Options Trades For Capital Growth

[Quest2016]

Now I think I seem to understand a bit more about your experiment.

Are you saying your target profit per trade (and hence ideally every trade placed) is 50% gain and also growth based on the updated account value? Not 50% on the initial capital that started this experiment, nor 50% on the bought options investment value per trade!

That's very exciting indeed!

Look forward to seeing your trades! Good luck!

Yep! You got it, sir!

I want to make a statement, though I have done that several times.

I simply love GROWTH.

Will send a lot of traders to this thread with time.

I'm also considering Collective2 as another platform to showcase my results, but I hate the idea of trading with virtual funds. The pressure of churning out trades every week is also a possibility - I hate pressure.

There's a common sense approach to making money with straight options purchase - without complex strategies! I want to prove that on this board!

Bottom line: my profit target per trade is 50%. I may not get there until the account grows with GDX trades.

Thanks for reading!

 

[Quest2016]

I admire your courage to put your trades out there for public scrutiny. However, I am blown away by your risk on each trade. Your "risk of ruin" is as close to 100% as it is possible to get. Professionals that I respect say 20% of your account at risk in options at any one time is the absolute maximum. Holding 70% of your account in GLD options overnight is like cuddling up to Mama Grizzlies cubs. In this case you sold quickly but your intent was to stay in up to a couple of days. I urge you to reconsider your quest because this account has no chance to survive. (Even if you are the best trader on the planet)

Oh professionals! Who are they? Can they grow a shoestring budget to six digits? I 'm so independent minded and I dare say, with humility, that I am my own professional. If there is any trader I admired so much, it was Welles Wilder until he got himself involved with the Delta Phenomenon!

 

[Quest2016]

I look at the image below every now and then to stay focused. A goal driven man must have a good dose of pride, not arrogance, in himself or pursuits to achieve his goals.

 

[OddTrader]

Yep! You got it, sir!

I want to make a statement, though I have done that several times.

I simply love GROWTH.

Will send a lot of traders to this thread with time.

I'm also considering Collective2 as another platform to showcase my results, but I hate the idea of trading with virtual funds. The pressure of churning out trades every week is also a possibility - I hate pressure.

There's a common sense approach to making money with straight options purchase - without complex strategies! I want to prove that on this board!

Bottom line: my profit target per trade is 50%. I may not get there until the account grows with GDX trades.

Thanks for reading!

1. I think your using a position size, say 12 contracts, in order to achieve your objective of 50% growth on AV could be a fairly important factor, assuming maximum risk is not a real/potential concern to you. https://en.wikipedia.org/wiki/Principal_component_analysis

2. Perhaps you can use only 1-contract approach for the Collective2 offer. Let the subscribers decide their own size. Your this offer could be very attractive to many subscribers.

3. I think your profit target can be flexibly adjusted (higher or lower) later based on the result of your experiment.

 

[Quest2016]

1. I think your using a position size, say 12 contracts, in order to achieve your objective of 50% growth on AV could be a fairly important factor, assuming maximum risk is not a real/potential concern to you. https://en.wikipedia.org/wiki/Principal_component_analysis

You are correct! See, another unforeseen trading approach is evolving. I will not hold day-trading positions overnight, hence the need to purchase as many contracts as possible - of course within a reasonable risk profile. I have a trading approach that tells me if/when my market bias is wrong within 2-3 hours after position is initiated. The risk is less than 40 cents, which for now is less than $500/trade.

2. Perhaps you can use only 1-contract approach for the Collective2 offer. Let the subscribers decide their own size. Your this offer could be very attractive to many subscribers.

I am studying the Collective2 platform for two different strategies, but really I am not interested in running a subscription service, not minding how many millions of traders may be interested. I have done it before, I don't like the pressure involved. I'll rather have hundreds of traders use my system to search for trades, and that is not even under consideration. I simply want to show traders that it is possible to make money with outright purchase of Calls or Puts. Options buyers are not doomed!

3. I think your profit target can be flexibly adjusted (higher or lower) later based on the result of your experiment.

Yes, thank you for that recommendation. The profit target won't matter to readers anymore if/when the account generates up to $50K in profits. Traders care for only one thing - PROFITS!

Thank you for this engaging discourse. I welcome any positive comment, observation, or question provided it will enlighten traders and move this thread in the right direction.

 

[OddTrader]

I have a trading approach that tells me if/when my market bias is wrong within 2-3 hours after position is initiated. The risk is less than 40 cents, which for now is less than $500/trade.

I think there must be some edge very special in your system that, besides the above mentioned, also supports some trades lasting for 2 days.

I simply want to show traders that it is possible to make money with outright purchase of Calls or Puts. Options buyers are not doomed!

Depending on how many trades you will post here, you could be one of the first demonstrating that on ET.

The profit target won't matter to readers anymore if/when the account generates up to $50K in profits.

I think because both the 50% and this $50K figures are subjective targets, arbitrarily defined by yourself.

 

[Quest2016]

I think there must be some edge very special in your system that, besides the above mentioned, also supports some trades lasting for 2 days.

There are two factors involved in my trading approach. First, all index positions are initiated and closed during trading hours - no overnight position. That forestalls the possibility of a gap against the position. Second is that all non-index options that I may decide to hold for 2 trading days are based on certain conditions which I'll rather not divulge. Despite that, all overnight trades have "gaps" to contend with. There's nothing any trader can do about it. It is a matter of luck if traders are favored by gaps. So, there is an element of luck, though little, in trading.

Depending on how many trades you will post here, you could be one of the first demonstrating that on ET.

Interesting....

I think because both the 50% and this $50K figures are subjective targets, arbitrarily defined by yourself.

Yeah, the figures are subjective and arbitrary! I understand there are traders with huge war chest that $50K is like a drop of water in their ocean. However, I think of the average Joe who is interested in a trading system that is simple to learn and can be used for consistent profitable adventure.

 

[OddTrader]

Do you have a target win-rate % planned for the overnight trades with non-index stocks?

 

[Quest2016]

Do you have a target win-rate % planned for the overnight trades with non-index stocks?

I think it is better we allow time to answer that question.

 

[Quest2016]

Are you trying to use SPY options? Plenty of opportunities in the last few days. We can't wait for the first trade...

Here, I will show you how to do it, this is what I have been tinkering with, 7 trades 6 winners, just like you wanted 30-50% returns...

Pekelo, I just checked the screenshot. I like what I saw. Buying 100+ contracts is my thing too. Whoa! I love your trading approach already!

Thanks for sharing!