Thank you very much Tom King for your wonderful initiative in sharing your insights on a well-disciplined and time-tested plan. much appreciated step-by-step guidance, cheers!👌
Tom, I really like your "noncomplicated" approach to trading. I have been in options for less than a year. Here's a simple question. How can I determine how much delta and theta I have in a trade. If I look at the deltas and thetas in my monitor column they dont make sense to me in turns of my net liquidity. Mark
Thank you for detailed presentation. However for your suggested LT112 strategies, max loss on naked puts as well as the whole 4 legs of the options will be very high (For example even for SPY at furthest OOM strikes around $350, theoretical max losses will be around $70000). Would that not be in violation of the first risk rule? I cannot imaging having a trading account where 2% of total portfolio is $70000.
max risk 2% is your stop loss value, not your theoretical black swan event max loss. For example if stop loss is 2X credit and credit is 50$. Max loss is 150 (credit plus 2x credit). In a 7,5K account 150 is 2%.
When you say delta neutral, are you referring to delta neutral PER underlying type? i.e. if you had bunch of positions open on /GC, /ES, /CL, etc., ONLY those trades in /ES (together) would be delta neutral... not your entire portfolio (of /gc, /es, /cl, etc.)
Start small. About to post a video on a small account. Learn options, puts/calls and selling options using spreads and naked puts. Then understand the key Greeks. I will have some more videos on getting started.
This is gold thanks for sharing it 😊
Tom, excellent presentation. I appreciate your contributions!
Thank you very much Tom King for your wonderful initiative in sharing your insights on a well-disciplined and time-tested plan. much appreciated step-by-step guidance, cheers!👌
Tom...great channel. Tremendous value in your informative videos.
Thanks Tom! Great info!
Tom,
I really like your "noncomplicated" approach to trading. I have been in options for less than a year. Here's a simple question. How can I determine how much delta and theta I have in a trade. If I look at the deltas and thetas in my monitor column they dont make sense to me in turns of my net liquidity.
Mark
what indicators do you use? I join a forex class, in the nfc community using the iTrend indicator. thanks for the video, very useful
Why 30 percent buying power? To limit over trading?
Thank you for detailed presentation. However for your suggested LT112 strategies, max loss on naked puts as well as the whole 4 legs of the options will be very high (For example even for SPY at furthest OOM strikes around $350, theoretical max losses will be around $70000). Would that not be in violation of the first risk rule? I cannot imaging having a trading account where 2% of total portfolio is $70000.
max risk 2% is your stop loss value, not your theoretical black swan event max loss. For example if stop loss is 2X credit and credit is 50$. Max loss is 150 (credit plus 2x credit). In a 7,5K account 150 is 2%.
When you say delta neutral, are you referring to delta neutral PER underlying type? i.e. if you had bunch of positions open on /GC, /ES, /CL, etc., ONLY those trades in /ES (together) would be delta neutral... not your entire portfolio (of /gc, /es, /cl, etc.)
Hi Tom, I just came across your channel... Outstanding!... As a total options beginner, where would you recommend a trader to start...?
Start small. About to post a video on a small account. Learn options, puts/calls and selling options using spreads and naked puts. Then understand the key Greeks. I will have some more videos on getting started.
Are you retired besides trading?