August 18, 2017

Archives for December 2013

Another Good Year for Option Trading

A few random thoughts... There is no doubt that 2013 started off on a difficult note. The fiscal cliff led to a sharp decline in implied volatility (as seen through the VIX) and the low IV environment lasted for several more months. However, we were able to adjust and the rest of the year, while having a few expected bumps in the road, ended on a positive note. So much so, that our option trading strategies once again beat the overall market. I'm not sure many other options sellers can say that this year. As the year progressed I became more and more selective with my trades. Trading in a low IV environment is difficult and hammering out trades just isn't the right protocol especially if you truly want to make a decent return. Of … [Read more...]

Quick Update

Due to a death in the family I decided to take a few weeks off from the blog. But, I'm back and ready to start off the New Year the same way we have ended this year. All of our December trades look to close out with max profits, although I am tempted to take a few off the board and lock in some profits. Subscribers stay tuned! I'm extremely happy with our returns over the past 7-8 months. There's no doubt that the beginning of the year was tough (so was the start of 2012) for all traders, but for those of us who trade credit spreads the margin of error the strategy creates really helped our P/L as we moved throughout the remainder of the year. Remember, this was also during a time when implied volatility was extremely low. And now … [Read more...]