Options Simplified

DEFINING RISK, LEVERAGING A MINIMAL AMOUNT OF CAPITAL AND MAXIMIZING RETURN ON INVESTMENT 
WHERE HIGH-PROBABILITY OPTIONS TRADING FOR CONSISTENT INCOME THRIVES IN BOTH BEAR AND BULL MARKETS
Stock Options Dad LLC

August 3, 2020

Introduction:

A total of 76 option trades were placed in May, June and July as the market rebounded after the COVID-19 market lows. During this timeframe, all 76 trades were winning trades to lock-in a 100% option win rate with an average income per trade of $190 and an average return on investment (ROI) per trade of 7.6%. After the tumultuous market lows of March and into early April, leveraging a minimal amount of capital, mitigating risk and maximizing returns was paramount. The objective of an options-based portfolio can offer the optimal balance between risk and reward while providing a margin of downside protection with high probability win rates.

As the market continues to rebound, optimal risk management is essential when engagin...

July 23, 2020

Introduction:

Leveraging a minimal amount of capital, mitigating risk and maximizing returns is the objective of an options-based portfolio. Option trading can offer the optimal balance between risk and reward while providing a margin of downside protection with a high probability of success. Proper portfolio construction and optimal risk management is essential when engaging in options trading as a means to drive portfolio performance. Key pillars of risk mitigation are rooted in maintaining liquidity, risk-defining trades, staggering options expiration dates, trading across a wide array of uncorrelated tickers, maximizing the number of trades, appropriate position allocation and selling options to collect premium income. Customizing y...

June 22, 2020

Introduction:

Leveraging a minimal amount of capital, mitigating risk and maximizing returns is paramount as the markets rotate out of the depths COVID-19 sell-off. Option trading offers the optimal balance between risk and reward while providing a margin of downside protection and a statistical edge. Proper portfolio construction and optimal risk management is essential when engaging in options trading as a means to drive portfolio performance. The Q4 2018 and the COVID-19 pandemic are prime examples of why maintaining liquidity, risk-defining trades, staggering options expiration dates, trading across a wide array of uncorrelated tickers, maximizing the number of trades, appropriate position allocation and selling options to collect p...

June 13, 2020

Introduction:

Balancing the trade-offs between risk and reward are front and center even as the markets recover from the depths COVID-19 induced sell-off. Options trading can offer the right balance between risk and reward while providing a margin of downside protection and a statistical edge. Proper portfolio construction and optimal risk management is essential when engaging in options trading as a main driver for portfolio results. One of the main pillars when building an options-based portfolio is maintaining a significant portion of cash on-hand. This cash position provides the ability to rapidly adapt when faced with extreme market conditions such as COVID-19 and Q4 2018 sell-offs. The COVID-19 pandemic is a prime example of why m...

February 4, 2020

Introduction:

As 2020 unfolds and the markets continue to break through record highs, investors should heed these lofty levels. We’re in the longest bull market in history and the U.S. has started and ended a decade without a recession for the first time in history. By nearly all measures, these markets are overvalued with stretched valuations.    

Deploying a put spread strategy is a great way to define your risk while leveraging a minimal amount of capital to maximize returns. Whether you have a small account or a large account, a put spread strategy is an effective way to limit risk with a high probability of success. Trading options on stocks like Expedia (EXPE), Tesla (TSLA), Ulta Beauty (ULTA), Apple (AAPL), Disney (DIS),...

January 5, 2020

Introduction:

2019 has shaped up to be an historic year for the stock market indices. The S&P 500 posted its fourth best annual return in over 20 years, coming in at a ~29.5% return. Only two other years have outpaced these 2019 returns. These occurred in 1995 and 1997 posting returns of 34.1% and 31.0%, respectively. 2019 was a unique year on multiple fronts, most notably because the market returns outpaced even the most bullish forecast by any Wall Street analyst. The markets roared higher in the face of impeachment proceedings, U.S.-China trade war, Federal Reserve actions, inverted yield curve and slowing economies abroad. Furthermore, for the first time in history, the U.S. economy has started and ended a decade without a recession...

November 3, 2019

Introduction:

How can you effectively run an options-based portfolio when trading with a small account? How can you trade options on stocks like Tesla (TSLA), Ulta Beauty (ULTA), Apple (AAPL), Disney (DIS), Facebook (FB), etc., that possess such a high price per share when account balances are limited? People often shy away from options trading due to low account balances. Limited capital doesn’t preclude you from trading options and in fact you can run an effective options portfolio regardless of account size. Options enable you to leverage a minimal amount of capital which opens the door to trading virtually any stock all while defining your risk.

Over the past 13 months, ~315 trades have been made with a win rate of 86% and premium ca...

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Noah Kiedrowski

Founder: stockoptionsdad.com

Contact: info@stockoptionsdad.com

 

I'm Noah Kiedrowski, founder of Stock Options Dad LLC. Where it's my goal to simplify options trading. Demonstrating how high probability options trading for consistent income thrives in both bear and bull markets. Options enable investors to mitigate risk and circumvent drastic market moves while generating consistent income in a high probability manner.

All of my trades are risk-defined in order to leverage a minimal amount of capital and maximize return on investment. All performance metrics can be found on the PERFORMANCE tab. For any given trade I target an ROI of 7-15% at an ~85% probability of winning the trade at expiration. In doing so, I typically hold ~50% of my portfolio in cash.

I always strive to trade in high implied volatility environments across a wide array of tickers to maximize sector diversity. Trading across uncorrelated tickers and maximizing the number of trades, as part of the 10 OPTIONS TRADING RULES, is essential for long-term success in options trading.

Did you know that a staggering 92% of actively managed funds do not outperform their benchmark over 5, 10 and 15 year time horizons? Interestingly, over a ~25 year time period from 1983-2006, 39% of stocks in the Russell 3000, comprising the largest 3000 companies in the U.S., were unprofitable investments while 64% of stocks underperformed the index. Shockingly, only 25% of stocks were responsible for all the market’s gains from this ~25 year period! Taken together, investors only have a 36% chance of picking a winning stock that may or may not outperform the broader index. Options trading provides a statistical edge in trading that individual stock investing simply can't offer.

To this end, stockoptionsdad.com is a venue I created to share investing ideas and strategies with an emphasis on options trading. My aim is to empower investors and traders alike to leverage options trading as part of an overall investment strategy. I offer many tutorials, ideas, strategies, timely trades and actionable updates for the retail investor. I also offer TRADE SERVICES for those that want to take their options trading to the next level. My goal is to provide real-life examples of options trading from a peer investor in an effort to demonstrate meaningful portfolio returns while mitigating risk and accentuating returns.

 

Contact us via email:

info@stockoptionsdad.com

team@stockoptionsdad.com

services@stockoptionsdad.com

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