Short Strangle Earnings Trade As I’ve said numerous times in the past, statistically speaking, when it comes to options strategies it doesn’t get much better than a short strangle. A short strangle is a neutral, range-bound options strategy (short call and short put) that has undefined risk and limited profit potential. Typically, a short strangle… Read more »

# Tag: options traders

## The Beauty of Trading with High-Probability Credit Spreads

The Statistical Truth I hate to say this about some of my fellow options traders, but I can’t tell you how much I abhor those in the industry that absolutely ruin the true benefits of options for the self-directed investor. Claims of outlandish 300%, 400%, 1,200% in just a few days, without even a small… Read more »

## How to Trade Blockchain Responsibly using a Jade Lizard Options Strategy

How to Trade Blockchain Responsibly using a Jade Lizard Options Strategy I receive an overwhelming amount of emails asking about how to invest in bitcoin, cryptocurrencies and the like. Unfortunately, as a quant-based trader/investor, I always want probabilities on my side, so buying into one of the thousand or so cryptos just isn’t my style.… Read more »

## What is High-Probability Options Trading?

What is high-probability options trading? I am often amazed by the lack of common sense when it comes to investing. Investors seek the best possible information, but unfortunately most turn to the wrong sources. For starters, turning on the television for investment advice, in most cases, is a big no-no. Yet, how many people listen… Read more »

## Trader’s Toolbox: High-Probability Mean Reversion Indicator

Trader’s Toolbox: High-Probability Mean Reversion Indicator Current High Probability Mean Reversion Indicator (ETFs Heading into the Week of October 4) Archived High Probability Mean Reversion Indicator (ETFs Heading into the Week of September 27) High Probability Mean Reversion Indicator (ETFs Heading into the Week of September 20) High Probability Mean Reversion Indicator (ETFs Heading… Read more »

## The Options Strategy with the Highest Probability? The Short Strangle

I’m often asked about my favorite options strategy. What’s my bread and butter? Statistically speaking, it doesn’t get much better than the short strangle. Some say it is the ultimate options strategy. A short strangle is a neutral, range-bound options strategy (short call and short put) that has undefined risk and limited profit potential. Typically,… Read more »

## The One Statistical Law All Successful Options Traders Follow

The foundation of all quantitative or statistically-based options traders rests on one statistical law – The Law of Large Numbers. The Law of Large Numbers states that as you increase your sample size, in our case number of trades, our expected value or probability of success will come to fruition. This is because the Central… Read more »