The Art of Changing | Confessions of a Pragmatic Intellectual's Mind on The Constant in Life, Change!
š For Intermediate to Advanced TradersEmpowering strategic decision-making through market context, volatility analysis, and advanced options strategies. 1. š Macro Market Context & Outlook Understanding the broader economic and market environment is essential for framing options strategies. 2. š Sector & Thematic Opportunities Options traders can align strategies with sector-specific trends and macro themes. Sector…
Managing options trades often requires flexibility. Rolling positions can help minimize losses and extend time for your thesis to play out. Letās analyze a real-world example using Apple (AAPL). The Situation This roll moved the strikes deeper ITM and extended the expiration by three weeks. Updated Payoff Analysis For the new spread: Important Note:You also…
When trading options, positions often need adjustments as expiration approachesāespecially if the short option is in-the-money or close to it. One powerful technique for managing this scenario is rolling. Letās explore how a recent Apple (AAPL) roll worked, why it generated more income, and what risk management strategies you can use alongside it. The Example:…
Meta description: Learn how to choose between the 1āminute, 5āminute, and 15āminute charts for day trading stocks, then apply those reads to options with practical steps for contract selection, entries, exits, and risk controlāincluding when ~45 days to expiration (DTE) makes sense. Table of contents Why time frames matter Intraday time frames change the resolution…
Overview Selling short puts on AAPL, GOOG, and NVDA with similar expiries revealed a practical difference:NVDAās buying power (BP) requirement tends to move intraday, while AAPL and GOOG remain comparatively stable.This article explains whyācontrasting RegāT with riskābased (portfolio) margin, walking through a worked example,and showing how BP reacts to implied volatility (IV). 1) Margin Models…
When trading options, one of the most overlooked yet critical factors is Buying Power (BP). Itās not just a number on your brokerage screenāitās the lifeline that determines what trades you can execute and how much risk you can take on. In this post, weāll explore how BP impacts your decision-making, especially when selling spreads,…
Recently, I closed a vertical call spread on Apple Inc. (AAPL), both legs expiring on August 25: This bullish spread was originally sold for a $0.18 credit, aiming to profit from moderate upward movement in AAPL while capping risk. However, the trade didnāt go as plannedāand the lessons learned were invaluable. š What Is a Vertical…
š Trade Breakdown: AAPL Bull Put Spread ā July 7, 2025 Todayās trade features a bull put spread on Apple Inc. (AAPL), a defined-risk, income-generating options strategy. Letās break down the trade, explore its purpose, and analyze what to expect depending on market conditions. š§¾ The Trade Setup This creates a $5-wide bull put spread…
On June 6, 2025, Tesla Inc. (TSLA) experienced heightened volatility following a public feud between CEO Elon Musk and President Donald Trump. The discord centered around Musk’s criticism of Trump’s “One Big Beautiful Bill,” which proposed cuts to electric vehicle subsidiesāa move potentially detrimental to Tesla’s interests. In retaliation, Trump threatened to revoke federal contracts…