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I like the cash settlement in the rare occasion I decide to hold the trade into expiration as well as having the ability to place 15 point wide spreads in a one lot.

You think a 5 pt move in Tesla is 2 standard deviations? Do you have any idea how volatile TSLA is? You’re not trading 5 point spreads on a $40 product with a beta of one... You trade according to the price and vol. Putting that aside, that’s why I kept saying you gotta be somewhat decent at...

Just know that delta is your directional risk and I’m starting that trade with close to 0 delta. So I’m trading volatility to the up or downside. It’s actually pretty complicated when you really break it down which is something I’m not prepared to do here. The way I trade it requires an...

On the /ES once I hit the lower price target, that's when I put the stop loss on the trade so if the market pops back up I've realized enough profit on the short /ES to finance the butterflies. So at that point I'm flat on the trade, If the market gaps down I'm making money on the /ES shorts...

Something nice to know is PDT rule doesn't apply to futures. Micro futures are 1/10 the size of normal contracts and they make day trading futures in a small account possible. If you're gonna stick to stocks, keep your allocation very low. Trade with a broker with no commissions and practice...

I'm coming to this one late. For those kinds of returns you're looking at far out of the money butterflies a few weeks (maybe months?) out. Remember if its 1/100 risk to reward, the probability of earning that reward should theoretically be 1%

Talk to your tax attorney on this. If your spouse is your beneficiary on retirement accounts, he/she can treat the assets as their own and deposit them into their own retirement acct rather than put them in a bene IRA. Could be beneficial or have tax implications depending on if they need/want...

I definitely focus primarily on the S&P 500 in my main account but I have a few other strategies I place in equities such as straddles and put ladders. My bread and butter trade has been this same strategy along with some short /ES contracts so that I begin the trade with a neutral delta. I...

Nah this journal is the only trade data I’ll be publicizing so I’m starting with a clean slate here. But what I will say is I’ve been trading options profitably for the past 3 years, with 2018 being most profitable, closely followed by 2019.

We're on track to close this week significantly outside of where the implied vol was pricing us to go. That's the first time this has happened since August 2019. I'm not feeling good about placing the same trade on the SPX again this next week unless the market pulls back to around 3300 before...

I treat it as a very binary trade. It will either expire worthless or close profitably. Usually I'll set a GTC closing order set to trigger as soon as the SPX hits my short strike minus $5. I prefer to close it manually but I always do the GTC in case I'm not watching the market at the time it...

Trade 2 closed: tIP SOLD -1 BUTTERFLY SPX 100 (Weeklys) 17 JAN 20 3290/3305/3320 CALL @5.10 CBOE +$320 Profit - $4.14 Commission Starting Balance: $1001.75 Current Balance: $1643.47 PnL: +$641.72 = Account up 64.06% Nailed another fly right on the head. And who ever said trading a 12 VIX...

Stay tuned on my small account trade journal for earnings report trades. I'm not gonna go into it now but I'll be posting some butterflies on some of the more liquid names in the next few weeks when earnings season picks up. I don't trade many futures outside of index futures such as /ES /NQ...

Brokerage firms do this. Not to develop trading strategy but instead to manage risk on an aggregated level. This won't work unless you have a massive amount of data to evaluate.

Like everyone else says get a POA. You would always lose the court case if one of them were to sue you for taking a large loss as you legally aren't supposed to be trading their account in the first place. Most brokers would just require a simple form for the owner to sign off that you're...

I would just record trade date, ticker symbol, Profit/loss including commissions, average win amount, average loss amount, and win %.

The vol skew is what brings the favorable pricing in the first place. When the implied volatility of the OTM strikes is skewed higher than the ATM strike, you're getting more premium on the short leg of the spread thus favorable pricing: You just gotta be somewhat decent at picking direction...

I like to trade these right at the money. TSLA was at 442.28 so I made that the midpoint of my spread, which is why I used 440/445 as the strikes. If you wanted to short TSLA instead of go long, you would do the same thing but with puts. So you would be long the 445 put and short the 440 put. It...

When I say being right, I'm referring to the underlying moving in the direction of your trade. So if you're trading a call debit spread, your bullish and a put debit spread you're bearish. The topic of edge is highly debatable and even believing an edge can exist in the marketplace seems to be...

Yep, your math is correct. From a quantitative perspective, as long as your entry price (max loss) is less than your max gain, there's edge. You could be right half the time and wrong half the time and in the end you'll end up ahead. You could definitely go on losing streaks so allocate...