August 20, 2017

Archives for April 2014

Sell in May and Go Away? Sell Credit Spreads

The seasonal winds are upon us. And as a seller of various options strategies I couldn't be happier. The seasonally-weak period, better known as "Sell in May and Go Away", is the perfect time to use various options selling strategies. My preferred strategies, particularly for smaller accounts, are credit spreads, specifically vertical spreads and iron condors. Trading has been rather slow over the past month so I expect to see significantly more trading opportunities ahead. In fact, I will most likely place a few trades over the coming days. Stay tuned. Right now I'm keeping my eye on Real Estate (IYR) , Utilities (XLU) and Silver (SLV). But it's the S&P 500 (SPY) that I'm most interested in at the moment. Even though SPY hasn't … [Read more...]

Crowder’s High-Probability, Mean-Reversion Indicator

After many requests I'm going to try and post the high-probability, mean-reversion table for all of you, in particular my subscribers. As an options seller it helps to have a tool to assist with trade entries and the high-probability, mean-reversion indicator is my tool of choice. Please, make no mistake, it's not the holy grail of indicators. However, it is a tool I have been using successfully for 15 years. The only difference between now and then - the number of underlyings I follow. Just an FYI...I'm going to add SPX and NDX to the list tomorrow.   If you are a believer in a statistical approach towards investing please do not hesitate to try my options strategies. I use simple mean-reversion coupled with probabilities … [Read more...]