Trading With Doodles

OPTIONS PINNING

09 JANUARY, 2017 OPTIONS PINNING RULES TRADE MANAGEMENT Happy New Year everyone, In the first blog entry for this year we are going to explore a new type of trade "PINNING".  I have not done this trade more than 5 times so I certainly don't consider myself an expert...

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CHART PRECISION

23 DECEMBER, 2016 OPTIONS RULES TRADE MANAGEMENT Welcome back traders for episode 2 of Doodle's Dogs.  And before I go further Happy Holidays to everyone. Of course Holiday trading is topic by itself but I will simply mention there is often light volume and some end...

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Selling PREMIUM

A primary strategy that Doodles use to generate income from cash balance with Option Selling. Capital dollars is an important part of any asset allocation. It allows an investor to take advantage of opportunities in stocks when markets pullback and it protects the rest of your portfolio if unforeseen spending requirements arise. The problem with cash, particularly in today’s environment, is the negative real interest rates you earn on any cash investments. Fortunately, you don’t have to put up with poor returns on cash. Option selling is a mildly aggressive income strategy which done right can generate 10-20% annual returns with not much risk!

Some of the Strategies

Selling Calls and Puts

Selling Strangles

What is a short strangle?

A short strangle (also known as sell a Strangle) is a position that is a neutral strategy that profits when the stock stays between the short strikes as time passes, as well as any decreases in implied volatility. The short strangle is an undefined risk option strategy.  It involve the simultaneous selling of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.

 

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IRON FLY

What is an iron condor spread?

The iron condor is an option trading strategy utilizing two vertical spreads – a put spread and a call spread with the same expiration and four different strikes.

So what is an IRON FLY?

it an Iron Condor with call and puts credit spread that share the same short Strike, creating a very neutral position that profits from theta decay (passage of the time) and decrease in IV (implied volatility).

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