Trade Review

This is where I plan to archive all of the “Trade Review” videos and materials. This series is on-going and occasional as I make videos in this series as I find live trades that I have done that demonstrate an interesting point of options trading. This series assumes a certain knowledge of the world of options and the parlance of the trade so some may consider them advanced. For those getting started or for those who want explanations of some of the concepts in these videos, see my “Options Fundamentals” series where I cover these concepts in some detail. Of course, feel free to comment here if you have any questions, suggestions, topic idea, concerns. If you’d rather reach out privately, feel free to email me at midway@midwaytrades.com and I’ll be glad to listen and help where I can.

When Volatility Helps. (May 5, 2019)

This video was released as a companion to “When Volatility Hurts” (Nov 28., 2018). The lesson is to show how volatility can be a friend and not just a foe. The trade is a calendar in SPX which is a positive vega trade. When it was put on VIX was low (13.5) but then world events kicked in and volatility spiked over a couple of days. I show how a vega positive trade can benefit from a spike in volatility.

Related Videos:

  • “When Volatility Hurts” (Nov 28, 2018)
  • “Options Fundamentals Ep 3: Volatility”
  • “Options Fundamentals Ep 7: Demystifying the Greeks: Vega”
  • “Options Fundamentals Ep 13: Calendars”

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A Good Loss (March 26, 2019)

Can a loss be good? I think so and I talk about it with a real-world example in this video. One of the toughest parts of this business is taking a loss yet it’s part of the game and happens to everyone. A key to being a successful trader is to keep losses small. Here’s an example of how to do that.

Related Videos:

  • Options Fundamentals: Ep 10: Butterflies
  • Options Fundamentals: Ep 16: Adjustments
  • Options Fundamentals: Ep 17: Putting it All Together
  • Trade Review: Adjusting in the Real World (Feb 26, 2019)

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Adjusting in the Real World (Feb 26, 2019)

By request I did a review of a real world trade I did. This trade focuses on how I adjust a butterfly trade that I put on weekly. In this video I go over my trading plan including my first two adjustments. I then go into the lab and show how I reacted to the market conditions on my trade which included adjustments.

Related Videos:

  • Options Fundamentals: Ep 10: Butterflies
  • Options Fundamentals: Ep 16: Adjustments
  • Options Fundamentals: Ep 17: Putting it All Together
  • Trade Review: A Good Loss (Mar 26, 2019)

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A Tale of Two Volatility Trades (Jan 17, 2019)

Over Christmas the market tanked and volatility soared such that I wasn’t able to put on my regular trades. I usually don’t do volatility trades except at extremes and with VIX over 30, I decided be bearish on the VIX. This trade looks at 2 ways I did it (as an experiment) and sees which way worked out better.

Related Videos

  • Trade Review: “When Volatility Hurts” (Nov 28, 2018)
  • Trade Review : “When Volatility Helps” (May 5, 2019)
  • Options Fundamentals Ep 3: Volatility
  • Options Fundamentals Ep 10: Butterflies

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Download the Slides

When Volatility Hurts (Nov 28, 2018)

This is a trade that didn’t go my way. Volatility was high and a negative vega trade seemed like a good idea. It wasn’t. I also over-adjusted here which cost me unnecessarily. It wasn’t a disaster, but I show how I could have done better in hindsight and the lessons learned.

Related Videos:

  • Trade Review: “When Volatility Helps” (May 5, 2019)
  • Options Fundamentals Ep 3: “Volatility”
  • Options Fundamentals Ep 7: “Demystifying the Greeks: Vega”
  • Options Fundamentals Ep 10: “Butterflies”

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Out of the Money Put Butterfly (Oct 27, 2018)

My first video that started from a discussion on Gab. It’s a simple Out of the Money Put Butterfly in SPX. I do one of these most weeks of the year depending on volatility. But if you’re interested in seeing how this all began, take a look

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