Kum Seah Chu

Kum Seah Chu

Below is the summary:

  1. Selling option involve undefined risk.
  2. Buying option limit the risk.
  3. Risk profile provide a graphical view of risk.
  4. Option’s return are dependent on whether one adopt long, short or neutral strategy.
  5. It is possible to manage risk with adjustment.
  6. Option learning curve is not easy, Fullness of Time is necessary.
  7. Trade Well with your system.
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Week 22 Option: All cleared

This week I sell both stocks and E-mini S&P Index Futures and collected enough premium to feed me for a week or so.

For Stocks, basically I use the investors.com for entry and the selection criteria are:

1. High IV rank or IV percentile

2. High Volume

3. Low Spread different

4. Good ROM or ROC or ROI

5. High for OI and volume

6. Price gap or major price change supported by a big volume

7. Look for high probability setup using chart like LR, SMA, RSI, MACD, Bollinger and dynamic band

For E-minis future, I use Hips and Lops strategy for entry and let it expires worthless.