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2021.06.01 – SESSION 830 – OPTIONS TRADING FOR INCOME

2 replies, 2 voices Last updated by Sherri Locke 2 months ago
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    • #17467

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      The recording of the Options Trading for Income by the Guidelines session from earlier today is ready to view. Enjoy!

    • #17450

      Ron van Steenoven
      Participant
      @ronvs@rvsa.ca
      Points: 343
      Rank: Freshman

      Good morning John,

      I have a question regarding the May M3.4u adjustment that you made on the last episode (#829 – timestamp 14:30). You indicated that when you get above $4000 planned capital you roll up the lower long strikes to reduce your capital.  I am just learning the M3.4u strategy and this adjustment is not actually part of the original M3.4u guidelines as I understand them. Please correct me if I am wrong, but the only time we roll up the lower longs by the rule set is when we exceed the maximum capital ($5000 in this case) or when we are “near” max capital (greater than 90% or $4,500) AND we are “near” the maximum Delta limits; in this case +4.0. I do understand that the guidelines indicate that this particular adjustment is subjective as to what an individual considers “near”. The adjustment you made, however; was when the capital was over $4000 with no apparent consideration for Delta (it was only +2.43). Would this adjustment not change the nature of the trade? You will never get to your planned maximum capital, effectively making it a $4000 max capital trade. I would appreciate your clarification on this point. Thanks.

      Ron

    • #17437

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      Please post your questions or trade review requests for this session at least 48 hours prior to the live session so we can prepare the most complete and detailed answers for you! Thank you!

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