Options Trading

Options Trading: Do Iron Condors for Earnings Work?

August 16, 2013 Recently in Q2 2013 earnings season, we did a live option trading experiment to see if one could simply sell iron condors with strikes out of the money on as many stocks as possible ahead of their earnings announcements and have a positive result after at least 40-50 trades.  For those unfamiliar […]

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Options Trading

Ratio Speads – Why and How to Use Them (part III)

Dear Shadow, Peter, thanks for your GOOG ratio spread trade idea over the weekend. After listening to your analysis, I executed a trade this morning (Monday, April 22) that resulted in an unexpectedly quick intraday profit! 10:36am — sold 1 x 2 Apr4 Weekly 765/760 Put ratio spread @1.60 net credit. I used the tos […]

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Options Trading

Ratio Spreads – Why and How to Use Them (part II)

Dear Shadow, I wanted to ask about the ratio spread that Peter seems to have been talking about a lot lately. When broken down, all it is is a debit spread, coupled to a naked option (assuming we are talking of a -2:+1 ratio spread). It seems rather pointless to me. It limits the profit […]

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Options Trading

Broken Wing Butterfly Example

Reprinted from Ask The Shadow column of the 3/11/12 ShadowTrader Weekend UpdateA good beginners tutorial on the broken-wing butterfly spread…. Dear Shadow, I like your BWB strategies and wanted to understand them clearly. –When do you use the put side versus the call side to construct the BWB? –What is the risk in either the […]

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