σ The Ultimate Trading Mind Map σ

➠ 3-Part Series

➠ Part 3

With all the recent market action, we took a little hiatus from this series

But we’re back w/our 3rd & final installment.

We touched on Idea Generation, then Risk Management.

Now, on to Trade Implementation & Psychology☟


☞ If you haven’t read The Ultimate Trading Mind Map Parts 1 & 2, make sure you go back and do so. Then come back here. ☜


σ Delta 1

You can go straight to expressing the trade via position that replicates the underlying 1:1

Or simply buy the underlying

This is the simplest thing to do

This is for longer-term/asset alloc style

σ Diversification

Instead of going long or short one asset, you can split the eggs into different baskets

This helps improve the risk-adjusted return & further mitigate losses


• You have directional view that equities will be going down in the near term

• You short a bit of $NDX & #DAX

• The former gets stopped out, the latter makes you money

• One offsets the other

σ Portfolio Construction

This is about giving yourself limits

You could say no more than X% of your equity is allowed @ risk in any one asset class

Such as, your metals/miners allocation can not be higher than 20% to control your risk

If trying to minimize vols, diversification is key

But this all depends on the goals of your portfolio

Regardless, it’s pivotal to have a rules-based approach to asset class diversification

σ Options Strategies

With options, you inherently have a strong risk/reward

The asymmetric profile (aka convexity) in options is unrivaled

The problem is that most people need to learn what options are & how to use them properly…


• You maxed out your delta 1 allocation to #Silver

• But still fancy more exposure to the #preciousmetal

• You could add a small % into $SLV options w/the potential to turn into a big winner on an explosive move

• This is your kicker – your extra skin in the game

σ A few of these well-thought-out “lottery tickets” can really turbo-charge a portfolio performance

Essentially making outsized returns out of a small debit

And the other good thing about using options this way is the ease of managing your position if it, say, triples in value

σ You roll the strike up, extract the initial premium, & now have a free ride to play a further ride up if you so choose

Efficient risk management without much overthinking

Allowing you to maintain your risk/reward and run your winners

Now, on to the final, but every critical area of…


σ You must be in tune with your emotions

One way to do this more effectively is via a rules-based approach

Keeping track of trades and backtesting ideas is also a great way to gain confidence

This kind of approach can help you find an edge as long as you stay honest with yourself

σ The truth is that most of us don’t have that great an edge in the market

Some people are more good at tactical trades, feeling when the market may be overdone one way or another…

While others, like myself, have an edge that lies in the implementation of ‘selective’ trades

The ability to seek out, for the most part, asymmetrical risk-reward ideas

This is why I utilize and love #options so much!

And why…


I want to help you learn how to use options overlayed on top of macro to mitigate your risk and maximize your returns!

➠ You can even do this completely free right now by following the link in my Twitter Bio and then entering code RV2023 at checkout


➠ Want to ask me something about The Ultimate Trading Mind Map?

➠ Or maybe you want to discuss a trade idea?


➠ Come ask me during our OI Live on Twitter Spaces this Thursday

@ManLikeDebs will be our guest, so you know we’ll have plenty of trades to discuss!

Options Insight Live

See you there!


Sign Up For Your Options Trading Webinar With Imran