advancement

I have been making lots of perceived progress in my trading style (unfortunately learning from my mistakes instead of just learning from books).

I find myself focusing on
1.) Where a stock will not go (instead of where I think it will go).
2.) What is the total possible loss on my trade.
3.) How do I find the worst traders and bet against them.

I think my days of holding common stock over night may be done with.

I think my days of collecting premium on options positions are just beginning.


And to follow that I have another spread trade that I started today (after netting more than 1% per day returns on the last two spreads I put on the blog)

I bought the July 53 SDS put for $0.35
I sold half as many July 54 SDS puts for $0.50

It's a net debit of $0.20 per 2 contracts as of now. I am planning on selling another round of the 54 puts around $0.75 making the position a net credit of $0.55 per 2 contracts. I am free and clear from there as long as SDS closes above $54 next week. More than a %50 return.

I know this trade is a lot harder to understand than me buying a lot of puts on LEH or LEN. I also think it's a lot better and worth understanding.

good day,
Ryan