In the Options and Systems Workshop, we are discussing ways to improve the reliability of our trading.
Three main themes of our weekly meetings include …
- Contrasting edges (e.g. expansion and reversion trades on at the same time)
- True diversification of exposure (low correlation of fundamental drivers)
- Stress testing instead of optimizing (try to break strategies until you can’t — then you have something worth your time)
This past week, one of our members, Allen Spore shared a presentation on filtering VXX for defined risk options trades.
The filters and defined risk options create a double walled barrier of protection in what is otherwise one of the potentially riskiest trading strategies available.
Next week, we’re going to revisit the double-edge of premium decay and momentum with defined risk options trades.
The Options and Systems Workshop meetings are every Wednesday at 1:00 PM Eastern.
Sign up for your first-month discount trial and start watching the two-year library of recorded weekly meetings today.
