Trader Interviews
Trader Interviews HomeTrader Interviews Premium AccessTrader Interviews Premium LoginTrader Interviews FAQsInterviews with Top TradersTrader Interviews EventsAbout Tim, Trader Interviews HostGet Access to Premium Interviews


 
     Enter your email:
 




 
Looking for the free interview and bonus?


Add to Cart
View Cart
How To Trade Index Options for a Living
Specs: 32 mins, 49 secs | 15.1 MB
  Buy Now, login or learn more.

"At some point during your trading evolution, the charts begin talking to you." The full-time option trader I spoke with for this interview focuses on one thing and is an expert at it. He finds index ETFs that are going to trade within a range for the next few days and he trades calendar or ratio option spreads on those indexes. He explains how he does it in this episode. JW discusses how he watches volatility, implied volatility and time decay to find great option spread trades that will limit his risk and offer the best chance of paying off before or at expiration. His goal - get the same results as a trader who trades the ETF or stock index outright - but by using just a fraction of the capital it would take to trade the underlying directly. in this detailed interview we discuss how he spots the good trades and has turned those trades into a full-time living.

Markets discussed: Options


Instant access to interviews and transcripts
Note: Full transcript of this interview is available upon purchase.

How To Trade Index Options for a Living




Tim: Hello everybody and welcome back. Thanks very much for joining me for another show. Today, we're going to be speaking with J.W. I wanted to get him on the phone and talk to him about how he finds good trades, what kinds of things he looks at the markets to find good opportunities, and just generally overall, how he looks to make money trading. So first of all, J.W., thanks for joining me on the phone today.

JW: It's great to be here and I'm looking forward to it.

Tim: All right so first of all, I always ask, the first question is what kind of trader are you in terms of a day trader or a swing trader and then what markets do you trade?

JW: You know, I would probably say most of the time swing trading. Occasionally, I will do some short-term trades, but for the most part swing and even occasionally some longer term types of trades. As far as markets, mostly obviously, I focus on options and I mostly trade US equity indices and US ETF. And I do occasionally use some individual stocks, but primarily just focus on the US and obviously with the ETFs, they can vary as far as other countries, you know, country ETFs etc. But for the most part, I stick primarily to the S&P 500 and traditional ETFs.

Tim: Okay. So, you focus on options on those indexes and options on those ETFs or will you trade the ETFs outright as well?

JW: Typically my focus is on options but I do trade futures. I also trade individual ETFs in my own accounts as well.

Tim: Now, options, you know, we do a lot of option traders, we've interviewed a lot of option traders and some of their strategies are really simple, others get really deep into credit spreads and debit spreads and all the butterflies and things like that. Kind of talk about your overall strategy for trading options, how do you do...

To read the rest of this interview's transcript, get access now or login
Looking for the free interview and bonus?