SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Kim

Welcome to Steady Options

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Welcome to Steady Options!
 
Please spend few minutes to read this post, the Frequently Asked Questions and the Useful LinksI also recommend watching the SteadyOptions Orientation TourIt will be time well spent. 

 

SteadyOptions is a premium options trading advisory service. We offer a combination of a high quality education and actionable trade ideas. 

 

Our forums and the trading community are the heart of the service. The focus of the forum is on non-directional strategies like Straddles, Calendars, Butterflies, Iron Condors etc. You need to create a forum account to get access to the service.

 

I'm sharing my trades with full explanation of the Greeks, the risk/reward, the best time to entry/exit, price targets etc. Full followup is provided, including entry, adjustments and exit. You might expect 10-15 trade ideas per month. We will usually have about 4-6 trades open, some are short term (2-6 days), some medium term (3-5 weeks). We use portfolio approach and will have trades balancing each other in terms of theta/vega/gamma. 

 

Please note that suggested portfolio size for SO alerts is $10,000-$100,000. We do NOT recommend trading more than $100,000 with SO alerts. We recommend using one of our other services for larger portfolios.

To get an idea about my trading style, check out my articles on Seeking Alpha.

I will also provide options education. I encourage you to ask questions about options trading.

The SteadyOptions forum has three subforums (access to members only):

  1. SteadyOptions Trades
  2. Earnings Trades Discussions
  3. Non-Earnings Trades Discussions

In addition, SteadyOptions members have access to all Members forums where we discuss general issues, strategies etc.

 

You can start topics and post on each subforum except “Trades Discussions” and “SteadyOptions trades”. The SteadyOptions Trades forum is used for posting my trades. To get notifications about my trades, you will need to follow that forum (by clicking "Follow this forum" button).

follow trades.PNG

 

Each trade has a separate topic, with my entry price, exit price and some comments. I will start a topic for each trade in the “Trades Discussions” subforum and you will be able to post your replies.

 

You will need to specifically follow each forum you want to get updates from. When you follow the forum, you will get an email about every new topic in that forum. If you are interested getting emails about new posts in that topic, you will need to follow that topic.

 

follow topic.PNG

 

Our earnings straddles are based on my Seeking Alpha articles ‘Exploiting Earnings Associated Rising Volatility’ and ‘How To Rent Your Options For Free’. I encourage you to read those articles before trading any earnings related trades. This strategy is based on aiming for consistent and steady 10-15% gains with holding period of 2-5 days. Since those articles have been published, we expanded our strategies. Please note that we usually don't hold our trades through earnings, unless specifically indicated.

My goal is to share my experience and to help you to become a better trader. The trading alerts are based on my real trades that I'm sharing with subscribers in real time. SteadyOptions is not a recommendation letter and I am not a financial adviser. However, let me give you few general tips:

  • I encourage you to do your own homework before following any of my trades.
  • If you are new to options or to those strategies, start small. Increase your allocation as you gain more experience and confidence.
  • Try to understand what we are doing. Ask questions. This is why we have the forum, and we welcome questions and discussions, no matter how basic they are.
  • Don't wait for my alerts if you like the trade. Enter if you like it. Exit based on your own profit targets.

My commitment to you: I want to make money with you, not from you. All I ask from you is to give me a fair chance. If you decide that you like the style, give it some time to work. Don't give up after a couple of bad trades. We are here for the long run. Don't concentrate on short term performance. Concentrate on your education. Concentrate on managing risk. If you do that, the profits will come.
 
How to make the best use of SteadyOptions
 
For the benefit of the new members, here is how SteadyOptions works and how to make the best use of your subscription.

 

We use a limited number of non-directional strategies, described in the following topics (members only):

Here is how we trade the earnings trades:

  • Every week, I will post a list of trading candidates for the next week in Earnings Trades Discussions forum.
  • We will have some general discussion about the candidates.
  • I 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.
  • If you agree with the analysis, you can go ahead and make the trade.
  • I will try to get the trade at the best possible price.
  • When I do, I will post it under the Trades forum. You should follow this forum to get email notification about the trade. I will also send it by Twitter @SteadyOptions.
  • I recommend that you try to get the trade as close as possible to the alert price. I don't recommend chasing trades. I 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 15 trades each month. Don't feel obligated to take all of them.
  • After entering the trade, please set reasonable price target. I 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. As a rule of thumb, I don't recommend trading more than 10-15% of the Open Interest.
  • For our earnings trades, it is very important to close them before earnings to avoid significant loss.

In addition to earnings trades, we also trade different non-directional strategies not related to earnings, mostly on indexes. The principle is the same: I will open a discussion topic, with link to the general post discussing the strategy. I will suggest general guidelines for the trade setup and prices. I will try to get the trade at the best possible price. When I do, I will post it under the Trades forum.

 

I set different profit targets and stop losses for different strategies, and I also recommend that members set their own price targets. 

 

One question that repeats itself: "I missed the entry, what is the maximum I can pay?" I don't have a simple answer to that question, so please use your best judgement for your trading decisions. You will miss some trades, you will get better results in some trades than me - in the long run, it should level out.
 
Why SteadyOptions is different
 
There are many services that trade exclusively one strategy, like credit spreads. While they might make decent returns 9-10 months per year, 1-3 bad months when the markets make sharp moves can wipe out months of returns.
 
At SteadyOptions, we offer a complete portfolio approach. We use a diversified approach by trading a mix of non-directional market neutral strategies and balancing the portfolio Greeks. In order to hedge our theta positive gamma negative trades (like Condors and Calendars), we will always have gamma positive trades like straddles or strangles.
 
We will discuss the following key elements for our earnings trades:

  • Which strategy is appropriate for the specific stock.
  • When is the best time to enter.
  • What is the optimal entry price.
  • Backtesting of previous cycles.
  • What is the appropriate adjustment.
  • What is the profit target.
  • How Theta, Vega and Gamma impact those trades.

Please make sure to read Frequently Asked Questions for more details.

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