Backtesting The Option Wheel
In this tutorial, we will explain how to backtest the Option Wheel strategy using the OptionStack platform.
The Option Wheel is a strategy that involves selling cash secured puts (CSP) and adjusting them into a covered call if the short…
To Roll or Not To Roll?
Rolling is one of the most common ways to adjust an option position. To roll a trade, we simultaneously close our existing position and open a new one. Rolling can also be used to “leg” into a larger position or…
Implied Volatility / VIX
The Volatility Index (or VIX) is a weighted measure of the implied volatility for SPX put and call options. The puts and calls are weighted according to time remaining and the degree to which they are in or out of…
Basket Strategies
Backtest your strategies against a basket of 100+ symbols simultaneously.
Using the OptionStack platform, you can scan for specific market conditions across 100+ stocks simultaneously, and trade when those market conditions arise.
For instance, you can buy a call option whenever a…
Earnings Strategies
Trading Around Earnings
Earnings season can provide ample profit opportunities, but using the wrong trading strategy can just as easily spell disaster.
For most traders seeking to profit during earnings season, there are two basic schools of thought:
Take advantage of potentially higher implied…
Rebalancing
Rebalancing Strategies
There are several rebalancing strategies that are often utilized by retail and institutional traders alike.
Calendar rebalancing: analyze the investment holdings within the portfolio at predetermined time intervals and adjust to the original allocation at a desired frequency. (i.e.…
Does Size REALLY Matter?
It’s an age-old question asked by men and women all over the world: Does size really matter?
When trading, it matters a lot! Size Does Matter in the Markets!
Position sizing could very well be the most important aspect of a trading system,…
Broken Wing Butterflies
Tasty-Trade recently published a video episode on trading broken-wing butterflies and unbalanced butterflies. In their episode, they recommended the following strategies for trading Broken Wing Butterflies:
Enter into a 1x(-2)x1 Broken Wing Butterfly.
45 Days To Expiration (DTE)
No Costs…
All About Volatility
There are several measures of volatility. (Historical Volatility, Implied Volatility, Average True Range, Bollinger Bands, etc..)
The first is the actual volatility of the stock. This is seen in the HistoricalVolatility, which can be measured over any time frame but…
Stock Replacement Strategy
Jim Cramer, host of CNBC’s Mad Money, discussed an options trading strategy called the “Stock Replacement Strategy“.
The main purpose of the Stock Replacement Strategy is the reduction of overall portfolio risk through the replacement of stocks using deep in…
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