Weeklys: About the trades

My style in making these trades.

Important Notice: Please understand that these trades are not for everyone.

I believe: when trading very-short term options that being out of the market is good. I enter Monday to avoid holding over the weekend. I am (almost) never going to hold to expiration. Target is to exit Wed, but Thur is acceptable. Enter in the morning, exit in the late afternoon, when feasible. These higher-risk plays are intended to earn money and not to create wealth. Repeat. We seek extra money, not gigantic profits.

Please view some of my videos on short-term trading if you have not already seen them. When managing risk, these puppies require a style of their own: similar, yet different. These are not your traditional iron condor trades.


New Approach

I believe that the experiment has been a success [Posted Aug 31, 2012]. At this point I am willing to recommend trading very short-term iron condors under specific conditions. You, the trader:

  • Understand that these are high-risk, potentially high-reward trades
  • Recognize that PROPER POSITION SIZE is the most important step in managing risk
  • Believe that a string of winning trades does not promise future success
  • Recognize that the world is filled with uncertainty – making these trades risky
  • Recognize that current level of implied volatility may not do justice to the risk we face
  • Understand that the options sold in the example may not be appropriate for your own trading
  • Know that I cannot recommend a specific trade size, not knowing your financial details. The size mentioned is the size I chose to trade
  • However, the relatively calm markets give us an opportunity that we know is temporary

If you believe that the above applies to you, and if you have the time to keep an eye on these positions, then I recommend the trades.

I will post as soon as possible after making the trade.
I will post adjustments/exits as soon as possible after I make my trade.
I may post comments when appropriate.

Note: The reason I trade first is not to be certain that I get my trade. It is to report an order that was filled at a known price

I will post a track record of performance, including commissions (My cost at Interactive Brokers).


Comments are closed.