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. 

 

Every traders worse nightmare is not taking what the market gives them whether they are up 100% or even 20%. The constant question we ask ourselves is ‘Should I take profit here?’ Answer is Hell yeah! Then followed up with the what if it goes higher? Then you can tell yourself this, nothing is guaranteed it’s best if I take it rather then it going against me. As I always say the market is always subject to change.

So with that being said this will be an open educational challenge. The challenge is to act when up not to think about what ifs and take what the market gives you.

Challenge: see profit take profit

Will be posting a spreadsheet to coincide with all trades as well from close to open.

Day 1.

End of day balance with positions

Day 2:

Day 3:

    CLICK HERE TO WATCH ALL VIDEOS 

  CLICK HERE TO WATCH ALL 2017/28 VIDEOS 

 

Evening Traders and Followers,

Hopefully what you read here is as informational and helpful as can be. Im no genius im no expert but I AM NINJA! This week was interesting. From our usual Sunday night game plan where I share my WL for the week and our opening play for Monday morning. Everything actually went well Monday but of course from starting green to closing red………..Here we go!

The Intro: Monday 4/30

$ABBV was trade of the week to start. Game lan was play Calls at open Monday on any pullback as we did. They ran up 100% by lunch and closed red by close. No surprise to a Monday start.

Tuesday 5/1:

We wake up to some great news of of Tender Offer allowing purchase of shares in range from 99-114. We gap up +$5 putting our calls from red to bright green or +700%

Wednesday – Thursday 5/2-5/3:

The Chop returns and of course taking some positions such as $DATA $SQ $BZUN $LLY and $SPY Puts… This is called the bored stage. When we should just be trading 1-2 trades. Did these pay? Of course at one point but some trades we get greedy and stubborn by averaging down. OH I know I did.

 

Friday: MAY THE 4TH BE WITH YOU 5/4:

Thursday night I was up while my team was sleep and posting charts in the room pure usual. $PG and $AAPL was what we were going to play at open that was that. $PG 71.5c and $APPL $180C did we play? DONT ASK lol! But on a goodnote if we did $PG paid 500% and $APPLE well thanks Warren paid 2,000%.

So what did we do? Well I said id stay away from $SPX but I have an addiction and LOVE and HATE with her. Yes he’s a She in my world because she can be a B*TCH!.

OK OK back to story… Game plan changed totally 360º! We moved to $SPX.

Bought to open Puts small and then Added to our 2650C that we purchased Thursday for total of 50Cons. at an avg of .61. It started at 2.25. When I go above doubling down its a sure trade but nothing is this market is for sure. So now we are hedged. Puts and calls literally were priced the same until I saw where we opened today. (Night before I told team either we gap over and run or we open red pullback then charge. Charge was the case)

We sold Puts for a loss somebody had to die and puts did just that. (another sign to my madness when I drop one side of the hedge im leaning towards the side im holding. Obvious to most I know but it works.

Strategy in this case was always sell 10% or 75%  of position above 100% . In this case seeing the strength and my levels of confirmation below was my sell strategy

 

The goal is to always have 1 bullet left just incase the impossible becomes more impossible. $SPX trade today wiped out all losses for the past 5 weeks. Best part about options id held all 50cons until 10.00 as planned the trade would’ve been huge because once I see first part I break it up depending on 15 and 30 min keltner channels.

 

Have a great weekend. Ill go back to adding spread sheet again soon. Very time consuming but I guess its effective it shows where I went wrong.

 

What are options? (Credit: Investopedia)

Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does.

When, Where and How do i start?

Most people will do the first thing that comes to mind which is jump right in and fund their account all because they see big gains on twitter.. STOP RIGHT THERE!!! 

When? Its up to you! If your looking to expand different strategies this is a good one to learn.

Where? and How  Start by paper trading with fake money to get an idea of how things work. Thinkorwim offers a simulator. Below is the link. Try it out for a few weeks even to a month.

• THINKORSWIM 

How? How much does one need to start? The amount is up to you. Its what you are comfortable willing to risk. I personally feel start small and build it. If you have a 10k account start with trades in range between $50-$150 this way you are managing risk.

Probability of profit vs. probability of loss ( Credit: Understanding Risk Schwabs)

For traders who define risk as the probability of profit vs. probability of loss, the amount at risk is generally a lesser consideration, because a loss is not anticipated. This type of trader will typically focus on strategies in which the probability of profit is much higher than the probability of loss. Assuming the trader’s forecast on the underlying security is ultimately correct, a single use of any of the following strategies would generally be considered low risk:

• Any buy/write strategy
• A deep in-the-money long call
• A deep in-the-money long put
• A far out-of-the-money naked call
• A far out-of-the-money naked put (or cash secured)

 

If your familiar with my past challenges this is basically all summed up as one. First challenge ever I turned $120/$200 into $48k in two weeks trading only “OPTIONS”. Next challenge was $300 into $7k until AT&T no signal cost me big time… now this time I will try to do it again.

Starting with only $500 goal is to compound gains day after day. Until I hit the goal of $50k. Once I get there I will then either work on a newer challenge turning that amount into another amount. Also follow me on TWITTER @TRADEWITHNINJA

Description of Trade:

Using only $500 capital

Broker– Etrade(for executions) ThinkOrSwim (for charts and UI)

Account Type: Cash Account( which allows me to trade using the cash available. in which goes around the PDT rule).

Goal of challenge:

– Wire out initial starting capital($500) when over $5k

– keep position size small unless comfortable with size and take profits when present

– stay close to “ITM” In the Money as possible

– less lottos until account is manageable

– hedge when possible but keep focus on gut side

– #SeeProfitTakeProfit

– max 2 trades a day

Hope my Journey opens up the minds of those who think this is impossible. Below will be the account balance and trades. Stay Tuned!

Challenge Initiated 

DAY 1: 4/9

BTO $SPX 2665c 7 contracts @ .392= $280

STC $SPX 2665c 5cons @1.35 =$675

STC $SPX 2665c 2cons @.70 =$140

BTO $SPX 2555p 2 contracts @ .50= $100(-100)

BTO $SPX 2615p 3 contracts @ .2833= $88

STC $SPX 2665c 3 contracts @ .1.20= $360

DAY 2: 4/10

BTO $SPX 2570p 2cons @2.95 =$600

STC $SPX 2570p 2cons @1.35 =$270(-330)

BTO $COP 63c 20cons @.28 = $560

BTO $STX 63c 3cons @.48= $144

BTO $SPX 2750c 7cons @.05= $35

Thursday last day of trading week and heres the break down.. lottos aren’t included they weren’t no more than $300 just pennies trying to turn them into dollars..

3/29 Trades BTO= Bought to open STO= sold to close

Opened 9:31am

BTO $SPX 2620c 2 cons @9.20/9.70.   = $1890

STC $SPX 2620c 2 cons @7.00.            =$1400( -490)

BTO $SPX 2630c 2 cons @5.30/5.90    =$1,120

STC $SPX 2630c 2 cons @3.30             =$660(-460)

Closed 9:53am

Total : -950

BTO $SPX 2630c 4con @3.50              =$1400

STC $SPX 2630c 1con @16.10              =$1610(+210)

STC $SPX 2630c 2con @27.42             =+$5,484

STC $SPX 2630c 1con @20.75             =+$2075

Total Profit/Gain = +$7,769

BTO $SPX 2640c 4con@ 3.90              =$1560

STC $SPX 2640c 2con @7.40              =$1480(+80)

BTO $SPX 2640c 2con @4.00              =$800

BTO $SPX 2640c 6con @2.83             =$1698

Total Average of $SPX 2640c 10cons 3.00.       =$3,000

STC $SPX 2640c 5cons @6.50            =$3,250(+250)

STC $SPX 2640c 1con  @10.85            =$1,085

STC $SPX 2640c 2con  @11.00            =$2,200

STC $SPX 2640c 2con @7.60              =$1,520

Total Profit/Gain = +$5,055

Total Daily Gain= +12,824

---

4/4/18 Trades BTO= Bought to open STO= sold to close

BTO $SPX 2600c 4 cons @6.19            =$2,476

STC $SPX 2600c 1 cons @27.54             =$2,754(+278)

STC $SPX 2600c 1 cons @30             =+(3,000

STC $SPX 2600c 1 cons @32             =+(3,200)

STC $SPX 2600c 1 cons @40.85        =+(4,085)

*Hedge* BTO $SPX 2520p 2 cons @1.00      =$200

STC $SPX 2520p 2cons @.33                   =$66(-134)

*Lotto* BTO $SPX 2650c  50cons @ .32       =$1750

STC $SPX 2650c  10cons @.60                      =$600

STC $SPX 2650c 20cons @.80                =$1,600(+450)

STC $SPX 2650c 20cons @ 1.00       =(+2,000)

BTO $SPX 2620c  15cons @ 3.90            =$5,850

STC $SPX 2600c 5 cons @11.20       =$5,600

STC $SPX 2620c 5 cons @18.00       =$9,000(+8,700)

STC $SPX 2620c 4 cons @22.40      =(+8,960)

Total Daily Gain= +30,539

This is a self challenge all members follow knowing the risk. All and all with this challenge we only trade Monday Wednesday and Friday. For this reason $SPX has same day expiry.(click here to read more on option Expiration here). We dont trade this challenge on Tuesdays or Thursdays. Yes, we trade other tickers as well but this focus is to work our way up.

Monday March 5th. Day 1.

Bought to open SPX 2720C 2 cons @.25=$50

Sold to close SPX 2720C 1 cons @2.50=$250

Bought to open SPX 2730C 2 cons @.95=$190

Bought to open SPX 2730C 2 cons @.45

Bought to open SPX 2730C 6 cons @.25

Sold to close 1 cons @4.00=$400

All 10 contracts of SPX 2730C expired worthless

Update:

3:25pm. Starbucks wifi went out. Couldn’t fallback on my AT&T Data because the towers in the area was down. 

3:50pm. I get home and connected to wifi but premiums are now below .20

It was crucial for me because my lady was driving trying to rush to get me home but due to college campus delayed time even more.

Its happens still closed +120.

Account Peaked.(3/5/18)

Account Closed.(3/5/18)

---

Tuesday March 6th. Day 2.

Bought to open SPX 2745C 1 con @3.60=$360

Today I broke the most important rule of all. I traded on non expiration days. I watched this current trade play out from highs to lows at 1.35 now sitting at 4.00 I never entered but I kept walking away . Teaching oneself to be patient is key to becoming a profitable trader. Sometimes we break rules for good reasons just as we would for bad reasons.

Update:

4:10pm. /ES DROPS -32pts due to Cohn resigning

---

Wednesday March 7th. Day 3. 

---

Friday March 9th. Day 1. 

Its a new day and based off these itchy hands tomorrow should be very profitable. Ill be focused per usual and traveling but no distractions. Stay tuned I will update each position right after I close them! Good Luck to all.

Bought to open SPX 2780C 4 con @.50=$200

Bought to open SPX 2785C 5cons @.40=$200

Bought to open SPX 2790c 2cons @.30=$60

Sold to close SPX 2780C 4 con @5.10=$2,000

Sold to close SPX 2785C 5cons @1.25= $625

---

Monday March 12th. Day 2

Bought to open SPX 2805c

Bought to open SPX 2810c

Bought to open SPX 2815c

ERRORS TO MY MADNESS

Let’s just say 2 challenge errors have cost me and as a trader I’m just going to blame myself to move on. But on a strong positive note that’s TWICE I peaked over $3k starting with $500.

It’s like support and resistance. My account double tapped resistance then retraced. Next attempt is a breakout. So -1k total on two challenge attempts.

Today’s Error: instead of buying 1 as I do to test it was 10 but I didn’t notice until about 30mins later. Once I buy I close the app and just watch the chart. View trades up top.

On another Note, I will be the first options trader to turn a small amount $500 and below into $100k. Every day I remain consistent and determined. Thanks for all the support TEAM and followers.

What are the 3 Ladies?

The 3 ladies are my Keltner Channel with the 14sma and 30sma.

Why do you chose these and not what everyone or experts use?

One because im not everyone. Two “It’s what works for me” just simple.

Is he scanner win rate really 80%?

To be honest I just made that up it could be 50 or even 120% but based off past performance its been effective.

Can you share your settings?

That I cannot. If I did then Ninja won’t be needed 🙂

 

 

March 5th 2018(1st week)

 

$VAR( 120.46) Closed 3/9 126.55 +6.09

1. 

$ANET(271.43) Closed 3/9 295.15 +23.72

$ANNS(162.63) Closed 3/9 171.18 +8.55

$LGND(159.01)  Closed 3/9 176.05 +17.04