23
Dec
Options Strategies

Options Strategies

Where do I start?  I could pull out an old book from the shelf, wipe off the dust and then turn to page 127 and copy down a list of options strategies to plagiarize about, but instead of that, I’ll give you some personal tips on designing options strategies.

First Step to Designing Options Strategies

If you truly want to become a successful options trader using your own formulas, then you’ll need to purchase historical options data.  There are many sources online, just do a search.  You’ll probably want at least 10 years of data.

Step 2 to Designing Options Strategies

This step could be step one, but you’ll need to get yourself a good options education; otherwise, you won’t have any idea of how to write and refine your options trading formulas.  I am biased, but I think SJ Options is the best options course money can buy.  Just read our testimonials and check out our track record.

Step 3 to Designing Options Strategies

You’ll also need to learn how to program in order to test your algorithms with the historical data you purchased.  If you are not a coder, then you can certainly hire someone to code for you.  Make sure you work with someone you can trust, just in case you develop yourself a winning options strategy!  You’ll want to keep your formula secret when you find it.  IP theft is very common, so protect yourself with agreements and Docusign, etc.

Step 4 Testing Out Your Options Strategy

After you develop an options trading system, you’ll want to forward test it through paper trading.  This can be done at any broker pretty much.  However, broker’s software doesn’t typically track your trading history with adjustments for you; for a complete platform that does this, our options trading software is an excellent choice.

Step 4 Going Live

After you have completed the steps above, then you’ll most likely want to go live.  This is your ultimate goal right?  Make sure you know how to execute your trading system.  Sometimes we make mistakes on our broker’s platform, like putting in trades backwards, etc.  So put the time into knowing how your broker’s software works.  Also, make sure you know your broker’s policies, especially confirm their margin calculations work properly with your options strategy.  Many people do know this, but brokers use their own margin calculations at times, and they tend to be buggy at best.

 

 

recent posts

Karen The Supertrader and James Cordier

Are You Picking Up Pennies IN FRONT OF FREIGHT TRAINS? Today’s topic is “Picking up pennies in front of freight trains.” Most option traders are guilty of doing this at some point, especially traders new to options.” Experienced traders usually stop after they get ran over or after they understand the risk involved. Most of […]

Bearish Options Strategies

  AN AWESOME APPROACH TO BEARISH MARKETS We do not see bearish markets too often, but when we do, we have to be fully prepared to: Protect our capital. Profit from market declines. More often than not, traders are not ready for bearish markets, so when they suddenly appear, they experience irreversible damages to their […]

icon
icon

tags

atm, bearish options strategies, Best Options Course, butterfly spread, calendar spread, call credit spreads, charm, credit spread, credit spread back test, credit spread options, credit spread strategy, credit spreads, day traders, defective imac, delta, full time options trading, gamma, greeks, high order greeks, imac, imac problems, implied volatility, iron condor, iv rank, james cordier, karen the supertrader, learn options, learning options course, leverage, low risk options trading, mirage, option strategy, option trading, option trading checklist, option trading lifestyle, option trading mindset, option trading myths, option trading profits, optioncolors, optioncolors software, options analysis, options course, options learning course, options strategies, options trader, options trading, options trading course, options trading newsletter, options trading performance, options trading software, otm, pop, popular option trades, portfolio margin, portfolio margin trading, probabilities, probability of profit, profitable, review, San Jose Options, san jose options review, scalable, short strangles, sj options review, spread, spreads, strangle, strategies, tasty trade, tasty trade credit spread, tasty trade credit spreads, tasty trade iv rank, tasty trade ivr, tastytrade, tastytrade credit spreads, tastytrade strangles, tastytrade verticals, technical, testimonial, theta, time decay, trading volatility, training, unbalanced condor, vanna, vega, veta, vomma, weekly credit spreads