Option Trading - Iron Condors, Credit Spreads, Covered Calls, Butterfly and Calender Spreads » Options Education http://optiongenius.com/blog The Option Genius Blog Thu, 15 Mar 2012 18:01:24 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Butterfly Option Strategy Basics http://optiongenius.com/blog/butterfly-option-strategy-basics/ http://optiongenius.com/blog/butterfly-option-strategy-basics/#comments Thu, 12 Jan 2012 19:57:38 +0000 Genius http://optiongenius.com/blog/?p=667 Not sure how a butterfly works or makes money?

No problem.

This video is in response to a question from a member. He wanted to know how the trade made money and why he had to exit the trade to get his profit. The answer to the second part of the question is because the butterfly is a debit trade and so you pay for the trade. As the trade makes money, the debit or value of the spread increase and when you sell it, you get back more than what you paid. Hopefully. If you do nothing, you risk getting assigned on the short options.

How the trade works as well as short explainations of the iron butterfly and split strike butterfly as shown as well. The butterfly in the video was an OptionGenius trade that resulted in a 20% profit. As you can see, the butterfly can and does give off [...]

Butterfly Option Strategy Basics is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> Not sure how a butterfly works or makes money?

No problem.

This video is in response to a question from a member. He wanted to know how the trade made money and why he had to exit the trade to get his profit. The answer to the second part of the question is because the butterfly is a debit trade and so you pay for the trade. As the trade makes money, the debit or value of the spread increase and when you sell it, you get back more than what you paid. Hopefully. If you do nothing, you risk getting assigned on the short options.

How the trade works as well as short explainations of the iron butterfly and split strike butterfly as shown as well. The butterfly in the video was an OptionGenius trade that resulted in a 20% profit. As you can see, the butterfly can and does give off large gains. But before you start trading them, you should also know how to adjust the trade if it goes against you. A little bit of that is discussed towards the end of the video.

Click here to view the embedded video.

Butterfly Option Strategy Basics is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/butterfly-option-strategy-basics/feed/ 8 Option Strategies – 4 Strategies You Can Trade http://optiongenius.com/blog/option-strategies-4-strategies-you-can-trade/ http://optiongenius.com/blog/option-strategies-4-strategies-you-can-trade/#comments Thu, 05 Jan 2012 01:40:01 +0000 Genius http://optiongenius.com/blog/?p=662 New to option trading?

Not sure what the difference is between a butterfly, a condor, or a mouse?

(Hint: there is no strategy called “mouse”)

In this video I open up one of my personal trading accounts to show you 4 trades that are all of a different strategy. We have a naked put in oil futures options, a butterfly in Berkshire Hathaway, an iron condor in LVS, and a straddle in LVS. All four trades are doing well.

Watch the video to see how they look on the risk graphs as well as how they are made up and work.

In the optiongenius portfolio we do not do naked puts or straddles, but we do a lot of iron condors and some butterflies. In times of low volatility with the VIX below 30 these non directional strategies work wonderfully. In high volatility markets, they can work as well but with adjustments and a [...]

Option Strategies – 4 Strategies You Can Trade is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> New to option trading?

Not sure what the difference is between a butterfly, a condor, or a mouse?

(Hint: there is no strategy called “mouse”)

In this video I open up one of my personal trading accounts to show you 4 trades that are all of a different strategy. We have a naked put in oil futures options, a butterfly in Berkshire Hathaway, an iron condor in LVS, and a straddle in LVS. All four trades are doing well.

Watch the video to see how they look on the risk graphs as well as how they are made up and work.

In the optiongenius portfolio we do not do naked puts or straddles, but we do a lot of iron condors and some butterflies. In times of low volatility with the VIX below 30 these non directional strategies work wonderfully. In high volatility markets, they can work as well but with adjustments and a quicker trigger finger to take profits quickly.

Click here to view the embedded video.

Option Strategies – 4 Strategies You Can Trade is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/option-strategies-4-strategies-you-can-trade/feed/ 0 Butterfly Trade Update http://optiongenius.com/blog/butterfly-trade-update/ http://optiongenius.com/blog/butterfly-trade-update/#comments Tue, 06 Dec 2011 01:40:49 +0000 Genius http://optiongenius.com/blog/?p=657 Here is the third installment of the JNJ and MCD butterflies. Here is how they are both doing after adjustments.

Click here to view the embedded video.

Butterfly Trade Update is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Butterfly Trade Update is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> Here is the third installment of the JNJ and MCD butterflies.
Here is how they are both doing after adjustments.

Click here to view the embedded video.

Butterfly Trade Update is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/butterfly-trade-update/feed/ 2 Weekly Option Trade Setup http://optiongenius.com/blog/weekly-option-trade-setup/ http://optiongenius.com/blog/weekly-option-trade-setup/#comments Mon, 28 Nov 2011 20:50:42 +0000 Genius http://optiongenius.com/blog/?p=654 So you want to trade weekly options?

Never mind that they are most risky than monthly options. But the quick money and high returns are sometimes too hard to resist.

Ok then, here is a trade setup I use. When these conditions are met I trade credit spreads. More details are in the video. And in the members area, I added a video of me looking for, analyzing, and putting on a live trade with real money using this setup.

Click here to view the embedded video.

Weekly Option Trade Setup is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Weekly Option Trade Setup is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> So you want to trade weekly options?

Never mind that they are most risky than monthly options. But the quick money and high returns are sometimes too hard to resist.

Ok then, here is a trade setup I use. When these conditions are met I trade credit spreads. More details are in the video. And in the members area, I added a video of me looking for, analyzing, and putting on a live trade with real money using this setup.

Click here to view the embedded video.

Weekly Option Trade Setup is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/weekly-option-trade-setup/feed/ 24 MCD and JNJ Butterfly Trade Adjustments http://optiongenius.com/blog/mcd-and-jnj-butterfly-trade-adjustments/ http://optiongenius.com/blog/mcd-and-jnj-butterfly-trade-adjustments/#comments Wed, 23 Nov 2011 21:31:26 +0000 Genius http://optiongenius.com/blog/?p=650 Happy Thanksgiving!

Hope you have a wonderful, happy, and well rested holiday!

Here is an update of the MCD and JNJ butterfly trades I showed you in my last video. Had to make an adjustment to each because of the strong down move in the market which also affected these stocks.

Click here to view the embedded video.

MCD and JNJ Butterfly Trade Adjustments is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

MCD and JNJ Butterfly Trade Adjustments is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> Happy Thanksgiving!

Hope you have a wonderful, happy, and well rested holiday!

Here is an update of the MCD and JNJ butterfly trades I showed you in my last video. Had to make an adjustment to each because of the strong down move in the market which also affected these stocks.

Click here to view the embedded video.

MCD and JNJ Butterfly Trade Adjustments is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/mcd-and-jnj-butterfly-trade-adjustments/feed/ 0 2 Butterfly Option Trades http://optiongenius.com/blog/2-butterfly-option-trades/ http://optiongenius.com/blog/2-butterfly-option-trades/#comments Tue, 15 Nov 2011 18:56:58 +0000 Genius http://optiongenius.com/blog/?p=647 This is a video of myself looking for some option trades using one of my real money accounts. These trades are for example only and I may exit or change them at any time without telling anyone.

This is a sample of the types of videos that are produced for Option Genius members which anyone can join from our homepage.

Click here to view the embedded video.

2 Butterfly Option Trades is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

2 Butterfly Option Trades is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> This is a video of myself looking for some option trades using one of my real money accounts. These trades are for example only and I may exit or change them at any time without telling anyone.

This is a sample of the types of videos that are produced for Option Genius members which anyone can join from our homepage.

Click here to view the embedded video.

2 Butterfly Option Trades is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/2-butterfly-option-trades/feed/ 17 Iron Condor Trading Lesson 3: Risk Management http://optiongenius.com/blog/iron-condor-trading-lesson-3-risk-management/ http://optiongenius.com/blog/iron-condor-trading-lesson-3-risk-management/#comments Tue, 15 Nov 2011 04:53:33 +0000 Genius http://optiongenius.com/blog/?p=644 This is Lesson 3 in our 5 Part video series on Iron Condor Trading

Click here to view the embedded video.

Iron Condor Trading Lesson 3: Risk Management is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Iron Condor Trading Lesson 3: Risk Management is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> This is Lesson 3 in our 5 Part video series on Iron Condor Trading

Click here to view the embedded video.

Iron Condor Trading Lesson 3: Risk Management is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/iron-condor-trading-lesson-3-risk-management/feed/ 3 I Wanna Be A Covered Call Trader http://optiongenius.com/blog/i-wanna-be-a-covered-call-trader/ http://optiongenius.com/blog/i-wanna-be-a-covered-call-trader/#comments Fri, 11 Nov 2011 20:15:46 +0000 Genius http://optiongenius.com/blog/?p=639 Where do you start when you want to start trading stocks and covered calls?

That is the topic is this video. In it I go over how to get started, how to calculate how much money you need to get started, what you can make, and some simple guidelines I wish I knew when I got started.

Click here to view the embedded video.

I Wanna Be A Covered Call Trader is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

I Wanna Be A Covered Call Trader is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> Where do you start when you want to start trading stocks and covered calls?

That is the topic is this video. In it I go over how to get started, how to calculate how much money you need to get started, what you can make, and some simple guidelines I wish I knew when I got started.

Click here to view the embedded video.

I Wanna Be A Covered Call Trader is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/i-wanna-be-a-covered-call-trader/feed/ 9 Iron Condor Calculations – The Math Behind The Condor http://optiongenius.com/blog/iron-condor-calculations-the-math-behind-the-condor/ http://optiongenius.com/blog/iron-condor-calculations-the-math-behind-the-condor/#comments Tue, 01 Nov 2011 16:53:04 +0000 Genius http://optiongenius.com/blog/?p=634 When you are just getting started in trading options the way the prices and credits are calculated can be a bit confusing. Order entry is another confusing topic that costs a lot of new traders a lot of money.

In this video I go over the math of the iron condor. How to calculate the credit, the max loss, the margin, and the potential return on investment

 

Iron Condor Calculations – The Math Behind The Condor is a post from Option Selling. To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Iron Condor Calculations – The Math Behind The Condor is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> When you are just getting started in trading options the way the prices and credits are calculated can be a bit confusing. Order entry is another confusing topic that costs a lot of new traders a lot of money.

In this video I go over the math of the iron condor. How to calculate the credit, the max loss, the margin, and the potential return on investment

 

Iron Condor Calculations – The Math Behind The Condor is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/iron-condor-calculations-the-math-behind-the-condor/feed/ 1 Answers to Basic Option Selling Questions http://optiongenius.com/blog/answers-to-basic-option-selling-questions/ http://optiongenius.com/blog/answers-to-basic-option-selling-questions/#comments Thu, 27 Oct 2011 20:11:55 +0000 Genius http://optiongenius.com/blog/?p=629 This week I got an email from a couple of members asking some basic questions on option selling. I was happy that they had the nerve to ask the questions and not just try to figure it out on their own. They had gone through some of the material on the site but it was still over their head.

I answered their questions via email, but decided to go a little bit more in detail in a video. So here it is..

Click here to view the embedded video.

I want to thank the members who sent the email and I hope they got their answers.

Keep the questions coming. If you have a question, I bet dozens of others have the same question. So ask away. The worst I can do is not answer.

 

Answers to Basic Option Selling Questions is a post from Option Selling. To learn how you too can earn [...]

Answers to Basic Option Selling Questions is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> This week I got an email from a couple of members asking some basic questions on option selling. I was happy that they had the nerve to ask the questions and not just try to figure it out on their own. They had gone through some of the material on the site but it was still over their head.

I answered their questions via email, but decided to go a little bit more in detail in a video. So here it is..

Click here to view the embedded video.

I want to thank the members who sent the email and I hope they got their answers.

Keep the questions coming. If you have a question, I bet dozens of others have the same question. So ask away. The worst I can do is not answer. :)

 

Answers to Basic Option Selling Questions is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

]]> http://optiongenius.com/blog/answers-to-basic-option-selling-questions/feed/ 6