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  3. Duane

    Welcome to Anchor Trades

    I have spent many hours and many dollars studying options formally since 2006 via various sources who offered training. In addition to the education that this site offers (Steady Options), I recommend that you look into www.aeromir.com
  4. Bullfighter

    Welcome to Anchor Trades

    I am eager to learn. That's why I am here. Will you please point out the flaws in my understanding so that we can all benefit?
  5. Duane

    Welcome to Anchor Trades

    Bullfighter you really need to receive some education on what options are and how they work.
  6. Last week
  7. Bullfighter

    Welcome to Anchor Trades

    If you have one 80 delta contract, I guess if you are a fan of the associative property you could say you control 80% of 100 shares. However, you most certainly don't control 100 full shares. If you did, $1 increase in the underlying would mean $100 profit of your single call position (ceteris paribus), and that it not the case unless the option is 100 delta. Or more importantly, in the example above with 4 SPY 80 delta call contracts, you are not controlling $176K worth of SPY, but $140,800, and a $1 increase in SPY from 440 to 441 would give you $360 profit not $400, again ceteris paribus, and assuming delta remained constant during that stretch -it probably increased a bit (certainly not to be equivalent to 100 full shares though).
  8. cwelsh

    Welcome to Anchor Trades

    No you still control the same number of shares -- they just don't move in unison with the share price.
  9. FunkyFunk

    Tools must have

    Thanks :-) I'll ask @Christof+
  10. TrustyJules

    Tools must have

    Chartaffair hails from your country and has a free trial I believe. Ask @Christof+ for that. Volatility HQ has been around a little longer and has some features that Chartaffair might not have but for a starting SOer both are equally valid. I stuck with VolatilityHQ because I started with it, @Djtux is very responsive and VoltalityHQ does what I need and more. So I have no reason to change and honestly I think there are people that would say the same about Chartaffair.
  11. FunkyFunk

    Tools must have

    Hello everyone, I am new here and starting to get used to the strategies and software. All the existing explanations are very helpful, thanks for that. However :-) I can't decide between volatilityhq and chartaffair....any quick suggestions or does it even matter? I guess the RV plotting is prettymuch the same. volatilityhq in addition has the scanner...is it worth to pay the little extra fee on the monthly subscription ? thanks :-)
  12. Bullfighter

    Welcome to Anchor Trades

    That is if you buy 100 delta contracts. If you buy 80 delta, then you "just" control $140,800 worth of stock on inception. Still crazy leverage for the account under discussion, but I didn't want people to think that stock options control 100 shares as that only happens if your strike becomes super deep in the money.
  13. Ringandpinion

    When should I withdraw for monthly income?

    You are clearly better at running a business that I was, I barely had time to breathe. Be careful what you wish for, LoL, it grew and I became a desk bound administrator. When I sold it, the relief was so great it is hard to describe, I was about ready to take a long walk off a short pier. I miss having a dog in the fight and taking all my aggression out on getting more work and completing what we had, but not enough to make me ever want to try again.
  14. Drizzle_268

    When should I withdraw for monthly income?

    Thank you so much for your input! I am thinking of giving myself around 3 to 4 years before I can make any money or become consistently profitable, currently I have my own businesses and that’s what’s brings me income. I have a lot of time my hands and I don’t mind using it to learn options trading.
  15. Ringandpinion

    When should I withdraw for monthly income?

    @Drizzle_268 I was thinking about this further after my reply. I was exactly where you are many years ago. Fortunately, I quickly realized that I could make better money in a much more financially responsible way, continue plying my trade. I went to an options class and a couple of follow ups just on a lark in the 90's. At first I bought the whole line, we are talking about the dot com 90's, all you needed to make money was a pulse, or so I was told. I realized it would take a lot more for me to do it without just making it a gamble. So I played with options off and on for 20 years, making a little money and learning a little but continuing to work full time. My point is that if you believe that this is something you can do with a couple of months hard training, it will put immense pressure on you psychologically, as it did me. That's why I dropped it so quickly, I was not about to embark on the learning path in a way that already had me tied up in knots. It was 20 more years before I retired early and applied myself to options trading full time. It doesn't matter how good at options trading you are, if you have that huge load of psychological pressure, you are going to screw it up. Just my 2 cents. The last 3 years, learning and applying it full time has been fun, especially the last 1.5 years with SO.
  16. Drizzle_268

    When should I withdraw for monthly income?

    Your 100% right! The reason why I asked is because I was just curious and wanted to know exactly what I would do because I like to plan out things. Thanks for the response!
  17. Ringandpinion

    When should I withdraw for monthly income?

    You're right about the withdrawals and such but you've put the cart before the horse. Learn to trade, get consistent, see how much profit/loss you can make consistently, then think about what you might be able to do with that source of income. What you are saying is that you intend to start making a living as a mechanical engineer. I don't want to shoot you down but it'll take you a while to learn the skill/trade/art of trading, just like being an engineer or nurse or business manager. And not just a couple of months.
  18. termn8er

    Welcome to Anchor Trades

    Thank you. This was a very fruitful discussion.
  19. Kim

    Welcome to Anchor Trades

    The risk on capital is not higher, but the risk on the whole account is. The Anchor largest drawdown in 2020 was around 10%. So assuming $100k account, that would be around $10k loss. If it used your method, you would buy the same number of contracts but could use it in a $20k account. So your loss on the whole account would be 50% instead of 10%. Yes, you could use it in the same account and have more cash. This maybe would be beneficial if you could get some risk free return on this cash. Otherwise it's really pretty useless.
  20. termn8er

    Welcome to Anchor Trades

    So after thinking about this further I do understand what you mean by I'm using more leverage. With your trade you are risking about roughly 15% of the capital deployed where I'm risking 100% of the capital deployed. So based on that if I increase my size at all I am absolutely adding more risk to the trade. With that said again if somebody had a smaller account they would be risking a much higher percentage of it. However I still believe that my approach for the same size account as you recommend would be a better use of capital as I have roughly 18,000 that I can just keep in cash versus put in the trade
  21. termn8er

    Welcome to Anchor Trades

    I respectfully disagree. The risk is based on the capital in the trade. In my example both trades have the same risk $3751. But I am controlling the same amount of SPY as the higher priced position. So yes in a way I see how it is more leverage, but lets be clear, the risk is 100% the same, the debit in the trade for my suggestion. Your trade uses $21,875 of capital but risk is still $3751. I don't see any way that on a $100k portfolio if the risk is the same, how is my suggestion more risky?
  22. Kim

    Welcome to Anchor Trades

    Using the same amount of cash on a smaller account means much higher leverage. Which means you will have much higher losses and drawdowns when the strategy works against you. The amount of leverage is determined not by the cash used, but by the amount of the stock you control. For example, if you have 100k account and SPY is at $440, buying 4 contracts means you control $176k worth of SPY stock. If you use a smaller account because you can buy the same number of contracts using your synthetic position for less cash means much higher leverage and higher risk.
  23. termn8er

    Welcome to Anchor Trades

    Chris, Thanks for the reply and clarifying the dividends as that's the number TOS gave me. However on the margin side (I know you are not using margin leverage). If I set up the basic position today using your method it would look as follows: Long 1 16 Sep 22 call @ 255 Long 1 16 Sep 22 put @ 435 Total cost = $218.75 My suggestion is: Long 1 16 Sep 22 put @ 255 Long 1 16 Sep 22 call @ 435 Total cost = $37.51 While these might not be exactly what strikes you would pick the example still holds. The two positions are synthetically the same. However my approach would yield the same dollar returns but much higher % on capital. Plus I can trade this which a much smaller account now. Additionally since I am using so little capital compared to the original approach, I can buy closer to the money puts and still be way ahead of the game as far as capital in the trade and thus have much greater downside protection. So what am I missing?
  24. cwelsh

    Welcome to Anchor Trades

    The strategy uses NO margin and you even have cash left over to control the synthetic leverage you are obtaining. The current yield on SPY from dividends is 1.3% (not 5%), which is baked into the option prices (trust me, I've beat my head on the wall on arbitrage dividend capture strategies for years, those are really priced in.
  25. termn8er

    Welcome to Anchor Trades

    This is a very interesting system/method. However, in less I am missing something you are not using your margin efficiently as you could and thus could get even better returns. The position set up you recommend includes a DITM call and slightly OTM put. However this is synthetically the same as using an OTM Put and a slightly ITM call. The big difference between the two is although the risk is the same, the cost (margin) required for your set up is 5 - 6 times greater than the cost of the synthetic alternative. I confirmed this with TOS as well as modeled it out. So this is a big opportunity to trade this in a much smaller account as well as having much better results if you use the same amount of margin but use the OTM options. Secondly, when comparing to buy and hold, you do need to consider that the SPY does have approximately a 5% annual dividend which of course you do not get when using the long term options.
  26. Hey fellow traders. Let's say someone starts with a 7-8K account, do you guys think it's a good idea to withdraw every month or keep growing the account? My goal is to withdraw once there is a profit so I can live of trading options. My main concern is if an account has only 7-8K and one withdraws every month, and they get a losing trade of 14-18% wouldn't that affect the total account and reduce the chances of making more income in the other months? Please correct me if I am wrong and what advice can you offer? Thanks!
  27. Yes. In the Monitor Grid screenshot I've shown above, the BX trade is actually a paper trade. The others are real trades imported from TD Ameritrade. In all cases, they use real time prices from Tradier.
  28. Wow, this is a very good explanation and I really appreciate you putting everything in screenshots. Glad to have you as a member! So from my understanding all you’re using is the LIVE DATA that’s from Tradier and everything else will be saved in ONE. correct me if I’m wrong? Thanks!
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