Thread by @Tradytics

HOW DO I PLAY OPTIONS 👇

I try my very best to make sure I get 5-15% profits as I enter (reversals from supports, DP levels, algo flow divergence etc). Once I have that, I set a trailing stoploss for 20-30% which gives me unlimited upside and 10% loss at max.

That works extremely well when a stock is trending, the profits just keep going up and once the trend breaks, the contract exits itself. It also makes my life easier because I don't have to keep an eye on the position.

My reward/risk is good.

The problem with this strategy is that with how volatile options are, sometimes you exit too soon because of the trailing stoploss and stock runs after that.

In my experience, I am fine with that since I'll still only lose 10% at max. But you should still know the limitation

So basically, my stoploss is actually 30% but I try my very best to get the first 15% so my max loss now becomes 15%. That's a very good reward/risk to me.

A single contract if runs well can give me 100%+ quickly and it takes a couple of bad trades to offset that, not one.

Obviously this is easy in theory, in practice, making sure you get the first initial run is important and I've been working on that myself for a few weeks now.

$NVDA used this strategy today, caught the first 15% run, one contract closed for 10% after, the second for 35%.

Hope this helps you, happy to answer questions. I'd also encourage others to post any tips and tricks on how they enter and exit their positions.