Weekly Options Trading Algorithm Using 2 Sig and WWI

Overview

I have been trading Index Options since 1985. My strategy has been to trade Iron Condors which use a Credit Call Spread and a Credit Put Spread. The Short Call was at the Strike Price 2 Standard Deviations (2sigma) above the index market value and the Long Call was at the next strike price higher with a Short Put at the Strike Price 2 Standard Deviations (2sigma) below the index market value and a Long Put the next strike price lower. When I began trading Index Options the Index...
See more details below
Paperback
$39.45
BN.com price
(Save 21%)$50.00 List Price

Pick Up In Store

Reserve and pick up in 60 minutes at your local store

Other sellers (Paperback)
  • All (4) from $39.16   
  • New (3) from $39.16   
  • Used (1) from $44.21   
Sending request ...

Overview

I have been trading Index Options since 1985. My strategy has been to trade Iron Condors which use a Credit Call Spread and a Credit Put Spread. The Short Call was at the Strike Price 2 Standard Deviations (2sigma) above the index market value and the Long Call was at the next strike price higher with a Short Put at the Strike Price 2 Standard Deviations (2sigma) below the index market value and a Long Put the next strike price lower. When I began trading Index Options the Index options expired on the 3rd Friday of each month.
Weekly options began in 2006 which had Index Options that expired each Friday at market close. Recently the rule has changed so that on the third Friday of each month the SPX weekly options expire at market open rather than close.
For several years I found my basic strategy of executing Weekly Index Options on Monday or Tuesday using the 2 standard deviation Condors worked well with the profits at Friday expiration being equal to the Initial Credit received 90% of the time, as Statistical Theory says should be the case.
Starting in 2012 the Index market became unstable. Often the market moved up or down by an amount equal to the computed 2 standard deviations in one day causing the Short Call or Short Put to be in-the-money (ITM) requiring an exit from the Condor at a loss for the week. When this first started happening in summer of 2012, I could open a new safe 2 sigma Condor to eliminate most of the loss, which resulted in a weekly profit. In Spring of 2013 the Index markets became more unstable with the 2sigma movements occurring on Friday resulting in weekly losses. Therefore it was impossible to make a weekly profit.
As a result of this market behavior I concluded it was necessary to come up with an Algorithm to replace the 2 sigma values to continue making reliable weekly profits using Weekly Index Options. This book describes how to continue making a profit using 2 sigma Condors for SPX or SPY plus my Excel based software for trading SelfAdapSPYSPXWeeklyVLTY.
When the 2 sig Condors go ITM (in the money) I can use SPY ATM (at the money) Long Straddles to make a weekly profit.
This book describes the strategy, tactics, and tricks to continue making a profit using weekly options when the markets are wild.
Read More Show Less

Product Details

  • ISBN-13: 9781491291177
  • Publisher: CreateSpace Independent Publishing Platform
  • Publication date: 8/6/2013
  • Pages: 256
  • Sales rank: 878,512
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.66 (d)

Meet the Author

Jon Schiller received the BS in Physics from the California Institute of Technology (Caltech) and the MS and PhD from the University of Southern California (USC). As an executive of an aerospace corporation he designed guidance and control systems for aircraft and missiles.
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)