April 2025

-$505


Its called Cash Flow

I saw it on SMB vid. 

I have been trading spreads and learned what cash flow is. Funding your call purchases. Sell the put, protect with lower strike put buy. 

This creates positive cash flow. 

Sold Puts/Buy lower Strike put funds the big money call idea. 

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Month was super slow for me. Volatility isnt my friend usually as it leads to everything following each other and theres no edge in that for me. 

So towards the end of the month I had an idea. 

A year or so ago I had started messing with spreads and selling options. Overall it worked out breakeven. But I saw the potential. Since I had left my job I went back to doing what I could do best at my desk and that was long equity. I had put selling options on hold.

It didnt occur to me to bring these back in conditions like this until I saw that video. I had spenmt all of march and april doing very very little trading. 

So I got right to it. I started thinking about how I can use spreads best. In the past I was just scalping, nothing special at all to it. 

Now I have combined it with what I am doing with longing equity. Though of course now is not a great market for it, so I am looking for over extended names and betting they wont go any lower.

When I see the market go up and down price gets to an extreme. I know from stock summary queries that chances are, its not going much lower, nor at any nearby time.

That combined with judging market internals and breadth makes for some pretty high probability trades. 

These so far have not been massive winners. Im still in experimental phase here. In the past I was only selling, now im spreading. 

Im recording a lot of data trying to see where edge is. So far so good. +$438 on 10 trades. 2 errors on my end which cost me $300. Telling me do not mess up these entries and make sure exp is correct. 

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As for swings, I took a few trades on the 2nd which of course ended up failing.

Then all the way on the 29th for a utilities trade as market finally saw some strength and consolidation break higher. No meaningful wins. 

Way market is now though I think I might be back in full swing at some point this month. Needing a pullback to hold and move higher again then I think we can see some good pops higher again as we can see a lot of names coming out of big bottoms. 

In short, a lot of shorts are going to be looking to get out as market forces them to rise. 




Slow month, bought SMBs options breakthrough program which will drastically reduce time to gain knowledge on all this. 


Goal from last month: Goal for April is to clearly define the technical grade of the setup and put on correct risk. Stick to the best filter out the rest. 

This was accomplished. Though it didnt get put to much use since I only took 4 trades, it was still there. 


Goals for this month.

Finish SMB Program.

Drill down what my strategy is when it comes to spread trades. 

    -Strike distance?

    -Avg Prem?

    -Avg IV?

    -Over ext?

    -Range Breakouts?

    -Fund a call option trade?

Read every day and every night. M-F.

    




 

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