steven Place
Round Table with Bill Ghauri. Bill presented his Long and Short trading systems using his automated back testing solution. Bill reviewed the importance of risk and money management in trading and sizing your trades correctly. Bill showed his backtesting tool in action and how his long and short systems use the 200 day moving average to guide trade entry. Bill also showed why selling iron condors is almost always a bad idea. Several attendees commented on how much they liked the presentation.
Enjoy the replay!
Market Analysis for Mar 30, 2015
Jerry Furst from Traders Education Network hosted the meeting. Tom entered a bearish EURUSD futures options trade and Jerry analyzed the price action of the 6E futures contract. Jerry showed his “Sell in May and Go Away” analysis and Jim talked about theta decay and how it's different in puts and calls at different days to expiration using a Livevol chart.