Key insights
- A retail trader outlines a new options trading strategy based on a pre-defined list of stocks for buying calls/puts versus puts only. The strategy is based on past experiences and technical indicators. The list includes major US equities. No market-wide implications.
Like many of you, I got sucked into shorting strength and buying weakness. Stocks like UNH, BA, CRM, DIS, I bought calls thinking they had room to run. Had quite an epiphany this morning.
I have new rules. I have a list of stocks I’m allowed to buy calls and/or puts on, and I have a list of stocks I’m ONLY able to buy puts on. Obviously I will trade the tape, meaning I’m not blindly buying calls/puts, I’m using my technical indicators. If a stock on the “puts only” list looks bullish, I won’t trade it, simple. I’ve paid my tuition and I’m ready to make bank. Had I followed this rule earlier in trading, I would have lost a lot less money. If you are interested, here is the list:
Calls / Puts Allowed
Tier 1
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AAPL
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NVDA
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AMZN
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GOOG
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AVGO
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META
Tier 2
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XOM
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DELL
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MCD
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NFLX
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C
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AMD
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BABA
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GLD
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GDX
Puts Only
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BA
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DIS
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CRM
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NOW
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PANW
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PG
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UPS
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TGT
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TXN
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PEP
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KO
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WMT
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UNH
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DASH
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V