1) Did you go about your “normal” strategy or did you have a pre-conceived idea that things were going to go up and go “heavier”? Or was it more of a “Gut feeling” or was it a chart thing for LLY? I noticed in your twitter live stream you said that DKS was an indicator to go long. Did that motivate you to go heavier on trades or is that normal position size for you?
Its was actually a mixed off all thee above in regards to “normal” strategy, Gut Feeling plus based on passed times we played these positions showed strength in a weak/ down market.
The best strategy ive noticed was going closer to ITM when price is no more than .01-.50 cents away from being ITM or hitting our strikes. Average trade size for me varies as you know if I added 2-3 times my gut or thoughts are being confirmed into the trade and I size up.(Perfect example HON ANTM LLY)
Did DKS motivate me to go heavier? To be honest we bought literally enough time and were only .20cents from ITM by Monday we were .20+ ITM and profiting which if I see pullback near entry ill double down. This is where I usually size. CORE and HIGHPROB trades I size 1-2k but recommend 250-500 or even smaller.
2) What did you see that made you double-down on LLY, other trades such as DFS went down. Why did you double down and go heavy on LLY, can you elaborate the thought process? I saw in the #thetradingroom you lost 2k on FDX too so do you normally go heavier on most positions?
LLY as you know we tailed this for months and what convinced me was Thursdays Daily wick hammer candle. I said if it broke down below 104.50 and closed its a short but they pushed it back above 105 so my long bias stood. Not to mention we got an upgrade by MS and it opened down right at support causing me to make it a lotto with I took 100cons then added on last pullback causing the lotto to become now a regular core position because of my size. Also I noticed that we weren’t far off from 52wk high so this had a strong chance of a breakout.
Now with FDX that Lotto was tough because I know how that stock can move so 250c looked good but ended up going against me so down $2k. So instead of revenge trading which I still did but in a more calm matter. I sat back waited for it to dip below 245 to try the 245C for stock to bottom out. Being patient I relott’d and went back in when I saw first green outside candle. What else I noticed was $SPY I saw reversal happening and usually when spy jumps chain reaction so I sized more. This was my thought process and execution throughout the trade
3) Can you please tell me more about rolling profits into positions? How do you manage THE NEXT position size if your up 5, lets say 10k and now have a ton more cash? Do you scale up your NEXT entrees? Do you have a method that you typically follow? I made 3.2k last week on HON but transferred it out, and started with 1k account this week again and kept position sizes the same. Do you increase position sizes as you win more? How do you know your not being greedy? Do you typically think of each week, or lets say Fri as a day you transfer out and re-start Monday?
The more cash you have the better but also the worse because it triggers you to size and throw money around. So heres what works for me. Perfect example $ANTM.
Playing ANTM 270C ITM I was able to play size(ex: 2-10K) as im familiar with its daily swings and price action. So Weds into Thursday swing closing out full position after being up 3.5x on 5k. I saw that they had ex-divy which in most cases are bearish but can be bullish.(this is why I closed trade out in full and planned on re entry Friday) My goal was to see how far in the first 10mins they pull it back to reload 270c and I did just that. (Only issue etrade doesnt let you market order first 10-15mins or else my alert and fill would’ve been between .80-1.09 in stead off 1..2/1.55 allowing me to size half of profits into this trade) thats when I took the position and it actually worked out.
So to answer in short if I played with 5k and turned that into 20k im using 50% or half of that 20k to buy ITM if trend and levels hold. But again my risk is much different than many. Some cant stomach the price swings me I watch levels and wait.
If your account is up over 200-500% on the week, its best to transfer out 75% and start again with the same amount you originally started with.
Trade With Ninja 