SMART Trading Strategies

Tag: options

  • Paper Trading – Dec 2021

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    First posted on 2 Dec, updated as and when new trades are executed. Positions Closed PRFT Date: 1 DecOptions: BTC 17 Dec 145 CallPrice Entered: 4.6Price Exited: 0.92 Comment Option hit the 20% mark and was closed using a limit order. AMD, CROX, ENPH, INMD, PRFT Date: 2 Dec Too many positions to list down…

  • Selling Cash Secured Puts (Notes)

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    Here are some notes I took from the book “Selling Cash-Secured Puts” by Alan Ellman. I’m already familiar with how options work and have read his book on covered call writing. These notes only cover the new concepts I learned. I strongly recommend that you buy both books (both are excellent) for more details and…

  • Paper Trading – Nov 2021

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    First posted on 2 Nov, updated as and when new trades are executed. Positions Entered Covered Calls BLDR Stock: BTODate Entered: 9 NovPrice: 67.68 Options: STO 17 Dec 70 CallDate Entered: 9 NovDays to Expiry: 38Price: 2.3ROO: 2.3 / 67.68 = 3.4%Return on Upside: 2.32 / 67.68 = 3.4% Pros Stock passed the IBD screen…

  • Covered Call Writing (Notes Part 3)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 9 –…

  • Paper Trading – Oct 2021

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    Lately I’m paper trading two strategies – covered call selling and the wheel strategy. This is not the best time to try the two strategies as I have not completed the book on covered calls yet. In addition, this is earnings season and a lot of stocks are too near to expiry (less than 30…

  • Covered Call Writing (Notes Part 2)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 5: Portfolio…

  • The Wheel Strategy for Options

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    The wheel strategy = Sell Cash Covered Puts + Sell Covered Calls when assigned the stock Here’s a video discussing the wheel strategy: Rules: Only sell cash covered puts on stocks that you want to own Sell 30 to 40 days to expiry Sell options with delta = 0.3 Lessons: If you have 50% unrealized…

  • Covered Call Writing (Notes Part 1)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 2 Covered…