Penny Increment Options watchlist on TDA

 

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Recently, at local option gathering group, we were discussing using TDA scan to identify stocks to play options. A friend ask for me for any good watchlist. I recommended them to use penny increment options from TDA platform that provide optimal price and  liquidity for option.

 

 

 

Tastyworks – a day of FREE trades!

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Beside low commission of $1 and no closing fee, they also provide free trade on 23 Aug 2017.

Can signup an new account here tastyworks.com

Oversea or non-resident of US, when opening an account chose Margin and non-residential. The paperworks is quite straight, transfer of fund instruction is clear within 5 days the fund will be deposited and the help desk people are really helpful and most willing to answer any questions.

Do note that Tastyworks is an oversea broker and not regulated by MAS. 

 

New ebook : Trade Option With An Edge

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http://www.tradeoptionswithanedge.com/

The author study Tastytrade style of option and some of the chapters seem interesting like Chapter 10 on Evaluate Candidate Strategies.

Beside POP, BE, ROC etc which is quite common,  the author introduce Theta Efficiency which I have not considered previously in all my option trades. I decide to buy the ebook online at USD$3.99 and it come with an free excel software which calculate all these ratio automatically. However, the excel is so rich that I am still trying to figure how to use it effectively.

 

 

Earning Play

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A good friend wanted to know what I do before market open. I told him that I usually plan my trades before market open. He asked how do I plan and can give him some specific example.

Example : This period is earning season and I will plan for earning play. I would list down all the after-market and before-market earning and list down all the counters. I prefer to do post-earning trades or when the earning result is announced. The stock will have a general direction where it is heading, I would put in my option trades and within 5 days I will be out of the trades.

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Setup

  1. List down those stocks earning After Market closing and Before Market opening result
  2. Observe the earning result to get a sense of general direction
  3. When market open,  note the price direction (spot trend or candle signals)

Entry

  1. Enter when there is confirmation
  2. Chose weekly option or DTE within a week (at most two weeks)

Rationale

  1. Probability of win is high (follow trend strategy)
  2. Premium may be low but time decay is fast
  3. Effective use of margin as every week the margin is replenish

 

I caution my friend that following other people option method may or may not suit his character or nature. The best is that one should develop his own and practice it into  perfect with fullness of time in the market.

Bob The Trader

Three professional option traders; Tom Sosnoff, Tony Battista and Tony Rihan.

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They offer free subscription to Bob the traders signals (Tom and TonyB).

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I open an account with  www.tastyworks.com and link Bob the trader to my account so that I can get Tom and Tony’s option trades free for two years.

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Below are some of their option trades in real time.

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Advance order – 1st trigger OCO

I like TOS platform as it allow me to automate my trades.

1st Trigger OCO usage 

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Simple steps to put an advance order to let the market fill at my preset price and then trigger auto contingency order to take profit or stop loss order at my preset price. So that I can do more option trades with lesser time.

Enhance Option strategy to protect capital

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Met a friend at an Option seminar organised by TDAmeritade, he was sharing of his naked put and covered-call strategy (P-C-P strategy).

Personally, I think the US market is overvalue and there is a need to protect one’s capital by using defined risk option strategies.

Realize that not many like to do the adjustment as it is tricky and the probability of successful adjustment can be 50-50. So use defined-risk option strategies is good enough in my opinion.

For friends still doing selling naked put option, do consider using defined risk or/and adjustment to protect your capital.