Author Archives: Guest Author

Butterfly Spread – Will You Marry Me?

Posted on February 27, 2011 by Guest Author

The butterfly option strategy is one of the most robust and versatile option selling techniques available to option sellers. Continue reading →

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Vertical Spread – Like Taking Candy From A Baby

Posted on February 27, 2011 by Guest Author

A preferred non directional trading strategy is the option Credit Spread. This strategy is one of the easier option spreads to comprehend for newer option traders. In addition it is simple to place and there is not much to do management wise while the trade is in play – which allows the vertical spread trader to be freed from their trading chair and not have to watch every up tick and down that the market makes all day. Continue reading →

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Iron Condor – Does Anyone Here Know How To Fix An Ulcer?

Posted on February 27, 2011 by Guest Author

My plan for trading the iron condor when I first got started trading this strategy was to put them and keep them on all the way until expiration. Continue reading →

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Butterfly Spread: Monthly Income Bread and Butter

Posted on December 25, 2010 by Guest Author

A great tactic for income traders who think the stock or index they’re trading will most likely stay contained within a range for the short term is the butterfly spread . Continue reading →

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Butterfly Spread – Milking The Butterfly Spread For Consistent Bling

Posted on December 25, 2010 by Guest Author

The option butterfly spread trade is often a treasured tactic among option income fanatics. Not only does this trade give the trader a considerable level of premium at the beginning of the trade which could be turned into a major monthly cash flow, it also provides a highly sturdy position structure which can take and endure a range of trading environments, including really volatile environments like the ones we are witnessing now. In a crazy stock market where several other option strategies do not have a chance, the butterfly spread may be put on and if appropriately maintained, wind up doing exceptionally well. Continue reading →

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Gamma Scalping – Cashflowing Volatility

Posted on December 25, 2010 by Guest Author

A reliable option strategy to cashflow the market during volatile times is Gamma Scalping. This strategy works best in crazy markets unlike the standard option income strategies such as the iron condor, the calendar spread, credit spread, etc. Gamma Scalping is a great alternative for option traders to utilize when volatility reaches levels that make those other option strategies too risky – and this strategy can deliver the goods as well, producing comparable income if not more. Continue reading →

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Iron Condor – Owe, That’s Gonna Leave A Mark…

Posted on December 22, 2010 by Guest Author

The Iron Condor is perhaps the most dangerous option strategy around. Continue reading →

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Double Calendar: How To Create A Profit Tent

Posted on December 21, 2010 by Guest Author

Even though Double Calendar Spreads may be used in numerous stock market environments, they operate the best in low volatility climates. While soaring volatility levels are wonderful for these trades, sinking volatility levels bring them a lot of pain. Continue reading →

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Double Calendar – New Playground For Iron Condor Traders

Posted on November 4, 2010 by Guest Author

An alternative trade for iron condor traders who are curious about other option income strategies is the double calendar spread. Continue reading →

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Credit Spread – Monthly Cashflow Generator

Posted on November 1, 2010 by Guest Author

The Credit Spreadis one of the more popular strategies among option traders. Along with being one of the easier option trading strategies to understand, another reason newer option traders in particular gravitate to this strategy is that it can require very little time to manage it while it is on. Another way to put it, is that credit spread sellers don’t need to be glued to their computer screens all day watching every tick of the market in order to generate consistent income with this trade. Continue reading →

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