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Neutral Strategies

Mastering the Long Calendar Straddle Swap

Mastering the Long Calendar Straddle Swap

Neutral Strategies

Why Use This Strategy? There are three key motivations: Capture Event Volatility Decay. Front-month options often become expensive before key events like earnings. Once the event passes, impli…

Calendar Spreads and Time Decay

Calendar Spreads and Time Decay

Neutral Strategies

What Is a Calendar Spread? A calendar spread is a market-neutral strategy that involves selling a short-term option and simultaneously buying a longer-term option, both at the same strike price an…

Building Complex Spreads

Building Complex Spreads

Neutral Strategies

What Are Complex Spreads? A complex spread is any position involving more than two contracts, typically blending multiple strikes or expirations in a single trade. These structures may combine out…

Volatility Swing Trade Framework

Volatility Swing Trade Framework

Neutral Strategies

Strategic Goal You’re not looking to delta hedge every tick. Instead, you: Want exposure to larger-than-expected price moves. Prefer to let time and volatility do the work. Choose the…

Long Calendar Spread Strategy

Long Calendar Spread Strategy

Neutral Strategies

What Is a Long Calendar Spread? A long calendar spread involves simultaneously: Selling a near-term (short-dated) option Buying a longer-dated option Both legs share the same strike pr…

ACES: Earnings Calendar Strategy

ACES: Earnings Calendar Strategy

Neutral Strategies

Understanding the Calendar Spread Mechanism ATM calendars involve selling a short-term option (typically expiring the week of earnings) while buying a longer-term option (usually one to two weeks…

Double Calendar Strategy Explained

Double Calendar Strategy Explained

Neutral Strategies

What Is a Double Calendar? A Double Calendar Spread involves two calendar spreads at different strike prices, one above and one below the current underlying price: Call Calendar Spread: Sell a…

The Risk Reversal Smile

The Risk Reversal Smile

Neutral Strategies

What Is the Risk Reversal Smile? Consider an OTM call and an OTM put, each with the same expiration. If the call’s IV is 15% and the put’s IV is 25%, the risk reversal value is -10%. This differen…

Iron Condors & Butterflies Explained

Iron Condors & Butterflies Explained

Neutral Strategies

Iron Condor: A Balanced Neutral Play The Iron Condor involves constructing two credit spreads simultaneously: a bull put spread (selling a put and buying a lower-strike put) and a bear call spread…

Volatility: Straddles vs Strangles

Volatility: Straddles vs Strangles

Neutral Strategies

Straddle and Strangles are key strategies that can help us benefit from volatility shifts. The Straddle: Betting on Movement A straddle involves buying both a call and a put option at the same…

Weekly Breakout Moves: A Framework for Trading on Expected Moves

Weekly Breakout Moves: A Framework for Trading on Expected Moves

Neutral Strategies

1. Strategy Overview and Rationale 1.1 Timeframe and Basis The Weekly Breakout Moves approach focuses on a one-week timeframe. At the end of each trading week—usually Friday’s close—traders cal…

What strategies can I use in Positive Gamma?

What strategies can I use in Positive Gamma?

Neutral Strategies

When the market is in positive gamma, it is a good time to set up strategies that collect premiums. We will focus on the iron condor today. How to set up an Iron Condor An Iron Condor can be cr…

Time Decay: Strategies to Offset Theta Risk

Time Decay: Strategies to Offset Theta Risk

Neutral Strategies

What Is Theta? Theta is often described as “time decay” in the world of options. More precisely, it measures how much an option’s theoretical price decreases with each passing day, assuming everyt…

Harvesting Volatility Risk: Three Classic Structures

Harvesting Volatility Risk: Three Classic Structures

Neutral Strategies

Harvesting Volatility is possible. In this article we will go over strategies that allows to benefit from volatility. Short ATM Straddle Edge source: pure level of implied volatility. Pros…

Managing Risk with the Straddle Strategy

Managing Risk with the Straddle Strategy

Neutral Strategies

Overview of the Straddle Strategy Managing Risk with the Straddle Strategy allows traders to profit in volatile markets by balancing potential gains and losses. A straddle involves purchasing…

0DTE Options Trading Strategies

0DTE Options Trading Strategies

0DTE Trader, Neutral Strategies

In this Guide we will go through 0DTE Options Trading Strategies. The key to success lies in understanding and managing the inherent volatility of these instruments. Unlike traditional options, which…

How to risk manage an Iron Condor

How to risk manage an Iron Condor

Neutral Strategies

In this Case Study we look at how to trade and risk manage an iron condor. As we analyze data, and look at the Q-Models, we want to find ways to trade them, but also figure out how they can help us r…

Reverse Butterfly

Reverse Butterfly

Neutral Strategies

Among the “Market Neutral” strategies, we find the Reverse Butterfly. This type of strategy aims to generate returns from an increase in volatility. It is similar to the Long Straddle but adds two…

Iron Butterfly

Neutral Strategies

Among the “Market Neutral” strategies, we have the Iron Butterfly. The Iron Butterfly strategy is part of a series of advanced options strategies. It is a neutral or Market Neutral strategy. This…

Reverse Iron Condor

Reverse Iron Condor

Neutral Strategies

Among the “Market Neutral” strategies, we find the Reverse Iron Condor. The Reverse Iron Condor strategy is part of a series of advanced options strategies. It is a neutral or Market Neutral strategy…

Iron Condor

Neutral Strategies

Among the “Market Neutral” strategies, we find the Iron Condor Strategy. The Iron Condor strategy is part of a series of advanced options strategies. It is a neutral or Market Neutral strategy. This…

Short Strangle

Neutral Strategies

Among the “Market Neutral” strategies, we find the Short Strangle Strategy. The Short Strangle strategy is part of a series of advanced options strategies. It is a neutral or Market Neutral strategy…

Long Strangle

Neutral Strategies

Among the “Market Neutral” strategies we find the Long Strangle Strategy. These are non-directional strategies where the trader does not know which way the price may go. The trader can profit if the…

Short Straddle

Neutral Strategies

Among the “market neutral” strategies, we find the Short Straddle Strategy. The Short Straddle strategy involves selling a call option and a put option with the same strike and the same expiration da…

Long Straddle

Neutral Strategies

Among the “market neutral” strategies, we find the Long Straddle. These are non-directional strategies where the trader does not know which direction the price may go. The trader can profit if the pr…