options trading education by SJ Options

options trading
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21

Feb

Backtesting Options Strategies

Backtesting Options Strategies For Portfolio Margin In this article we backtest our trading method and short strangles to illustrate the importance of trade design, money management and long-term performance studies.  These backtests are done using portfolio margin simulated accounts and are based on the TIMS margin method. Multiple Short Strangle Backtests (Marketed by popular financial […]

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07

Feb

Tastytrade Credit Spreads, 11 Year Backtest

Tastytrade Credit Spreads, 11-Year Backtest SJ Options specializes in developing options trading systems, and we’ve partnered with a software service that specializes in backtesting options strategies. We’ve received numerous inquiries from our options trading community, and people want to know how well the tastytrade credit spread formula back-tests. People have inquired about the following tastytrade credit spread: Tastytrade Credit Spread […]

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05

Feb

Does Tastytrade Work

Does Tastytrade Work? Tastytrade’s Love for the Short Strangle Shattered The tastytrade network has created a lot of buzz around the short strangle.  A search on their site for “strangle” returns over 674 results.  They love it, teach it, market it to millions, but is this really a good strategy that they are so heavily marketing? […]

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06

Jan

Managing Vega with Vomma and Vanna

Managing your option Greeks is essential to every option trader, especially if you want to avoid large, unexpected losses.  Most option traders are limited to managing the Greek Delta only. However, in order to trade options safely, you must know how to manage your Delta, your Vega and your Theta on a deep level, and this requires knowledge […]

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23

Dec

Call Credit Spread Back Test

Call Credit Spread Back Test An option trader asked us to perform a back test on ITM Call Credit spread, so we did him a favor and ran a test from 2005 to 2015.  This test was to see if this delta configuration would work without any stop losses, while testing various amounts of capital […]

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