Trade Options with an Edge

I am not a professional trader. I have a Ph.D. in Mathematical Sciences. In my professional career, I have been a tenured professor of Operations Research, a consultant, a co-founder of three businesses, an entrepreneur, an inventor, a manager of operations research and systems analysts, a systems engineer, and a research and technology manager. I am now retired, but I am registered with the IRS as a securities trader. I spend most of every weekday trading options, futures and stocks. I consider it a labor of love. I have been investing all of my adult life. Probably like most of you, I focused initially on mutual funds and stocks. That was fine as long as the market was rising. However, multiple large market declines convinced me that I had to find a way to make money even if the market was declining or not going anywhere. That led me to explore options trading. My initial forays into options trading were not successful. I was enticed by the leverage that options trading provided, and I fell into the trap of going for the "home run." Or, the positions that I entered suffered from time decay or volatility changes. Or, I was doing all the wrong things in managing my positions. It was not until 2012 when I somewhat accidently discovered a new internet site, tastytrade, that was streaming live programs from 8:00 AM to 4:00 PM EST every trading day. All of the programs were about trading (stocks, options or futures) with most focusing on options trading. I was immediately attracted to the site because the presenters all had good credibility -- each had been a successful floor trader. Furthermore, the approach that they prescribed aligned well with my own analytical background. But, most importantly, I made money when I used their approach. I owe tastytrade a big debt of gratitude. After reading this book, you will too. I strongly recommend that you become a tastytrade subscriber. They are now the largest live streaming financial network with over 100,000 viewers. They are amazingly customer oriented. I frequently send emails to the founder, Tom Sosnoff, or his sidekick, Tony Battista, and I always have received responses in 24 hours or less. And, they have a research team that thoroughly examines strategies and management methods using actual data. Just go to tastytrade.com or download their Apple app or Android app. Or, view them on one of their other streaming video offerings. tastytrade is free. You will not get a better trading education for thousands of dollars. Before I discovered tastytrade, my trading focused on using fundamental or technical analysis to find those equities that I thought would increase in price and to determine the right time to buy them. My approach was very subjective. The focus was totally on trading bull markets. Tastytrade changed that totally. I now focus on selecting liquid stocks with high volatility and selling option premium to take advantage of time decay. I pay careful attention to probabilities and I actively manage each position. My approach to options trading is analytical. I recommend that the user consider several metrics before deciding to place a trade or to exit a trade. The metrics that you need should be generated by the trading platform provided by your brokerage firm. However, the software that I developed to support my own trading is provided with this book. It provides all of the metrics that you will need to support your options trading. You do not need an analytical background, but you should have an appreciation of probabilities and be systematic in your trading. You need only understand what the metrics mean and know how to use them. Since my approach recommends active management of your positions, you should plan to devote some time to your trading at least three days each week. When I seized upon the tastytrade approach, I realized that my background in probability, decision analysis, systems analysis, modeling and simulation was perfect for their approach. Then, when I realized the parallel the approach had to the way gambling casinos grind out consistent profits day after day, I was sold. Give me a small edge; give me an opportunity to place lots of small trades; give me good mechanics; provide me with a good trading platform; and I will produce consistent profits. You can do this also. You will learn that it doesn't matter if the market is going up, down or nowhere. You will have the tools to make money in any kind of market. This book will teach you the mechanics for successful trading and will show you the strategies that will give you an edge. You will be able to grind out profits just like the casinos. I believe that you will be able to generate consistent returns of 1% to 2% per month. That may not sound like a lot, but when you do it month after month, year after year, the power of compounding returns leads to a sizable portfolio. These returns beat most managed accounts, mutual funds, and hedge funds. You will find very few financial advisors who will do better, and believe me, it is a wonderful feeling to know that you can manage your own money better than almost anybody else.