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Originally Posted by Pace Advantage
I used to be like that...then I started trading options...I like it better this way...one trade a month (unless I have to "adjust")....
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Originally Posted by Barn32
Are you selling puts?
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Originally Posted by Pace Advantage
Actually, long put RUT butterflies (Russell 2000 index), hedged with IWM (Russell ETF) calls...
You can read/watch more about what I'm currently doing here:
http://www.smbtraining.com/overview/m3 |
Well, I haven't quite watched all of the video, but so far I've only understood about 20% of it.
To fully get it I'm going to have to take a refresher course on the "greeks" and the butterfly spread.
But right off the top I have two questions:
1. In the video example trade he did an awful lot of adjusting, which generates a lot of commisions? No?
2. Is your loss on this trade capped out at 5K, or with all of the "adjusting" can you blow past that number if bad things happen?
