Case Studies

1. Taking Battered Stocks to a New Level

Skill Level: Beginner

If you look at trading from a neutral standpoint and generally believe in taking what the market gives, this study focusing on ratio front spreads and back spreads may offer a fresh perspective on spread trading.

2. The Butterfly Revolution

Skill Level: Intermediate

Different types of butterflies such as:

• The skip strike
• The double
• The basics

During this study, we'll take a look at how the versatile butterfly may be utilized under almost any market sentiment - bullish, bearish, or neutral - and study how investors can often vary contract sizes and distances between strikes to create different trade-outs for different variations.

3. Options 401: Leveraging the Condor

Skill Level: Advanced

• Learn how selling naked strangles through E-mini options may help you avoid the costs of condor hedge legs.
• Advantages and disadvantages explained.

In this case study, we'll start with a brief overview of an OTM iron condor and short strangles on the S&P futures and cash indices. After some group study, we'll talk about the risks and rewards of each of these strategies and try to determine which works best for each situation.