Welcome to Steady Options

[Kim 8,086]

Welcome to Steady Options!
 
Please spend few minutes to read this post, the Frequently Asked Questions and the Useful Links. It 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 service is on non-directional strategies like Long Straddles/Strangles, Calendars, Butterflies, Iron Condors etc. We always trade defined-risk strategies, never naked options. You need to create a forum account to get access to the service. 

 

We are sharing our trades with full explanation of the Greeks, the risk/reward, the best time to entry/exit, price targets etc. Full follow-up 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 trades is $10,000-$100,000. We do NOT recommend trading accounts larger than $100,000 due to potential liquidity issues. We recommend using one of our other services for larger portfolios.

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

Please note that we don't provide auto-trading. SteadyOptions is an educational resource. I want my members to be in a full control of their trading. In addition, SEC considers newsletters that engage in auto-trading to be investment advisers, and I am not licensed to be an investment adviser. So most newsletter that engage in auto-trading are breaking the law and are exposed to lawsuits like this one. You can read more details here.

The SteadyOptions forum has several sub-forums (access to members only):

1. SteadyOptions Trades - this is where the official trades are posted. Any trade posted on this forum by any of the contributors @Kim @Yowster @krisbee or @TrustyJules is considered an official trade. 
2. SteadyOptions Discussions - This is where we discuss our trades.
3. Unofficial Trade Ideas - This is where we discuss our unofficial trade ideas.

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”. You can reply on “Trades Discussions” forum. Each trade has a separate topic in “Trades Discussions” and “SteadyOptions trades”. The SteadyOptions Trades forum is used for posting our trades. To get notifications about my trades, you will need to follow that forum (by clicking "Follow this forum" button).

 

Each trade has a separate topic, with our entry price, exit price and some comments. We 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.

We recommend to follow all forums to get notified when new trade or trade discussion is posted. You can also follow specific members to get notified every time they post.

 

SteadyOptions model portfolio is based on 10% allocation per trade (some trades are 5% and considered half allocation). Average of 5-6 trades is open at any given time. Performance returns are based on the entire portfolio, not just what was at risk.
 

Please note that we usually don't hold our trades through earnings, unless specifically indicated. More details:

Why We Sell Our Straddles Before Earnings 

Why We Sell Our Calendars Before Earnings

Our goal is to share our experience and to help you to become a better trader. The trading notifications are based on our real trades that we are 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:

• We encourage you to do your own homework before following any of our trades.
• If you are new to options or to those strategies, start with paper trading, then start small and 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 our notification if you like the trade. Enter if you like it. Exit based on your own profit targets.

Our advice to members: learn the strategies and make them your own. Do NOT blindly follow the trade notifications. You need to understand what we are doing in order to adjust your entries and exists to changing market conditions and be proactive. SteadyOptions is a trading ideas generator rather than an alert service. If you are using it as a pure alert service, you are not taking advantage of all the wealth of knowledge and learning we offer. If you expect a pure alert service where trading alerts are just delivered to you without any effort and time commitment, this service is not for you. You will be expected to invest time and effort, please do NOT sign up if you are not willing to do it. I recommend reading My Seven Stages of being an SO Member to get a better understanding of how veteran members are using the service.

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 (access to members only):

• SteadyOptions strategies
• How we trade straddles and strangles
• How we trade pre-earnings calendars
• How we trade Iron Condors
• How we trade Calendar Spreads
• How we trade butterfly spreads

Full list of "Must Read Topics" is displayed on the right side on the main forum page. Please make sure to read it. You will need a margin account to trade most of those strategies.
 

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.

Here is an example of a discussion topic:



And a following trade notification:

In addition to earnings trades, we also trade different non-directional strategies not related to earnings.

There are also many unofficial trades in a dedicated Unofficial Trade Ideas forum. Those trades are not tracked but they are integral part of the service. They are usually posted by me or one of our Mentors and are based on the same strategies as official trades. They don't make it to the "official" model portfolio for various reasons, such as: model portfolio full, size of the trade too big to fit the $10k model portfolio etc.
 

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

The best way to use SteadyOptions is to learn the strategies and make them your own. If you do that, you will be able to take full advantage of our service. You will be able to make your own decisions, based on our discussions. Getting good fills is part of the learning process. Over time when members gain more experience, they learn how to get better fills. Many members started as complete novices and now they take the trades even before I do and get better results in some cases. But those things take time. 

 

I highly recommend following the discussion topics to see how other members utilize the service. I also recommend following our Mentors for valuable tips and insights (more about our Mentoring Program). If you cannot get a fill on the exact trade, there are many ways to trade the same strategy (using different strikes, different expirations etc.) If you understand how our strategies work, you will be able to do it and see what other members do.  I see the community as the most valuable part of the service. 

New members, please spend some time getting familiar with the forum and the strategies before jumping into live trades. 

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.

Finally, a quote of one of our members:

I see SO as an educational course with live trades examples and the ability to discuss them with a like minded community. I don't expect or frankly care to perform as well or the same as the official returns, for the most part I don't even enter official trades unless it fits with my own strategy.  Or the sectors/symbols that I like investing in and a myriad of other factors. So far, I learned a great deal directly and indirectly from SO and see a good ROI from both trades and knowledge accumulation. The truth is that about 90% of options traders will either breakeven or lose money. The same applies to any competitive sport or business, 90% will give up and stop playing, 9% will be considered average or good players and the top 1% the pro athletes will thrive. The copy and paste approach doesn't work for options... there are no shortcuts. Don't expect to look or learn how a marathon runner is running and expect to be able to run the marathon faster or even at the same pace. A person search for a one solution fix all or the "holy grail" is futile, there is no such a thing. The only thing that works is hard work, dedication and continuous learning. Every athlete will tell you the same. 

[Kim 8,086]

July 2018 update:
 

Many of our current and former members know our long time mentor @Yowster for his highly valuable contributions to SteadyOptions community. Many of you learned to appreciate his high professionalism and patience. 

I'm pleased to inform all members that going forward @Yowster will start contributing trades to our official model portfolio. The performance numbers on the performance page will include all trades from the official model portfolio. This will allow us to expand the quantity and the quality of our trades, sometimes providing a slightly different angle and perspective.

SteadyOptions is getting even better! Now you will get official trades from two traders for the price of one! This means more selection and more diversity.

Those who followed @Kim to get the posts in trades and discussions forums, please don't forget to follow @Yowster. Of course you can also continue following the forums and the topics.

Have a good trading!

[Jimbob 0]

Hi Kim - Let me know when the Steady Options opens up. I would like to try it out. 

 

[SunriseAl 1]

I'm interested, please add me to the waitlist. 

[Kim 8,086]

We will be sending invitations to join to all registered members when we have available spots.

 

Please make sure to leave the ""Send me updates" box checked during registration.

[trialanderror 24]

Just found out about your website. looks impressive. Please consider me for a spot on steady option when it opens. Look forward to making profits and learning.

[Markuse 88]

On 5/4/2013 at 7:34 PM, Kim said:

Please note that suggested portfolio size for SO alerts is $10,000-$100,000. We do NOT recommend trading accounts larger than $100,000 due to potential liquidity issues.

@Kim Do you think that the about 100k account size limit for the the SO strategies due to liquidity is one reason why the strategies work so well and have not gotten crowded or arbed away? The strategy is therefore not feasible even for tiny funds or family offices. And for most retail traders it might be to "complex" or have a too long learning curve (therefore they might be more attracted to the selling premium story). I think that SO is a bundle of strategies and the permanent adaption to the changing market environment and also the portfolio management of the different strategies which hedge each other kind of are other reasons why SO has been consistently profitable. But do you think that the about 100k liquidity cap is kind of a boon for SO?

[Kim 8,086]

Hard to say. People were saying 10 years ago that iron condor will be dead once too many people start using it.

The liquidity issue in our case is not related to a strategy. If we traded only stocks like SPY or AAPL, we could trade tens of thousands of contracts. But buying 1,000 contracts on less liquid stocks could be tricky. The market simply doesn't have that kind of liquidity.

As for the strategies themselves - as long as traders have different opinions and different views, the strategies will continue working. As you correctly mentioned, it's all about management.

But nobody should try and trade those strategies in a fund. Please trust us on this.  

[maurick 0]

9 hours ago, Kim said:

We will be sending invitations to join to all registered members when we have available spots.

Hallo Kim

I'm iterested to join Steady Options. Thanks

maurick

[Tarek 0]

Hi Kim, I would like to join steady options too please let me know when a spot becomes available.

I am comfortable with strangles, straddles, naked selling and verticals. Would love to learn calendars and a bit of portfolio management would not hurt.

Thanks.

[Colin 0]

Hi Kim, 

Really interested in joining steady options as well. Not sure what else is required for sign up? If I choose the one of the bundles am I still in a wait list position? What type of time frame before spots open up?

 

Colin

[Kim 8,086]

As mentioned on the subscription page, The Bundle subscriptions include all current and future services.

That includes SteadyOptions and all other services.

[Lippy1m 0]

Hi Kim,

I would like to sign up for Steady Options when an opening come up please.

 

Matt

[anoldguy73 0]

I would like to be added to the wait list on Steady options; I trade options, but only the basic puts and calls and have a small account.  It be great to learn how to do things like Iron condors, various spreads, etc.

[davo 0]

Hello Kim,  Please let me know when you have an opening at SO. I started trading after Investools program 2012, I've been at Sheridan for the last year. I like your approach and think I could learn a lot here. thanks! Dave

[IgorG 0]

Hello Kim - I am interested in steady-options service, can you please add me to the wait list? Thank you in advance. 

[LearnTrading 7]

Hello, I'm interested in the Steady Options service. Please, add me to the wait list. Thank you!

[fftx123 0]

 

Hi, please add me to the waitlist for Steady Options. Thank you!

 

 

[PLawrence 0]

Hi, please add me to the waitlist for Steady Options. Thank you!

 

[nurb32 11]

I'd like to convert my monthly SO subscription to annual billing with the discount.   What do I need to do to do that?

[Kim 8,086]

Just cancel the monthly in PayPal and subscribe to the yearly. You can do 1-2 days before the monthly renewal.

[jns 0]

I have a very newbie question on the suggested exit price or target. It’s mentioned in the welcome note that it would be listed in the trade topic created, but I can’t seem to find it.  I did see a target gain in the pre-trade discussion of a couple recent trades, but couldn’t find it in others. So all that to ask, will the suggested exit price be in the trade topic or in the pre-trade discussion topic? Thanks in advance!

[Kim 8,086]

First post of every discussion topic has a link to the strategy overview. I highly recommend reading them. They have the profit targets (among other information).

[Kim 8,086]

 

October 2021 update:
 

Many of our current and former members know our long time mentor @krisbee for his highly valuable contributions to SteadyOptions community. Many of you learned to appreciate his high professionalism and patience. 

I'm pleased to inform all members that going forward @krisbee will start contributing trades to our official model portfolio. The performance numbers on the performance page will include all trades from the official model portfolio (posted under SteadyOptions Trades forum). This will allow us to expand the quantity and the quality of our trades, sometimes providing a slightly different angle and perspective.

SteadyOptions is getting even better! Now you will get official trades from THREE traders for the price of one! This means more selection and more diversity.

Those who followed @Kim and @Yowsterto get the posts in trades and discussions forums, please don't forget to follow @krisbee. Of course you can also continue following the forums and the topics.

Happy trading!

 

[Yowster 10,147]

Great news and well deserved, happy to see Krisbee contributing official trades.

[Ringandpinion 1,727]

What a great addition.  I've learned a lot and made plenty off his trades.  And the opportunity to learn more is really appreciated.  Thanks @krisbee and to all that share of their knowledge on this site.

[Kim 8,086]

SteadyOptions is currently closed to new members. We will notifiy all registered members when we have available spots. There is no need to post here.

[OptionUp 0]

Please let me know when a spot becomes available as I would like to subscribe.

[Kim 8,086]

SteadyOptions service is currently by invitation only. Invitations are sent to members as spots become available. New members, please make sure to leave "Send me updates" field checked when creating a new forum account.

The goal is to control capacity and provide the best service to existing members.

Please note that all bundles are still available. If you subscribe to all services bundle or 2 services bundle (1 year or 2 years), you still get the SteadyOptions service as part of the bundle.

[Mr. Fred O'Money 0]

Dear Kim,

I've got the invitation and wanted to join, but I'm a bit disappointed that there is no free trial anymore/at the moment.

a) Why is that the case (it is still shown on the subscription page)?

b) I wanted to subscribe to the monthly option at first to get some experience with it, but i do not see this option on the subscription page? I have not been a member before, so - in my understanding - i should be able to choose monthly? Please explain.

Thank you!

[Kim 8,086]

Dear Mr. Fred,

SO is currently in capacity controlled mode. We can accept only a limited number of new members, and we are only interested in serious traders dedicated to their professional development.

I believe that reading the Welcome to SteadyOptions post and Frequently Asked Questions, viewing our reviews and analyzing our 10+ years performance should give you a pretty good idea if the service is a good fit for you. I also believe that you need at least 3 months anyway to get a "feel" of how the service works.

[VB_MI 3]

Is it please possible to post the 100 stocks with high IV's mentioned here, so it helps in understanding and application of principles.

 I do not have premium access to seeking alpha , appreciate the help 

 

------------------------------------------------

,

 

 

1. Which stocks should be used? I tend to trade stocks with post-earnings moves of at least 5-7% in the last four earnings cycles; the larger the move the better.
2. When to buy? IV starts to rise as early as three weeks before earnings for some stocks and just a few days before earnings for others. Buy too early and negative theta will kill the trade. Buy too late and you might miss the big portion of the IV increase. I found that 5-7 days usually works the best.
3. Which strikes to buy? If you go far OTM (Out of The Money), you get big gains if the stock moves before earnings. But if the stock doesn’t move, closer to the money strikes might be a better choice. Since I don’t know in advance if the stock will move, I found deltas in the 20-30 range to be a good compromise.

The selection of the stocks is very important to the success of the strategy. The following simple steps will help with the selection:

1. Go to here.
2. Filter stocks with movement greater than 5% in the last 3 earnings.
3. For each stock in the list, check if the options are liquid enough.

Using those simple steps, I compiled a list of almost 100 stocks which fit the criteria. Apple (AAPL), Google (GOOG), Netflix (NFLX), F5 Networks (FFIV), Priceline (PCLN), Amazon (AMZN), First Solar (FSLR), Green Mountain Coffee Roasters (GMCR), Akamai Technologies (AKAM), Intuitive Surgical (ISRG), Saleforce (CRM), Wynn Resorts (WYNN), Baidu (BIDU) are among the best candidates for this strategy. Those stocks usually experience the largest pre-earnings IV spikes.

 

[Kim 8,086]

This article is 10 years old. It describes the general concept, but a lot has changed since then. You can find the symbols we trade on the subscription page. There is no specific list, but many symbols repeat from cycle to cycle.

[thomas09 0]

Hello,

I don't know where to ask it, but could you please let me know when a Steady Options spot is available ?

Thank you for your help ! 

Thomas

[Kim 8,086]

We will send notification to all registered members.

[jfhagan 0]

Hi.  I've spent last four hours reviewing your site and am very interested in learning to trade options with you guys.  I have a couple of rollover IRA's and a Roth IRA with Fidelity.  My intent is to gradually apply my Roth money to the Steady Options program, in 10K increments and let it accumulate for 5 or 10 years.  Fidelity advises that Options trading on IRAs includes Buy-writes, Selling covered calls, Rolling covered calls, Buying calls/puts, Selling cash covered puts, Long straddles/strangles, Spreads (up to 4 legs).  QUESTION:  Are these options adequate to cover the strategies that you use with SO?  I am a beginner, but am willing to start slow and learn.  I really appreciate everything I've read so far.

 

 

From Fidelity Web Site:

Options trading on IRAs includes:

• Buy-writes
• Selling covered calls
• Rolling covered calls
• Buying calls/puts
• Selling cash covered puts
• Long straddles/strangles
• Spreads (up to 4 legs)

 

[Kim 8,086]

Our main strategies are straddles, strangles and calendars. I assume calendars fall under definition of spreads, so they should qualify. All our trades are defined risk, never naked.

Hope this answers your question.

[Kim 8,086]

I'm pleased to announce that our long term mentor @TrustyJules will become a contributor and start posting official trades. He is likely to start with his famous SPY IC "boring trade", but might add other strategies over time.

SteadyOptions has now four official contributors: @Kim @Yowster @krisbee and @TrustyJules

I recommend following all of us, it will save you time to follow each trade individually.

We become better and better over the years!

[Harts 0]

Hi Kim - plz let me know when Steady Options is available for new members. I am interested to subscribe. Thanks

[Kim 8,086]

I'm pleased to announce that our long term mentor and SteadyVol contributor @SBatch will become a SteadyOptions contributor and start posting his TLT strategy for our official model portfolio. 

SteadyOptions has now FIVE official contributors: @Kim @Yowster @krisbee @TrustyJules and @SBatch

I recommend following all of us, it will save you time to follow each trade individually.

We become better and better over the years!

[TrustyJules 3,323]

Thats great news - there is noone I know that understands TLT better than @SBatch and thats definitely big-boy stuff. As James Carville once famously quipped:

 

Quote

"I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a . 400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody."

Its the biggest game in town.

[mccoyb53 822]

Great stuff. @sbatch. You are a well deserved Contributor. Looking forward to doing some more TLT trades.😀

[Hszabi 1]

 

Hello Kim!

With how many words can you open the positions? What do you suggest?

 

[Kim 8,086]

1 minute ago, Hszabi said:

 

Hello Kim!

With how many words can you open the positions? What do you suggest?

 

Can you clarify what do you mean by "how many words"?

[Hszabi 1]

My phone just crackled what % of the spread is acceptable for sample trade?

[JET 3]

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:

1. Check and adjust/exit positions - Tool:  Broker platfom
2. Enter new trades when entry target price is met - Tool:  Broker platform
3. Update Trade Journal - Tool:  Excel, ONE, etc.

Weekly:

1. Assess Market, Volatility - Tool?, Expected output?
2. 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.
3. Identify candidates - Tool:  Optionslam (?), other tools?
4. Determine RV so that we can determiine entry price for candidate - Tool:  VolatilityHQ/Chartaffair/others?
5. Weekly Retrospective-  what went well, where are opportunities for improvement

Monthly:

1. Assess Market, Volatility - Tool?, Output?
2. 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!

[kitsos 69]

1 hour 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:

1. Check and adjust/exit positions - Tool:  Broker platfom
2. Enter new trades when entry target price is met - Tool:  Broker platform
3. Update Trade Journal - Tool:  Excel, ONE, etc.

Weekly:

1. Assess Market, Volatility - Tool?, Expected output?
2. 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.
3. Identify candidates - Tool:  Optionslam (?), other tools?
4. Determine RV so that we can determiine entry price for candidate - Tool:  VolatilityHQ/Chartaffair/others?
5. Weekly Retrospective-  what went well, where are opportunities for improvement

Monthly:

1. Assess Market, Volatility - Tool?, Output?
2. 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!

I believe this one we will have to figure out ourselves. And the main reason is that most of the mentor in here have their own style of doing research, selecting the tickers, and the strategy they will use on it.

The main tools they use, are VolatilityHQ, and OptionNet. They provide you with almost everything you need to find and test the trades you find here.

Beside those, many members here use other tools, like Excel, Python, etc... to make their own evaluations. 

I am exactly in your position and trying to create my own procedure, by reading in here.

I think it is a good idea if someone of us noobs, will start a thread, where he/she, will start such a structure in the first post, old and new members, will contribute, below their procedure of research and trade selection, and the first post, will be updated continuously to incorporate those steps.  

 

[Kim 8,086]

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.

 

[kitsos 69]

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.  

 

 

[TrustyJules 3,323]

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:

1. Check and adjust/exit positions - Tool:  Broker platfom
2. Enter new trades when entry target price is met - Tool:  Broker platform
3. Update Trade Journal - Tool:  Excel, ONE, etc.

Weekly:

1. Assess Market, Volatility - Tool?, Expected output?
2. 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.
3. Identify candidates - Tool:  Optionslam (?), other tools?
4. Determine RV so that we can determiine entry price for candidate - Tool:  VolatilityHQ/Chartaffair/others?
5. Weekly Retrospective-  what went well, where are opportunities for improvement

Monthly:

1. Assess Market, Volatility - Tool?, Output?
2. 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.