1. Yes, I use alerts.  I set them 1/2 of the ATR form the strike I sell.

2. I think it’s smart to use your trading account and your IRA.

3. I’d recommend to stay employed until you’re certain you’re ready. Usually a few years of consistency is a good.

4. Great question on theta. Yes, time can benefit your position, but only for positive theta strategies such as naked puts, covered calls, bull puts, bear calls, and iron condors. You can start a trade down if your fill price is below the mid point price.

The risk graph on the bull put is the combination of the short put and long put.  However, think about where we’re buying the put: its at a lower strike, which is why the bottom left of the graph is simply a flat line.

Net credits for iron condors should be about 15% or more for .10 delta short leg iron condors.  If you go up to 20 deltas, you would need 30% net credit.

Tim

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