Tonight’s Host: Tyler Craig

Host Bio: Tyler Craig is a professional in the world of technical analysis. As a member of the Market Technicians Association and a Chartered Market Technician (CMT), he brings an insightful perspective to his commentary. Over the past decade he has educated thousands of traders through his work with Elite Legacy Education. For a taste of his witty banter and rare ability to demystify complex financial concepts check out his current home, Tales of a Technician.

Show Notes: 

– THE BEGINNING!

Agenda:

1. On-boarding

A. If you have issues accessing anything, email team@tackletrading.com

2. 3 biggest mistakes

A. Improper position sizing: Betting too much!

i. Side affect: Can’t survive a losing streak. Not enough financial capital OR emotional capital

B. Obsession with the Short Run

i. Don’t get caught up in a losing streak. The numbers will play out if you keep playing.

i. Expect to win 8 of 10 in the long run.

ii. Just lost 3 in a row! Keep playing! And eventually the numbers will play out.

C. Inconsistency

i. Start, then stop, skip a couple months.

3. September Trade

We looked at 1520/1530 bear call and 1280/1270 bull put. We’ll see if those are still viable strikes come 62 days to expiry.

4. Review the rules of the system

1. Enter a RUT Iron Condor 62 days to expiration

2. Sell a $10-wide OTM bull put and OTM bear call spread for 50 cents apiece (total credit $1.00 or more)

a. Max Reward $1.00 per share ($100 per condor)

b. Max Risk $9.00 per share ($900 per condor)

c. Cost $900 per condor

d. Typical losing month given our exit rules is $350

3. Short option delta should be < 0.10. Typically there 0.08 or 0.07 deltas

4. Profit Target

A. Ride to expiration and let the condor expire worthless

B. Buyback the winning side ASAP at 5 or 10 cents.

5. Stop Loss

A. Exit the losing side when the short strike is hit.

5. The performance of the system over the last year

Next time!

Next month’s session: Aug 16^th 8:30 PM EST

 

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