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Tom Preston Says Every Options Trade Comes Down to Theta and Delta
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Chapters7 segments · tap to seek
ticker lesson
Breakdown
0:00lesson
Super bear vs regular put spread
- Super bear inverse of super bull
- Short call spread offsets put spread cost
- Max risk 516-518
- Credit vs debit for risk management
1:35lesson
Theta and delta metrics for trades
- Theta 0.57 per day
- Delta -18
- Four legs trade
- Super bear vs regular put spread
3:34lesson
Risk defined strategies and compliance
- Low risk is subjective
- Risk defined strategies like put spreads
- Compliance reminders
- Start with low risk trades
5:19lesson
Risk assessment and personal factors
- Risk depends on age and income
- Start with single point spreads
- Utility curves for risk return
- Mechanical profit taking
7:11lesson
Rolling positions at 21 DTE
- Roll to next month if IR is high
- Gamma risk past 21 DTE
- Take profit at 10-25%
- Mechanical profit taking habit
9:04lesson
Gamma risk and profit targets
- Gamma spikes in second half of trade
- Take profit at 50% target
- Avoid gaps on expiration
- Roll to next month
10:52lesson
Market environments and trade rules
- Trade rules depend on environment
- Volatility risk increases past 50% profit
- Roll to next month if not hit 50%
- Back testing tools available
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