SOFA (Option signals)
Updated
Please read this before any action!
Instructions:
1- Opening new position based on the forecast model between 9:35-11 and 14:30-15:55 (New York).
2- Choose Strike prices based on your risk tolerance, the first in the money (lower risk) or first out of the money (higher risk).
3- Position size: 1-3% of your options trading capital, and based on the power of the signal(higher power~ bigger position).
4- Primary Stop loss: 25% of your entry.
5- Target: +100%
6- Trailing stop loss: move your stop up after 30%-60%-90% …etc. gain, or roll to the next out-of-money contract.
Risks of Deviation from the Forecast Model:
Certain situations may increase the risk of deviation from the forecast model, the most important ones are:
- Earnings
- Important news like FOMC, Interest rate, CPI,Job data, FED's Chair Speech..etc.
- Holding overnight, and over weekends.
Instructions:
1- Opening new position based on the forecast model between 9:35-11 and 14:30-15:55 (New York).
2- Choose Strike prices based on your risk tolerance, the first in the money (lower risk) or first out of the money (higher risk).
3- Position size: 1-3% of your options trading capital, and based on the power of the signal(higher power~ bigger position).
4- Primary Stop loss: 25% of your entry.
5- Target: +100%
6- Trailing stop loss: move your stop up after 30%-60%-90% …etc. gain, or roll to the next out-of-money contract.
Risks of Deviation from the Forecast Model:
Certain situations may increase the risk of deviation from the forecast model, the most important ones are:
- Earnings
- Important news like FOMC, Interest rate, CPI,Job data, FED's Chair Speech..etc.
- Holding overnight, and over weekends.
Note
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