options trading education by SJ Options

options trading
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18

Apr

Iron Condor v Butterfly Spread

Iron Condor v Butterfly Spread A High Probability Iron Condor v. a Low Probability Butterfly In our last conversation we started to talk about the reality of option trading and the probability of various option spreads.  Today, we’ll look further into this topic by comparing a high-prob Condor trade with a low-prob Butterfly. Theoretical Probability […]

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18

Apr

R-POP vs Theoretical Probability

Realistic and Theoretical Probability A New Approach To Option Trading Hi, in our last conversation we talked about back-testing and how important that can be.  Today, we are going to compare Realistic and Theoretical Probability. Theoretical Probability of Profit (POP) When we say Theoretical Probability, we are referring to the mathematical probability that is implemented into […]

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10

Mar

Credit Spreads – The Pros and Cons

Today’s lesson will be about the pros and cons of the credit spreads. First, let’s talk about the positive attributes of the credit spread. The reason most credit spread traders fall in love with this option strategy is because the trade can be designed to have a high probability of profit.  By selling a credit […]

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28

Feb

Why Most Option Traders Fail

Today’s topic will be a common one.  The question is “Why do most option traders fail?” In my humble opinion the reason why most option traders never find long-term success is because they don’t spend time or have the tools to back test their strategies to create specific rules based on their back tested results. […]

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15

Feb

Iron Condor and Butterfly Spread

Iron Condor and Butterfly Spread Thoughts Today will be discussing the difference between the Iron Condor and the Butterfly spread.  Although these two trades have very different titles, they both carry very similar risks and similar option Greeks characteristics.  In this article we will point out some interesting facts about the two popular option spreads. THE […]

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