Sorry, I haven't been on here in quite some time, I need to make a point to post my trades here for myself as well as others who are interested.
I've been going naked and short pretty much 100% for the last several months, I'm really getting into being theta positive. We all know the market makers are out to pick our pockets as often as possible, so why not put as many factors in our favor as possible? Time is the first factor we can get on our side. Time decay alone is our single greatest ally when selling options, since it can't move against us and can't be controlled by the market makers. The next factor the market makers can't control is implied volatility, which is really a measure of market sentiment or bias. Historically, volatility ramps up as earnings season approaches and falls after earnings are reported. We can easily use this common behavior to our advantage, since the higher the volatility, the bigger the option premium.
I have been putting on naked puts and short strangles exclusively, and slowly building my account back up after some bad decisions early on. It's such a temptation to go "all in" long calls and puts and hope for that huge move that will triple our account, but I've learned the hard way that I'd be better off in a casino, since I would at least be getting some "free" drinks while I lose my shirt.
Tackle Trading Halftime Report July 29th 2019
6 years ago

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