Real-time options education and strategies
This post is about establishing multiple positions in AAPL that are placed in different expiry’s to allow for the harvesting of profits throughout the year. Get it? Apple, harvest…hmmm…tough crowd. 😒 Okay, moving on. This was my tweet on July 22 mentioning the AAPL market profile chart. This post isn’t about market profile so I … Read more
This SPX chart reflects my current analysis of the daily time frame. The 8 SMA bands are still upsloping which represents a price uptrend although good location for a new long is currently down around 4050. That’s well below Friday’s closing price of 4105 but I’m not basing my current trade on the rising lower … Read more
Back in 2021 I wrote a post titled ‘The One at a Time Portfolio’. It refers to a strategy where, after a single trade is made, you do not add a new position to your portfolio until the first position is either exited or you’ve substantially reduced or eliminated the initial cost of that position. This strategy … Read more
When back-testing an options strategy I want to first test the potential profitability of the strategy against the best possible outcome. The home run outcome. If it doesn’t perform well under the best potential outcome then I can safely abandon the strategy and continue my search for a better one. Of course I also need … Read more
Below is the current SPX position in the account that I refer to as the PDT (Pattern Day Trader) account. It is a smaller account (less than $25K) that is limited to a maximum of 3 round-trip trades within the same day over a 5 day period. PDT accounts are especially well-suited to using longer … Read more
A common strategy by ‘professional‘ option traders and strategists is to buy a 60 Delta option to initiate a new trade. The reason I put quotes around the word ‘professional’ is because having a YouTube channel doesn’t necessarily mean they are a professional or someone you should listen to. That also applies to blogs, including … Read more
I’m just a student of Paul’s Vega Option’s method. But as I see it, the Vega Options strategy has three steps: One of the keys to successfully trading this strategy is understanding where your current portfolio is in this three-step process, so that you can have a clear understanding of what is driving your trade. … Read more
One of my favorite and most profitable strategies is buying a directional Diagonal spread for a debit and then rolling that Diagonal into a Calendar spread when the opportunity to get to zero cost arises. Simple! No? Ok, let me translate that for you! It means when I can sell the Vertical spread that ‘converts’ … Read more
The title of this post is a little deceiving, it should read ‘Risk On…Risk Reduced’. The only truly ‘risk off’ trade is an exited trade! If that’s not clear what I mean by that it should be clear after you’ve read the post. Over a period of just less than 48 hours I made 7 … Read more
This post is about the smaller account that I manage for somebody. The positions are smaller and easier to understand than my positions which don’t seem that helpful for demonstrating good trading techniques! 😄 On twitter I refer to it as the PDT account. PDT is short for Pattern Day Trader and if you don’t … Read more