ID: 2024 - 001
Updated
12.8.2023
1st trade of 2024 executed today. This trade will have ZERO probability of hitting target profit before 1.1.2024, therefore no hesitation opening today.
Trade entry at 161 DTE (days to expiration).
Trade construct is a PDS (put debit spread) at Delta 25 combined with a PCS (put credit spread) at Delta 13.
Sizing and strike selection is designed to keep the risk/reward "AT EXPIRATION" to a 1:1 risk profile. This lets charm work it's magic (second order greek), while exploiting the fact that this is a non-directional bias. The process is a disciplined and systematic approach letting time decay evaporate the extrinsic time value from the short options until target profit is achieved.
IF target profit is not captured after 60 DIT (days in trade), then target is reduced by 50% for the next 30 days.
IF reduced target profit is not captured after 90 DIT, then short strikes are covered to add BSH (black swan hedge) protection for a catastrophic move down.
This trade will deploy once/week until account value has doubled in size. :-)
Happy Trading All!
-kevin
1st trade of 2024 executed today. This trade will have ZERO probability of hitting target profit before 1.1.2024, therefore no hesitation opening today.
Trade entry at 161 DTE (days to expiration).
Trade construct is a PDS (put debit spread) at Delta 25 combined with a PCS (put credit spread) at Delta 13.
Sizing and strike selection is designed to keep the risk/reward "AT EXPIRATION" to a 1:1 risk profile. This lets charm work it's magic (second order greek), while exploiting the fact that this is a non-directional bias. The process is a disciplined and systematic approach letting time decay evaporate the extrinsic time value from the short options until target profit is achieved.
IF target profit is not captured after 60 DIT (days in trade), then target is reduced by 50% for the next 30 days.
IF reduced target profit is not captured after 90 DIT, then short strikes are covered to add BSH (black swan hedge) protection for a catastrophic move down.
This trade will deploy once/week until account value has doubled in size. :-)
Happy Trading All!
-kevin
Trade active
01.09.2024UEL (upper expiration line) adjusted to secure profits and cover fees. This trade will now go into the win column and wait for charm to increase the T+0 line.
Happy 2024!
-kevin
Trade active
02.05.2024Risk free trade now. :)
-kevin
Trade closed manually
02.15.2024Closed, moved to PM acct.
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