options trading education by SJ Options

options trading
blog

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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19

Dec

High IV Rank VS Low IV Rank Credit Spreads

High IV Rank VS Low IV Rank Credit Spreads Do High IV Rank Credit Spreads Outperform Low IV Rank Credit Spreads?   Tasty Trade claims that traders have a huge advantage when selling option premium when IV Rank is 50% or higher.  We ran a back test from 2005 to 2015 using SPX to validate their […]

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18

Dec

Tasty Trade IVR Credit Spread Back Test

Credit Spreads With 50+ IV Rank… Do They Really Work? Tasty Trade Teaches that 50+ IVR Credit Spreads Consistently Produce Winning Trades The bull put credit spread is a very common options strategy, but is it really profitable when you just put it on based on POP calculations and do not apply any risk management? Some gurus […]

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10

Dec

SPX Bull Put Spreads Taught by Tasty Trade

Tasty Trade SPX Credit Spread Trading System: A Closer Look An option trader asked us to back test a credit-spread system by Tasty Trade, where they claimed the trading system outperformed the best mutual fund from mid 2010 to mid 2015 by over 100%.  Tom Sosnoff states that mutual funds are “garbage” in his presentation. The SPX Weekly bull-put credit […]

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