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โ BEFORE ENTERING TRADE (GO / NO-GO)
1. Volatility Check โ CBOE Volatility Index
- >20 โ High (premium-rich)
- 15โ20 โ Normal
- 12โ15 โ Low (caution)
- <12 โ โ NO TRADE
2. Trend Check (7 / 21 MA)
- Bullish (7 > 21) โ Lower delta (more room)
- Neutral / Chop โ Standard
- Bearish (7 < 21) โ Higher delta (more income)
3. Trade Quality Check
- Premium worth the risk?
- Strike outside expected move?
- Adequate upside room?
๐ If 2โ3 answers are NO โ NO TRADE
๐ฏ TRADE SETUP
LEAP (Always)
- ~0.80 delta
- 12โ18 months
Short Call (Adaptive)
Based on VIX + Trend:
- High VIX (>20)
โ 15โ25 delta
โ 7โ14 DTE - Normal (15โ20)
โ 20โ30 delta
โ 14โ30 DTE - Low (<15)
โ 25โ35 delta OR skip
โ 30โ45 DTE
โ ๏ธ Adjust slightly for trend:
- Bullish โ lean lower delta
- Bearish โ lean higher delta
๐ DURING TRADE (MONITOR)
๐ Price Distance to Strike (PRIMARY)
- >5% โ Do nothing
- 3โ5% โ Monitor
- 1โ3% โ Prepare
- <1% โ ACT
๐ Delta Check (CONFIRMATION)
- ~30 delta โ Monitor
- ~40 delta โ Act
๐ Always use price + delta together
โ๏ธ ACTION RULES
- 50โ75% profit โ CLOSE
- Near strike โ ROLL UP & OUT
- Risk rising โ CLOSE EARLY
โ Never:
- Let deep ITM calls sit
- Hope for reversals
๐ WEEKLY FLOW
- Early week โ Enter trades
- Midweek โ Monitor
- Late week โ Take profits / roll
๐ LEAP MANAGEMENT
- Roll at 6โ9 months remaining
Roll Early If:
- Large gain (30โ50%+)
- Delta <0.70
- Clear trend shift
โ HARD RULES
- No trades in very low VIX (<12)
- No chasing premium
- No emotional rolls
- No forcing trades
๐ง FINAL REMINDER
Consistency > perfection
Frequency + discipline = income
๐ HOW TO USE THIS
- Before trade โ Run GO / NO-GO
- During trade โ Follow price + delta rules
- Weekly โ Follow workflow
๐ This turns trading into a routine, not decisions
๐ฅ WHAT THIS UNLOCKS
If you follow this consistently:
- You avoid low-quality environments
- You stop reacting late
- You capture profits faster
- You keep the LEAP working with you
โก ONE-LINER
System first. Adjust second. Execute always.
