ALLE: Options Bookie Guide

NYSE:ALLE   Allegion plc
My options selecting process for big trades have evolved during my time in the markets. I am trying to map out how I actually think about going in and out of a trade for my own record. If it makes any sense to the readers, kudos.

*This is not how I do lotos, just the serious swings. Lotos = Oh there is a breakout, there is a 30% chance of profit, 60% chance of loss, 10% chance of breaking even, let's gamble, muhahaha!


Psychology going in:
1.My max risk is X amount.
2.Potential Reward is X amount.
3.Anything in between is fine.
4.Zero Expectation (Already prepared to lose everything I go in with)
(look at the chart for sample R/R analysis)

1.Visualize the future
2.Find a proper entry ( No need to be perfect, it just has to be good enough cuz your planning to hold it for a while)
3.Statistically estimate the price and time. Using a simple slope from the historical data is good enough.
4.Add some time more than what you have initially estimated.
5.Use a strike around the breakout level no matter the price of the contract.
6. Worry, Think, Plan, Watch, Everything in this phase cuz later, it's no use.

In trade:
1. You already bought the contracts.
2. You have already placed the sell orders.
3. You already know the min-max expectations.
1.2.3. means you have nothing more to do than to HOLD the contracts, let the market do everything for you. (It's funny cuz most of my historical epic losses occurred just cuz I didn't HOLD!)
4. Enjoy.

If you like to share your thought process please share it in the comment section below. I'd love to hear from fellow traders.


Sigma Trader

http://wavervanir.com/ <--- Comming Soon!

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