June 27, 2017

High-Probability, Mean-Reversion Indicator – Advantages of Diversified Options Strategies

Before I get started I want to discuss a lingering frustration of mine - the financial services arena. Yesterday, I posted a WSJ interview with Mark Cuban. Mark had a few very insightful ideas for the public including "buy and hold is a crock of s#$!" and "diversification is for idiots." I definitely agree with Mark's first statement - buy and hold is no longer a viable strategy. However, I think he needs to expand on his last statement. While I do agree that diversification in stocks is well, not useful when applied in the typical manner. Because most over-diversify. And quite honestly, I don't bother investing in stocks. It ties up way too much of my capital and I can create far better statistical advantages using options rather than … [Read more...]

Back to Neutral – No Edge as the Market Approaches the Week of Options Expiration

The short-term status is back to neutral in every major benchmark and sector that I follow on the blog and in my options strategies. This means that I will be sitting on the sidelines as we move in to the week of options expiration. If I can't find an edge, which means the risk/reward doesn't suit my liking then as you all know from my past experience I have no problem sitting on the sidelines. Cash is a position. In trading patience is a requirement. Several months ago I came across an article by a fellow trader named Mike Kestler. His statements coincide with the trading philosophy of the options strategies that I follow within my service and moreover, my trading style. "Without patience traders get pulled into an endless cycle of … [Read more...]