This is one of the best options trading presentations I have ever heard. It doesn't matter how experinced you are in trading, everyone should listen to this at least 10 times, until you have understood all the researched concepts and are applying them. Thank you so much Tom for your time and dedication. 😀
0:15 Creating Practical and Actionable Watchlists 6:23 Quick Scan your Individual Greeks and P/L 11:38 Monitor your Overall Account Risk 15:30 Be Mechanical 17:46 Adjusting Your Positions 18:06 The Three R’s - Roll up/down, Recenter, Roll out in time 21:35 Don’t Personalize the Mechanics 24:05 Get Comfortable Being Counterintuitive 26:49 Do the Right Thing 29:19 Closing and Rolling 29:53 Why Close? 31:35 Why Roll? 33:15 Does Trade Duration Matter? 36:03 Is Timing Critical? 38:11 Redeploying Capital 38:30 How Active Should I Be? 41:38 Product Indifference Allows for Diversification 42:42 How Important is Redeployment and Number of Occurrences? 44:26 What are some Reasonable Return Expectations? 47:10 How Scalable is Trading an Active Portfolio?
I have a question about managing portfolio risk. As you say, starting at video (11:42), managing theta to a range of 0.1% to 0.3% is a solid rubric for assessing risk / reward. It's also titled "Monitoring You Overall Account Risk". My question is how I can apply this guideline to my overall portfolio, only some of which I have direct control over. I have half of my portfolio in brokerage accounts and half in my 401k account. My 401k is entirely in the equities fund (mimicking SPX). Can I use the theta measure and combine the accounts or should I restrict the measure to just my brokerage accounts?
Tom can you explain Implied volatility etc on how it works and how to understand the implied of a stock? Should we be looking for stocks with implied above 80% etc. when does it make sense etc ?
You don’t recenter an existing trade. You recenter to a new trade on the same underlying if IV is still elevated. You roll up the untested side on an existing. Trade that has moved against you and that is usually when the opposite side has been breached.
@@loubob21I thought I heard wrong and was waiting for what to do with the tested side until he said this is against intuition. It really is. But they have done a lot of back tests so I trust what he said. I have rolled out and rolled away from the underlying stock price when things don’t look good but I would have never thought about minimizing risk his way.
How much option trading knowledge should you develop as an active futures trader if you don’t use options? Do many pro traders use them mutually exclusively, and if not what sort of percentage weight in either do pros use?
I think that was one of Tom's fundamental points: that being agnostic (in hist words "indifference") about the individual vehicle (stocks, options, futures, futures options, indexes, etc) is a core tenet of a proper strategy. While they are related (SPY /ES), they have advantages relative to each other. Also, the diversity gained by being fluent in various areas helps by giving us alternatives when things have moved one way or another. (Rewatch starting at 41:37)
Thanks for the forecast! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Lessons learned over 20 years of trading. 1. Big money wants you to believe you can’t do it on your own so they can take your money and charge a fee. 2. The only strategy that matters is the one that works for you. 3. Learn as many strategies and instruments to trade as possible…..it’s like having a tool box full of tools. You need variety because you can’t always trade the same strategy on the same instrument all the time. 3. Learn about commodities vs equities. Commodities tend to move up/down over and over where as equities tend to go up as time goes on or they go bankrupt.
Tom has already left an invaluable legacy to all of us who follow him habitually. Thank you so much, Tom. A big abrazo from Mexico
This is one of the best options trading presentations I have ever heard. It doesn't matter how experinced you are in trading, everyone should listen to this at least 10 times, until you have understood all the researched concepts and are applying them. Thank you so much Tom for your time and dedication. 😀
My day is not complete if i didn't find another Tom's video or interview. Thank you for the wealth of knowledge.
I need to watch this several more times. Thanks Tom!
What a beast. Listen up, Tom is dropping knowledge!
Straight to the point info. Great job and content! Exactly what I needed to hear.
0:15 Creating Practical and Actionable Watchlists
6:23 Quick Scan your Individual Greeks and P/L
11:38 Monitor your Overall Account Risk
15:30 Be Mechanical
17:46 Adjusting Your Positions
18:06 The Three R’s - Roll up/down, Recenter, Roll out in time
21:35 Don’t Personalize the Mechanics
24:05 Get Comfortable Being Counterintuitive
26:49 Do the Right Thing
29:19 Closing and Rolling
29:53 Why Close?
31:35 Why Roll?
33:15 Does Trade Duration Matter?
36:03 Is Timing Critical?
38:11 Redeploying Capital
38:30 How Active Should I Be?
41:38 Product Indifference Allows for Diversification
42:42 How Important is Redeployment and Number of Occurrences?
44:26 What are some Reasonable Return Expectations?
47:10 How Scalable is Trading an Active Portfolio?
excellent thanks for the time stamps
This was eye opening foundational info! Thanks so much for the effort and time spent sharing, sir.
We Needed this webinar!!!!
I have a question about managing portfolio risk. As you say, starting at video (11:42), managing theta to a range of 0.1% to 0.3% is a solid rubric for assessing risk / reward. It's also titled "Monitoring You Overall Account Risk". My question is how I can apply this guideline to my overall portfolio, only some of which I have direct control over. I have half of my portfolio in brokerage accounts and half in my 401k account. My 401k is entirely in the equities fund (mimicking SPX). Can I use the theta measure and combine the accounts or should I restrict the measure to just my brokerage accounts?
I have to research all the concepts separately to understand and it may takes months : Thank You Tom
Tom's dedication to this informative video is truly appreciated. Thank you, it is very helpful.!
Thank you Tom!! Great video!
This is a great content lots of valueble info. We appriciate you Tom thank you very much.
15:00 what should your account theta be
Great work Tom. Thoroughly enjoyed this
Loving these new videos Tom!!!! Keep em coming
THANK YOU TOM!!!
Inspiring 👍 thank you!
Tom is a Legend!
People pay for this level of education
Tom can you explain Implied volatility etc on how it works and how to understand the implied of a stock? Should we be looking for stocks with implied above 80% etc. when does it make sense etc ?
amazing sir :D, thank you a lot
Great stuff...I want to apply all this in Indian markets but it is difficult to follow this mechanical approach in Indian markets
I doubt Indian option markets have the liquidity to do this
What is p and l . Also wings
Taking notes like I was in Indiana Joneses classroom.
This is new to me but I take it Fidelity ATP is not on your preferred list of platforms
@ 13:34
when recentering, by tasty mechanics.... do you only do it for a credit if you can?
You don’t recenter an existing trade. You recenter to a new trade on the same underlying if IV is still elevated. You roll up the untested side on an existing. Trade that has moved against you and that is usually when the opposite side has been breached.
@@loubob21I thought I heard wrong and was waiting for what to do with the tested side until he said this is against intuition. It really is. But they have done a lot of back tests so I trust what he said. I have rolled out and rolled away from the underlying stock price when things don’t look good but I would have never thought about minimizing risk his way.
@ I agree. When you roll the tested side you actually increase you potential loss. Very interesting stuff.
How much option trading knowledge should you develop as an active futures trader if you don’t use options?
Do many pro traders use them mutually exclusively, and if not what sort of percentage weight in either do pros use?
I think that was one of Tom's fundamental points: that being agnostic (in hist words "indifference") about the individual vehicle (stocks, options, futures, futures options, indexes, etc) is a core tenet of a proper strategy. While they are related (SPY /ES), they have advantages relative to each other. Also, the diversity gained by being fluent in various areas helps by giving us alternatives when things have moved one way or another. (Rewatch starting at 41:37)
pure gold
This was fantastic. Thank you Tom. Much in this I didn't know.
Isn't buying the guts and selling the wings guaranteed to reduce credit?
I don't mean to be disrespectful, but I understood very little. So, how to proceed to benefit from this?
Study.. study... Study... It will take months and years
Just follow these 200 simple rules, also don't overthink it period LOL😅
Thanks for the forecast! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Lessons learned over 20 years of trading.
1. Big money wants you to believe you can’t do it on your own so they can take your money and charge a fee.
2. The only strategy that matters is the one that works for you.
3. Learn as many strategies and instruments to trade as possible…..it’s like having a tool box full of tools. You need variety because you can’t always trade the same strategy on the same instrument all the time.
3. Learn about commodities vs equities. Commodities tend to move up/down over and over where as equities tend to go up as time goes on or they go bankrupt.
He makes this way too complicated. I just aim for keeping unused capital at 20%.