Kim 7,419 Report post Posted February 15 As mentioned in the first post: Here is how we trade the earnings trades: Every week we post post a list of trading candidates for the next week in Earnings Trades Discussions forum. We have some general discussion about the candidates. We will post a separate topic for each candidate I think it suitable, with analysis of the suggested prices, average move, previous cycle etc. The topic will always include a link to one of the relevant strategy topics above. This allows members to do their homework and to see if they like the potential trade. If you agree with the analysis, you can go ahead and make the trade. We will try to get the trade at the best possible price. When we do, we post it under the Trades forum. You should follow this forum to get email notification about the trade. We recommend that you try to get the trade as close as possible to the alert price. We don't recommend chasing trades. We cannot tell you what is the maximum price you should pay. It is your decision. Sometimes you will be able to get the trade the next day cheaper. Sometimes you will miss the trade. We make about 10-15 trades each month in our model portfolio plus similar number of "unofficial" trades. Don't feel obligated to take all of them. After entering the trade, please set reasonable price target. We usually start with fairly aggressive target and lower it as we get closer to earnings. Please look at liquidity, especially if you trade large amount of contracts. For our earnings trades, it is very important to close them before earnings to avoid significant loss. Share this post Link to post Share on other sites
kitsos 14 Report post Posted February 15 3 minutes ago, Kim said: As mentioned in the first post: Here is how we trade the earnings trades: Every week we post post a list of trading candidates for the next week in Earnings Trades Discussions forum. We have some general discussion about the candidates. We will post a separate topic for each candidate I think it suitable, with analysis of the suggested prices, average move, previous cycle etc. The topic will always include a link to one of the relevant strategy topics above. This allows members to do their homework and to see if they like the potential trade. If you agree with the analysis, you can go ahead and make the trade. We will try to get the trade at the best possible price. When we do, we post it under the Trades forum. You should follow this forum to get email notification about the trade. We recommend that you try to get the trade as close as possible to the alert price. We don't recommend chasing trades. We cannot tell you what is the maximum price you should pay. It is your decision. Sometimes you will be able to get the trade the next day cheaper. Sometimes you will miss the trade. We make about 10-15 trades each month in our model portfolio plus similar number of "unofficial" trades. Don't feel obligated to take all of them. After entering the trade, please set reasonable price target. We usually start with fairly aggressive target and lower it as we get closer to earnings. Please look at liquidity, especially if you trade large amount of contracts. For our earnings trades, it is very important to close them before earnings to avoid significant loss. Kim could plz inform me of the procedure for researching and finding those candidates? - Do you go to VolatilityHQ, check the earnings dates, that are 3 weeks out for example? - Are there any criteria for selecting from those? (Must have Weeklies?, Have a certain amount of Open Interest, Volume? etc...) - How to determine the Strategy you will use? (Straddle, Strangle, DD?). Is it Non earnings IV? Is it the VIX? - Do you check the Return Matrix Table, (Long Stock?, Long Call?) to check the Pre Earnings behavior? Do you select the Entry Day based on this table? (T-19, T-15, etc)? - If we want to find the RV for a Strangle, do we use the Straddle RV and make some assumptions? What about the RV for a Double Diagonal? Sorry to overwhelm you with so many questions, but i try to correctly understand the procedure, so that i can learn as fast as possible, and contribute, to this awesome community. Share this post Link to post Share on other sites
TrustyJules 2,909 Report post Posted February 15 2 hours ago, JET said: Hi. I'm a new member. I'm very interested in learning how to execute the SteadyOption process on my own. To this end, do you provide a daily/weekly/monthly trading checklist or process that we can leverage to guide us on our journey? This is an abbreviated example of what I'm looking for: Daily: Check and adjust/exit positions - Tool: Broker platfom Enter new trades when entry target price is met - Tool: Broker platform Update Trade Journal - Tool: Excel, ONE, etc. Weekly: Assess Market, Volatility - Tool?, Expected output? Determine strategy mix- Tool? This step helps us detemine how many of each type of strategy we should trade (both earnings and non-earnings) based on what we learn from the market assessment. Identify candidates - Tool: Optionslam (?), other tools? Determine RV so that we can determiine entry price for candidate - Tool: VolatilityHQ/Chartaffair/others? Weekly Retrospective- what went well, where are opportunities for improvement Monthly: Assess Market, Volatility - Tool?, Output? Monthly Retrospective - what went well, where are opportunities for improvement I've been studying the forums but I haven't found anything like this yet; however, there is so much great information there I may have missed it. Thank you! My view is that the strategies described here give the conditions for their optimal use. The stockmarket is a bit seasonal in that some strategies such Iron Condors work better when volatility is higher and therefore should be avoided if it is lower. The calendars we have often traded have also been less attractive in the last few iterations and the strategy descriptions indicate what to look for. The trades are announced in the discussion thread first on the day of the trade but the potential targets for earnings trades - which are a large part of SO strategies - are presented each week. RV is used very frequently and you are right that Chartaffair and Vol.HQ are the primary sources there. One Option Explorer is primarily used for back testing and looking at possible outcomes of strategies for the rest many many tools or personal research have been used. Share this post Link to post Share on other sites
Kim 7,419 Report post Posted February 15 Just now, kitsos said: Kim could plz inform me of the procedure for researching and finding those candidates? - Do you go to VolatilityHQ, check the earnings dates, that are 3 weeks out for example? - Are there any criteria for selecting from those? (Must have Weeklies?, Have a certain amount of Open Interest, Volume? etc...) - How to determine the Strategy you will use? (Straddle, Strangle, DD?). Is it Non earnings IV? Is it the VIX? - Do you check the Return Matrix Table, (Long Stock?, Long Call?) to check the Pre Earnings behavior? Do you select the Entry Day based on this table? (T-19, T-15, etc)? - If we want to find the RV for a Strangle, do we use the Straddle RV and make some assumptions? What about the RV for a Double Diagonal? Sorry to overwhelm you with so many questions, but i try to correctly understand the procedure, so that i can learn as fast as possible, and contribute, to this awesome community. There are many tools that have upcoming earnings. I used to use optionslam, now I'm using VolatilityHQ because I have a subscription anyway. The stocks are mostly the candidates we used in the past, so performance page is a good start. SO Strategies and Allocation provides general guidance about the strategies we use. And yes, using the return matrix to optimize the best entry and exit dates. And yes, if RV for straddles is okay, strangles should be fine too. DD have no RV, we just use ONE to see if the chart looks attractive. 2 iamralch and kitsos reacted to this Share this post Link to post Share on other sites
JET 2 Report post Posted February 15 (edited) 37 minutes ago, kitsos said: Kim could plz inform me of the procedure for researching and finding those candidates? - Do you go to VolatilityHQ, check the earnings dates, that are 3 weeks out for example? - Are there any criteria for selecting from those? (Must have Weeklies?, Have a certain amount of Open Interest, Volume? etc...) - How to determine the Strategy you will use? (Straddle, Strangle, DD?). Is it Non earnings IV? Is it the VIX? - Do you check the Return Matrix Table, (Long Stock?, Long Call?) to check the Pre Earnings behavior? Do you select the Entry Day based on this table? (T-19, T-15, etc)? - If we want to find the RV for a Strangle, do we use the Straddle RV and make some assumptions? What about the RV for a Double Diagonal? Sorry to overwhelm you with so many questions, but i try to correctly understand the procedure, so that i can learn as fast as possible, and contribute, to this awesome community. I have some of the same questions- thank you. +How do you determine the correct mix between straddles, strangles, calendars, DD, etc. and earnings vs. non-earning trades? Edited February 15 by JET Share this post Link to post Share on other sites
