$359.90

Stock Options Strategy: The Ride Trade

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One of my favourite trading strategies that is delivering exceptional results. Good for low IV environments. A key strategy of my Hedge Fund. This low-risk income options strategy is using longer-dated options to deliver exceptional consistency and strategically positioned Calendar Spreads. Used with SPY and QQQ. The target profit is 10%-15% monthly.

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The Ride Trade_Course File.zip

3.33 MB

Description

Note: This course includes a pdf with the strategy description and instructions. I am trading every month this strategy. You can learn and follow my Ride Trades by subscribing to the Trading Community.

Buy this course and you will ACCESS ...

... a proven and profitable options strategy;

... a faster way to learn options trading skills from a trader and instructor;

... a real options trading strategy that produces sustainable income;

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Strategy live performance:

In 2021, it delivered a stellar performance: 26 trades profited $7700 cumulated profits (considering an average of $4500 investment per trade) with 20 winning trades - an average profit of about $400 (and the average loss of $350).

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Main characteristics of the "Ride Trade":

This income options strategy aims a Delta Neutral positioning which means it tries to minimize price fluctuations of the underlying and get profitability from options time decay (and Implied Volatility variations). Several adjustments are possible with some flexibility but always under clear guidelines.

The options structure uses a strike prices selection based on options Delta that will adapt to market conditions at the moment the trade is entered.

Additionally, the selection of the options chains that support the Calendar Spreads used on each trade serves to avoid excessive fluctuations and adjustment needs. Very short-term options are much more volatile than longer-term, although they deliver higher Theta.

This income strategy delivers positive Theta and positive Vega. This means that we do not need to be stressed about the market not moving (Delta) as time passes. In the Ride trades, we are on the right side as time passes, capturing profits.

This trade structure includes several Calendar Spreads and is positioned to deliver a wide price interval where SPY or QQQ can fluctuate to deliver profits. Even in cases where there are bigger movements, there are adjustments to be carried out with the goal of managing directional risk, as well as keep producing profits.

I am actively trading this strategy which is delivering exceptional results. You can follow all my trades in the Trading Community, which also includes access to a live trading room (Discord Channel) where you can interact with me and post the trades.

This options management style can be implemented with a minimum suggested account value of USD5000.

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Buy this options strategy if you want to become consistent and ...

... you are struggling to become profitable on financial trading;

... may have bought a stock options course, but it is theoretical or promised "miracle" results that do not materialize;

... have basic options knowledge and need a proper trading strategy to apply in the real markets;

... tried technical analysis but is not producing the promised results and is confusing;

... used trading indicators and they deliver non-profitable signals.

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Frequently asked questions

You’ve got questions. We’ve got answers.

In what market conditions is this strategy best used?

The Ride Trade is best used in a low IV market environment or in an increasing IV. This strategy uses a combination of Calendar Spreads that produce positive Vega and, hence, will benefit from an increasing IV. Since it uses longer-term options, the trade reacts well to sudden IV spikes.

What is the profitability of this strategy?

The average expected profit is about 10-15% per month. Nevertheless, the market may react negatively to the position and could produce losses. In these cases, there are specific guidelines to have risk under control. The strategy was strongly positive in the last quarter of 2021 (under an increasing SPX and low IV environment). This strategy can be used in tandem with the SPX Best strategy to hedge against Vega.

Do you offer trade signals of your trades?

Indeed! I am trading my own Hedge Fund, where I am using this strategy. Everyone who wants to access my trades can enroll in the trading community, where I am disclosing all fund trades in real-time through a Discord channel.

Do you provide trade resumes and explanations?

Indeed. All trading community subscribers will receive an explanation of each trade and the evolution of the adjustments made during the open trade period. This can be accessed via the community web post as well as by email when it is published.

Here you have an example:

Every post is composed of:

1. Trade rationale;
2. Screenshot of options structure risk profile from Thinkorswim platform;
3. Screenshot of "filled orders" tab from Thinkorswing platform;
4. Position status with all the adjustments performed on the trade for easier following and understanding of profitability;
3. Profit target at any given moment.

What if the market moves against the trade?

The market is unpredictable! Like in any other strategy, we need to understand the risks of each position. Therefore, we need to manage properly the risks involved and trade accordingly. There are no risk-free options strategies! The strategy has hedges that we can use to reduce its risk in case the market moves against it. This mainly is a non-directional income strategy that uses time decay (Theta management) and IV decrease to realize profits.

How often do you trade this strategy?

I open a new trade per month when conditions apply (Implied Volatility level and expectations). Usually, I am having 1 (max 2 trades) at the same time. This is one of the trades I use frequently in the investment fund. My core strategy in the Fund is the SPX Best.

How often do this trade needs adjustments?

This strategy is very stable and does not need too many adjustments. It will depend on SPY / QQQ moves but, on average, less than one per week. Nevertheless, when the expiration approaches (below 50 DTE) it may need more adjustments per week. Under these circumstances, I will decide if it is better to continue and capture attractive Theta or close the trade. It will depend on the market status.

If I have questions, how can I clarify them?

If you subscribe to the trading community, you can easily use the Discord channel to enter your questions. Me or other community members will help you. Remember that you are not alone if you subscribe to myoptionsedge.com!

Or you can use my personal email with your questions and I am happy to answer: pedro.branco@myoptionsedge.com

Is this a difficult strategy to learn and trade?

No, it is not. The strategy description document will tell you exactly how to trade this strategy. Although it is not a simple options strategy because it uses several legs, it is straightforward to implement.

After 3 or 4 trades, you should have learned its fundamentals and you can trade for your own if you have the confidence to do so. the goal is to maximize Theta and minimize Delta risk, according to market short-term expectations.

Can this strategy be applied to other assets?

I did not test it in individual stocks. I did not backtest it. But be aware that stocks tend to be more volatile than indexes, with earnings announcement events making them have big price swings.

It will do well with SPX if you want to trade on a higher scale, as I traded this with success for an institutional investor.