Advanced Credit Day Trading Outline

Roadmap for Outline

• Quick Review
• Risk Management
• Directional Traders vs Volatility Traders
• Technical Indicators
• Predicting Opening Range
• Rolling Advanced Concepts
• Additional Rules & Considerations
  

Quick Review 

• SPX 0DTE Credit Spread Day Trading
• 25k+ account size 
• Style Goal: Income Generation

Risk Management 

• When to Roll, When to Walk Away
  Roll Early in the day
  Stop Rolling after 1 pm ET
  
• Sizing, Maximum sizing 20% per spread absolute maximum 
• Common sizing , 8%, 10%, 12%, 14%, 16% per spread 
• Setting a Daily Goal , 3k a week , 2-3k a day , 4k loss maximum
  
• Setting Additional Rules For Your Trading – Do you jump in? Do you want 10 minutes?
  Around your schedule, you are always out at a hard cut by 1 pm ET, and you trade from 9:30-12, what to do about lunch, the 1 pm ET move 

Directional Traders vs Volatility Traders   

• Directional Trader – strategies based on the investor’s view of the future course of something
• Volatility Trader – strategies based on the trader’s view of the expansion and contraction of implied volatility
• Directional Traders – Develop strikes and PT/SL based on directional bias
  Give example on SPX, 1 leg credit put spread, very close iron condor 
• Volatility Traders – Move with Iron Condors and continue to roll each leg
  Give example on SPX, wide iron condor, straddle, etc 
• Power hour trading = highly directional
  IV gets crushed on 0dte throughout the day, volume can step in. Price can outpace IV easily. 

Technical Indicators 

• VWAP – Volume Weighted Average Price 
• ATR – Average True Range
  Watching volatility spike, using it as an indication of IV
  
• Stochastics/MACD/RSI for directional bias
  

Predicting Opening Range 

• Using /ES & /NQ Futures Contracts
• Identify the Previous Days High & Low
  – Include Futures Price Action
  Give Example 
• Evaluate Historical Ranges 
• Compare levels to SPX
  

Rolling Advanced Concepts

• Rolling – Closing the old position, and opening a brand new position
• $5/$10/$15/$20 wide spreads based on preference & account size
  Overlapping Strikes and what to do 
• One side loses, and another side wins

Additional Rules & Considerations 

• Practice for 2-4 weeks on paper 
• Recommended Brokers: TOS/Tasty/Interactive Brokers
• Red Days – Limit to -3k to -4k maximum, infrequent occurrences
• Green Days – Ideal daily goal +2k to +3k, frequent