1.2.2025
1st trade of 2025 executed today.
Trade entry at 134 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 every 10 days until account value has doubled in size. :-)
Happy Trading All!
-kevin
1st trade of 2025 executed today.
Trade entry at 134 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 every 10 days until account value has doubled in size. :-)
Happy Trading All!
-kevin
Trade active
2.3.202532 DIT
TP reduced and GTC order modified.
Trade closed: target reached
2.25.202554 DIT
TP hit, trade closed.
+8.84% ROI net after fees/comms
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.