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Sure, here's my second trade and my thought process in taking it. Trade 2: tIP BOT +1 BUTTERFLY SPX 100 (Weeklys) 17 JAN 20 3290/3305/3320 CALL @1.90 CBOE Its a 15 point bullish butterfly centered around the weekly expected move in the SPX. The market is pricing in a $38 move between now...

Trade 1 closed: tIP SOLD -1 BUTTERFLY SPX 100 (Weeklys) 10 JAN 20 3265/3280/3295 CALL @5.30 CBOE +$330 Profit - $4.14 Commission Starting Balance: $1001.75 Current Balance: $1327.61 PnL: +$325.86 = Account up 32.53%

Or you can just sell the CSP in the money or DITM. It just needs to have extrinsic value.

Well sure but you can say that about any investment. Anything you buy could tank the next day. Selling a cash secured put and getting assigned is equivalent to being long 100 shares of the underlying and they share the same risks. Say I really wanted to go long and purchase 1000 shares of XLU...

I frequently trade cash secured puts on high yielding funds that I want to own in my IRA. The return is low on the less volatile funds, but I’m always okay with being long the fund at a discount while collecting the dividend. I focus on extrinsic value when choosing which strike to buy, which is...

I definitely wouldn’t quit trading, if anything I’d throw a mil or two in my trading account just to make things spicy. I’d put maybe 10% of it in a bond or preferred stock fund. The majority I’d invest in income yielding real estate such as mobile home parks and apartments. I’d put a few mil...

This 100%. Set aside a few grand that you're 100% willing to lose. 5K is plenty to start and risk no more than $100-$200 per trade. Only up your allocation if you hit certain profit goals such as doubling your money.

To start, learn vertical debit spreads. Its the backbone of almost any advanced spread such as butterflies, condors, and backratios. A good starting strategy that's directional is trading an at the money 2-5 point wide spread at around 30 days out. The key is to make sure your risk to reward is...

The easiest way to quantify the consistencies or inconsistencies for me is by visualizing it. In this screenshot, the middle row shows implied volatility displaced against historical volatility. Its an ever changing environment so you would need to adjust your length depending on how long or...

The market's pricing is almost never exactly correct. It can be very efficient where most of the time actual movement is very close to what's priced in. And when that's the case you want to trade butterflies around it. You want to think in terms of a distribution curve.

Trading options is more about inefficiencies in probabilities. You're looking for something that is consistently over priced or under priced. Implied volatility against historical volatility. Expected price movement against actual price movement. In your example, the probability to win $0.3 is...

I'd like to see your journal. Link?

My theory is when markets are doing their thing, they're seeking those "assholes" to do something interesting as a catalyst for the next correction.The longer we go without any semi interesting news, the bigger the correction will be.

Create a watchlist for futures markets and watch them in the overnight session. You'll quickly realize that the market almost never stops moving. Usually there's not a lot of action when markets are complacently grinding to the upside. But when volatility picks up you'll see 20-50 point moves...

An ATM debit spread is the best IMO if you plan to hold the trade close to expiration. If you want to be able to exit any time look for an ITM single option around 85 delta to get the most bang for your buck.

Good luck to you! I'll be following along your journey.

Trade 1: tIP BOT +1 BUTTERFLY SPX 100 (Weeklys) 10 JAN 20 3265/3280/3295 CALL @2.00 CBOE Starting Balance: $1001.75 Current Balance: $1001.75 PnL: 0 I'll only be updating balances and PnL when I close the position.

When it comes to trading you want to be the smallest fish in the biggest pond. Markets are driven by algos and massive trading firms who trade delta neutral. They don’t give a crap about what the public deems a “winning strategy”. Most winning strategies trade around relatively predictable...

Whether or not you feel it’s deserved is irrelevant. US nuked a big shot. US basically said, “Yea we did it, now don’t try anything funny”. Iran responding there will be revenge. “Market impact ZERO” is a bold statement to make...

Stop loss set to 3248. If I don't get stopped out I'll likely hold this as a runner into tomorrows trading session.