dan_sheridan

Dan Sheridan

Dan Sheridan is a 22-year CBOE veteran who worked with the highly successful specialist firm Mercury trading, which was headed up by Jon and Pete Najarian. While at Mercury Trading, Dan was responsible for training most of the traders including Pete Najarian, one of the current hosts of CNBC's Fast Money. Dan has been teaching individual traders on the techniques and methods he used every day to consistently profit in the options markets since 2004. Dan hosts the weekly CBOE TV show "Options Safari" at CBOE.com and does educational webinars for the CBOE and many brokers. The CBOE has sponsored live seminars with Dan for the last 5-years.

  • Strategy | Jun 24, 2016, 3:19 PM

    Why A Non-Directional Trade Did Well Today Despite the Big Move

    Why A Non-Directional Trade Did Well Today Despite the Big Move

    Trade #1 did absolutely great today, and it was a basic non-Directional trade that made 20% today with the market going drastically against us. The trade was a balanced Butterfly trade in SPX in the August 19 expiration, and the width of the Butterfly was 40.The trade was put on yesterday when SPX was around 2105.The trade was put on using all Calls. Here is the trade using a 1 contract example. Buy 1 2065 and sell 2 2105's and Buy 1 2145. I bought some units at $5.40, $5.30, and $5.20. A unit[...]

  • Strategy | Dec 10, 2015, 2:08 PM

    3 Joys of a SPX Weekly Iron Butterfly?

    3 Joys of a SPX Weekly Iron Butterfly?

    1) By trading every week, you become a better craftsmen 2) The butterfly has a very good potential reward relative to the risk of the trade. 3)  SPX is a well diversified Index with great liquidity and you don’t have to deal with the risk of individual stocks. Definition: Iron Butterfly is a trade where one puts on an at-the-money call credit spread and an at-the-money put credit spread Trade Example in SPX:  Price is $2065 as I write this. I am looking at the December expiration[...]

  • Strategy | Trade Ideas | Sep 23, 2015, 2:46 PM

    Trade Idea in SPX: Broken Wing Iron Butterfly

    Trade Idea in SPX: Broken Wing Iron Butterfly

    Define Broken Wing  Iron Butterfly:  call credit spread plus put credit spread with either the put side or call side narrower than the other one. Dan’s example of a Broken Wing  Iron Butterfly: I am going out in duration about 23 days in SPX using the October expiration. I am selling the call credit spread with the width 30 wide and the put credit spread with the width 40 wide. This gives less risk on the upside and more risk on the downside. Both credit spreads are selling the[...]

  • Market News | May 14, 2015, 1:15 PM

    AAPL Income Trade for Today

    AAPL Income Trade for Today

    Apple Inc. (AAPL) is around $128.40, up over $2 as I write this Blog. The stock is up about 16% for the year from the $110 level. The range over the last six weeks has been between $125 - $132. At this level, the stock is in the middle of the range and I am looking at a relatively delta neutral income trade. What does delta neutral mean? Not really leaning long or short deltas, no opinion (hoping for little stock movement over the near term).  What does Income Trade mean?  A trade[...]

  • Trader Talk | Education | Strategy | May 6, 2015, 2:50 PM

    How to Find Stocks for Iron Condors?

    How to Find Stocks for Iron Condors?

    I am often asked how I find stock in which to enter into the Iron Condor strategy.  Not every strategy works with every stock in every kind of market, but I have a set of guidelines or criteria I use when looking for those stocks. #1  use stocks you would buy 100 shares of in your retirement account #2  use very liquid stocks near $100 or higher:   Examples would be AAPL, NFLX, AMZN, GOOGL, PNRA, XOM, DIS, IBM, TSLA, LNKD, PCLN, etc. #3  If I did 4 stock Iron Condors[...]

  • Trader Talk | Strategy | Trade Ideas | Mar 27, 2015, 10:40 AM

    How to Buy TSLA Almost 8% Lower than Current Price

    How to Buy TSLA Almost 8% Lower than Current Price

    With TSLA currently around $190, how can I buy the stock anywhere near $175? The answer could be the sale of a cash secured put. With the stock at $191 the April 180 put is trading at around $3.00.  I will sell 1 April 180 put at $3.  If the stock finishes under the strike price of 180 at April Expiration (April 17th), I would be obligated to buy the stock at $177 ( strike price minus the premium received).  If the stock doesn’t fall below $180 at April Expiration, I collect[...]

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 23, 2015, 2:38 PM

    AAPL Earnings Play

    AAPL Earnings Play

    I am looking at an Iron Condor as a potential trade to play AAPL earnings next week. Trade: Sell 1 January 120 Call and Buy 1 January 123 Call. Sell 1 January 104 Put and Buy 1 January 101 Put. This is the January 30 Expiration. The credit I am looking for is around $60 per every one contract Iron Condor I do (excludes commission). Analysis: The credit for this Iron Condor is $60 and the Risk or Margin is $240 per every one contract I do. The yield is about 25% excluding commissions if I collect[...]