Tactical Trading Position Trading Strategies Reference

Risk Disclosure

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

CFTC RULE 4.41: Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Video254:  In this position trading strategy reference video, we are going to focus on:

  • VXX trading update discussing the open position of short vxx and how trailed -vs- partials with no long puts or addons for bigger size
  • VXX support holds-consolidation and never a higher low-recent high break where would partial – after breakout down and mex higher low, I bought may 14.5c [at the money] to hedge shorts
  • When I took my first VXX partial it was based on lower lows that made the 14.5c an OTM hedge, along with losing those with expiration later in the week – 13.80 vxx partial and buy may 26 exp 14c for the hedge
  • After doing virtually no trades for 2 weeks, volatility had a big pick-up and move up BUT it completely retraced and went all the way back down to a double bottom low — discussion of VXX reverse long + 14.5c and 14c and the partials taken, followed by a put buy at the momentum extreme and then a reverse back short
  • Closing position = -2 units VXX + 6-2 exp 15.5 puts X + 6-9 exp long 14c – VXX 13.72 closing price

Video253:  In this position trading strategy reference video, we are going to focus on:

  • VXX trading update discussing long position +2 vxx unit + 2 long call unit – where to partial and where to buy puts to protect the trailing  longs AND how going to need to partial after Friday expiration and for the French elections Sunday
  • Support held and then double pmd high = vxx partial-long call partial + buy 4-28 weekly 18 puts – also sold jun 23c -1.08
  • Support then had a break2 with mex flow failure break and exit long call-reverse long vxx to short vxx — discussion of scenario for managing for election including buying calls against the shorts OR even going back long, which would be protected by the long puts
  • Support hold as resistance through expiration and buy 4-28 18c against shorts, giving a balanced position for election move
  • Big gap down monday with continuation tuesday = put partial and exit covering call buy loss – no vxx partials yet — will look to buy long calls against short vvx [and take a partial] – further discussion for why won’t be able to also do a short put sell

Video252:  In this position trading strategy reference video, we are going to focus on:

  • VXX trading update – after retrace discussed in previous video that took short partials and uncovered the short puts, there was a trend line break reverse back down and added back to the trailing VXX short
  • Support held and added back apr 16 calls [replace partials] to protect the new short and to position for the unemployment report – could not also sell may 14 puts because the maximum premium available was only .56
  • Discuss down trend line break that would have normally closed VXX short but with protected position and into both the employment report and a double top – this was held
  • Employment report well worse than estimates and a triple top breakout with mex flow setup – all VXX shorts were closed and reversed into a VXX long position for the first time since Novemeber +16.40 — giving a loss on last VXX shorts but with room and a break to 17.60 resistance, the long apr 16c-short apr 15p synthetic more than covered the loss and gave profits

Video251:  In this position trading strategy reference video, we are going to focus on:

  • VXX trading update and review of move up from PMD low and how the long calls purchased X short VXX partials gave a net long position while being short the VXX – and then a trading update from a resistance PMD double top high
  • PMD double top high needs to hold the downtrend line as support but gives a break2 – buy 4-7 exp 17 put | sell may 22c | take apr 16 call partial to reduce net long position delta as resistance rejects
  • Chart support [was resistance and failed on the breakout to the chart high] failed to hold AND also broke through a higher low uptrend line leading the breakout to the high – reduce positive delta and go negative on this setup = short VXX | close long calls X long puts
  • Discussion of partial profit size – how a long option at .80 might get a .40 partial while another long option at .80 might get a 1.60 partial
  • Trading discussion of VXX move to the chart low and a PMD low followed by a reject of the previous low – and how the negative delta was flattened and then positive again

Video250:  In this position trading strategy reference video, we are going to focus on:

  • VXX trading size -vs- size discussion and although the trend continued down with lower lows, the position size got smaller after addons were exited and the open shorts were covered by short puts – that being said, the 60 minute trading chart also got very choppy
  • Trade setup = wedge breakout-failure breakout of VXX low and another addon was done to increase size and be able top partial against ‘core’ -vxx -put position
  • Discussion of range expansion sell off to pmd low and the buying of april 16 calls and VXX partials that took the last addon flat – and with the long calls that were done along with a subsequent exit of one of the ‘core’ shorts, the VXX position was positive delta-net long
  • Call partials on move back to the previous low as resistance and a double top test of next price resistance = additional call partials and exit of one more ‘core’ short – closing position = long apr 16c [3] short apr 15p [3] X short VXX 33.23 [1] — further discussion of potential trading for monday based on reaction to health care bill being pulled

Video249:  In this position trading strategy reference video, we are going to focus on:

  • VXX positioning for FOMC, March expiration, and hedge protection against short VXX + long puts
  • Discussion of 2 addon trades that didn’t do [absolutely method trade setups] – along with the affect on the short position and the method goal of having the biggest position on the biggest directional moves
  • Decision to take an exit on long march puts -vs- a partial on the short VXX – selling these puts + buying long calls has the effect of a synthetic long on the delta of the overall position
  • Discussion on taking a long call partial that was only .28 – but it was also a 55% partial in 1 day that paid down the cost of the calls and that was done at resistance

Video248:  In this position trading strategy reference video, we are going to focus on:

  • Discussion of VXX daily chart and where resistance is compared to the 60 minute chart and the gap up – gap up-support hold-breakout higher -vs- gap up and break down into gap
  • Triangle break up = VXX partial X long call-short put = hedged trade with trailing VXX short and long synthetic both profitable
  • Gap up and test of resistance then break into the gap = sell call [partial and OTM in april] buy march put
  • Continuation to next support and sideways movement between resistance and support – long put partial at support + long call exit at support triple break
  • Breakout through support to lower lows = long put partial2 but nothing more done to the short VXX — closing position = short VXX-long put X short call-short put [currently no long calls which is a trade I will be looking to do]

Video247:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – looking at our current position on the 60 minute and daily chart
  • When both time frames are looked at, we can see where the position started and how the daily chart has always been ‘in sell’ since that point, regardless that there have been some 60 minute chart reverses
  • VXX -18.30 addon and discussion of all trades = VXX partials – call buys [multiple expirations]|partials – put partials and exit – but have remained short the VXX with synthetic protection

Video246:  In this position trading strategy reference video, we are going to focus on:

  • Overview discussion of ETF position trading as hedges and/or longer term positions on daily charts
  • In contrast to our VXX [SPY QQQ] position-swing trading method on 60 minute charts that is almost always in a trade with the underlying or options, or both
  • ETF positions can be underlying or options – further discussion of trading for a big directional move [remember the USO short that lasted over a year] that could be hedged at times to hold — vs – using options to do counter trades at price and momentum extremes, trading for a reversion to a mean
  • XRT retail ETF trade review, which included a short XRT + long put – and why this was selected to trade
  • Discussion of UUP dollar ETF and why I didn’t trade it

Video245:  In this position trading strategy reference video, we are going to focus on:

  • Discussion of VXX position and some key trading decisions that have been made, against a large short position that includes trailers from 33.23 and 31.72 when the sell began [the daily VXX chart has been ‘in sell’ since then]
  • Discussion of the 2 ITM short puts that were sold at a small loss, when compared to the continued down move in VXX – including talking about the timing for doing this, along with the timing for buying long options-selling short options
  • Long feb 20 call-long feb 20 put – cost of this ITM straddle –vs- the cost and strikes of an option strangle if done when the calls were bought
  • Discussion of long SPY put spread as a hedge against short VXX – and the profitability of these as a position
  • Beginning overview of additional ETF trades [underlying and/or options] for the GLD GDX UUP XRT – ETF trading will be discussed further in next video

Video244:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – discussion of VXX position and recent SPY put buy as a hedge
  • Discussion of SPY put as a hedge against a profitable VXX short, as well as against market consolidation near highs and upcoming inauguration
  • SPY feb +225p X -218p 1.24 debit was done against VXX short 23.98 [lowest uncovered short] when that trade had +1.98 profit – that has eventually become a +4.98 profit
  • Discussion of short ITM puts closed for loss, compared to a bigger profit from short VXX that became uncovered when the put was closed
  • Additional VXX addon shorts on the shift-reject of support to resistance, with momentum resumption

Video243:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – discussion of the VXX, what it is, and how it has been acting-reacting to price movements recently
  • VXX the ETF is the S&P 500 VIX Short-Term Futures Index Total Return which is a strategy index that maintains positions in the front two-month CBOE Volatility Index (VIX) futures contracts.
    • Consider 57% invested in front month VIX Futures and 43% invested in deferred month VIX Futures. Each day that weighting shifts a little away from front month and into deferred month – until front month expires-deferred month becomes front month-and there is a new deferred month.
    • Read that there was around an 85% correlation between VXX and VIX – but then get a day like yesterday when VIX was up 4.5-5 percent and the VXX was flat to slightly down — WHY?
    • 1) futures begin price as premium to index
    • 2) futures losing premium overtime – function of futures contango AND there is probably a lot more near term volatility from election-transition.
  • All of this is why you have heard me say not to buy VXX to buy volatility AND why we are trading it – BUT haven’t been getting much retracement-reverse trading recently.

Video242:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – discuss decisions from VXX buy setup to resistance, based on existing position delta along with the covered short VXX-short 26p component
  • Short VXX-short 26p is a covered position that cannot become more profitable below 26, because each gain in the short VXX will be offset by a loss in the put – so there is no issue with holding this position below 26
  • Scenario that held the uncovered short VXX with – both the test of resistance and a reject back down, along with the positive delta from bigger size of a long call-short put synthetic long
  • When the scenario didn’t occur and VXX continued up [with resistance break setup] – closed uncovered VXX and buy long put-take call partial for balance against synthetic long to closed 2016
  • Discussion of trades made after large gap down in VXX to start the year and a continuation sell setup, including closing the short 26 puts for a loss that was covered by a bigger gain from the long 25.5 puts bought 12/30

Video241:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – continuing from the delta neutral position
  • And then the short addon-short calls giving negative delta + the objectives of partial profits and buying calls-selling puts for protection from lower extremes
  • Discussion of continuing to hold VXX short after going into ‘chart buy’, but with adjusted delta [more neutral] as we approach resistance – additional VXX partial and trying for a long call partial [missed filling a limit price]
  • Objectives now will depend on moving to resistance and the price action – will get the call partial, but probably wouldn’t add long puts because of the theta they would occur over the week and the market being closed next Monday

Video240:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update

Video239:  In this position trading strategy reference video, we are going to focus on:

  • VXX management discussion – short the VXX but the total position has the positive delta equivalent of 1.9 units [500 shares-5 options per unit] long
  • Management scenarios and what would do based on price movement scenarios from close of previous video – this is based on delta AND if a wedge break higher would increase +delta –vs- the lower high leading to a support break-chart reverse and would decrease +delta
  • Neither scenario happened and gapped own instead and broke recent lows – still want to decrease +delta and did this by closing long call-short put — this is equivalent of a synthetic sell, and both options could be closed at a small profit
  • Position = -2 VXX -3 out of money puts, which is essentially now a delta neutral position – after ledge low that included a bar break above the recent highs and then right back to the low [with mex flow], sell VXX -27.12 addon an turn the position to negative delta along with having size greater than covering short jan 26 puts

Video238:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – especially reviewing position size –vs- short options, along with position balance and do you have calls or puts at time of a counter direction reverse OR against short options
  • Discussion of exercise risk [AGAIN] and the situation where you might be short fewer units of VXX than you have short puts – AND IF those puts expire in the money and you didn’t close them, you will be bought-in and actually long the VXX, which would be unintended — this has nothing to do with the profit of the exercised position
  • Discussion of position delta at the time of a VXX buy reverse – how much giveback in the short VXX will you incur at X price –vs- how much would you gain on a long call-short position trade
  • The short VXX was held instead of flat or going long, because of not having position balance if there is a ‘shallow’ move up and having short puts in the money — but the retrace of 1.00 against the short position was more than covered by long calls-short puts, especially considering that the short dec 28 puts sold at 1.67 would more than cover this giveback alone

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Video237:  In this position trading strategy reference video, we are going to focus on:

  • I described the VXX short 33.23, with long put spread +33p-31p – a good position BUT at 29.06 — referring to the size of the position being short 1 unit since 2 partials, and the put spread profit capped at 31.00
  • Discussion of chart pattern = triangle breakout of up trendline with mex rollback, into support 1 point lower that could become a triple bottom breakout
  • Discussion of the long put spread and the risk-reward of breaking a spread = buying back the short put to have the long put with a point+ target, in order to increase size
  • Regardless of whether the long put continues lower – the size increase only has 4 days, because of expiration
  • Selling the VXX as an addon on the triangle breakout-momentum resumption has the 1 point potential at support, and more if triple bottom breakout – and will also cover the short dec 28 put if continue down

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Video236:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update after long volatility exit, making the 2 synthetic option sells a net short
  • Discussion of long call buy objective from previous video, into the election results and ‘against’ the option synthetic shorts – move to support failed and then rejected as resistance and continued into the diagonal, so the call buy wasn’t done yet
  • Retrace to resistance and reject, buy nov 33p to spread-off against the short nov 31p, since the open long puts expire 11-11 – discussion of the risk-reward of a long debit spread, along with the exercise risk of a long debit spread compared to a short vxx-short ITM puts, where the short vxx isn’t completely covered
  • Down move continues through the diagonal to a double bottom at next support, with a pmd low-mex extreme cross – take profits vxx-close 11-11 long puts, and buy calls [no more dec puts were sold, which was an available premium issue]

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Video235:  In this position trading strategy reference video, we are going to focus on:

  • VXX position was very long volatility, including 1 unit deep ITM call + 7 units VXX – followed by a gap down of over 3.5 points — discussion of the loss-giveback that this gap down caused
  • Friday chart read and related management – typical stock-opt combination management — breakout move to higher high-PMD high, and thus partial profits and another protection hedge – that takes advantage of increased volatility, along with buy a long put that was more strike relevant
  • After Friday close the position was long 500 delta-short 420 delta – the gap had a relatively small effect, which was giveback –vs- loss, and this was then made back after the long VXX was closed
  • 34.04 trailing VXX closed and then partials on the long 36p and 35p – need some long calls to balance what has become a ‘double’ short, from the 2 options synthetics

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Video234:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – continuation or retrace after the Clinton email news and chart PMD high on Monday
  • Discussion of price expansion potential IF pmd failure to first target = double top|triple top breakout potential – to chart high [resistance] double top
  • Risk-reward bracketing – holding for target if retrace remains above-below a ‘certain’ point – this expansion if it occurs leads to bigger partials AND the ability to buy-sell options at better prices and at better strikes
  • Discussion of short dec 38c that has a small loss, in the context of price expansion [if can move through diagonal to resistance] – taking a .57 loss ended giving a new call sell of dec 45 [7 strikes higher] at 2.08 [only .03 lower than the 38 strike trade]

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Video233:  In this position trading strategy reference video, we are going to focus on:

  • Review of existing VXX position = short VXX + long option synthetics – holding this position on a VXX buy setup, with 32.27 resistance AND the scenarios for the hold
  • I was holding for (a) a filling of a gap that rejects and resumes the sell (b) a break of the gap that continues to resistance – where the long synthetics [protection trades] will cover the giveback on the short VXX that would include a reduction is the short position size
  • What happened instead was a break2 with mex flow and building ttm of the gap resistance, instead of a reject-resumption AND then a failure break of the 32.27 resistance – giving a position change of a 31.48 buy reverse and 32.33 addon
  • VXX long-option long partials on the breakout-continuation – my trading objectives will depend on follow-through Monday –vs- swing high that ‘rolls-over’, where the long position size will be reduce and long VXX puts will be bought for 11-11 expiration that will be a higher strike than the shorts

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Video232:  In this position trading strategy reference video, we are going to focus on:

  • Trading method setup = PMD failure + price failure combination – this is a continuation setup, especially when the price failure is included in the setup
  • What is a PMD failure – if a PMD is the divergence between price and momentum where a price HH-LL occurs with a momentum LH-HL, then the PMD failure is a failure of this divergence and a setup for momentum resumption
  • -33.78 -32.24 add – continuation resumes and the short nov 31p goes into the money, but with the addon the put is covered, and a VXX partial can be taken — with the addon a short dec 38c is sold
  • There is a second PMD and mex cross, and protection trade is done = long 11-11 exp 31c + dec 28 put sell
  • Discussion of position hedge with the 2 synthetic longs that have been done, and the decision to still hold the VXX trailing short when there is a chart reverse — keeping a short-long hedge and balance for a move up or down, with a reaction to the nov fomc meeting next week, and then the election

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Video231:  In this position trading strategy reference video, we are going to focus on:

  • Discussion of option profit decisions based on continuation scenarios at the time – no put profit when setting a trendline break2 with mex flow sell, and no call partial2 when setting up a rising bottom-triple break that would be into a resistance triple top breakout
  • Discussion of a missed November call sell – this was a trade that I should have done – to replace October short calls that were profitable [if VXX kept going up after trade done and could be exited] AND there were long calls that could be exercised to cover the short
  • Trailing call exit with VXX sell setup – get as much money before expiration as possible, and if there was a reverse back up after doing the exit I would buy new calls at the next weekly expiration
  • VXX sell continuation after going short – movement to support and exit long puts ahead of expiration, and then do a protection trade = buy 10-28 expiration 33 calls and sell November 31 puts
  • VXX position for debate and October expiration = short VXX – long call-short put synthetic long

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Video230:  In this position trading strategy reference video, we are going to focus on:

  • What if expiration size is -1000 VXX -32p AND expiration is at 31 – is this a losing trade and what are the implications of this trade
  • No, it is not a losing trade, because the puts were sold at 1.32 and could be bought back for 1.00 and thus a .32 partial BUT – if these puts are not closed, you will be exercised and bought-in on 1500 shares of VXX, and since you only are short 1000, you will actually be long 500 VXX at a price of 32
  • Trades done at the 10-7 expiration closes all long options, and with a VXX partial – make the short size less than the short put size
  • New long options bought = oct 34c and oct 35p, at different locations in the swing – making the short puts covered by longs, and a long options synthetic protection against the short VXX, which ends of becoming a long position when the VXX is taken flat

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Video229:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update and discussion of 2 method components – trading the underlying [and long options] for direction and trading the short options for income — but a long option-short option is a synthetic trade that is also used as underlying trade protection [hedge]
  • VXX option sells as a percentage of the underlying and distance OTM, give greater premium sells as compared to the SPY
  • The VXX-SPY option difference makes sense when comparing the implied volatility difference – making the understanding of protecting-covering short options additionally important, since implied volatility is also a function of potential underlying movement — most trades are either covered or in ratio spreads OR at a point out of the money that they should typically be able to cover before break even
  • Discussion of how synthetic [protection] trade size ‘covers’ giveback in the underlying while holding for support or resistance [-vs- reversing the underlying trade] — and since the synthetic is typically done against a profitable underlying, there is a size difference that actually gains more than the giveback

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Video228:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update and method – short vxx hedge became long when short reverse, long vxx hedge became short when long exited — vxx sell-off had position even without doing a sell
  • Position trading method do directional position [position add-build] and at price targets-momentum extremes take profits [reduce size] and hedge-protect open position
  • Position into fomc was short call-long put + long call – protection of synthetic short and positioning for potential vxx move up after fomc
  • Post-fomc sell setup – short added to synthetic short and movement to previous vxx low-double bottom AND profits were taken [long put closed since it was expiration], with a long call-short put trade done to hedge-protect existing short
  • Discussion of call sell done with vxx sell and risk-reward of also doing the call sell at this point

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Video227:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update-review – discussion of VXX long when big-fast SPY sell-offs and how much the VXX trade will outperform on a percentage basis — but also note how after the big move the VXX will go down more, even on a slow-small SPY sell-off
  • VXX long + call long profits and exit of trailing long put – moving to a VXX higher high-momentum extreme and selling OTM oct call-buying 9-23 expiration put [positioning for fomc], giving a profitable hedged position
  • VXX continued to retrace and gave a good sell-off, but this occurred on Friday — decision was to go flat VXX instead of reversing short, with the synthetic short becoming a sell –vs- a long VXX hedge
  • NOTE: you will know by time watch video that the VXX sell would have worked – but as I have discussed, I am more inclined to reduce a position size into the weekend than I am to add to a position
  • Objective next week will be positioning for fomc – currently short with the –c +p and will want to have a long call [or even long VXX, which would be hedged] against the synthetic short

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Video226:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – discussion of slow volatility and consolidation into labor day and a buy reverse-sell reverse-sell add that wasn’t traded — BUT did hold the core position of short vxx X long call-short put protection
  • VXX sell not traded [as discussed] but did buy long sep 36 put that added to short vxx that had partials taken
  • VXX gap down-move down after labor day went to a pmd low-double bottom low – partial profits taken, but retained a position where the short vxx-long puts had greater size than the previous sold sept 34 puts — buy sept 34c as protection that was relevant to current price – sept 38c was well out of money
  • Discussion of not sell or holding short options that are far OTM — consider that the 38 calls had been short and had gone down to .19, along with also being short vxx-long ITM puts – the reward left is only .19 and of little value holding, and then closed at 2.09 after the big vxx reverse

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Video225:  In this position trading strategy reference video, we are going to focus on:

  • Oil trading update and setup decisions comparing the USO-BNO, and multiple underlyings in method – trade the best setup at the time that looks to have the best odds of continuation
  • The best [most consistent] continuation happens through a diagonal –vs- consolidation AND when there is no support or resistance inside the diagonal
  • Extended partial size and quantity as a discussion of trading through a diagonal AND increasing the partial size taken as a function of momentum extreme at a test of support or resistance
  • Resistance reject-lower high and 2nd partials taken on BNO-USO calls, followed by a BNO long exit and USO call exit-short sell – USO traded on break of 200-50 day moving average, after a resistance reject
  • Further discussion of put buy that should have been done — missed doing the trade

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Video224:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and viewpoint|objectives – market very summer slow range and volatility, planning to go on vacation, and positioning for Jackson hole and employment report
  • Daily chart shows pmd high momentum extreme = buy aug puts and on retrace-reverse – buy aug call-sell aug put and then spy buy +216.03
  • Up move resumption to 60 minute pmd high-momentum extreme – take +spy +call partials and buy puts to replace those that were exited – spy flat on 60 minute reverse and no spy trades since then
  • Remaining trades were options trades at the 9-2 expiration to cover Jackson hole and the employment report – objective is to have long call + long put position, where any up-down move will allow for partials

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Video223:  In this position trading strategy reference video, we are going to focus on:

  • Trading method discussion – basics for stock-options combination and how a put buy at resistance-momentum extreme, becomes a short trade if the underlying is exited AND especially will do so if there is a chart reverse only without a trade setup
  • Trading method discussion – trading multiple underlyings and then making a trade decision on which one has the best one at the time
  • Oil etf update|USO-BNO – if trade both of these underlyings, a recent sell setup would show the USO sell as a trendline break-50 day and 200 day reject back through the trendline –vs- a BNO sell that would also be a trendline break, but even though there was a 50 day reject, the trade would be directly into the 200 day — select the USO sell
  • USO|BNO go to a momentum extreme-mex cross – buy sep 10 calls against USO short — both underlying have an initial chart reverse, but the BNO as a trade would include a 200 day support that the USO doesn’t have – buy the BNO and go flat the USO, with a USO long via the sep 10 calls

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Video222:  In this position trading strategy reference video, we are going to focus on:

  • VXX position update – ‘squaring’ away for vxx 4:1 reverse split and existing options as vxx1
  • Adjust position by closing option options and selling vxx that would be exercised against in the money put = cover short vxx-buy back aug 12 [ITM] puts|close aug12-19 split expiration ratio call short [profit]|close aug 9 puts [loss covered by call profit] — this leaves a position of short 2 units of vxx with no options
  • Discuss VXX and buying volatility as hedge for long portfolio –vs- trading volatility [which is what we are doing] – I do not look at buying the VXX as a good hedge, especially because it is based on a futures price that would go down into expiration and becoming fair value
  • Discussing continuing to trade VXX after reverse split – so far am seeing far less options volume and thus liquidity in the weekly options
  • After closing the vxx1 options, new option position = short sept 34 puts X long sept 38 calls as synthetic long protection – and took a call profit [30%+ profit on trade] to also decrease cost of calls

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Video221:  In this position trading strategy reference video, we are going to focus on:

  • VXX position and trading update – especially for employment report

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Video220:  In this position trading strategy reference video, we are going to focus on:

  • USO position review-update – and the shift from long uso-long calls X short calls, to long put position profit, to a reverse into sell
  • PMD high at resistance, which was the low from aug 2015 and the first time we have been back to this price since then – buy july puts and take long uso partial profit = a willingness on this resistance-momentum extreme to have a short call position that was not covered
  • On the reverse into sell and a uso exit, all calls were uncovered – but they were also all profitable, with expiration in a couple of days — the calls could be exited at a profit before a possible reverse took them back ITM
  • USO sell setup with addon at -11.13|-10.89 – with jul long puts +.41 getting a 1.50 partial|2.20 exit — uso short partial at 9.72 = -4 units short [-6 short X +2 partials]
  • Discussion of the uso and vxx as profitable trading ETFs that have lower underlying prices — uso options are fine when buying for protection, but not so good for income sells – vxx options have more market implied volatility and have looked for option buy-option sells combinations, both for credits and for paying down protection cost

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Video219:  In this position trading strategy reference video, we are going to focus on:

  • VXX – SPY position update – discussion especially focuses on both underlyings having short options that are in the money
  • SPY position math assuming expiration at yesterday’s close 216.50 – and long 2 spy 209.92-short 3 august 213 calls, so the position is uncovered
  • At 216.50 expiration, and including the short august 188 puts that will expire worthless, the position has a +17.83 point gain – the math including the 2 long spy being called away at 213 and the 1 uncovered call loss
  • VXX position math for short 3 vxx-short 3 12 puts that have a profit cap, but is a covered position – there are also short 3 vxx that had no partials or puts sold against them, as of the previous video when the addon short entry was discussed
  • VXX uncovered short trades-objectives – did take a 11.14 partial on the -11.87 addon, and looking to sell 2 august 10.5 puts to keep this a covered short

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Video218:  In this position trading strategy reference video, we are going to focus on:

  • VXX position discussion combined with SPY – although +spy –vxx should both profit as a position when the spy goes up [or lose when spy goes down], do not think of this in terms of options risk management for short options and a long spy call will cover a short vxx put
  • VXX probably not as many trades as SPY – the implications would be that long option protection for VXX should be longer term than SPY protection
  • Think of VXX profit as a function of percentage move and trading size –vs- absolute movement — spy +1.00 is around .5% = +$100 per 100 shares – vxx -.25 at same time is -2.10% move and = +$125 per 500 shares, which is far smaller dollar trade than the spy
  • VXX trade update for current position and july expiration – current position is capped at 11.34 because of short aug 12p -.66 — discussion of addon setup and addition long call protection-additional short put objective

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Video217:  In this position trading strategy reference video, we are going to focus on:

  • SPY sell setup no trade trade is at 50 day moving average and previous gap down high as support and against the daily chart — if support break with mex flow, would then go short against daily but on move that wouldn’t view as a support test
  • Did exit long spy – position = long puts X short vxx short aug213c 2.44 X short aug 188p 2.92
  • Discussion spy buy re-entry setup that may not be apparent on the 60 minute chart, but is very clear as a 50 day ma reject-triple top break, with mex flow – long +209.92
  • Move to resistance = previous spy high and partial 213.89, and continuation breakout but no more partial against short aug213c ITM — did buy 7-22 exp 215p .62 but no more call short because of premium available at higher strikes considering selling – should get some increasing profits on existing vxx short with continued move up

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Video216:  In this position trading strategy reference video, we are going to focus on:

  • Volatility trading and VXX trade updates – reviewing trades from previous video and adding the options trades that were done — method combination position trading of directional VXX trades setups, with counter option trades at extremes to protect trailing underlying and/or for income
  • Discussing VXX options characteristics and uncovered risk – remembering that the VXX percentage moves are greater than the associated SPY move
  • VXX options would tend to see calls up when volatility up and puts up when volatility down BUT also consider risk in the context of the ‘unknown’ [recently as seen into Brexit vote], where calls and puts may go up when volatility up and then actually both go down on first reaction to news being known
  • When sell SPY options, we typically see that we can sell puts further OTM for more premium than calls – with VXX options I have been able to sell calls further OTM for more premium than puts
  • Recent call sell july 20 -.90 when VXX 17 and 3 weeks to expiration –vs- selling august 12 puts -.66 when VXX 13.50

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Video215:  In this position trading strategy reference video, we are going to focus on:

  • SPY and VXX typical directional movement is opposite direction and an overlay chart looks the 2 are essentially a ‘an opposite mirror image’
  • BUT the SPY moves in a smaller percentage than the VXX – for instance, yesterday the SPY was +.15 +.07% and the VXX was -.20 -1.47%, and the employment report reaction was SPY +.76% VXX -3.14%
  • Does the greater VXX percentage move, along with the underlying being far cheaper to trade [300 SPY = 210 * 300 = 63,000 –vs- 1500 VXX = 15 * 1500 = 22,500] – potentially mean that the VXX can be traded in bigger relative size and more profitably?
  • Discussion of open VXX trade [trade is still open] and partial1 = -15.76 + 13.49 partial [1 unit = 500 shares] = +2.27 * 500 = +1135 — previous SPY swing = +206 -210 [not exact prices] = +4 * 100 [1 unit = 100 shares] = +400
  • Clearly further study-discussion and trade results needs to be done, but the VXX looks to have very good potential IF (a) the same basic win-loss percentage will be the ‘same’ as the SPY (b) and it is recognize that the percentage involved will increase gains, but similarly increase losses

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Video214:  In this position trading strategy reference video, we are going to focus on:

  • SPY position review coming into the Brexit news = +2 calls – 3 calls X +3 puts -3 puts — further discussion about holding any SPY position into the news
  • Short after news release with put exit because of expiration and 1 SPY partial, and then on next day gap there was no further SPY partials, because the short puts had become ATM and there were no long puts open
  • Double bottom low-momentum extreme, buy 200 calls-sell aug 188 puts [income trade 10 points OTM] as synthetic protection – take 1 more SPY partials, based on room to short put strike and ability to further protect on resumption
  • V reverse continuation = close short SPY and then buy SPY – close 200c for expiration and buy july 210 put-sell aug 213c, as synthetic protection against trailing buy, again with momentum high extreme
  • Discussion-overview of volatility trading and the VXX UVXY that be traded as an underlying-option combination –vs- the VIX and options only and trading more for extreme volatility moves –vs- position trading method

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Video213:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update-position review – objectives-scenarios for position at the end of day Thursday AND whether I would keep a long or short SPY into overnight
  • I would keep short IF I had a short put-long call position that would give adequate protection if upside reaction BUT I would not hold a long SPY – my thoughts were that on a leave the market would get slammed, but on a stay there could still be an initial buy rumor-sell news reaction — as it turned out I did not have a SPY position
  • 6-20 – 6-22 movement was a straddle around 209 with a double top-double bottom on either side – I added long calls at the double bottom
  • 6-23 movement was a gap up and continuous update – take call profits, but continued to hold 2 longs against 3 short july 213 calls that could be exercised long if needed — I bought 210 puts on the close to replace 2 previous taken partials
  • 6-24 movement-reaction was gap down, but after the gap there was a retrace up – giving a very good triple bottom break-low of high bar break, with ttm and mex flow at 205.37

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Video212:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update-position review – short spy [4] long 6-24 210p [2] — objective is for a move to the 50 day moving average, and with a reject as support-momentum extreme – take a short partial and buy 6-24 208 calls
  • Discussion of a price shift from left side support to where the last breakout occurred, including a pmd counterpoint low-triple bottom breakout – I shifted that price and used it as resistance, but hadn’t adjusted for support before the breakout and missed a good addon setup
  • Discussion of trade management for a ‘larger’ position and also positioning for an upcoming event – taking profits and reducing size –vs- larger size for the event
  • Resistance reject and a lower breakout that held as a double bottom – take short partials and buy additional calls at lower strike for relevant protection-participation strikes, and also sell july 198 puts

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Video211:  In this position trading strategy reference video, we are going to focus on:

  • USO trading update-position review – long call-short call-long uso = +2 uso that are not covering short june calls [net uncovered when include short july 13c] X long june-july 12 puts
  • Long june-july 12 puts – objective off of pmd high retrace is to get more money for june 12 puts and reduce loss size, while having july puts for retrace-reverse AND ‘brexit activity’ — chart reverse gives profit on june puts and partial profit on july puts
  • PMD high retrace-reverse gives trailing close of long uso, which is fine against june short calls that are OTM and could be closed at loss to prevent exercise when not long – further discussion scenario of short calls closing ITM and whether would exercise july 11.5 calls to cover –vs- taking ‘cash’ loss and holding long calls
  • Chart reverse but no sell setup – discussion of what a sell setup would look like, along with long put close-partials on break through support and move to 50 day moving average

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Video210-10:  In this position trading strategy reference video, we are going to focus on:

  • SPY position +1 spy X +3 jun 212 puts = negative delta – discussion of sell setup that didn’t take to add to this delta, but would have gone short without the long puts
  • SPY gap down under support and after move into gap with mex flow down – reverse short on the break of the lower high bar low
  • Discussion of trades done with this sell setup = spy sell + synthetic short [-jul 213c +jun 24 210 put] – wanted the long put for next week’s Brexit vote — further discussion of why would sell jul 213c here, but wouldn’t sell july 215c with the pmd high-mex extreme and the jun 212 put buy
  • SPY move to support and profits taken — discussion of objectives if can hold-reject this support point –vs- breaking through and going to the 207.69 5 day moving average – I want to get a call buy done for Brexit and am looking at a potential put sell at the 198 put strike or lower

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Video209-16:  In this position trading strategy reference video, we are going to focus on:

  • USO long position and relative size between longs and short calls, after the july 11.5c buy – there becomes 2 uso long units that can partial or sell more calls against and remain covered
  • Discussion of trading size and selling calls at .25-.30 – not selling 3s and doing $75-$90 of premium trades — also note that if sell 13c @ .30, when uso is 12.25 – you have 8%+ room before profit is capped
  • SPY long position – discussion of buy addon that I missed doing that ‘should’ have done, and the management of the trade based on the Wednesday-Thursday move
  • Buy spy jun 212p 1.62 and take another spy [+205.72] partial at 212.20 — further discussion of having no short [income] options and the decision around also selling a july 215c

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Video208-16:  In this position trading strategy reference video, we are going to focus on:

  • USO long position = +8.63 X -12c -12.5c – for each 100 shares long there are 1.5 calls short, or a partially uncovered position
  • Buy july 11.5c .68 X june short call premium -.67 – at jun expiration below 12 would be long july 11.5c at .01 cost — position b/e is 12.99 BUT ‘extra’ short calls are covered by long uso
  • SPY position position = +4 spy X jun 215c – position is more than covered
  • Discuss movement to-through jun 3 long put expiration and employment report — additional partials taken and long puts exited at loss BUT support has held and still long +2 spy

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Video207-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY position update at 205.53 = +2 204 calls +3 SPY – 206.71|208.54|209.81 targets
  • Discussion of 206.71 break and shift to support with daily chart mex cross-50 day moving average break and reject – +207.78 addon using 15 minute PMD failure setup
  • Discussion of risk-reward buying 207.78 with 208.54 next resistance –vs- buying 6-3 expiration 208 call at 1.35
  • Continuation to 209.81 target and PMD high-mex extreme ‘roll’ – close 5-27 march 204 call|take 2 spy partials|buy 6-3 expiration 209 puts — closing position at spy 210.21 = +4 spy X long 209 puts [-june 195 put|-june 215 call]

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Video206-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update through 5-23 close and the position into the 5-24 5-25 up move
  • At the end of the previous video the position was short spy-short spy add-long puts, with partial profits on all trades – and discussion of why the short size was kept where it was –vs- more partials
  • SPY higher low and V move up – discussion of trailing out of the shorts AND discussion of what a buy setup would have been –vs- the sell re-entry that was done
  • SPY short re-entry-spy short addon-long puts – this move continued to-through support and then broke back above it — partials taken along with a call buy against the trailing shorts
  • Continuation to resistance and an initial reject – discussion of a trade setup-buy reverse that was a horizontal-diagonal breakout

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Video205-16:  In this position trading strategy reference video, we are going to focus on:

  • USO position update for long may 9.5c on expiration day and discussion of exercise –vs- close for profit AND if close, what to do about short jun 12 calls
  • Cost basis of exercise = 8.63 – figures the profit made from the partials taken in the cost and a breakeven on the call sell
  • Review breakeven on ratio call spread, adjusted higher for call partial profits – and compare the profit-loss if the USO went to that price and there were 2 short calls for each long 100 shares
  • Buy june 12 puts at .64 – what is the downside risk to the long USO with these long puts and the short june call premium, as synthetic short protection
  • Calls were exercised and june 12.5 calls were sold – closing position is short 1.5 calls for each long 100 shares X long puts

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Video204-16:  In this position trading strategy reference video, we are going to focus on:

  • USO position update = +may 9.5c –jun12c AND the related decisions with what to do with the long calls and expiration this Friday
  • Breaking down the long calls-short calls into a ratio credit spread and a long position – and possible different decisions for each segment
  • Planning to exercise 9.5c that are part of the current ratio spread and continue to oversell the 2 june calls against it – the ratio spread had a 14.77 b/e, which effectively can be raised to 15.64 b/e if the previous partial profits are included in the cost basis of the long uso
  • Discussion of a set of decisions related to whether the remaining calls will be exercised and held, with an objective to sell more calls at a higher strike – or closed for a profit
  • Discussion of long jun 11 puts and where they were closed, with the objective now at replacing those at a higher strike price

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Video203-16:  In this position trading strategy reference video, we are going to focus on:

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Video202-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trade update and position shift from short-neutral-long – current position = long puts-long calls X short calls-short puts
  • Reverse off of a PMD low at the 50 day moving average continued to the PMD counter point – on a counter point [acting as resistance] break2 with mex flow = buy spy – exit short jun calls – exit trailing long puts
  • Following day gap and continuation through resistance at 207 [mid line breakout and through left side diagonal] to 208 area and where the high before the recent low occurred = reduce size with 206 call exit at small profit [objective had been a breakeven exit after going 2 points OTM] – 205c partial – spy partial
  • Closing position = long spy-long calls X short OTM calls and a covered position – will look to replace long puts at higher strike, depending on reaction at 208 and whether it holds as support or rejects as resistance, with a mex extreme cross

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Video201-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trade update – current position short 208.23 long may 209.5p
  • Move to 207 area support and get breakout-continuation, giving spy and put partial at momentum extreme – buy may 206c after the extreme on the break of the swing low-high bar
  • V up through resistance and move to where previous sell occurred – close short spy on the move [there was never a spy buy setup] and partial on the long call
  • V up followed by gap down, after exit short – replace long puts that took partial on, and on continuation down take put partial-put exit at profit, on pmd low at 50 day moving average
  • PMD low-momentum extreme – replace long call partial with 205c and sell jun 195 put to add to short may 210c-short jun 215c

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Video200-16:  In this position trading strategy reference video, we are going to focus on:

  • Oil trade update – current position = -1/2 uso X +1/4 bno +1/2 uso calls — this give a positive net delta for oil, while trailing the remaining 37.20 short, with the oil chart in buy mode
  • BNO long continues to the 200 day moving average and rejects – discussion of why closed the rest of the position instead of hedging with a long put-short call
  • USO higher low reject of resistance shifting to support-previous double top break2 [triple top breakout] with mex flow – and the uso short is now flat
  • After long bno flat-short uso flat, the existing oil position is the long uso may 9.5 calls — discussion of taking a part of this position and turning it into a jun 12 call credit spread that has a 14.77 break even and what can be done with the long calls – also a jun 11 put buy was done
  • Discussion of the potential for oil day trading, using the bar chart method that is being used for position trading – taking the trade setups that have diagonal breakout potential and wider range targets -vs- the more aggressive day trading from the renko method

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Video199-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – trading review and discussion [not discussed on previous video] of short april 205c -1.66 at april expiration — how these were covered and what the gain-loss turned out to be
  • After spy close [called away] for april expiration – how may 210c were covered by combination of spy addback setup + 4-22 204 calls that were not used against short april 205c
  • SPY continuation up to pmd high-mex cross [that also was daily pmd high] and sell jun 215c-buy may 209.5p-partial spy long
  • SPY reverse and discussion of sell and further objectives, including pmd low ahead of fomc – exit 4-22 calls-exit may 208p-partial may 209.5p-spy partial-buy may 209 call
  • Discussion of fomc day exit than buy, followed by reverse back into sell the next day 4-28 — position = -spy +209.5p X short may 210c jun215c X long may 209c

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Video198-16:  In this position trading strategy reference video, we are going to focus on:

  • Oil trade update – including continued discussion of the USO short and if/when it should be flat
  • Primary hedge bno +11.02 uso mar 8.5c .45 X uso -37.20 [14.60 addon had been closed at 9.32 in previous video] – hedge size delta greater that uso short delta
  • Viewing bno-uso pair when charts went long + uso calls = bno 11.02 – 14.01 swing high X uso 9.32 – 10.93 swing high = 2.99-1.61 + uso call .45 – 2.00 exit = 2.99-1.61+1.55 = 2.93 profit AND bno + calls greater size than –uso
  • Replacing mar calls with may 9.5c .57 AND exit ½ uso 37.20 short = position after partials [bno 13.60 – uso calls 1.39] — short ½ uso -37.20 long ¼ bno +11.02 long ½ uso mar 9.5 calls

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Video197-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY update – +3 205.75 +3 4-22 204c 2.12 X -3 205c 1.66 — note the coverage of the 205 short calls as a long spread +204 -205 at a .46 debit = .54 max gain – this covers the shorts but is not a trade that would be done for any other reason
  • I mentioned that with a 207.78 4-15 expiration that the spread realized its .54 max gain – actually the gain was higher because the 204 calls were 4-22 expiration and still had some time premium
  • SPY addon +207.64 = support reject-gap high break2 – giving +6 spy to cover the short 210 calls and could take multiple partials
  • PMD high-mex extreme cross and spy partial 207.64-buy may 208 puts 2.95 [buying longer dated taking advantage of lower volatility
  • Discussion of a difference that I would have done if here by taking 2 partials and then an addback on the 207 support hold-bull flag breakout — this move went to higher high and a 209.86 partial was taken – still gives size greater than 210 call shorts, but not as much as if done the addback

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Video196-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY update – just added +205.78 to the position of +3 longs [2 203c 1 204.32] X -3 205c -3 210c +3 206p — objective to partial on spy add on move to 207 target
  • Discussion of recent spy movement in the context of the daily chart, which after a pmd high, shows consolidation inside of a downtrendline-uptrendline straddling 205.23 AND holding above the 200 day moving average — causing the 60 minute trading chart to be untradeable
  • After buy addon move down to-through support and back above = put partial + long spy close + long call buy
  • 4-12 triangle breakout setup with market strength and long again at +205.63, with short 205c covered by 204 call buy – objectives are long partials while maintaining 205c cover-size, along with replacing remaining long puts that expire this friday

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Video195-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY 4-7 update video-ran out of time to get on website – open position at 206.29 = 3 longs X +apr 206p –apr 205c [-may 210c] — with this position there is actually negative delta and no size to take more profits on continuation to 207 area resistance
  • Discussion of trading inside resistance-support range after gap and why nothing was done with long position, based on delta and not being able to go short into a double bottom at support
  • Gap above resistance, followed by reject of resistance as support-with ttm-mex flow = buy +205.78 buy [4-6]
  • 4-7 opens considerably down, which can be seen by the dow jones future – and the spy is 205.39 -1.03 at 8:00ct — discussion of dow jones future trading using a 1 minute bar chart [same setup as position trading chart], early in the morning to cover position losses and/or another source of trading profits

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Video194-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update-review – decisions made on the ‘yellen speech day’, where a method buy was not done because it was directly ahead of the speech-transcript AND then where a partial wasn’t taken at the close because it was smaller than typical size and was at a resistance triple top breakout
  • SPY gives gap up open instead of a resistance triple top setup [where an addon buy would have been done – gap to a momentum high and a big enough move to get partials on the long SPY-long calls, along with replacing the 203 closed puts with 206 puts [with more time and at a cheaper price]
  • Retrace to support – discuss what a reverse into sell would have been AND the gap down that immediately went into the gap and continued up, thus no short and no change in position long
  • Buy resumption, including break of recent highs – discussion of an addback setup if size had been reduced AND how the move went to a momentum extreme-PMD high [that was also seen on the daily chart] and another SPY and long call partial was done — closing size was +3 longs X +3 long puts – with put partial as an objective, since long protection size has been reduced

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Video193-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading scenarios below 203.80 [orange line on chart] = open position short spy-long puts-long calls – above 203.80 long spy [on setup]-long calls-flat puts
  • Discussion of closing long puts on buy setup – 203 long strike has no partial, would not be a good hedge against longs, and would become a complete loss — this was compared to a 204.50-205 long put that had a partial and would be a good hedge location
  • Discussion of reaction to yellen speech – doing nothing on initial reaction [not buying news], but going long at 204.32 after retrace-reject of 203.80-using 15 minute chart for the trade setup — long 203 puts were also closed
  • Trades didn’t move far enough before close to partial – objective now is to partial on continuation [and before employment report], while looking for a momentum extreme to replace the long 203 puts with puts at higher strike

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Video192-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY review of open position and more discussion of the decision to exercise long calls and let the SPY be called away from the short 202 calls –vs- closing the long calls
  • Discussion of position management at 205.23 double top that occurred at a big momentum divergence after a previous extreme – and taking partials against the short apr 205c, which had become ITM
  • Take 2 SPY partials [ratio math +1 -2 gives break even of 208.48 and the ratio would be +2 -3] and then reverse from long to short
  • Did not reach target but on momentum extreme and break into gap after a series of higher low – take short SPY partial and buy 4-8 exp 203c
  • Discuss decision to buy 4-8 expiration and the ratio math of the long calls with the short 205 calls – and the positioning of the Yellen speech 3-29, with the employment report 4-1

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Video191-15:  In this position trading strategy reference video, we are going to focus on:

  • Review of open position and how it fits positioning for both the short calls [especially the mar 202c that have gone ITM], along with a possible upside breakout against those calls from the FOMC announcement
  • Discussion of the price action after the FOMC and the use of the 15 minute chart to see more bars for a trade setup – what was an excellent 60 minute setup if not from a news reaction couldn’t be initially bought, but after a breakout and retrace the setup was available on the 15 minute that also included a previous high-overnight triple top breakout
  • SPY buy setup2 done on 3-17 to be able to take partial profits, while continuing to protect the short calls
  • Trade review, including a discussion of exercising open calls and closing them as long SPY –vs- closing the calls that have gone 5 points in the money and have a wide bid-ask
  • NOTE: the blue square on the chart was the 3-17 closing bar and when the short may call sell-long april put buy was done — the expiration call setup was done 3-18 the next day, and not at the blue square

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Video190-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – previous video position = long 2 spy + 2c X +3p, with -6 OTM calls — looking for 200 resistance to shift to support and get an addon setup
  • Instead there is a 2nd break of 200, with a shift-reject as resistance and a reverse into sell — there is a PMD low test of next support giving a long put profit, along with a mar 199c buy-april 190 put sell – but did not get a profit on short spy
  • Price continued back to 200 and was followed by a gap up open [giving an above average loss on the short spy], with no spy buy setup, because it would be into the 200 day moving average and/or into a price momentum divergence
  • Long call size was 5 units [-vs- ‘base’ 3 units] – the size allowing for the ability to take a partial, have some long size for the fomc meeting, and having at least ratio coverage on the short mar 202c [AND if no partial is taken – will be long 199c-short 202c debit spread at a credit]

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Video189-15:  In this position trading strategy reference video, we are going to focus on:

  • USO trading update – short -37.20|-14.60 X +mar8.5c –mar7.5p synthetic protection = option size that gives long delta against short USO
  • Discussion of decision and math to do a +mar8.5c –mar11c ratio short after taking a partial profit on long calls – the breakeven is above resistance that holding the -37.20 shorts
  • Retrace to lower low in price [divergence with momentum] and after mex cross-back – buy mar8.5c to replace those that were sell and ½ partial on 14.60 shorts, followed by close of 14.60 shorts on USO into buy and break of 50 day moving average
  • On recent strength take ½ partial on second group of long mar8.5c
  • Discussion of BNO [brent oil etf] and how it was stronger than USO – and a buy that was done to give additional hedge to short USO [also considering that long calls expire next week]

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Video188-15:  In this position trading strategy reference video, we are going to focus on:

  • Review SPY position issues if/when above 195 support – market + oil strength and long size –vs- short mar 202c-apr200c, along with upside potential from employment report
  • After lost long SPY on break of 195 – discussion of buy setup when back above 195 and how a combination of the daily chart + 15min chart for timing, gave a 60 minute trendline break buy with a ttm-mex lag
  • Decisions made with buy = SPY long-call buy combination, and why the apr200c short was closed at a small loss
  • Upside continuation [still market-oil strength] after employment report, and move to mex extreme cross = 200 put buy with apr205c sell [replaces 200c exit], along with partials on long calls and long spy – gives +2 spy +2 call unit size X short -6 OTM calls that have strike + premium above the 202.40 200 daily moving average as resistance

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Video187-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY 3-1 pre-open shows a gap above resistance – can the previous long SPY still be open and/or was there a sell setup to go short
  • Flat SPY [couldn’t hold on support break] – chart reverse with the break of support, but no sell setup — scenario for buying the SPY after the gap open
  • Discussion of trades since previous video and a SPY buy setup that includes buying 3-4 expiration calls to replace those expiring 2-26 – the +SPY +194c covers the short april 200c -2.16 and ‘allows’ for close [profit] of 2-26 calls instead of exercise
  • Discussion of the close at the previous video when long +2 191c and short -3 apr 200c AND what if there was a gap of +2.50 points – and math related to exercising the 2 calls and the relative breakeven area of the short calls

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Video186-15:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and discussion of the oil-index relationship and using [trading] the oil future to both support [enhance] USO shorts, along with helping with SPY decisions
  • Oil futures day trading is not the more aggressive trading like the nq-ym renko sysmeth that often has trades reversing directions – oil trading is far more selective with fewer trades
  • Oil double bottom low syncs with SPY filing gap – oil trendline break-break2 with mex flow through diagonal breakout potential comes after EIA release showed a smaller than expected build
  • AND as oil continued to going higher through possible resistance points, the SPY reversed of the low and gave a V reversal of around 300 points
  • SPY long puts-short spy trailed from gap close-oil continuation reverse = partial profits and size reduction with long call buy, into a closing position that is long 2 call units X long 1 put unit

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Video185-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trade review in the context of the recent move from 181 to 195 – was trading not only profitable, but was trading size increased to further increase profits
  • Review of previous trades not done and whether same decision would be made again – april put sell that I would do and spy buy that I wouldn’t do — also discussed is a spy buy that was missed, and there was really no reason for not doing the trade
  • Short 183 put that was ITM and losing, became a full winner on move up and gave additional positive delta to the upswing
  • Move to momentum extreme-mex cross and long put buy-long call partial-short april call sell – remaining long call held above gap and exercised long + 2 spy buy [2] to give a 3 unit long position

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Video184-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – including a series of decisions made that wouldn’t typically make
  • Review of previous SPY short – why held it for so much giveback, after closing 2-12 long put and buying 2-12 call
  • Double bottom low at Jan lows and buy feb exp 184c-feb exp 185p partial – why didn’t sell puts for april expiration to replace feb short put that expire following week
  • Move up from double bottom low and a break2 with mex flow of trailing down trend line – why didn’t buy SPY on a clear method trade setup

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Video183-16:  In this position trading strategy reference video, we are going to focus on:

  • USO and SPY trading updates – recent trails have reduced [closed] short positions, with current prices lower than the trail exits and without sell addback setups
  • Discussion of diagonal resistance [support] from trendlines –vs- horizontal price resistance [support] only
  • USO and SPY both have down trendlines that rejected – this resistance gave a put buy in the USO [with no USO sell setup] and a put buy in the SPY [with no SPY sell setup] — SPY was a trendline and horizontal line reject that included a short term support break
  • Discussion of short puts and how the long puts are being used for a combination of participation and protection, and what the ratio math breakevens will be, if partial profits are taken in the long puts

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Video182-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY position shift from long-neutral to short-neutral as approach employment report [2-4 position] – long calls X long puts that both have partial profits and flat spy, giving a long in the money strangle with profits
  • Discussion of 2 method trades not done – short that would been done at the same price as open short before any partial profit [would have done trade to replace a partial] and long mid-day before employment report [would have typically done the trade accept for the report]
  • Trading done after employment report and combination triangle-support break = buy puts with next week expiration, followed by a SPY short
  • SPY move to support and reject = short and long put partial profits X long 184 call buy that got partial1 on closing move back to open high from support [184c +2.26 -3.44 partial] – closing position = -1 spy +1 put X +2 call

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Video181-16:  In this position trading strategy reference video, we are going to focus on:

  • Discuss using current weekly options –vs- ‘later’ options with more time = strike + premium –vs- otm strike + same premium + more time.
  • Discuss trading strategies and only trading options at extremes = counter trading –vs- directional trading method OR trading synthetics on directional trades setups –vs- trading underlying – and the implications of not having protection trades, along with having to trade 2 options instead of 1 underlying and the further difficulty in taking stops
  • SPY trading updates from previous video and a position of +2 spy X +3 put – and the objective of having long puts and long calls for the 2-5 employment report
  • Trading into a position of +2 puts X +2 calls [with each option position having a partial] AND a reverse from long spy to short spy

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Video180-16:  In this position trading strategy reference video, we are going to focus on:

  • USO update and objectives follow through from previous video = -37.20 + 3 addon shorts + 1 long put
  • Timing for partial profits in short USO and long puts = momentum extreme-mex cross AND the break of a previous day’s high, which had been a series of lower highs for 10 consecutive days
  • Discussion of trailing partials-short addon and put exit + call buy-put sell AND the math of the position from the breakeven of a ratio put short to a covered short after the put exit that still had over 11% down before the short put would cap profits
  • Discussion of resistance and what would take the existing addon flat, but keep the initial short open – even though the USO chart was in buy mode, but how the position could still have positive delta when the synthetic long was matched to the open short[s]

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Video179-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY update through 1-22 expiration and response to the V reverse, including the previous objectives of 1-22 expiration option buys along with March expiration option sells
  • Discussion of the effect of option volatility on option pricing, including calls even when market is going down – call buy could not get partial on bounce, because of decrease of MIV on move up after having to buy call that was further OTM than typical
  • Discussion of protection and hedge trades in the context of trading method strategies –vs- entering hedged trades – there is a large profit differential between these 2 tactics
  • V move down through support points from September and August, following oil move that includes large sell off and reverse February expiration and move to March as front month – profits on way down and way back up when support didn’t hold as resistance, include SPY buy reverse done
  • Closing position includes long SPY X long puts, regardless that mex hasn’t crossed yet [function of the size-speed of V up-down] – discussion of decisions in light of size of the V move and how it went back to the high point before the selloff to lows

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Video178-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY update through Jan expiration – options objectives will be for any new longs done using the weekly 1-22 exp and to start adding short options in Mar expiration
  • Chart pattern [technical] discussion based on back and fill, ideally giving what we view as a reject-breakout setup – and the significance of the back and fill price as support-resistance –vs- a chart initial reverse
  • Discussion of bear wedge that includes a test of the previous breakout price as resistance – there was also a chart reverse here, but the trade was to sell a March 202 call-buy a 1-22 192 put on the reject –vs- exiting any short positions-doing any long positions
  • Move to support 186.92 on Jan expiration = buy 1-22 190c [discussion of this strike –vs- 188-189 strikes because of option volatility and price-sell [partial] 1-22 192 put – directional SPY shorts = initial + 2 adds and long put X long call-short Feb 183 put is a well-covered position that is not capped

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Video177-16:  In this position trading strategy reference video, we are going to focus on:

  • USO trading update – beginning with a question from the previous video about taking short partial profits and/or hedging with a call buy
  • There was no reason to partial or hedge at that point – line drawing for where these would have been done AND as support has shifted to resistance, a long feb put buy for additional participation with time –vs- and addon sell that looked like it might be into a PMD
  • Pmd low – buy march call for hedge but no short USO partial yet, basis room to the previous breakdown price [where the put was bought] as resistance
  • Breakdown price double test [hold] and reject into the previous PMD low = USO addon trade – trading into a previous PMD is breakout potential in our method as a resumption of momentum after an extreme
  • Breakout-continuation occurred and a put partial was taken that more than paid for the long puts – still no need to take a short partial, seeing ttm continuing to ‘match’ price with mex flowing down

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Video176-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update 1-4 to 1-8 and what became a difference in price movement and the recent strategies of directional trade-counter option protection [directional profits]-trade reverse-move back to opposite extreme – giving partials in the directional-long option-short option trades
  • This week became one of moves to support and counter bounces BUT these were sold and there was not a 60 minute chart reverse, let alone a short reverse = initial short –addon1 – addon2 – loose on counter option [call buy] that is very well covered by long put and short spy profits
  • Support reject to price resistance AND actually looking for buy reverse – instead there was a resistance reject and acceleration to the downside on a previous support failure setup = long put-short call to get feb call premium below resistance
  • Addon setups and how the directional move down was increased – even on addbacks after partial profits had been taken

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Video175-16:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading review through 12/31 and the year-end position = short spy X long 206 put
  • Discussion of long options and the expirations being selected = using the weekly options for the following weeks – as a function of continuing to get up-down price movement and swing reverses, where the options provide protection and participation –vs- longer expirations if the long were just being used for protection
  • Moving trading support from where a previous gap began to where the gap closed – after taking a partial profit on a long spy and opening a synthetic short, the position actually had negative delta when the long was held on a chart reverse [no sell setup]
  • Discussion of closing the short jan 190 put for .15 –vs- waiting for it to get to .10 or lower as typical – with 3 weeks to expiration and only another .05 of profit that will be had [.15 – .10], this is lousy risk-reward and there is another short put that is open

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Video174:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading review from 12-21 – 12/24 AND again how we were able to trade from a momentum extreme to support and a momentum extreme, and back again to resistance at the 200 day-50 day moving average resistance
  • Moves in the context of our trading strategies = directional trade to extreme-reduce size through partials-protect remaining position with counter option trades-exit and/or reverse to a directional trade again
  • Moves in the context of ‘maximum’ trading strategy profits = directional profit-counter long profit-short option profit
  • Short position short spy-long spy put – size reduce at support with profits on each + sell of OTM put-buy ATM call – reverse from short to long – move to resistance = size reduce + sell of OTM call-buy ATM put

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Video173:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading review for position at time of fomc release and trades after reaction – position was flat spy X long 208 put-202 call that had partials greater than cost
  • Fomc initial reaction up than reverse to double bottom and continuation up – buy double bottom with mex flow up and break2 of 200 day moving average
  • Continuation to double top resistance-momentum extreme AND ‘base’ strategy trading = take directional profit – buy put-sell call for synthetic protection – in this case decision was to sell trailing 202 call –vs- selling OTM jan call, because of how small premium was and potential triple top addon setup
  • SPY reverse setup after double top – chart initial reverse sell –vs- initial reverse that included a break and shift of 200 day moving average to resistance-into triple bottom breakout [fomc release double bottom low] into open gap
  • Sell continuation to double bottom support low-momentum extreme AND ‘base’ strategy trading = take directional profit – buy call-sell put for synthetic protection

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Video172:  In this position trading strategy reference video, we are going to focus on:

  • Spy trading update for 12-14 and 12-15 – and discussion of the existing position for the fomc release, which is a long 208p X long 202c with each option having enough partial profit that the trailers have no remaining cost
  • Discussion of the SPY [ETFs] and our trading strategies –vs- single stocks, in the context of gap risk – including a story of a trader trading GMCR and why I warned them not to trade this stock, which recently had a $35+ gap when the company was taken private
  • Position transition from short SPY-long puts – to reduced size – to a hedged position after a momentum extreme-PMD low and a long call-short put trade
  • Exiting the spy on a buy setup, instead of reversing long – the decision being a function of the fomc release and deciding to just hold the long call [short put] X long put position
  • Yes I could have done the reverse and then added back to the long puts to hold the SPY – but that would have needed a SPY partial and continuation to buy the puts, and I decided not to do that

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Video171:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update from 12-4 to 12/11, also discussing the positioning objectives for the following week and the fomc meeting
  • Included in the discussion was the difficulty in trading from all of the whipsaws, especially as lower lows in oils would take an spy move up back down – I also mentioned a couple of trades that I felt I should have handled better regardless, and tried to discuss them as ‘decision points’ –vs- ‘hindsight decisions’
  • Chart read for pattern inside of ‘chop’ that became a clear trade setup = resistance double top reject-200 day moving average break2 with mex flow-into a triple bottom breakout with room to next support
  • 12-19 expiration put buy on the break of the same price as support that the previous 208.56 to 204.80 selloff came from [the move down before the employment report reverse
  • Closing move to next support at 202 and the decisions regarding buying 12-19 expiration calls, along with a review of the way the short 200 puts were covered as a ratio spread, after spy short partials were taken [there was never a spy addon done]

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Video170:  In this position trading strategy reference video, we are going to focus on:

  • XLE-USO trading update – further discussion of how these underlylings ‘fit’ our trading strategies of directional trading with counter option trades [short synthetics] protection and momentum-price extremes
  • XLE long into momentum extreme and break of previous resistance as support = partial profit + option protection-hedge BUT the trade is done as 2 put buys –vs- short call-long put – discussion of why
  • Support shifts back to resistance and price consolidates inside of a triangle – reverse to sell pattern = double reject of resistance-trendline break [rising trendline in triangle pattern] with addons on failure break of next support and shift-reject of that support as resistance
  • USO has remained short from the initial -37.20 short, but flat all addons as discussed in previous videos [reviewed] – sell swing resumption and addback setups at -14.60 and again at -13.87 into the 12.37 august low, which broke to a 11.45 lower low

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Video169:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update for Friday and the employment report – position review and further discussion of trading strategy math
  • Trading method strategies hedge long-short directional trades at momentum and/or price extremes, meaning that we are hedging profitable trades – short 208.05 X long 205c +1.38 = 1.67 minimum profit, regardless how high-low the spy goes BUT consider that the calls were bought with long put profits that locked another minimum profit
  • Discussion of why long 209 puts were closed instead of being held for potential employment report down move (1) function of premium [theta] loss on day of expiration (2) along with a decrease in option volatility after employment report comes out but before options can be traded – this could cause puts to go down even if SPY goes down
  • SPY short position profits and reverse long – trade review for reverse setup with additional call buy [for next week expiration] and addon, with profits taken and long put buy and the close, to give a long call X put strangle with a call profit reducing the cost of the option position

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Video168:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and positioning for employment report – there has been a change in tact from a predominantly long options strangle for all the weeks news, to include short SPY in light of the negative news that has occurred
  • Initial position included long spy from 204c exercise and that position was actually added to for a trade on a triple top breakout setup – discussion of this trade and whether it was a mistake-not because of the loss, but did I miss a resistance price I should not have traded into
  • Call profits- SPY long from exercise exit at price reject and then close SPY on a trendline break – note how the trendline breaks as support and then rejects as resistance, with mex flow down, and that was used for the spy sell setup
  • SPY moves down through diagonal and 200 day moving average to next support at 204.88 – SPY short profits and long puts closed [gives a put sell equivalent for a synthetic] and buy 205c for short SPY protection and to have relevant position for possible upside move from employment report

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Video167:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and 3 trading objectives (1) protection and profits for long spy (2) positioning with long options for long holiday weekend + upcoming employment report before a bigger increase in volatility (3) protection for short 210 calls after reversing back into buy
  • Discussion of exiting the spy longs but not going short – price break on consecutive bars –vs- break2 with mex flow or price reject with mex flow trade setups
  • Trading into long 209 put X long 208c and taking profits to reduce the cost of the long strangle for positioning – further discussion of .71 partial profit and seemingly not much of profit but it is 33% in 2 trading days
  • Exercising long 204c +1.93 | 3.66-4.94 partial – giving partial size protection of short 210c without doing a full size buy into the weekend, and the relative cost of the option when the 8.50 profit is factored into the 1.93 cost

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Video166:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update in the context of trading method strategies (1) opening a directional trade from a method setup as momentum reverses (2) building the position with momentum building to an extreme (3) protecting the directional position (4) neutralizing the delta of the position from the momentum extreme –vs- rebuilding of the position on a resumption of direction-momentum
  • Recent position began from an upside momentum extreme that was protected and even had negative delta using options – to a directional reverse – to a short position that included 3 different synthetic shorts and 2 spy shorts [initial + addon]
  • The move goes to a downside momentum extreme and the strategies are ‘reversed’ with partial profits and closing shorts – to a full position reverse to long as the retrace becomes a directional reverse
  • Closing position = +spy [initial + addon] +synthetic long [short spy puts-long spy calls] – +6 spy +3 synthetic shorts becomes +6 longs X -6 OTM dec short calls – covered position but would take additional profits and allow the dec 215 call short to become uncovered

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Video165:  In this position trading strategy reference video, we are going to focus on:

  • SPY position = long put-short call [synthetic short] X long spy – giving negative delta, regardless that long spy, because of relative position size
  • Discussion of holding long SPY on chart reverse and 2 sell setups as a function of delta size, movement on 207c on sell-off and increase in implied volatility, and also having to protect short 210c if sell doesn’t continue
  • Chart pattern and setup [bear flag break] where did reverse and go short the SPY, with the plan of taking ‘small’ loss on 207c if the sell doesn’t continue
  • 50 200 day moving average failure setup and buying 11/27 expiration puts to extend put ratio short with dec short 200p – followed by 200 day moving average reject with mex flow and a SPY sell addon
  • Movement to support [September high inside August low and September higher low and profits taken on the break of this price – with analysis of open position and size greater than needed to cover short dec 200 puts

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Video164:  In this position trading strategy reference video, we are going to focus on:

  • SPY update and position at 10/30 expiration = short 6 puts X long 4 spy – exercise 2 long 203 calls to have a covered position after a pmd high-double top right above support, because of the method breakout potential of trading through a previous pmd-triple top breakout
  • Previous pmd high-triple top breakout addon done to have position that has longs that are not being used to cover short options – at the same time short dec 200p were sold for 2.08, which is also a long delta trade
  • Discussion of ratio short put math, when considering these short puts against nov 207 long puts – split strike ratio short with almost 3 weeks to expiration
  • Discussion of trading options synthetics instead of the underlying in order to be able to sell an option to pay for the other option – and the related trade offs of having to manage 2 options –vs- 1 underlying to only put up margin to do the short option instead of the cost of the underlying
  • Continuation to resistance and a momentum extreme, followed by a SPY sell setup and the trades that were done – trading options to create negative delta against long SPY that was held to cover ITM short 207 calls

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Video163:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update from previous video and October expiration – long xle + long 61c + long 68p — call partial1 = +3.03 – put partial1 = .33
  • Discussion of partial sizes and how a call could have a 3.03 partial1 while a put has a .33 partial1 – chart reading for momentum expansion-continuation and the location of price support and resistance, along with price bracketing where if a price breaks you do nothing, but if another price breaks you take a partial
  • Using the 60 minute and daily chart together – our 60 minute chart is the ‘base’ chart and we would take trades against the daily chart direction, but the daily chart may give more clarity when the 60 minute is consolidating and/or give its own trade setups
  • Long 67.31 with a 68.53 partial – 68.59 addon with 71.38 partial — big difference in resistance location and stall giving the smaller partial –vs- resistance breakout with momentum expansion-continuation giving the bigger partial

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Video162:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – with the primary focus on trading size and the current position that had short OTM options go ITM and getting from an uncovered position to a covered position
  • Trading review from 10-23 through the 10-30 expiration and exercising long options at expiration to get increased SPY size regardless that the dec 210c are still OTM –vs- the closing potential setup for a support hold and previous pmd-triple top breakout
  • Further discussion of short option risk and strategy objectives of selling OTM options as part of a synthetic trade and for income BUT always knowing how to protect this risk
  • 10-30 expiration = exercise long 203 calls and buying nov 207 put – why switched to buying this put instead of the next weekly put and even with a covered position, no additional OTM short calls were sold at this time

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Video161:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – review of open position = long SPY X short synthetic X short OTM calls = uncovered short calls in position
  • SPY trade and protection size – IF long 2 [after partial] how many short synthetics to do for protection is a function of delta neutral position ahead of potential reverse –vs- actually creating negative delta ahead of potential reverse — based on distance to support along with bigger direction
  • Reaction to support hold –vs- break setup AND in the context of a resumption of upside direction, led by earnings news and ECB QE comments – 15 minute chart resumption setup and addons that include the previous PMD-triple top breakout setup
  • Oct30 expiration 203c purchase – why this expiration when short calls that would need to protect are nov and dec expirations
  • The options are a fixed risk directional trade, with the objective of paying down the cost of the calls if can profit AND what that would give as an exercise price if need additional size to protect short calls –vs- protecting those calls with longer date long calls

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Video160:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – long 191.42|199.32 X short nov 207c -1.52 long 10-16 199p 1.84
  • Discussion of managing the long puts coming into expiration – holding –vs- exiting to get something out the trade, and in the context of whether the puts are a protection trade or directional trade
  • Resistance PMD high into a reverse followed by a reverse back through the PMD counter point = short 200.38 buy reverse 200.63 – further discussion of the trades on the 199 puts
  • Discussion of the decrease in volatility and its effect on option premium – buying options with longer expiration –vs- current weekly options, because of the higher volatility
  • Breakout through resistance to another PMD high-double top combination – partial on long SPY and do protection trade = short dec 210 call buy 10-30 exp 202 put

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Video159:  In this position trading strategy reference video, we are going to focus on:

  • USO and XLE trading update – from last video USO short hedged by long oct14 calls X XLE long + long oct 61 calls
  • Discussion of USO hedge and oct expiration – IF still short at expiration do you roll the hedge to nov [or later] expiration, and adjusted hedge price when call profits are factored in
  • Management of XLE longs, including partial profits and exit of 61 calls into expiration – timing based on extended PMD high-momentum extreme
  • XLE reverse initial reverse into sell = buy put [no call sell because of short premium available] and close long XLE – discussion of not reversing into sell, along with .96 partial of .57 put cost at a PMD low at support and the percentage gain –vs- the actual profit amount
  • PMD low at support into buy setup and long XLE again – with partial profit as a factor of reducing size on a Friday afternoon

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Video158:  In this position trading strategy reference video, we are going to focus on:

  • SPY update from employment report, with discussion of open trade management and price failure-break trade setups
  • Initial management reduced open trades at 2 resistance points – the high into the employment report sell off and next resistance above that, which was a prior support reject as resistance that expended the sell-off
  • Discussion of 2 addon setups – 1 that didn’t take, which was really a price failure setup and a mistake not to do, and 1 that I did take that was an additional price failure break
  • +199.32 addon with 202 addon, where the following trades were done – close long call-take partial on long spy-sell nov 207 call — there was already a long 10-16 exp 199 put without any partials, if there had been a partial I would have replaced it with a long 200 put

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Video157:  In this position trading strategy reference video, we are going to focus on:

  • XLE-USO trading update – and discussion for how these underlyings fit our trading strategies when compared to the SPY trading
  • XLE option trade protection has more often been option purchases instead of options synthetics, as a function of short option premium based on time to expiration and distance OTM
  • USO is being traded as a position –vs- more frequent trading, and as a result have been using longer dated options, instead of even weekly expirations for the longs like done with the SPY
  • XLE update from a long with partials and protected by a long put, followed by a profitable sell off for the xle and options, and then protected with a long call and have reversed the xle long – current position is a trailing long with and addon, along with a trailing long call
  • USO update has been trailing exits of the shorts, with a long October call hedging the open shorts – current position has seen all shorts go flat with the exception of the original -37.20 short that is currently hedged with a long 14 call

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Video156:  In this position trading strategy reference video, we are going to focus on:

  • Discussion of option partial profit size in the context of time to expiration and time-positioning for an invent, with the objective of getting the cost out of your option – for instance, closing half at a double pays for the option, or closing 2-3 $1.00 options at $2.00 pays for your trailer and ensures $1.00 profit
  • Discussion of open position for an event = employment report, and for time = weekly expiration Friday
  • Using a 15 minute chart that includes the post-pre market open to see 4 bars of activity and setup for 1 bar of your 60 minute base chart, and to make necessary decisions for an event reaction, especially pre-open
  • Spy buy setup using a 15 minute-60 minute combination, after going flat after the employment report – note that the 60 minute chart was in buy and the setup more clear on the 15 minute chart — this was not trading a 15 minute setup against the 60 minute chart

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Video155:  In this position trading strategy reference video, we are going to focus on:

  • Strategy discussion and delta – directional trade expand delta on move to support or resistance, where profits are taken along with trading a counter option synthetic for protection and to participate on a counter move that may lead to a reverse
  • What if direction resumes and support or resistance breaks – you lose money on the long option but the short option pays for it, and you look to again build directional delta before the short option would go ITM
  • Positioning for employment report and trading into a long put + long call, where the put is bought after the call is profitable – discussion of a resistance reject-triangle breakout pattern that entered the long put on
  • Move to support which is the 8-25 low and the process is done again – take profit on long put [no spy profits because no addon setups] and buy a call and sell a further OTM put than was done previously
  • Gap up and failure break buy setup at previous support now as resistance – reverse spy to long and discuss the trading objectives for Thursday and ahead of Friday employment report

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Video154:  In this position trading strategy reference video, we are going to focus on:

  • Long SPY 196 call and move to resistance and momentum extreme at 202 – this is the day before expiration and the call is closed, should you roll to the next expiration and buy a 202 call to stay in the trade?
  • Discussion of rolling options in the context of our trading method –vs- what you may do for longer term portfolio protection
  • Review of the SPY position and holding a short on a mex extreme cross when below resistance – but do take a partial profit on the extreme
  • Comparing 2 gaps that held the gap high as a double top and how the first was the short entry, but the 2nd wasn’t done as an addon
  • Support hold and mex extreme cross bought synthetic long against trailing SPY short, which gave positive delta because of the size of the new trade –vs- the trailing trade – discussion of how that happens frequently and is fine, and also how it impacts the hold of the trailing trade

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Video153:  In this position trading strategy reference video, we are going to focus on:

  • SPY position review and decisions going into fomc release – update through fomc reaction and options expiration
  • Initial spy reaction is up [shorts ahead of release caught?] to resistance at the next area of the august break down [see 8/21], and a momentum extreme-mex crossing
  • Take spy partial and close short sep 200 puts on the move to resistance, and sell a synthetic short as protection against the remaining long spy – note that this trade actually has negative delta as the synthetic short size is greater than the spy long size
  • Next day spy gap down – setup that reverse long to short and where spy target1 is and what looking at as resistance area
  • Discussion of scenario that would lead to a reverse back long – and further discussion of not taking a profit on a double hold above the target, and that really should have taken a long put partial

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Video152:  In this position trading strategy reference video, we are going to focus on:

  • SPY position review and upcoming fomc meeting and options-futures expiration AND the elevation of volatility – this is a time to sell options instead of buying options, but position includes a long ITM option strangle with both sides at relatively high prices
  • Closing the option strangle because of volatility and prices – looking at potential decrease in profit, both because of expiration at intrinsic value and a decrease in volatility after the fomc
  • Reverse SPY from short to long, because of a double-triple top breakout setup – 200 area target1 and reduce size at that price
  • Short 200 puts become part of a short strangle -200p -205c with upside b/e 210.36 and downside b/e 194.64, with trailing spy b/e 194.72 after partial profit = +spy -200p -205c as the position that will be held going into fomc, basis profits taken and b/e levels.

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Video151:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and trading objectives – trading around high volatility, positioning for being away, position for fomc meeting
  • Offsetting short spy-short ITM puts when chart gives buy setup and don’t want to take short put loss – a long synthetic can have more positive delta than the negative delta from a short spy, especially when it is a covered position by short puts
  • Volatility effects long options and can get direction right and still lose money [make very little money] if there is a big enough reduction in the volatility – this can be offset when also selling options for around the same price and volatility
  • Trading into a long ITM strangle [long 195 call-long 198 put] for 1.04 – where the original legs, even with legging but before partial profits, cost 5.87

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Video150:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update from 8-24 – discussing recent volatility and what is more typical, along with what happened to that volatility as the market was able to retrace
  • SPY retrace and the short sept puts going at the money instead of deep in the money, and the profitability of the sept and oct short puts sold on 8-24
  • Additional volatility discussion and the weekly 190 calls that were bought for 4.20 that got a partial and a repurchase on a move back down on 8-25|8-26 for 2.60 and that was done at a 6 point higher price
  • Move to resistance and a pmd high-lower high [crown pattern] mex extreme cross –setting up a weekly put buy, close of 198 short puts to ‘free-up’ covering SPY shorts, and the closing of the sept-oct short puts volatility trade

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Video149:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update focusing on the open position size and the 8/24 gap down – 2 ‘sets’ of short puts have gone very deep in the money
  • Holding short SPY to keep the short puts covered – do not close SPY and close short puts, especially with the spike in volatility and increase in time premium in their price
  • Taking advantage of the size of the move down and the increase in volatility to take profits on long puts and ‘let’ the SPY cover the short puts – volatility in the form of the vix has gone from 28.03 to a high of 53.29
  • Taking advantage of the volatility to sell additional puts that are farther OTM and for a greater premium than typically could be done – these puts can be used for profits on a retrace up and/or decrease in volatility, and they are able to be protected due to their distance from current prices
  • Buying calls using the current weekly options – even though the market has dramatically sold off, the increase in volatility will also increase the call prices relative to what they should be

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Video148:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and strategy discussion – our strategies have worked well for directional swings in both directions and typically in gaps against direction BUT how do they work with a multi-day protracted selloff
  • The recent market move down began with a long SPY that went to a double top-momentum extreme and a short call-long put synthetic long was done – as long as our position have this combination strategy the synthetic would cover a gap loss on a SPY and cover short options if they went ITM
  • Profit discussion – the buy had a partial of 1.20 points where the sell reverse didn’t partial until 10.61 points
  • Option short discussion – there are short 200 puts that are well in the money, but have a b/e at 187.16 as a ratio short BUT do have to keep SPY adjusted for exercise risk
  • Trades done with the move down and the addon setups that were available

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Video147:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update from short on the previous video – and continue to discuss how our trading strategies are working in the context of wide trading swings in both direction, even with a downside bias for oil
  • XLE directional trades have been predominantly short, even when the 60 minute goes into buy – but long calls and short puts [synthetic long] have been entered at support to protect and neutralize delta on the swings up
  • A counter option synthetic can become a directional trade as the underlying size is reduced [by partial profits], even while still holding the trade
  • For instance, 3 synthetic longs X 1 XLE short has positive delta but still short the underlying – and if swing move up and reverse again, profits are taken on the synthetic long and the short that was held will be added to

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Video146:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update from short done on the previous video – followed by a move down and then a gap up, and then a gap back down that breaks the 200 day moving average, which is followed by a V reverse back to resistance
  • Discussion of the math of our spy-options trading position and how doing the option synthetics as protection against the spy trade has kept the position profitable on these gaps and ‘fast’ moves up-down
  • Short synthetic buys the put with 10 days to expiration and sells the call in September – the short option pays for the long option and when reverse from resistance, both options are profitable and become a directional short when exit the spy
  • But if would continue to go up through resistance, the short option pays for the long option and is covered by the long SPY, to the extent that there is the same quantity of spy longs as call shorts
  • Long synthetic done against directional short on the break and move back up through the 200 day moving average – protects the short spy and the position is net profitable on the V reverse

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Video145:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update from previous video – where short -211.38 long jul31 212p short aug 215c, and still trailing remainder of long july31 210.5c in the ratio call spread
  • Discuss move to support and scenario for holding and going back into buy – holding the long call will give some positive delta against what is a double short [short synthetic + short spy]
  • Move to 200 day moving average and profits taken and then a double hold-momentum extreme bounce from the 200 day moving average and buy call-sell put = synthetic long protection against trailing short
  • Chart reverse follows BUT there is never a buy setup – the shorts are trailed flat and this is done at a profit, and then long because of the synthetic long, regardless that there is not a spy buy

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Video144:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – including position trading strategy in the context of delta and building delta in the direction of the swing, flattening delta at a support or resistance extreme, and neutralizing delta on a counter move with profits and synthetic protection
  • Closing ITM short puts on resistance reject eliminates exercise risk, while allowing long puts in ratio to become uncovered into a resistance-reject-directional reverse
  • Call sell-put buy on resistance reject takes position from delta neutral to delta negative – followed by a further delta build by doing an XLE sell addon, which will allow for additional profits and a new short OTM put while retaining a covered position
  • Move back to support but with mex flow continuing down on a retrace – discuss scenario where a new put short-call long would be traded –vs- holding for a triple bottom support failure

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Video143:  In this position trading strategy reference video, we are going to focus on:

  • USO-XLE trading update – how support was found, leading to a retrace and the trades that were done for profit and for protection of existing shorts
  • USO -16.78 short got a 5% move down to a double bottom – take ½ profit on the add and buy a synthetic long to protect the other half, which will become full protection of -19.65 short if trailed flat
  • XLE double bottom-mex extreme cross – take partial profit on short XLE and long puts, creating a ratio short with a 65.93 breakeven — call buy done for protection, with further discussion of why a put sell [synthetic long] wasn’t done and was probably a mistake in terms of the put strike targeted
  • XLE trades [and USO] had been done using the daily charts because of the directional move – discussion of the mistake made by not paying more attention to the 60 minute chart when support failed and how [why] I should have had bigger size on the move down to the double bottom

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Video142:  In this position trading strategy reference video, we are going to focus on:

  • USO-XLE trading update – discussing oil weakness [fundamentals] –vs- method trading strategies [technical], especially for trading decisions relative to next support
  • Discussion of trading size and options exercise – july short 76 puts expire ITM, having long stock put to me and thus losing the equivalent in short XLE, further leaving -2 addon shorts [partial taken] X -3 aug 70 puts
  • USO addon trade with around 5% to target support –vs- XLE addon short setup with less than 1% to target support
  • XLE addon was not done [regardless of oil weakness –vs- technical] but how the uncovered short options were protected and the further management of the position

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Video141:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and review of the decision made to close the jul31 212c when it was ITM and essentially at breakeven, as a risk management decision
  • Review of the objectives at the close of the previous video if there was pmd reverse – profit on the long 208 calls, buy put to complete synthetic protection for long SPY, sell aug 215c to replace the jul31 212c
  • SPY reverse trade setup = -211.38 reverse pf +207.64 long, with support at the 210.18 50day moving average
  • Trades done on the move to support = partials and buy long call [already short put] for synthetic long protection against the synthetic short-short SPY position

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Video140:  In this position trading strategy reference video, we are going to focus on:

  • SPY update and discussion of position risk shift – now instead of going down and approaching short uncovered puts, we are now going up and approaching short uncovered calls
  • Long 3 spy + 2 long 208 jul31 calls X short 3 july31 212c + short 2 aug 212c AND gap open at 212 –vs- the support break scenario discussed in previous video
  • IF support reject and pmd failure setup then a buy addon would be done to balance size, but gap above the setup at the short strike – discuss profit –vs- exercise risk scenario and the different decisions that can be made
  • Ability to take more directional profits or protection trade –vs- keeping maximum long size and not selling more calls – scenario for closing jul31 short calls regardless of ratio short b/e far higher, because of exercise risk and looking to sell further OTM calls in august

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Video139:  In this position trading strategy reference video, we are going to focus on:

  • SPY position delta discussion – short SPY but neutral delta when at resistance, negative delta when at support but have short puts that may need protection
  • Short option exercise risk –vs- short option profit at expiration – must understand that a -2 spy -3 short put that expires in the money may be profitable, but your short spy will be taken away and you will actually be long 1 spy
  • Position size discussion when at support and when at resistance – with short options, do you have a covered position or a ratio short position, or is the position uncovered AND if yes, what is the plan to protect the short options
  • Trade review = long spy [reverse] short 2 different calls – making the position [based on 3s] +3 spy – 6 calls, but there are also 2 long calls [after partial taken] that extend the b/e of the uncovered call to 218.17 when the last price is 210.62

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Video138:  In this position trading strategy reference video, we are going to focus on:

  • XLE and USO trading update [short with addon shorts] and option position discussion – both for short protection and for exercise risk
  • USO short protection = short put-long call –vs- 2 long calls – and why I did the long call at a debit instead of the synthetic long at a credit
  • Short XLE before addon had more short puts than short XLE, and the short puts were in the money – the short puts would be exercised and because of the quantity difference, I would be long XLE
  • Exercise risk and position –vs- position profitability – even though the exercise would be a profitable trade [above breakeven], I do not want to lose my short position, which became protected by an XLE addon that increased quantity

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Video137:  In this position trading strategy reference video, we are going to focus on:

  • SPY position risk – short more puts than short spy with market going down, and no long puts to extend break even through a ratio credit spread
  • Discussion of uncovered short put break even and being able to protect those prices if necessary – risk exposure –vs- break even location –vs- how to protect
  • Review of sell scenario from previous video for the failure of the 200 day moving average as support – and how a -206.38 addon + short call-long put fit that scenario, along with how this move protected the short puts
  • Move to next daily support at 204.12 and a series of trades there, both for directional profits along with a call buy to match existing short puts to give synthetic protection for open shorts after support held

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Video136:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading review and update, with further considerations-decisions related to the July 2 options expiration, employment report, and ongoing ‘wildcard’ from the Greek debt resolution
  • After test-reject of 200 day ma as support, buy call and sell put for synthetic protection – put sell has been done in august and this will be an income trade –vs- covered trade at this time, because the long jul2 puts have also been closed into expiration
  • Retrace back to resistance and close of addon2 – this move also gave the opportunity to close the long jul2 calls at a small profit, instead of having them expire worthless
  • July 2 closing position and further risk [Greek] discussion – SPY initial short and addon1 short, but reduced size with partial profits having been taken X short July17-July31 puts that are profitable and covered X short Aug puts that are now uncovered X short July calls X long July call

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Video135:  In this position trading strategy reference video, we are going to focus on:

  • SPY short – short OTM calls and puts – long ITM calls and puts — position from 6-25 with short addon 6-26
  • Monday gap down from Greece debt [and China sell-off would be additionally related] and the impact on the open position, especially on short puts that would be at risk
  • Trading strategies and how short puts covered by SPY short and/or long put and ratio short that extends break-even – allowing for profits to be taken, based on open scenario and support hold discussed
  • Daily chart addon setup as triple bottom support failure and move to 200 day moving average – discussion-review of all trades done related to the move to the 200 day and any uncovered risk

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Video134:  In this position trading strategy reference video, we are going to focus on:

  • SPY position flat – long 209c 1.72 3.75 partial X long 212.5p 1.81 2.54 partial = 2.76 profit
  • Long options are profitable and give participation in both directions, especially when coupled with the short calls and short puts that make for a synthetic short and synthetic long
  • This has been an excellent position for recent range trading that has had gaps and big daily moves, as different Greek debit resolution is released – AND besides the gained option profits, both options are currently ITM and only 1 of the options could expire OTM, meaning it/they will always have additional value at expiration that increases the overall profit
  • Trading update and review, includes a SPY short trade and closing 6-26 expiration options and rolling to 7-02 options – put buy with the sell signal and call buy on move to support at close

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Video133:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – and how it has been impacted by recent range trading and the ‘wildcards’ brought on by fomc, options-futures expiration, and Greece debt
  • Short SPY with short options synthetic + long options synthetic – with the directional short, the short options synthetic is participation, but what is happening to the long options synthetic at that time?
  • Range trading has allowed partials to be taken on long options, while staying away from short options break-evens that have been further extended, because each of the synthetics is also part of a ratio credit short
  • AND since the long option in the synthetic is ‘paid’ for, the credit in the synthetic remains income instead of paying for the long option
  • Trading from the previous video to expiration has a long SPY exit and buy out of the short – but there remains a long options synthetic [and ratio put credit] + short options synthetic [and ratio call credit] so the is participation in both direction, with ratio short break-evens well OTM

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Video132:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – and what happened with the buy setup scenario discussed at the end of the previous video
  • Discussion of a short-short add1-short add2 being reversed all at one time on a buy reverse setup –vs- exiting addons and buying option synthetic long to protect the remaining shorts, and holding for reverse confirmation
  • Buy reverse after gap above resistance, with synthetic long protection that becomes participation
  • Continuation to momentum extreme followed by a lower high – long partial and synthetic short protection against trailing long
  • Reverse back short and the synthetic short protection becomes participation, but the synthetic long that has still been held includes a long call that has partialed and short puts that are covered by the short SPY and long put in the synthetic short

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Video131:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – current position = -82.10 -79.86 +jun 80p that has synthetic long protection and multiple OTM jun-jul short call income trades [short puts in the synthetics are also OTM]
  • Discuss short puts that go ITM and how they are covered by short XLE or have an extended breakeven with the long jun 80p as a ratio short – for instance a +80p -78p at a 1.23 credit has a 74.77 b/e
  • XLE 60 min buy setup and the implications of reversing long out of 3 shorts [a 2nd addon was done] – the trade was done, with the long 80p short calls giving profitable protection
  • XLE buy ‘whipsawed’ and reversed back into sell with short jun p going back ITM – but again has the ratio credit spread b/e and short jul puts are covered

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Video130:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and the position after a test of support and retrace to resistance
  • Short option income trading –vs- synthetic trading [long option-short option] for underlying protection that would become directional participation after an exit – and doing the income trade only when there was no underlying to protect
  • Short 3 SPY with partial = -200 delta – if have 3 synthetic longs from at the money call and out of the money put you have around +240 delta, or the equivalent of almost 1 long call to hold the short on trail
  • SPY addon trades and partials, with short puts – and a covered short trade with OTM short calls

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Video129:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – comparing the 60 minute ‘base’ chart that became unreadable, to the daily chart that was very clear, and where the trades setups-trades came from
  • Evaluating the components of a trading position – 2 short calls-1 long put synthetic becomes 2 ratio credit shorts when a long call is bought and 2 short puts are sold, but at the same time the synthetics become protection for a long-short underlying
  • XLE daily short addon trade [cannot be seen on 60 minute chart] includes a july call short
  • XLE 60 minute pmd low = +jun call –2 jul puts = synthetic long protection for the XLE short [through jun expiration], while providing short option income that is covered since the underlying is also short

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Video128:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update 5-22 to 5/29 – existing position = +211.48 +212.48 –jun 215c –jul202p
  • Long protection trade at pmd high-resistance test = -jul 218c +6-5 213p 1.59 – note positive delta from short puts moving up and how short calls are covered, but do not cap until 217.06|219.32
  • Pmd high-double top-initial chart reverse – discuss reversing short –vs- support location, along with reducing long SPY size [decreasing position delta] and the decision to allow jul short calls to be uncovered
  • Exiting long SPY without short trade setup BUT long put-short calls become equivalent short – one of the major benefits and reasons that long options –vs- short options only [income] are part of our trading strategies
  • Long put partial profit-short july put, but no long calls as a function of limit price not filling AND because there isn’t a short SPY trade open

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Video126:  In this position trading strategy reference video, we are going to focus on:

  • Oil trading update – discussion of position delta starting from all negative from USO short, to positive from a combination of short stock-long options, and back to negative delta as the long delta trades have been exited
  • And while the delta is changing, note the profitability of the individual components = stock profits and long option profits, making the short options income trades since they were not used to pay for long option protection that wasn’t profitable
  • Trade review and delta impact – bno long exit + uso long call-short put exit
  • Trade setup discussion when exited bno-uso call – selling uso jun23c or jul24c and buying jun20.5p, and whether this is a protection trade or participation trade = what is the delta of the trade
  • 5-22 trade setup = uso [bno] short, and whether this is a protection trade or participation trade = what is the delta of the trade – also, considerations with doing this trade into the long weekend

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Video125:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – why the may 208 call was closed for profit instead of exercised into a long, with an expiration day close of 212.44
  • Evaluating the exercise cost of a long call and factoring in the credit from a short call and/or partial profits taken on the call into the cost
  • Discussion of long option strikes-expirations –vs- short option strikes-expirations for position trading [like the spy etf] –vs- stocks in a portfolio, which is accumulated-held over time –vs- trading long-short
  • Option trade timing and strikes-expirations used – long jun5 213p X short july 218c, and how adding the short july calls to the short jun 215c are related to the spy position size

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Video124:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – 4/29 -210.85 sell through 5/15 May expiration
  • Market sideways and back and forth from resistance at the SPY highs, with support at 207.00 and the low reverse into the highs – also an ‘issue’ with the 50 day moving average inside these prices
  • Discussion of SPY trading –vs- option synthetic trading and what turns out to be most beneficial
  • Trade review including the decisions made into the 5/8 employment report and what was done on 5/7 and a reverse into buy that includes a reject of the 50 day moving average as support

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Video123:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – can the 60 minute chart continued to be ‘read’ for trading decisions –vs- the daily [slower] chart to get more clarity
  • Discussion of whether an 81 break2 is actually a method setup for going long – further discussion of the short position protection at the time and going flat to shift the protection to participation
  • Timing for buying a call and buying a put
  • Since there are short calls and puts when the longs are bought, discussion of the math for 2 ratio short credits and the breakeven range, along with how the ratios affect the long option cost

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Video122:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – previous video had 60 minute reverse without a trade setup, but a short call-long put option synthetic had been done against long XLE
  • Chart read for support areas – 2 range area lows + support at 81, which would hit as a double bottom
  • Sell setup-XLE reverse on a range area low break2 with mex flow, into a range area low triple bottom breakout
  • 81 double bottom target and selling puts [buying calls] – momentum chart read discussion and doing the trade against a downside momentum build
  • Position component evaluation – ratio shorts and selling put for profit, would become replaced by short XLE-short put and a covered short

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Video121:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – reviewing open position of long xle X short c-long put protection
  • Why short puts were not sold on double reject of support area – would be an increase of long delta when 60 minute in sell and possible gap below support –vs- support failure setup short + relationship of short uso X long xle
  • XLE trade decision made by a trader here while I was out – I agree with the decision that there was no sell setup, but that a long put-short call should be done against a daily chart resistance pmd high
  • USO-BNO trading update-position evaluation and a discussion of how the oil complex position delta changed with the trades that were made

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Video120:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update from 4-17 and the short put-long call synthetic long done on the double bottom support reject
  • Chart read for support-resistance-inside price-50 day moving average, and the trades and targets done using these prices
  • Reverse from long to short – sell call-buy put protection against long, becomes short participation along with SPY sell reverse, with the 50 day moving average at target1
  • Discussion of position trading combining stock and options – long stock X short call-long put is a single position, but it also has 3 independent components that are often traded-managed by themselves

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Video119:  In this position trading strategy reference video, we are going to focus on:

  • USO-XLE-BNO trading update – short uso but long ‘oil’ delta, created by closing -25.25 uso addon shorts and having protection trades become participation
  • April expiration 81.89 and long xle partially covered by short april 89c -.95 – discussion of closing the calls at a loss to keep the stock and then selling new calls at a higher strike
  • Do you need the long xle – what if also short may 80c that are ITM, and how this ‘fit’s the long xle-short uso trade
  • Where I closed the short call and why – additional xle-uso-bno trades based on the total position and how positive delta [reducing uso shorts] allow for bno and xle partial profits at chart resistance

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Video118:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – since the last SPY short 3-31, there has been only 1 new SPY trade, as a function of large intraday reverses without trade setups and/or gap opens
  • In spite of the wide moves back and forth without SPY trade setups, there were numerous option strategies opportunities for short sales and for long options that were part of synthetic trades that participated
  • Daily-60 minute setup combination for SPY long 4-9 into a very good extreme setup to sell a call-buy a put
  • 4-17 support hold-reject that gave a long-call-short put setup that created synthetic long participation, along with a ratio call short and ratio put short that were done at credits

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Video117:  In this position trading strategy reference video, we are going to focus on:

  • Discussion of holding xle long above support, after it went into sell – context of single underlying position trading –vs- the way the uso and xle have been traded together
  • Long xle-short uso is basically a neutral trade, where 1 protects the other – adjust the delta [participation] through size adjustments and options, with both underlyings in buy-mode
  • Uso-xle management – uso trail out of 25.25 addon shorts X xle addon + partial profit at resistance target
  • Discussion of another oil ETF that has been combined into the position

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Video116:  In this position trading strategy reference video, we are going to focus on:

  • USO short when in buy 18.51 – reducing size, include exiting the sells 25.25 and lower
  • USO long delta from remaining size –vs- long calls and long synthetic that is lower than the long call because the trade was done at a credit
  • XLE longs also protect oil shorts – the long xle-short uso has also had pair benefits by oil going down more than the xle and the xle going up more than oil
  • XLE buy discussion, including a daily trade setup and a long call exercise
  • Question: the xle was held long when it went into sell that included a support breakout setup – was it enough to ‘ignore’ the sell setup and simply hold above support, what if there is a gap below support without a setup?

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Video115:  In this position trading strategy reference video, we are going to focus on:

  • USO trading since 18.08 addon sell and objectives from end of previous video
  • Evaluation of the open option trades and taking a call and put synthetic short, and looking at them as 2 ratio shorts and possible use of any individual components
  • Long put profits and exits, along with USO short partials – including the exit of the last addon sell, plus reduction of the -25.25 short size
  • Long call-short put synthetic long done for May –vs- the open shorts, especially in the context of the USO daily chart reversing into buy – also note that the XLE is long

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Video114:  In this position trading strategy reference video, we are going to focus on:

  • SPY 12 short units reduced to 3 on continuation to a double bottom low-momentum extreme – followed by a long call-short put synthetic to protect the trailing shorts
  • What IF…you are long stock-short call and the stock goes above the short strike – would you buy the call back at a loss to roll it to a higher strike-further expiration
  • SPY reverse on gap – exit trailing short and long through the long options synthetic-regardless that there is no buy setup
  • Trades done on move to resistance and the sell setup for reversing back short

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Video113:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading continued trading from a short options synthetic 3-23, and a trading scenario for doing a buy addon or reversing short
  • Discussion about the SPY for options income trading [only buying-selling the underlying if needed for protection] and the premiums available, along with including a long option when a short option is done –vs- the underlying protection trades
  • SPY sell reverse and continuation addons – chart read for waiting to take partial profits based on break and holds of support as resistance, with mex flow build and momentum not extreme
  • Continuation to a double bottom momentum extreme – take multiple partials
  • Second set of partials and an options synthetic long against the trailing shorts

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Video112:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading continued trading from short exit to FOMC, march expiration decisions, and the purchase of a short options synthetic 3-23
  • Trade size transition +3 calls +3 calls – 1 partial at resistance double top, but 1 set of calls were not profitable
  • SPY sell setup into FOMC [no sell could be done ahead of release] turns into bull wedge pattern breakout – SPY buy done on the break [further discussion of the futures leading cash and the setups-price action as part of the setup]
  • Size reduction from +9 to +3 after FOMC reaction
  • Trade setup scenario for adding to the SPY long –vs- reversing short – long put-short call synthetic was done to protect open longs

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Video111:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update through 3/23 video1 – transition from full size short SPY and options 3-3 to SPY exit 3/16
  • Size transition from full size to reduced size [partials] to options synthetic protection to directional size exit = reverse through options synthetic, regardless of directional setups
  • In a multiple leg stock-options position, be sure to understand uncovered short options size and if/when need to protect the short strike
  • OTM options sell for income – but when approach the short strike start to think covered/protection –vs- income
  • Want short options but not ITM and uncovered

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Video110:  In this position trading strategy reference video, we are going to focus on:

  • XLE and trading objectives discussed in the previous videos – including wanting to take more profits on the XLE shorts, but retain size to keep the short 74 puts covered
  • Taking long 79p profits and some of the issues with long options deep ITM approaching expiration
  • Buying synthetic long [short put-long call] protection – this does now give uncovered short puts, but at a lower strike
  • XLE reverse from short to buy, now includes a ‘double-long’ as the previous protection now becomes participation on the reverse
  • Trading into a short call and short put ratio spread, done at a credit, and with a breakeven width of 83.82-69.88

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Video109:  In this position trading strategy reference video, we are going to focus on:

  • USO trading update – review option trades inside of extended pmd low and resistance [price + 50 day MA] and the break evens created by trading into ratio spreads
  • 50 day MA reject with mex flow followed by reject2 with ttmf hook
  • Reject1 buy april put to replace march put + sell may call to create synthetic short – reject2 sell USO addon short
  • Move to lower lows and close march long puts for profit that will expire this week – also discuss objective scenarios for a put sell and call buy synthetic long

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Video108:  In this position trading strategy reference video, we are going to focus on:

  • XLE trade update since double bottom above support – short xle-short option synthetic; buy synthetic long protection and take partial profit
  • Discussion of position trading and the impact of a trade adjustment-new trade on the individual position components and size –vs- thinking of each new trade as an isolated trade
  • XLE short addon on a triple bottom-failure break of support that includes the 50dy MA reject
  • Discuss trading objectives – profits on short options less than .10, profits on long march put with 1 week to expiration, partial profits on XLE shorts BUT be sure that size left will at least cover put short

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Video107:  In this position trading strategy reference video, we are going to focus on:

  • SPY trade update since Feb expiration – March option position in 3s = +5 stock -6 calls -3 puts
  • Stock addon to cover ITM and call and provide additional directional participation
  • Higher high-PMD high buy put protection – with the increased negative delta of 6 ITM calls, no additional calls were sold
  • Support price holding long above – failure of that price and reverse to sell
  • Selloff to target1 [take partial profit] and then to target2 – take long put partial and buy call-sell april puts against short stock-long put

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Video106:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update and the decision to be long inside consolidation after the chart reverse
  • A key benefit of trading a stock-option combination strategy is the flexibility to use options to adjust position delta – although long the XLE, the total position is net short [negative delta]
  • Trade setup that becomes a failure break of consolidation and a reverse to short XLE
  • XLE test-reject of support and the buying of a long call-short put synthetic long against the short position
  • The position is rebalanced [unlike the situation where there was a short ITM call] with the directional trade protected and all short options OTM

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Video105:  In this position trading strategy reference video, we are going to focus on:

  • USO trading update from previous options trade – spread +mar 20c -mar15p with -mar23c +mar19p and creating 2 ratio short spreads
  • Discussing management of USO since 50 day moving average reject – price has held resistance, but it has not gone as low as last partial profit
  • Discussing management of USO options and position profitability along with the profit of option trade adjustments
  • Take partial profit on long mar19 puts and close short mar23c – short USO continues to cover the short puts and have objective of reselling calls if there is a price move-test of resistance

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Video104:  In this position trading strategy reference video, we are going to focus on:

  • XLE position [based on 3s] = +7 long -6 short calls
  • From extended pmd high there is a gap down and retrace to gap high = sell 1 unit stock and buy puts for synthetic option protection
  • XLE reverses into sell, but 3 short calls are still in the money – decisions for what to do next
  • Close stock against OTM short calls – hold stock against the short ITM calls above support, but also with synthetic option position size that is greater than the long stock size

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Video103:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update through 2-20 expiration
  • The previous sell reverse was a losing trade, but was it still a good trade
  • Use of the daily chart when position trading from the 60 minute chart
  • Good hedge setup against the long SPY, but the sell reverse ‘sucked’ – should have held the long against the hedge, until the discussed scenario occurred
  • Reversing back long and how the position trading size ‘matched’ short calls that were ITM
  • Exercising long calls that were ITM creates a longer position and gives ‘balance’ with the short calls

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Video102:  In this position trading strategy reference video, we are going to focus on:

  • XLE trading update – long position size –vs- short calls
  • Value of long call from previous hedge when XLE goes above a short call strike
  • Value of long call from previous hedge when want to sell additional calls
  • Short calls-long puts – long position size – protected hold above support at 78.00 area
  • Range breakout setup buy addon for protection depending on position size and/or participation if current position is covered

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Video101:  In this position trading strategy reference video, we are going to focus on:

  • USO discussion about short position 75%+ hedged – what are the implications for further profitability in both directions
  • Profitable hedging = doing the hedge after the directional position is profitable – profit cap –vs- participation after the hedge is done
  • Turning the USO +mar 20c –mar 19p into 2 ratio spreads – increasing the long synthetic credit and the breakeven of the 2 ratio shorts
  • XLE trading overview in light of movement and the trading objectives stated in the previous video

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Video100:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – 1/23 long spy X short option synthetic protection covering long
  • Gap down while long – hold long above support, with short synthetic covering giveback [loss] from long stock, and depending on size the option hedge may become more profitable than the directional trade giveback [loss]
  • SPY reverse into sell, along with partials and new option trades that include long call-short put against short stock
  • SPY reverse back into buy and break through resistance – profits and short call-long put when resistance can’t shift to support
  • Video ends 2/9 with a reverse back into sell

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Video99:  In this position trading strategy reference video, we are going to focus on:

  • USO and XLE trading update – USO partial profit + March option synthetic hedges 3/4 position
  • USO options objectives on test of next resistance – spread off long call into spread at credit [maybe ratio spread] and buy put against short puts for a ratio spread
  • XLE long call + short put – protects trailing short
  • XLE reverse gives long stock + long option synthetic – currently price is above resistance and will want trade partial and short call + long put on momentum extreme

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Video98:  In this position trading strategy reference video, we are going to focus on:

  • USO and XLE trading update
  • USO-XLE shorts – USO-XLE pair trade, buying XLE with directional setups and provides protection for the size of the USO short
  • Previously discussed USO march +call X –put synthetic – +20c .45 -15p .57
  • XLE buy addon reverse short + synthetic option short from the buy hedge-protection trade, now that the XLE is not long

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Video97:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – short at support double bottom through January expiration
  • Discussion of hedged trades that reverse and holding –vs- giving up the option when the hedge becomes profitable
  • Extending expirations for short options – there are now February and March short calls and short puts
  • Reverse from support to back long with an addon – and holding longs through the ECB rates and QE announcement

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Video96:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – discussing the 1/7 buy –vs- the sell scenario presented and the related trades
  • Trading method strategies = directional trading from the inside to the outside + counter option trading for income and/or protection from the outside to a retrace-reverse [trading into a hedge]
  • Recent trading has allowed for profitable directional trading, profitable income trading, and profitable long option trading – meaning we have been able to profit on direction and on counter hedges
  • SPY buy to pmd high, followed by a sell reverse to double bottom support, and the related trades

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Video95:  In this position trading strategy reference video, we are going to focus on:

  • Options short risk and trading strategies – protecting ITM short options with stock size or long options –vs- short options that remain OTM for income
  • GILD short jan 100c that went ITM and uncovered, especially when there was a stock reverse from long to short at a higher price than the short options
  • Closing the jan short calls on expiration day, along with a feb put sell [income] that was missed when the stock buy was done
  • Closing position is +GILD 99.65 –feb 110c +2.49 – closing price = 103.82

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Video94:  In this position trading strategy reference video, we are going to focus on:

  • Gild trading update and the short 100c jan calls discussed in the previous video
  • Trading size and balance – understanding the risk of your position and your stock position –vs- your short option position
  • How I was going to cover more ITM short calls then I had long stock, after a stock partial and the sale of additional calls
  • Reverse and the trades that were done – closing long puts –vs- selling stock and short puts, basis the trade read and continuation scenario

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Video93:  In this position trading strategy reference video, we are going to focus on:

  • USO discussion-no new trades since last video – looking at buying a march option synthetic long 2oc X short 15 put at no cost or a credit; it closed at .08 yesterday
  • XLE trading update – continued from the closing scenario from the previous video
  • Will trade the XLE based on strategy setups, but inclined to remain short the USO at this time below 22.74 [but would have options protection for that hold]
  • Put sell timing and the multiple ways it was covered – call buy timing after a lower high double bottom-mex extreme cross
  • XLE buy setup –vs- next resistance, followed by XLE addon short

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Video92:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading after long stock is followed by a gap that is around 7 points below the average cost
  • Position trading risk management – if you trade stock or short options, you have risk that is unknown and may be greater than that your initial stop
  • Trading hedged trades and/or protecting stock positions with an options synthetic for risk management
  • After going back long and then taking additional profits + selling an options synthetic at resistance – trading size in relation to a previous call sell that is in the money by more than the short strike breakeven.
  • Closing profitable short calls to ‘gain’ uncovered stock size

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Video91:  In this position trading strategy reference video, we are going to focus on:

  • SPY from closing scenario in previous video [video89] through 1-7 close
  • A buy would be a hedged trade against a long put that is 5.50 points in the money at the time, along with short OTM calls – if there was an ‘immediate’ reverse back into sell
  • Can our position trading strategies be done with options only, for instance look at a GOOGL 60 minute chart and the related trades – a buy of 300 shares would be more than $150K –vs- a long call-short OTM put at around the same price and the needed margin
  • Strategy of buying closer expirations and sell further out expirations to get synthetics at a credit , and being to sell options for more premium and that are farther OTM

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Video90:  In this position trading strategy reference video, we are going to focus on:

  • USO and XLE trading update
  • Discussing USO and why this was allowed to become such a large short, without partial profits and synthetic option protection strategies
  • XLE and how a long could be traded against the USO short, with the idea that the stocks would go up before the commodity would
  • XLE reverse into buy from previous shorts [discussed on previous video], including long put close and long call-short put synthetic buy
  • XLE reverse back into sell, including a synthetic short as protection before the reverse – and the scenario from the 1-5 close for reducing short size and new option trades

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Video89: In this position trading strategy reference video, we are going to focus on:

  • SPY update from 12/23 gap up open and scenario for new option trades and protection –vs- upside continuation
  • Move to resistance as all-time high price and consolidate – reduce size
  • Close above resistance and the gap open below – close long ITM calls and enter option synthetic protection for long SPY
  • SPY reverse into sell + option synthetic short – move to support and scenarios for a reverse back long –vs- continuation through support
  • Discussion of doing a hedged trade – going long-short against a profitable option synthetic

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2014

Video88:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update and the 12/19 position, which was an initial long + addon before the 12 point gap down on 12/22 – and how much was lost on the sell-off
  • 50 day moving average ‘compression triangle’ breakdown short call + long put, including buy scenario if reverse through top of triangle
  • Short 95 jan put that went over 5 points in the money after the gap down
  • 12/19 resistance test and GILD partial, along with short call + long put

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Video87:  In this position trading strategy reference video, we are going to focus on:

  • SPY 12/17 chart read and trading scenarios for 12/18 open
  • Why ended the day still short instead of long the SPY [regardless of long options
  • Change in trading plans on 12/18 gap open and SPY buy, including long call exercise
  • 12/19 partials but no option protection
  • 12/23 open and what looking at for support and buying puts-selling calls

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Video86:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading position ahead of the fomc release
  • Making short position more neutral for an upside reaction, while still maintaining downside participation in the event of a sell-off
  • Reducing size [initial + 3 addon shorts] + covering the remaining lowest price shorts
  • Using a 15 minute chart after the fomc release to see more trading bars
  • Trades done to ‘overcover’ shorts with long calls|short puts

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Video85:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update since 12-15 open
  • Timing for closing dec long puts, buying dec 31 exp call, and selling short additional jan puts
  • Evaluation of trader questions regarding a SPY mar put spread recommendation on CNBC
  • Discussing how a trade like this ‘fits’ our strategies [along with discussing limits to what CNBC could recommend], and what I would have done to put on a similar trade

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Video84:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – trades since 12-11 204.47
  • Trading size discussion – single trades and 3 units = 1 partial-1 option sell-1 uncovered for continuation –vs- multiple trades and how that size impacts protection and/or covering additional option sells after stock-etf partials
  • Daily chart reverse addon to 60 minute chart initial shorts
  • Discussing 60 minute trades before daily chart reverse, and position trading –vs- a portfolio position

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Video83:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – 12-8 207.61 short trade ‘horizontal-diagonal’ trade setup, includes a long put-short call synthetics
  • Scaling out of-reversing out of open long = initial + 2 addons
  • Option trade discussion while long and how addon2 protection becomes protection for addon1 uncovered ‘units’ after it is exited
  • Option trade discussion while short, including a synthetic long at support
  • Addon short setup after retrace to resistance from support

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Video82:  In this position trading strategy reference video, we are going to focus on:

  • USO update – discussion of previous trade objectives and trades done
  • USO as a trend following position –vs- an underlying that would be traded – I am not planning to go long the USO, but this has nothing to do with taking a XLE buy, which is a function of trading the commodity –vs- trading the stocks
  • XLE trade update and a discussion of a buy setup into the 60 minute gap –vs- where chart resistance is located
  • SPY overview for next video – where the SPY went short 12-8-2014

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Video81:  In this position trading strategy reference video, we are going to focus on:

  • Can a XLE 86.82 short done 11-25 be held for the 11-27 meeting?
  • Discussion of previous XLE stock and option trades since 11-12 – the question above is dependent on the option trades that were done [and are still open]
  • +85c 1.35 -82p 1.78 | +88p [no call sell] – a buy or sell could be held against this protection
  • Put flyers done specifically for the opec news
  • Discussion of option protection delta against open stock shares – and the situation where puts could be bought against long XLE, but calls ‘couldn’t’ be sold

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Video80:  In this position trading strategy reference video, we are going to focus on:

  • Position trading ahead of an event compared to portfolio protection before earnings
  • Using the ATM call + put to get a range that option prices are ‘predicting’ for movement
  • USO trading update – trades ahead of the opec meeting and what looking to do now
  • XLE trading preview for the next video – with the question: can an 86.58 short done 11-25 be held for the 11-27 meeting?

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Video79:  In this position trading strategy reference video, we are going to focus on:

  • Latest GILD call sell and potential setup for selling more puts
  • Review of GILD trades and a discussion of mistakes made – based on trading strategy setups that were available and not on hindsight review
  • Maximizing the size of a trading position with directional movement and continuation setups
  • Closing long put too soon and not doing a short addon

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Video78:  In this position trading strategy reference video, we are going to focus on:

  • Stock option combination trading –vs- option selling only
  • Option put sell that would have been stopped out, except it was part of a ratio short spread and protected by a short stock sell
  • Option sells for income are a very viable strategy, except long options and stock trades can participate [make a lot more profit] on a directional move
  • GILD trade update since prior video

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Video77:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – my retrace scenario plan from the previous video did not occur
  • Selling 198 puts instead of 196 [and wanted retrace to sell 194] into the SPY breakout
  • What are the implications and math selling the 198 puts, in terms of a ratio spread with the 204 long puts and the location-distance to current support
  • USO update – oil is lower, but the short puts from the last addon protection are still out of the money
  • GILD update preview for next video

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Video76:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – December options and partial profit, reducing the size for addon2
  • Buying 12-5 puts with 18 days to expiration – selling December expiration calls and puts to spread
  • Strike selection and objectives for a range collar or a ratio spread with a 182.40 breakeven
  • Plan if get continuation up for put sell and targets to sell more calls [reduce uncovered size]
  • Covered spy has upside participation to 206.90 and 209.70 – 1 covered unit to be called away at 201.32

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Video75:  In this position trading strategy reference video, we are going to focus on:

  • Position trading progression of building a position with continuation and reducing size with strength – into a position that may be long stock but have short delta from options
  • GILD trading update and the decision for possibly shorting stock
  • Long nov put-short dec put ratio short – a profit could be taken on the long nov put if there was short stock to cover the short put on a sell off
  • GILD short – nov put profit and short stock partial = covered short with 1 uncovered unit

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Video74:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update and issues with option trades – selling dec calls with MIV less than 10 and losing money with puts because of no retrace and proximity of support
  • USO trading update – did call buy-put sell against last addon
  • VIX trading update – why no trades have been done yet
  • GILD trading update – covered position with ‘extra’ short calls and short put, along with discussion about open long puts + how would trade GILD on support failure

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Video73:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update from long call-short put + long stock position re-entry
  • Why long calls were exited at expiration instead of exercised into stock
  • Short calls and long put buy timing – and the progression where the long GILD stock position became net short as stock was reduced and the options were held
  • Selling puts at support and creating a ratio short, with discussion of breakeven –vs- the mid October lows
  • Scenario discussion for selling more stock and then exiting the position

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Video72:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update – profit + options [call sell-put buy] setup
  • USO trading update – addon setup with no options traded yet
  • Discussion about taking a strategy plan trade –vs- doing nothing and waiting for election results and upside reaction
  • Discussion of trading size for going from a full directional position to a counter options synthetic position, and the open trading size [directional] after the 11-4 trades

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Video71:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading review and update from previous video
  • Relative trading size decision based on 3s as a beginning trading size
  • SPY long trade on a shift-reject of the daily 50 day MA from resistance to support
  • Overview of trading plans and timing from the 10-31 close – the put I am looking to buy and the call to sell
  • Overview of VIX and USO charts and next trades looking to do

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Video70:  In this position trading strategy reference video, we are going to focus on:

  • What was the ‘most’ remarkable aspect of recent SPY trading?
  • Short options protection trade becomes synthetic short went long exited – long options protection trade becomes synthetic long when short exited
  • SPY buy scenario at end of previous video, along with additional scenarios at resistance points
  • 10-24 long 186 call expiration – exercise call into long stock [185.25 cost] + do partial position protection trade because of price location [60 min pmd high at daily 50 day moving average]

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Video69:  In this position trading strategy reference video, we are going to focus on:

  • Removing a portfolio position – not for fundamentals but for technical and overall market reasons
  • Taking ‘size’ profits and exiting the position –vs- protecting with a synthetic short BUT with the intentions of buying back at a lower price
  • Not going short but holding the previous short call-long put protection in place before the stock exit
  • Trade setups for buying a call and selling a put, followed by the re-entry of the stock

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Video68:  In this position trading strategy reference video, we are going to focus on:

  • Removing a long-term portfolio position
  • Why the stock was removed when options protection trade size delta covered stock losses and more
  • Fundamental and technical deterioration – including a sell setup on the weekly chart
  • Recent history of earnings and revenue misses that caused relatively large sell-offs
  • Possible considerations of buy stock back at lower price or via short puts

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Video67:  In this position trading strategy reference video, we are going to focus on:

  • Position trading strategy objectives from directional trade to price-momentum extreme and reduced size to trade close – leaving an open options position that is long or short
  • SPY trading update from long stock with covered calls to long put + short stock
  • Position addons with directional continuation
  • Move to price support and momentum extreme – sell puts and buy calls AND ultimate position trade with V-move up back to resistance

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Video66:  In this position trading strategy reference video, we are going to focus on:

  • VIX trading and using it as a market hedge – an example of how many calls bought per 100 SPY shares long
  • USO trading and using it as a hedge for long oil and master limited partnership portfolio positions
  • Implications of selling ‘cheap’ out of the money options when an extended trend breakout occurs
  • How a hedge becomes directional participation as portfolio positions are sold-flattened and you become ‘over-hedged’

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Video65:  In this position trading strategy reference video, we are going to focus on:

  • Position trading strategy review – although these were predominantly discussed in an up market, the strategies have worked very well to protect core positions, along with participating on the recent sell-off
  • Owning stock but having a net short position
  • IWM trade update from previous video through 10-13 11:39am ct
  • Short stock + long put + short put – trading objectives on a retrace-reverse

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Video64:  In this position trading strategy reference video, we are going to focus on:

  • MBLY trading update – 2 way trades without continuation but getting 2.00+ partials
  • Moves that don’t give option spreading setups or new short setups
  • Multiple protection trade setups for short 55 calls
  • Gap move that gave a short 65c trade to add to -60c -55c X -47.5p -44p
  • Relative trading size based on 3s

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Video63:  In this position trading strategy reference video, we are going to focus on:

  • IWM index trading video2 – stock and option trade update
  • IWM option selling compared to individual stock options – relative risk-reward and tradeoffs
  • Option sellers setups and also buying long options – income trading + participation trading
  • Closing short options at .05 – .10 before expiration
  • 10-3 position short IWM initial + addon X short put-long call synthetic long

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Video62:  In this position trading strategy reference video, we are going to focus on:

  • SPY and IWM index trading – video1 will discuss SPY trades since 9-24
  • Discussion of mostly using the index ETFs for short trades
  • Options selling –vs- option buy-sell combinations
  • Short trades as a combination of SPY short + short calls-long puts

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Video61:  In this position trading strategy reference video, we are going to focus on:

  • MBLY trading update 9-22 to 9-29
  • Stock trades and related trading prices
  • Short option trade setups – support-resistance rejects and/or stock trade setups
  • Short option trader long options decisions – trades for protecting shorts and trades for directional participation

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Video60:  In this position trading strategy reference video, we are going to focus on:

  • MBLY introduction and original trade
  • Risk discussion for uncovered short calls and/or short stock
  • Short option credit spreads –vs- short uncovered options
  • Trade and setup discussion through 9-22 short reverse into buy

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Video59:  In this position trading strategy reference video, we are going to focus on:

  • GILD sept expiration – oct short options position
  • Long call – short stock protection, ratio short call b/e extension
  • Long call – exercise into long stock for portfolio trading position
  • Trading position long buy into a hedged position
  • Relative trading size and making 1/3 partial profit and/or covered options sells

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Video58:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update – options trading when there is no trading position [core position only]
  • List of short calls after trading position closed AND short GILD setups
  • Short call and short put setups for options income trader
  • Long call buy done – discussion of how it protects some short calls but wasn’t needed or why the trade was done

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Video57:  In this position trading strategy reference video, we are going to focus on:

  • Portfolio = core position + trading position
  • Portfolio position protected by options is actually short if the trading position is closed
  • Position trading strategies compared to portfolio trading position
  • GILD trading update and adding Oct options to the Sept positions that will expire this week

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Video56:  In this position trading strategy reference video, we are going to focus on:

  • Option selling strategies and the benefits of a ratio spread –vs- short option only
  • GILD option position math
  • How a -110c -95p short strangle ended up with a 119.55 upside-79.61 downside break even
  • 25 buy setup – is this trade ‘needed’ as a protection trade

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Video55:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update through 9-5
  • Short call protection trades – 1 needed 1 not
  • Sell setup stock closed – start short call position + buy put
  • Support reject – start short put position + buy call

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Video54:  In this position trading strategy reference video, we are going to focus on:

  • Option selling –vs- selling + trading
  • Option sell setups
  • Buy setup = stock buy + put sell
  • Decreasing short option risk

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Video53:  In this position trading strategy reference video, we are going to focus on:

  • Question:  was there an IBB option sell setup not discussed in the video?
  • Extreme option sell setups
  • Directional option sell setups – using buy and sell setups to setup ratio shorts
  • IBB put 260p sell 3.80 on buy setup

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Video52:  In this position trading strategy reference video, we are going to focus on:

  • GILD update – is there a ‘signal’ for a stock protection trade
  • IBB update – is there a ‘signal’ for a short option protection trade
  • Protection and participation trading within a ‘base’ option selling plan
  • Question:  was there an IBB option sell setup not discussed in the video?

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Video51:  In this position trading strategy reference video, we are going to focus on:

  • GILD position discussion for doing protection and related timing
  • Could a GILD call sell be started
  • Comparing GILD and IBB short option selling setup timing
  • Short IBB put and call discussion for the timing and strike selection

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Video50:  In this position trading strategy reference video, we are going to focus on:

  • Stock-option strategies compared to option selling only and profits that may be missed
  • Buying options to overwrite as ratio sells
  • Options selling and the need for protection trades
  • Using protection trades for protection and participation

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Video49:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Short option starting setups and ratio spreads
  • Portfolio buys to cover ‘extra’ short calls
  • Portfolio buys to give stock without covered calls
  • Stock protection buy for uncovered calls

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Video48:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Call sell-put buy against long stock
  • Put sell for 3 way protection – overwrite puts for ratio short
  • Options selling opening trade setup discussion
  • Using long options to setup options sells discussion

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Video47:  In this position trading strategy reference video, we are going to focus on:

  • Options selling strategies on ‘the market’ – using SPY or IWM options
  • Options volatility [premium] issues with these markets and strategies that open a position by shorting an option
  • Trading the underlying against the short option –vs- taking a stop on the short option
  • Using long options to setup options sells and ratio shorts

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Video46:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Stock-option protection range and upside potential cap price
  • ITM calls and rolling up to higher strike
  • GILD addon trade
  • Discussion of what looking at for next option trades – selling calls-buying puts in september

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Video45:  In this position trading strategy reference video, we are going to focus on:

  • IBB trading 7-17 to 7-24
  • Position trading strategies including IBB trading and/or short options trading
  • Differences between position trading and a portfolio position – especially for protection and buying options
  • Buying options to setup or complete a ratio short spread

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Video44:  In this position trading strategy reference video, we are going to focus on:

  • IBB position trading – not portfolio position
  • 60 minute primary trading chart
  • Using daily chart but not for trading direction
  • Stock option combination position trading
  • Short options ‘only’ position trading

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Video43:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Long put-short call done – discussed in previous video
  • 60 minute sell setup = stock reduce and short call-long put
  • PMD low at support = put sell and ratio short
  • Upside price stock covered to – downside protection range

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Video42:  In this position trading strategy reference video, we are going to focus on:

  • IBM trading day of earnings
  • Addon setup – do you take the trade?
  • Breakout to target – additional partial and covered calls
  • How long stock would be trailed flat on continued selling

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Video41:  In this position trading strategy reference video, we are going to focus on:

  • IBM trading update
  • Position for earnings flexibility from gap up
  • Protecting a new stock buy if not profitable and without a partial profit
  • Stock protection with put strike above or below stock cost

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Video40:  In this position trading strategy reference video, we are going to focus on:

  • IBM trading update
  • Portfolio position –vs- position trading
  • Portfolio stock long but position net short from options
  • Re-adjusting position back to net long
  • Upcoming earnings concerns

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Video39:  In this position trading strategy reference video, we are going to focus on:

  • IBB trading update
  • June options at expiration – stock called away and July options
  • Portfolio position and protection –vs- position trading long and short
  • IBB short trade setup and options traded

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Video38:  In this position trading strategy reference video, we are going to focus on:

  • IWM update
  • June options at expiration and roll to July
  • IWM addon and decision to use July or August options
  • Option position into 7-7 sell-off and underlying trailing exits

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Video37:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • SPY trading update
  • Stock buy-short put combination
  • Completing put buy and selling covered calls

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Video36:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Price support and protection from covered calls
  • Addon setup – used for stock buy and put sell
  • Chart breakout potential to resistance
  • Put buy and call sell prices at resistance

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Video35:  In this position trading strategy reference video, we are going to focus on:

  • SPY trading update
  • Position hold –vs- position trading
  • Options trade timing
  • Options roll to July
  • Put and call sell issues because of low volatility

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Video34:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Covered-protected position at June expiration lost
  • Rolling June options to July and related decisions

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Video33:  In this position trading strategy reference video, we are going to focus on:

  • GILD trading update
  • Chart strength – sync between the daily and 60 minute chart
  • Trade protection size based on chart strength read
  • Holding position when lose June put protection

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Video32:  In this position trading strategy reference video, we are going to focus on:

  • IWM trading update
  • Chart strength – sync between the daily and 60 minute chart
  • Trade protection size based on chart strength read
  • Greater size reduction at multiple chart extremes

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Video31:  In this position trading strategy reference video, we are going to focus on:

  • VIX and the June call buy
  • Selling OTM VIX calls risk-reward
  • Selling OTM VIX puts risk-reward
  • July VIX call buy that was done

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Video30:  In this position trading strategy reference video, we are going to focus on:

  • IBB trading update
  • Sectors in a portfolio
  • Position trading potential –vs- portfolio position
  • daily chart-60 minute chart –vs- 60 minute chart-renko chart

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Video29:  In this position trading strategy reference video, we are going to focus on:

  • IWM trading update
  • Protection based on portfolio positions –vs- position trading
  • Portfolio position protection range spread -c +p-p
  • Protection trade that is really a counter trade setup for position trading

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Video28:  In this position trading strategy reference video, we are going to focus on:

  • Spy position adjustment after ECB and before jobs report
  • Position size management with delta adjustment
  • Position protection that allows for profit increase
  • Position protection -vs- SPY trading after news reaction

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Video27:  In this position trading strategy reference video, we are going to focus on:

  • Spy position trading and portfolio management
  • Trading size and strategy based on trading –vs- management
  • Decisions based on ECB release and job report
  • Decisions based on price targets and chart reads

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Video26:  In this position trading strategy reference video, we are going to focus on:

  • Position trading long and short –vs- long portfolio trading
  • How a portfolio stock can actually be a short position
  • IBM compared to GILD and what is the bigger position
  • SPY trade review update
  • SPY compared to the IWM as a portfolio stock

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Video25:  In this position trading strategy reference video, we are going to focus on:

  • IWM trading since the last update
  • Trading decisions related to the daily 200 and 50 day MA
  • Trading in and out of spreads with relevant strikes to current price
  • Protecting profitable options with counter trades
  • Replacing an option trade with a stock trade

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Video24:  In this position trading strategy reference video, we are going to focus on:

  • Reducing portfolio position size
  • Replacing exited portfolio stock
  • Exiting portfolio position
  • Re-entering portfolio position

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Video23:  In this position trading strategy reference video, we are going to focus on:

  • Portfolio position stock that will be held
  • Selling covered calls and buying puts
  • Reducing stock size in portfolio
  • Buying calls and buying back exited stock

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Video22:  In this position trading strategy reference video, we are going to focus on:

  • IWM put spreads
  • Buying calls against profitable puts
  • Reducing maximum profit –vs- increasing minimum profit
  • IWM position profit graph

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Video21:  In this position trading strategy reference video, we are going to focus on:

  • IWM put partial2 and second spread
  • SPY put buy
  • SPY partial1 and spread
  • VIX and june 15 call option

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Video20:  In this position trading strategy reference video, we are going to focus on:

  • The IWM jun112p buy
  • Additional IWM trades
  • Objectives and management based on trading size
  • SPY put buy discussion

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Video19:  In this position trading strategy reference video, we are going to focus on:

  • Options trades for high volatility
  • Options trades for low volatility
  • VIX Options
  • Options trades done based on recent market moves

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Video18:  In this position trading strategy video we are going to go back to the TWTR chart from the previous video and further discuss the position at the area marked D and E – and focus on different trading strategies depending on whether you are:

  • Position based on trading a specific event
  • Position based on trading method strategies
  • Expiring uncovered options
  • Rolling options ‘against’ current chart

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Video17:  In this position trading strategy video we are going to discuss different areas on a TWTR chart and the different ways it may have been traded:

  • Stock and options trading
  • Options selling
  • Earnings positioning
  • Event position – specifically a large stock lock-up expiration

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Video16:  In this position trading strategy reference video, we are going to focus on:

  • Recent GILD trading adjustments
  • Selling covered call at ATM strike and buy put protection
  • Protection position that has been capped
  • Trading size discussion and long stock that is ‘uncovered’

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Video15:  In this position trading strategy reference video, we are going to focus on:

  • Recent GILD trading
  • Recent IBM trading
  • Rolling options to different expiration

IBM Position Trading Chart

Video14:  In this position trading strategy reference video, we are going to look at GILD since earnings and focus on:

  • Our earnings position and what has happened to it
  • Trading counter options position against profitable trades
  • Options protection timing
  • Adding the stock back to the portfolio
  • Closing a profitable ITM spread –vs- holding for expiration

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Video13:  In this position trading strategy reference video, we are going to focus on an options trade I did for TWTR earnings, focusing on:

  • Expectation of wide move in either direction
  • High volatility options
  • ATM straddle for range expectation
  • Options trade tact is different if legging –vs- doing near close

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Video12:  In this position trading strategy reference video, we are going to look at a high momentum stock that has also been a portfolio stock, and focus on:

  • ATM straddle prices for earnings reaction range
  • Protecting stock based on entry price
  • Trading the stock when not a portfolio position
  • Weekly options
  • Chart technical – including the 50 day and 200 day moving average

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Video11:  In this position trading strategy reference video, we are going to focus on:

  • Portfolio stock type differences
  • Managing and position size for different portfolio stock types
  • Earnings management and protection
  • Shorting stock
  • Increasing position

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Video10:  In this position trading strategy reference video, we are going to look at GILD options trading and focus on:

  • Stock protection trade
  • Options protection trade short after stock exited
  • Positioning for 4/22/2014 earnings
  • 4/23/2014 after earnings open

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Video9:  In this position trading strategy reference video, we are going to pick-up with GILD from the last video and focus on:

  • Managing options positions
  • Discuss trading size and difference in strategies
  • Options that will protect and participate to the upside – against profitable puts
  • Positioning for earnings – 4/22/2014 after close

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Video8:  In this position trading strategy reference video, we are discuss different aspects of the IBM eps protection video and go through some different questions I received – we will focus on:

  • Delta hedging
  • Stock protection to a support point
  • Stock protection to a date
  • Selling covered calls against a portfolio stock
  • Having portfolio stocks called away –vs- rolling up to a higher strike

Protection options size is a function of:

  • The options trade and are you trying to protect 1:1
  • The options trade and protection to a specific price at a specific date
  • Options trading size based on the profit at the price point you are protecting to

Why protect:

  • NOTE:  Continual hedging is expensive and can eliminate stock profits
  • For an event like earnings
  • And this may also be a trading opportunity
  • For a technical chart read – like a price momentum divergence-double top at price resistance
  • For a profitable stock that has become an ‘extra’ big percentage of the portfolio

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Video7:  In this position trading strategy reference video, we are going to focus on a long term portfolio stock [IBM] and options protection for earnings, along with at different resistance points:

  • Options trading for stock protection
  • Options trading for earnings
  • Using the options protection on a down move
  • Adding to the stock on a down move to support

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Video6:  In this position trading strategy reference video, we are going to focus on the SPY ETF:

  • Spy trading for the broad market
  • Options trading and spreading
  • Position math and options spreads
  • Using profitable options
  • Options position profit graph

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Video5:  In this position trading strategy reference video, we are going to continue to discuss the GILD chart and trading from the previous video:

  • Using options to protect a portfolio stock
  • Exiting the stock and additional trading
  • Similarities with stock and options combination trading
  • Using your options protection after the stock was exited
  • Selling puts for income and/or for buying stock

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Video4:  In this position trading strategy reference video, we are going to focus on the following:

  • Using options to protect a portfolio stock
  • Using the 60 minute chart as a timing chart for the daily chart
  • Technical analysis synced with method chart reading
  • Selling puts for income and/or for buy stock

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Video3:  In the previous video, we were suppose to discuss a specific trading period on the chart, but I spent too much time talking about an earlier trading period.  So, this position trading strategy reference video will cover the intended period and again focus on the following key components for position trading:

  • Position chart read for price and trade setups
  • Renko chart timing for counter option trades
  • Stock trade options protection
  • Short options protection

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Video2:  In this position trading strategy reference video, we are going to focus on the following key components for position trading:

  • Position chart read for price and trade setups
  • Renko chart timing for counter option trades
  • Stock trade options protection
  • Short options protection

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Video1:  In this position trading strategy reference video, we are going to focus on the following:

  • Renko stock trading with the position chart
  • Renko options trading counter to the position chart
  • Starting a position with an option short
  • Protecting option shorts
  • Starting a stock position

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