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

Recommended Posts

Welcome to Steady Options!
 
Please spend few minutes to read this post, the Frequently Asked Questions and the Useful Links. I also recommend watching the SteadyOptions Orientation Tour. 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 forum is on non-directional strategies like Long Straddles, 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 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 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.

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

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

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

  1. SteadyOptions Trades - this is where the trades are posted.
  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. 


All open trades are listed in the SO Open Trades topic (members only access) with links to the trade topic and discussion topic.. 
 

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 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.

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.

 

follow topic.PNG

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.
 

Our earnings long 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 notifications 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:

  • 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 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 notification if you like the trade. Enter if you like it. Exit based on your own profit targets.

My 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.


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):

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. It will also be sent by Twitter @SteadyOptions - you can request to follow that Twitter account.
  • We 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 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.

In addition to me, @Yowsterwho is one of our Mentors is also posting official trades and trade discussions. I recommend following him as well.

Here is an example of a discussion topic:

image.png

And a following trade alert:

image.png


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.

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.
 

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. There are plenty of trades, both official and unofficial, so this should not be an issue.
 

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 ). 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.

Share this post


Link to post
Share on other sites

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!

Share this post


Link to post
Share on other sites

I was not sure if I needed to request being added to the wait list. I joined the forum a few days ago. 

I am interested in subscribing to the Steady Options service, if a place becomes available. 

Thank-you

Share this post


Link to post
Share on other sites
11 minutes ago, ramashwin said:

I am a new member. Which of these strategies can I trade in an IRA / Roth IRA accounts? Thanks!

It really depends on your broker. We trade defined risk strategies only, no naked options, and many of our members trade those strategies in their IRAs.

Share this post


Link to post
Share on other sites
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?

Share this post


Link to post
Share on other sites

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.  

Share this post


Link to post
Share on other sites

@Kim interested in learning a little more about the reason why you mention one should not use these strategies we use here in an actively managed fund. Is the primary reason related to liquidity / trading volume or there is something else (e.g. sharpe ratio objectives and other fund policies)? Thank you!

Share this post


Link to post
Share on other sites
5 minutes ago, rafab said:

@Kim interested in learning a little more about the reason why you mention one should not use these strategies we use here in an actively managed fund. Is the primary reason related to liquidity / trading volume or there is something else (e.g. sharpe ratio objectives and other fund policies)? Thank you!

I believe I explained it in the previous post. It’s liquidity.

Share this post


Link to post
Share on other sites

Hi Kim,

I read your article <Pre-Earnings Strangle Trades For These 4 Tech Stocks> at https://seekingalpha.com/article/318795-pre-earnings-strangle-trades-for-these-4-tech-stocks. Could you please let me know where I can find such graph which show stock price (in left y axis) and volatility (in right y axis)? Is it paid programme? I am using TOS to open trade. 

What is the 3rd graph showing? (while the 1st is showing stock price & volatility, the 2nd is showing trade volume of stock / options)

Thank you.

Screenshot 2020-06-07 at 9.55.25 PM.png

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
Guest henk

Hi Kim

really like your approach and would like to join SO when open to new members again.

I am reasonably experienced (> 6 yrs) in options trading, mainly selling various combos. Thank you,

Henk Snyman.   
henksnyman@me.com

Share this post


Link to post
Share on other sites
4 minutes ago, Guest henk said:

Hi Kim

really like your approach and would like to join SO when open to new members again.

I am reasonably experienced (> 6 yrs) in options trading, mainly selling various combos. Thank you,

Henk Snyman.   
henksnyman@me.com

As mentioned before, you need to create a forum account and we will notify all registered members when we have available spots.
 

Share this post


Link to post
Share on other sites

Hi Kim-

Maybe I'm missing it, but where is the video link for the tutorial on how to trade strangles? I see the hyperlink for straddles and strangles but the video only discusses straddles. 

Thanks. 

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.