One of the great things I’ve experienced while getting All Star Options off the ground with JC has been putting pen to paper to really codify for myself how I view options trading. It’s one thing to have a nebulous sort of idea of how I approach certain options strategies and when and how I might employ them, but it’s quite another to sit down and really break down how each strategy should work, how it fails, my plans for taking profits and/or cutting losses and opportunities for position adjustments.
Instead of hoarding all this brainstorming for myself, we’ve decided to add it to the Education section of Allstarcharts.com so that you, too, can have easy reference points for thinking through your own trades.
The thing about options strategies is — there really isn’t any one way to trade each strategy. There are many common practices, but we all have our own interpretations. Mine aren’t necessarily better or worse than anybody else’s, but I think you’ll benefit from seeing my perspective. We can all benefit from opening our eyes to seeing ways that others interpret or perceive opportunities. If you take one small nugget away from what we share here that serves to earn you some profits or reduce some risks, especially if it’s a repeatable best practice, then this was time well spent. [Read more…]