Lot's happening in the markets again as the transition continues. The only constant is the methodology I use to make my trading decisions. I'm spending a lot less time in front of my screen and am using the daily timeframe with options more and more.
Here are a couple of charts that show the type of things possible. When you look at the chart, if you ignore the description on the top, the chart looks like any intra day chart even though it is daily. Instead of using the underlying, I use a vertical credit spread (VCS) so that my ROI is increased and I improve my edge by more than 66%. How is the edge improved? Well, the VCS means that I make money by both the directional move and the erosion of the sold option. My typical trade is a 15% profit on the margin I use. It's important how the trade is constructed using the variables of DTE (days to expiration) and the Deltas of the two option legs. I've set up a screener on MultiCharts and can follow lots of symbols and take the cream, trading as many opportunities per month that come up. Same analysis as intraday.
The book is going slowly but surely. I'm getting what is often called "scope creep" which means that what I have decided to cover in the book is increasing. As I cover something, it leads to something else that I think is important. And so it goes.
I'm skiing most mornings. We've had lots of people staying over here during the winter and that's been a welcome distraction. We're heading to Dubai in a while to have a look and then to the Italian Riviera as summer gets under way. I'm planning on getting a Microsoft Surface Pro as my travelling PC. I can connect it to TVs wherever I am with HDMI and get a big enough screen. My Samsung Note2 will allow me to tether to the Internet wherever I go.
