It doesn’t take a lot of dollars to hedge those longer contracts.
I’ve noticed this, and it makes for a much more agile account with the same amount of funding!
I love the idea of keeping the focus of the trade further out, even as you’re trading closer dates on scalps as well. I’ve been watching what you’ve been doing, and it honestly was what made me so comfortable just switching tactics so drastically. This is a lot more like how I manage my retirement accounts, and it really isn’t a bad idea to do that here, but with maybe more aggressive positions (as you’ve modeled).
I’ll probably need to start adding some SPX intraday scalping back in, as it’s too hard to find parallel runners on the fly when SPY starts moving hard. The cold-turkey was always going to be a temporary thing to help me adjust to not relying on it so much.
I mean I don’t think that’s an issue with the position system at all. It’s more so the person making the callouts. With discord threads you should have a bit of blurb on why you took the trade. I usually did that sort of thing. If you reference the last bit AEHR DD I would update the thread with news that came out and kinda make it a thread for that particular “play” even if it spanned multiple trades. It’s just a bit more intensive on the person making the callouts and all that. As for the mechanics of how to go about managing those longer plays House is leading the direction I was going. Without getting into selling contracts you’re somewhat limited with single leg option trades. When I get back to full time I’ll probably be doing a mixture of what’s being referenced here with some contract selling as well. For example: buying a call on a trade I’m long term bullish on and if I foresee or am witnessing a movement in the short term going against me selling that same call or an earlier one against my original one to essentially “lock” the profits of that trade for that moment. Then evaluating if it’s worth it to either buy the call back after it drops in value (so closing the short call) or if it’s worth it to just open a new long call position (buy to open) at a different strike price or exp date. Holi was doing this for a bit and there’s some mechanics I know I’ll have to look into but I like the way of kinda locking in some profits but not fully exiting the trade.
Of course! Anytime, I have been spending a lot of my free time trying to understand these strategies and have come across a few good resources you may find interesting starting with this podcast I have listened to a handful of times. Content from Corey Hoffstien (CIO- Newfound research) is always great and Jason Buck (CIO- Mutiny Funds) dives into this long/short strategies origin, how Ray Dalio uses it and how he uses it today with option strategies. If you end up watching I would love to hear your thoughts!
I’d still like to see a clearer delineation of shorter duration vs longer duration trades, and have the charts that show everyone’s positions be shown, even if they were 3 months ago. Not sure how that would work, or if it even makes sense to do that, but it’d give better context what what people are saying/doing in their callouts. This also plays nicer with your example as the buy back might be days later…
I’ll check it out later tonight and will try to collect my thoughts on it and share them here. Always appreciate informed opinions on better/smarter ways to trade, and even if I don’t end up implementing them, those perspectives usually add something to my own. Thanks again!
Bruh, how did I not hear about this podcast before now?!?
Absolutely fantastic and riveting (for trading nerds) hour. I’m possibly more into this than I normally would be just because it was talking about exactly what I’ve been trying to address myself right now, but honestly it’s amazing info. I made some notes regarding some of the thoughts brought up and how it’d be implemented with my own trading style, but I’m probably going to have to listen to this again once I let this sink in as I’m certain there was more detail that’d help me further refine my own way to manage my portfolio.
Really appreciate you sharing this with me and everyone else and I hope others get the hype and give this the full listen. It’d be wonderful for us to actually take some time at our weekly discussions to discuss some of these ideas with multiple people who have spent some time thinking about this in-depth beforehand.
I had a similar reaction the first time I watched it! Super stoked you enjoyed it. Here is another great one here I know you will enjoy, somewhat repetitive but I think he goes into a little bit more depth. I dont know who the hosts are but they have some great people on their show. Michael Green was on recently and runs a similar strategy. Show Us Your Portfolio: Jason Buck - YouTube Maybe you to build out the bull side, I’ll work on the bear side, and <@373882275429089290> can dictate rebalancing lol Jk! Or am I? <:Smirk:975239779400683520>
I owe myself to write something in my journal about yesterday and today while it’s still fresh, but after I’ve had some time to process.
So, looking back at my post just 3 days ago, I stayed committed to my thesis even when it was pulling me down and looked like maybe it wasn’t going to work out the way I’d expected. I didn’t double down as much as I’d done in the past, which was absolutely smart. I know now that a lot of the reason I did that level of averaging was for the mental/emotional high it gives to see your positions green at the end of the day. But it’s not always (usually) the smartest thing to do as it exposes you to much more risk. I had good entries on positions I believed in and had time to wait for it to work out. That was enough. This is likely something I’ll continue to struggle with as I try to be a much better trader and work out my own issues that have held me back in the past, but I love that I can see the progress.
I don’t want to talk about profits, but about approach. The current approach we have to these plays is a winner. We may get some wrong (likely) but we are constantly making that happen less often and for smaller losses.
The new discord threads along with the position system have been a godsend in helping me to stay on target. All of us reinforcing what is working and shooting down what is not or finished and doing it in a way that keeps us all accountable to each other is what will help us all rise together. There will be many more opportunities that present themselves. We’ve just barely scratched the surface and already, for a lot of us, it’s been the most profitable trading period we’ve had. I just want to thank @Conqueror again for taking the time and energy to make this a reality. Without that work, what we’re doing now wouldn’t be possible.
As discussed earlier here with @Navi and @TheHouse, I plan to work out better hedge plays to balance out my way of trading. I’ve been taking notes and working out what that will look like, but am not there yet. I need to get there soon, as these individual runs don’t last forever.
As I stated in the AI thread, I’ve moved each position to longer dated calls. The thesis is a long term play, and I’m going to play it that way. Continue to take profit on a daily basis, and will get back in to positions on days/weeks where things take a breather/reverse. I’ll still play 0dte SPX calls when it’s warranted (and I have the time/energy to focus on it), but it’s no longer the focus. I suspect that in the end, it’ll end up making all of my plays more profitable as well just because I’ll be more picky about when I’m playing and why. Either way, I expect lots more fun for all of us!
I apologize that I haven’t been around to mix it up with all y’all of late. I’m sure you’re all doing just fine without me, but I’m just going to be keeping some longer term plays out there and everything else is getting closed this week. I’ve got a mix of work busyness and lots of family vacations occupying me and I want to keep my plays reflecting my involvement. My sentiment hasn’t changed, I still think we’re just getting started with a lot of these that I’m closing. I just want to be more responsible in my trades as I shift from micromanaging positions to long holds, so September or later for now is all I’ll be doing until the summer shenanigans lighten up.
