Blog - Road to $1million Trading Options

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If I got it right, you bought $7500 in short dated SPY options and sold $14,500 worth of SPY short right before the 2/27 crash.

It seems unrealistic to call this a "$30k" account. You committed 75% of it to two trades on one underlying going in one direction.

Any reasonable trader would need an account of at least $350k to make these trades and not risk more than 2% equity on just the option position. Otherwise, their probability of ruin is up in the 95%+ range.

Anyway, I'm pulling for you hitting your $1M target, but calling it a "$30k" account seems disingenuous.
 
all strategies are directional... I do not sell/write calls. I either buy calls or buy puts only.. occasionally, i take directional spreads in other accounts.

The account started at $30k cash... The idea is to make highly leveraged directional bets and with my winning percentage, make $1mil by years end.

I will try to post a summary of trades when possible.
 
Quote from FullyArticulate:

Anyway, I'm pulling for you hitting your $1M target, but calling it a "$30k" account seems disingenuous.
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He uses leverage aggressively when entering a position.

This makes for very large equity swings when the market moves heavily in his favor, so long as he controls his risk accordingly, he'll probably be fine, either way, it always makes for interesting reading.

Good trading,

Jimmy Jam
 
Quote from FullyArticulate:

If I got it right, you bought $7500 in short dated SPY options and sold $14,500 worth of SPY short right before the 2/27 crash.

It seems unrealistic to call this a "$30k" account. You committed 75% of it to two trades on one underlying going in one direction.

Any reasonable trader would need an account of at least $350k to make these trades and not risk more than 2% equity on just the option position. Otherwise, their probability of ruin is up in the 95%+ range.

Anyway, I'm pulling for you hitting your $1M target, but calling it a "$30k" account seems disingenuous.
More...

In general, sure. However, if the $30K starting risk capital represents only a fraction of his total trading (risk) capital -- and I'd be very surprised if it doesn't -- then I'd say such an ultra-aggressive approach in his (and anyone's) separate "home run" account is not only reasonable, but smart and optimal.

Fun journal, BudFoxx... go for it.
 
Iv never traded options before but I am very impressed by your profit so far. Do you trade them through trend analysis and graphs or based on instantaneous market conditions? What is the most used approach to options?
 
this year has been over 75%.. historically more like 60-70%.

But, averages have trended up as I've become a better trader


Quote from lindq:

Bud, how long is your average hold?
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Trading models are based on fundies, sector strength, technicals. But I use a top down method.. I like to make sure Indexes, sectors, then stocks are in line before getting in. It helps with winning percentages.

i will try to post a sample here..


Quote from walterjennings:

Iv never traded options before but I am very impressed by your profit so far. Do you trade them through trend analysis and graphs or based on instantaneous market conditions? What is the most used approach to options?
More...
 
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