Money management is the key to winning in the stock market, especially if you’re trading options. That’s because the size of your portfolio is like a reputation. It takes years to build but just days to lose. When trading options, don’t deploy more than 30% of your portfolio at one time.
The most serious risk to your portfolio is also incredibly simple and boring. That’s what makes it so dangerous.
This is a simple, repeatable process to profit from stock market volatility. It involves just one ETF (UVXY) that gives you exposure to the VIX.
This is a summary of how I screen and select the trades that I send to Antagonist subscribers. My purpose for sharing this is to give you some ideas that you can adopt, adapt, or even reject as you build your own system.
Before you can place your first trade, you’ll need to request options privileges in your brokerage account. You’ll also need to apply for the correct permission level.
Spread options combine the massive profit potential of buying calls with the reduced risk of selling them. Their low cost also makes them a great choice if you have a smaller account.
Selling call options is a powerful trading strategy that lets you generate income with minimal risk. Since there are multiple ways to profit from this type of trade, you also have a high likelihood of booking a winner.
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