Saturday, November 24, 2012

Set Up

1.   Market Direction / Sector Direction
2.   Option liquidity & Determine the Bid / Ask Spread
3.   Volatility Analysis (Know where IV compared to the IV mean is.)
4.   Technical Analysis; I like to see MACD, CCI, RSI, Acc/ Dist.
5.   Fundamental Analysis; P/E. P/S, P/CF, Short Ratio, Margin, Earnings Dates
6.   Trade Small / Trade Offen (Tastytrade)
7.   Trade Strategy (High Probability Trades, 25-50 day "day to expiration")
8.   Position Size < 2% of total portfolio
9.   Know what you have. (How it effects you weighted SPY dela & beta)
10. Monitoring & Control (Rolling, Mental stops) No market orders / No physical stops





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