12.12.2023
2ndt trade of 2024 executed today. This trade will have ZERO probability of hitting target profit before 1.1.2024, therefore no hesitation opening today.
Trade entry at 157 DTE (days to expiration).
Trade construct is a PDS (put debit spread) at Delta 25 combined with a PCS (put credit spread) at Delta 13.
Sizing and strike selection is designed to keep the risk/reward "AT EXPIRATION" to a 1:1 risk profile. This lets charm work it's magic (second order greek), while exploiting the fact that this is a non-directional bias. The process is a disciplined and systematic approach letting time decay evaporate the extrinsic time value from the short options until target profit is achieved.
IF target profit is not captured after 60 DIT (days in trade), then target is reduced by 50% for the next 30 days.
IF reduced target profit is not captured after 90 DIT, then short strikes are covered to add BSH (black swan hedge) protection for a catastrophic move down.
This trade will deploy once/week until account value has doubled in size. :-)
Happy Trading All!
-kevin
2ndt trade of 2024 executed today. This trade will have ZERO probability of hitting target profit before 1.1.2024, therefore no hesitation opening today.
Trade entry at 157 DTE (days to expiration).
Trade construct is a PDS (put debit spread) at Delta 25 combined with a PCS (put credit spread) at Delta 13.
Sizing and strike selection is designed to keep the risk/reward "AT EXPIRATION" to a 1:1 risk profile. This lets charm work it's magic (second order greek), while exploiting the fact that this is a non-directional bias. The process is a disciplined and systematic approach letting time decay evaporate the extrinsic time value from the short options until target profit is achieved.
IF target profit is not captured after 60 DIT (days in trade), then target is reduced by 50% for the next 30 days.
IF reduced target profit is not captured after 90 DIT, then short strikes are covered to add BSH (black swan hedge) protection for a catastrophic move down.
This trade will deploy once/week until account value has doubled in size. :-)
Happy Trading All!
-kevin
Trade active:
1.16.2024
>30 DIT
delta correction adjustment
>30 DIT
delta correction adjustment
Trade active:
2.5.2024
risk free trade now, PCS (adjustment on 1.16) covered and profits secured to elevate UEL.
so so simple if you are disciplined. ;)
-kevin
risk free trade now, PCS (adjustment on 1.16) covered and profits secured to elevate UEL.
so so simple if you are disciplined. ;)
-kevin
Trade closed manually:
2.15.2024
Closed, moved to PM account.
Closed, moved to PM account.