Thread by @CapitalSloan

I have a pretty good record of placing highly profitable trades. The market is dominated by HFT and algos that both start and extinguish trends. I'm successful bc I have the same algos so I have a better idea of when trends are starting and when they're weakening.

1/x

I place mostly swing trades with naked calls in bull markets, that typically take a few days to a few weeks to play out. While the algorithms show pretty accurately when a stock is peaking and getting ready to correct...

2/x

in this kind of market the bulls can keep pushing the price higher than anyone expects, so its very difficult to time tops -- and much of the time the correction is smaller and slower than expected, which makes it difficult to profit with puts.

3/x

90% of my positions are naked calls on oversold equities that are either consolidating for a reversal or trending up. We sit and watch when bears come out, except for the occasional targeted put that we'll close the same day.

4/x

This strategy can take a few days or a week to develop since we're often entering trades before they make a big move. Therefore, I don't have stops, and most of the time I won't close a position as a loser until its lost 50% or more. Only trade what you can afford to lose.

5/x

Bc I'm usually buying calls that are 5-10 weeks from exp a few days of movement against us isn't the end of the world and I don't want to be stopped out of a position that still looks strong but might be down 10%. For black swans I continually hold a VIX hedge -- see below.

6/x

The market is frothy from years of artificially low interest rates and govt stimulus. I expect a a significant crash in the next couple of years -- possibly even later this year. Until then, we will profit from the Fed's shenanigan's.

7/x

I always have a $VIX hedge on since I'm mostly long calls. I'll describe how to do that in the near future in a way that essentially pays for its self as its rolled forward from month to month.

8/x

This is not investing advice. Just a log of what I'm doing personally. I'll post all trades and all losses. I'm an uneducated, ignorant fool. Feel free to message me anytime.

#OptionsTrading #stonks #wallstreetbets #trading #tradeideas $SPY $DJI $IWM $SPX #RobinHoodTraders