Low Drawdown Options Trading Strategies

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Uploaded by on Aug 18, 2008

http://www.sjoptions.com presents option trading strategy concepts which can protect a portfolio during a highly volatile market. San Jose Options provides option mentoring to students via internet. We teach advanced option strategies including strategies that are not being taught by other schools.

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Uploader Comments (sjoptions)

  • If it were the case that max loss is 2-5% then why did you decide to hide the other side of the graph where the real risk was shifted. I do realize that it is less likely, it is misrepresenting the strategy by only showing the favorable side. If it were true that the max loss is 200, then that would mean that should be the margin, but I bet TOS set aside way more than that on margin...

  • @TheManInTheMasks Hi there, if you manage your trades correctly using our R.A.S., the Revolver Adjustment System, then you can keep the risk to within 2%. Thank you and good luck on your trades.

  • Actually, the investment on this trade is very low, and can actually be absolutely free if you have TOS Portfolio Margining. Secondly, there is no risk to the upside because you would simply exit with a huge profit before ever getting to a point where you can lose money. Thank you for your comments, they are great.

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  • Great video man

  • @rameshjain2009 We find that trading these very short term can prove to be risky, but a little farther out in time gives the trader more space and the time needed to prevent drawdowns to the upside.

  • @udtfrog5 U R right . Suppose the market rises considerably. The loss will be very high

  • how much real money does a trade like this take up from your account

  • to make a trade like this you buy 1 expensive at the money option and sell two out of the money options to pay for it, either all puts or all calls. to reverse the trade sell to cheap options to cover the cost of one expensive option.

  • Does not address risk to the upside (which is very high) nor the amount of margin (capital) required for a trade like this (which is also very high).

  • can you explain or show how you set this up in TorS, what is the strike price. Also how you choose the type of underling stock.

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