FIRE SAMURAI

  I am currently using Linear Regression Channels in ThinkOrSwim (TOS) to try to time when I should enter my options trades. I have that added into my TOS chart and I am now trying to improve myself using this tool. Linear Regression Channels are a great way to identify potential key levels of future price action by graphing the normal distribution of a trend.  Two points on a trend are chosen, generally at the beginning of the trend and the end of the trend. W hen the two points on the chart are chosen, the normal distribution of the dataset is calculated between the two chosen points and displayed in the form of a linear regression channel. The center line in this channel is the Linear Regression Line or Mean, and the upper and lower lines are the Upper and Lower standard deviations from the mean as set in the tool’s settings (default settings are +2 and -2 standard deviations from the mean). I usually uuse +1,-1 (50) and +2, +2 (100) in TOS.  The correlation of this li...

As I was watching an Options Video on Tastytrade's website, I discovered that IV Percentile on ThinkorSwim is really the same as IV Rank on tastytrade. What is IV Rank and IV Percentile? You can check out the video here from tastytrade: https://www.tastytrade.com/shows/the-skinny-on-options-data-science/episodes/iv-rank-and-iv-percentile-w-thinkscript-11-12-2015 I use IV Rank to determine when to sell and when to sell Options. For instance: IV Rank < 50%  Action To Take : Buy Option Why? : Option Premium Cheaper, so we Buy Low and Sell High IV Rank > 50% Action To Take :  Sell Option Why? : Option Premium Expensive, so we Sell High and Buy Back Low Since on ThinkOrSwim, the IVPercentile is the same as IVRank you can find the IV Percentile in the Trade tab under Today's Options Statistics : This is just a general rule of thumb but if the IV Rank falls within the above range, the probability of success to make money is higher. I use this determine when to sell and wh...

These are my top 15 rules to be a successful trader. I am writing this to remind myself that I must stick to my trading plan  by following these 15 rules I've set. Having these rules is important to be a successful trader as it can help me to improve on my Options Trading which in return will allow me to generate monthly income consistently. I will also be sharing some my own personal experiences and the mistakes I made by not following my own trading plan and trading rules. RULE #1 -  BE DISCIPLINED This is to me the hardest rule to follow so I place it at number one - DISCIPLINE . This is the most important rule and without having a good discipline we will be forced to frequently react to the vagary of the market, rather than being someone be in control and respond in an appropriate manner. Having the discipline to see through our trading plan is very important no matter how difficult things get for the trades we take.  If we can follow the trading plan for each and...

I posted an article about collecting premiums using the  Sell Put Spread Strategy on SPY . Click here  to learn more about that strategy. The Strategy will require me to create 2 separate orders after the entering the trade. The first Order is a Stop Limit Order to take profit  (75%) and another order to Cut Loss (-150%). Profit Target : 75% Stop Loss : -150% One way to place the 2 orders above is to create an Advanced Order called OCO (One-Cancels-the-Other Order). So if any one of the 2 Orders gets triggered, it will Cancel the other Order. Here is a guide how to create an OCO order in ThinkOrSwim for the above Put Spread Strategy : After your order is filled, go ahead and create a normal Closing Order for your vertical spread You will see a Close Limit Order such as this. Click on Advanced Order Choose OCO With OCO picked, Right click on the first Stop Limit order → Create duplicate order .  You will see the second Order here (a duplicate of the first order) ...

  I was introduced into the world of Options Trading when I joined a Value Investing Course by a stock investing guru named  Sean Seah . One was the strategies I learned from this course is called VIOS (Value Investing Option Strategy). This strategy aims to consistently make money by selling naked put options to collect premiums on fundamentally good stocks with minimal risk (worst case scenario you are forced to buy that stock if your option is exercised). Anyway I won't be talking too much about the Fundamentals of Options as you can find many free videos of these on YouTube and paid courses on Udemy. I have been selling mostly naked put options to collect premium for 4 years using the ThinkOrSwim platform and I was collecting good premiums making some small profit. One strategy I used was to keep rolling my option if it went In-The-Money (ITM) on expiration day . However I discovered that  there is a huge risk involved with this Naked Selling Option Strategy even when...