Funny, but flat days like today following a rally, I usually make 2-3 x’s the money I make on big rally days. These are by far my favorite days to trade. Momentum is easier to spot when all is quiet.
I booked the Lotto Friday trades and will look to take profits in GS, YELP and possibly WDAY before the close.
While my actions may seem overactive, I don’t mean to give that impression. I am never managing more than 20 option positions at any given time.
I’ve been asked about position sizing, especially with the shorter dated and low probability trades I take. These trades I allocate a smaller amount of capital towards, and will never have more than 4 on at any given time.
I focus on shorter dated options as a swing trader, trying to buy the perfect amount of time without going over. It’s all part of my own personal OCD as a trader, but it is efficient, and it maximizes gains. If you follow me and find that this is harder for you to pull off, you can maximize win percentage by simply buying more time. I’ve been about 65/35 win/loss ratio on my picks…but that would be significantly higher if on my losing trades I had purchased more time til expiration. That’s important to remember and consider on your side of the table.
The great news is that the launch of my new premium service at iBC will take you behind the curtain of a stock picker, and learn the methods by watching, interacting, and planning trades with me.
Sippeth from my cup til it runneth over…
OA
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dude, come into 12631 with your service, the water is quite warm.
I’ve been in there. Great vibe, great ideas. I wouldn’t want to stain the sheets.
Could you shed light on why would you close GS today (unless of course they are weeklies expiring today)? Seems like it wants to go higher.
I had July options, just booking some short dated stuff. Will look to roll out late next week.
65% Win/Loss ratio wow, nice.
What’s your Risk/Reward Ratio?
Typically looking to make 4 for every 1 risked.
WOW! Are you the Tiger Woods of Options? (no 9iron through escalade)
I am the Kevin Durant of trading.
Had to get married to get a ring…
haha how about “daily KG” I see you pull off the Kevin Garnet on the daily…
Blockbuster trades!
Real Talk, I am wearing an AI jersey right now. A classic indeud.
(no BBI)
If we want to reduce drawdown a bit too, would you suggest going 1 strike closer to the money in addition to more time to preserve more of the premium?
I would say more time, keep strike as is. For the most part, my timing is pretty spot on.
Is your GMCR option or stock ? If it’s option, when is your expiration ? I got stocks. Thanks !
Aug calls.
72.5?
.49. A bottom buy.
what do you mean .49?
My price.
Any change in your thoughts on SODA with such a large selloff this week and large short float? Got to cover sooner than later, right?
I actually highlighted a trade plan in this today…don’t buy til $55.
When it rallies a few bucks, ride it down to $55.
Good trade for a bull or bear here.
Thanks for the insight once again.
Dear OA: Are you comfortable with what GMCR is doing today?
I am so comfortable I bought more. Did you get my alert?
Yes, but don’t know if it is my lack of attention or yahoo mail. i didn’t get in until it was 54 cents each backed up the truck at 65 cents.
What a week for option addicts around the world!