A TastyTrader's Journey
Study
Basically, there is higher chance that market will continue in the direction of the previous day.
Full video here
For Put ratio spread,
See video here
Options with over 80/90 deltas has high risk of assignment
Close out position and establish a new position is to become more capital efficient.
Full video here
Generally skewed strangles does not work as well as 16 delta strangles. Skewed strangles only work during market downturns.
Also heard Sosnoff say:
https://www.tastytrade.com/tt/daily_recaps/2019-10-30/episodes/appropriate-allocations-10-30-2019
A good guide on setting up the information that we should keep a look out for for open positions. The following information was added:
I have always been trying to figure out TastyTrade’s mechanics for managing trades at 21 DTE. This is a great overview!
A good overview chart for referencing to the different option strategies and their Probability of Profit (POP).
We should risk more during periods of high volatility. Use more capital to trade when VIX is higher.
Out of the BP allocation, 75% should be allocated for undefined risk strategies and 25% for defined risk strategies. It was also mentioned that this is the ideal stage when we have sufficient capital. For smaller accounts, we may have to do 75% defined risk strategies instead.
Managing early at 21 DTE reduces risk due to price volatility. That is, with reference to the entry price, price moves lesser when managed at 21 DTE. Price moves more when we close positions at expiration ie, end of 45 days.
20 Percent Freedom 