Hello and welcome to the Trade Academy blog.
I want to start by giving you a bit of background on why I am here and what you can expect from me.
I believe the world of options trading is inefficient in many ways. The markets are not priced perfectly because the market participants are not given perfect information. Each player has a piece of information and an expected edge, and that’s why we get involved.
So what is my edge and how does it help you?
I understand the nuances of option volatility and the information coming from the market. I know how to apply that information to improve your odds of success. I have gone through one of the most respected training programs in option market making. I have had a great deal of success trading volatility in equities, commodities, and fixed income. Most recently, I took my knowledge of volatility and applied it to the world of directional trading. The CTA I worked for has had a track record of success in their directional trade but had a lack of understanding in the options markets and how unintended option exposures were driving their returns. They understood delta and gamma, but not term structure, skew, or many other features of the volatility surface. You may be a good directional trader due to fundamentals or technicals, but you need help with your options strategies. Otherwise, you would not be here reading about my perspectives on how to trade better.
Let me be crystal clear – I don’t want to give you a series of trade ideas to piggy back. Many would have you believe that the “Smart Money” (aka, people managing a lot of money) is worth chasing. This may be true on their directional bias, but you’re missing a great deal of the information embedded in their trade. The “Smart Money” may have just bought thousands of calls in a single equity name, but you don’t know what their price target is and why they bought options instead of stock. Did they buy calls to replace a long equity position, extend a directional long, hedge a short, close a short call position, or one of any number of other reasons? Does that “Smart Money” really understand the volatility structure of the market and how best to express their view? Are they truly positioned optimally?
It is important to watch the “Smart Money”, but no one should piggy back their trades until you’ve done your own homework.
So, this is where I come in. I don’t want you to just know that someone is making a big bet. I want to provide you with the tools to recognize the best expression of the trade, whether that is to mimic the “Smart Money”, or more likely, to put on a different structure. I want you to come up with your own trade ideas and then be able to express that idea efficiently in options in order to improve the risk/reward profile of the trade. And I want you to make money.
Thanks for taking a first read of my blog, and I look forward to working with you more. I know that I can teach you how to use options better, and I look forward to learning from you as well.
All Services and Content Are Provided for Educational and Information Purposes Only and Are Not Intended as Legal or Financial Advice.
The information and content provided in or through these Services is for educational and informational purposes only. By accessing and/or using the Services you acknowledge that the Services are not intended to be a substitute for legal, investment, or financial advice that can be provided by an attorney, accountant, and/or financial advisor. You further acknowledge that you should not rely solely on the Services in making any investment or financial decision, and should always check with your financial advisor and tax advisor to determine the suitability of any investment.
All information provided in or through these Services is strictly informational and is not to be construed as advocating, promoting or advertising registered or unregistered investments of any kind whatsoever. The information is provided “as-is” and is not guaranteed to be correct, complete, or current. Trade Academy does not guarantee that you will attain a particular result, outcome, or earnings, and you accept and understand that each individual’s results will vary and depend on numerous factors.
Trade Academy is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission (“SEC”) or the Financial Industry Regulatory Authority (“FINRA”). Further, owners, employees, agents or representatives of Trade Academy are not acting as investment advisors and might not be registered with the SEC or FINRA.