Blog

SMBU’s Options Tribe Webinar: Steve Lentz of Optionvue Systems, International: Timing the Entry of Butterflies, Condors and Vertical Spreads in $SPX Index Optionsk Options Trading Strategy

October 24th, 2017
This week, Steve Lentz of Optionvue Systems International returns to the Options Tribe to discuss his approach to determining the best time to place $SPX  iron condor, butterfly and bullish put spread trades. He also will demonstrate how he determines the likely direction and volatility of the $SPX index.

Always Plan for a Market Reversal

Some traders tend to think that whatever direction the market is heading in will continue indefinitely—this is known as continuation bias. For options traders this can be a problematic bias for both technical and psychological reasons. In this video we discuss why it’s important to always plan for both sides of the market to emerge at any time.
*no relevant positions

SMBU’s Options Tribe Webinar: SMB Options Desk Trader John Locke: Transform Your Trading With The Rock Options Trading Strategy

October 17th, 2017
This week, SMB Options Desk Trader John Locke will be discussing his popular Rock Options Trading Strategy which has provided the best long-term returns of all of John’s rules-based options strategies.

Options Tribe meetings are generally free to the public and are held every Tuesday at 4:30PM ET. If you wish to register to this meeting, please click here.

Shorting A Garbage Stock

The market has been on a tear in 2017. On the rare occasion the market has a 1 or 2 percent pull back people are tripping over each other to buy! This environment leads to large runups in what I call “junk stocks”. They are low priced stocks, under $5, that have very small floats. The are easily manipulated because it take little capital to scoop up a large percentage of the float.

SMBU’s Options Tribe Webinar: SMB Options Desk Trader Andrew Falde: The Netzero Options Portfolio

October 10th, 2017
This week, Andrew Falde will present the latest in his Netzero trading strategies which includes shorter terms spreads, momentum trades, commodity options, and the results of a 2008 study. Come learn how Andrew is expanding this powerful trading concept into a diversified portfolio of high-performance options trading strategies.

The Earnings Fade

Each morning before the market opens we review stocks that have fresh news catalysts. We call these stocks “In Play”. When a stock has what appears to be a positive catalyst and yet is trading lower in the pre-market we take notice. Sometimes a stock with a positive catalyst will be trading lower because it has recently run up prior to its earnings’ report. But occasionally the market will just get it “wrong” initially. It is a lot easier to push a stock higher or lower in the pre-market when there are very few participants and liquidity is minimal.

Rules for high conviction trades

During a daily review a developing trader tackled his system for re-entry with high conviction trades.
In his words on his high conviction IBB breakout trade, expressed with LABD:

Solutions for improving your trading entries

Hi Mike,
Hope your doing well. I just wanted to let you know how much I appreciate your book, “One Good Trade”. I have the audible version and with my hour commute to and from work to (brokerage firm). I’ve listened to it countless times.

Trading lessons from Happy Hour

We held a traders Happy Hour last night for our proprietary trading firm.
Some of the new hires having a blast asked how often we hold Happy Hours.  And I thought, “What we don’t cover this during recruiting?”  Note to HR.
Rooming the room to check in on everyone a few trading lessons emerged: