Trading Process
Posts about decision frameworks, mindset, education, and what makes a good trader vs a good trade.
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The premium is the stop
I generally don't use stop losses on long option positions.
Why 0DTE volumes went through the roof
I think a lot of people arrived at 0DTE from the same doorway I did.
Follow-up on Saturday's SMH note
SMH broke out on Monday
The vol level picks the shape
Quick one on structure selection.
If you've got a small account, don't hedge it
Something I'd say more often if I got asked more often.
Grinding into new highs on falling vol (AAPL case study)
You don't need GEX data
You don't actually need a GEX data feed to know you're probably in a long-gamma market.
Trust the tape, not the number
If dealers were really short $10 billion of gamma here, a bad day in the S&P would be down 1.5% or more.
An honest one from Friday
An honest one today.
One of my Delta framework setups
Live example from this week. XLI has pulled back, and the question is whether to lean bullish into the pullback or stay out.
Why I still pick VIX over SPX puts here
Someone asked me this week whether they should hedge a long-only book with SPX put flies or with VIX.
Four things I need to see before buying a correction
There are four things I want to see before I'll put money to work into a correction.
The one option flow I would actually pay attention to
Yesterday I sent the Jason Ruschel interview. This is a specific piece of it worth pulling out on its own.
The trader who learned VIX from GFC floor blogs
Sat down this week with Jason Ruschel from Three Peaks Trading.
Before I add to a trade, I put a number on the worst case
Before I add to a trade, I work out how much room the thing has left to fall.
Protective puts are expensive optionality
Protective puts are the most expensive way to hedge a portfolio. That cost is often paid for nothing.
Long VIX as a permanent book with two engines
Long VIX works better as a permanent book with two engines running at once
Why single-stock names dump even on a beat
A lot of options traders learn how dealer positioning works on the index and carry the same logic into single stocks.
Single stock upside is priced too cheaply this season
Single stock upside is being priced too cheaply into these prints.
What options data can and can't tell you
People expect too much from options data in the wrong moments.