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Lesson 11 Summary When To Use Each Strategy

This document summarizes an advanced options trading course taught by professional traders Adam Khoo and Bang Pham Van. The course teaches a variety of options strategies including spreads, calendars, synthetics, and strategies focused on earnings plays. It provides guidelines for selecting strategies based on the trader's outlook and implied volatility. Preferred strategies include iron condors due to their capped risk and futures-based indexes due to their low capital requirements. The document aims to equip traders with the knowledge to identify optimal strategies for a given market environment.

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590 views6 pages

Lesson 11 Summary When To Use Each Strategy

This document summarizes an advanced options trading course taught by professional traders Adam Khoo and Bang Pham Van. The course teaches a variety of options strategies including spreads, calendars, synthetics, and strategies focused on earnings plays. It provides guidelines for selecting strategies based on the trader's outlook and implied volatility. Preferred strategies include iron condors due to their capped risk and futures-based indexes due to their low capital requirements. The document aims to equip traders with the knowledge to identify optimal strategies for a given market environment.

Uploaded by

adms
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Professional Advanced

Options Trading Course


To Sum It All Up …

Adam Khoo Bang Pham Van


Professional Trader Options Trader & Specialist

www.piranhaprofits.com
www.wealthacademyglobal.com
The Strategies We Have Learnt…
Basic Course: Advanced Course:
- Long Call - Bear Call Spread
- Long Put - Bull Put Spread
- Covered Call - Iron Condor
- Protective Put - Earning Probability Spread
- Cash Secured Put - Diagonal Spread
- Bull Call Spread - Calendar Spread
- Bear Put Spread - Synthetic Spread
- Protective Bullish Synthetic
Spread, or Bull Bang

2
To Know When to Use What

Two Key Questions:


1. Are you BULLISH, BEARISH or NEUTRAL?
2. Is Implied Volatility HIGH or LOW?

3
General Rules on Strategy Selection
HIGH IV
Sell Cash Secured Put
Sell Bear Call
Spread
Sell Bull Put Spread
Sell Iron Condor
Sell Covered Call
Bearish Synthetic Spread Bullish Synthetic Spread
BEARISH NEUTRAL BULLISH
Earning Probability Spread
Buy (Long) Put Buy (Long) Call
Buy (Long) Protective Put Buy Pro. Bullish Synth. / Bull
Bang
Buy Bear Put Spread Buy Bull Call
Spread
Buy Diagonal Spread
Buy Calendar Spread
LOW IV 4
Tips: Preferred Strategies & Securities
Strategy Security Rationale
Iron Condor Futures (/CL, /6E, - Low capital requirements, good premiums
/GC, /NG, /ES)  very good ROI potential
- No individual stock risks – earnings, M&A, management
Index: SPX, NDX, activities, dividends
RUT - Risk is capped
- Watch-outs: Commission intensive due to 4 legs
(opening/adjusting/closing)
Covered Call, Fundamentally good - Generate extra income while owning good stocks
Diagonal Spread, stocks (Covered Call); Lease to rent (Diagonal)
Cash Secured - Either collect premiums for free, or potentially own good
Put, Good technical set- stocks at discount (CSP or BPS)
Bull Put Spread up (neutral to bullish) - Watch-outs: Avoid earning / key events when price can
have significant gaps up/down
Calendar Spread Fundamentally good - Various ways to trade: Directional, non-directional,
stocks neutral, both directional, earning plays, etc.
- Low cost, low risk
Synthetic Any security - Construct a directional trade on any security, using a
fraction of capital
Protective Bullish Stocks with good - Construct a bullish trade with a protection:
Synthetic, or fundamentals + VMI: Good stocks on an uptrend
Bull Bang + Bottom fishing: Good stocks that are beaten down and
with a potential bounce / recovery
Earning Prob. Any stocks - Play earnings with a minimal cost and very high ROI
Spread potential
5
Professional Advanced
Options Trading Course
To Sum It All Up …

Adam Khoo Bang Pham Van


Professional Trader Options Trader & Specialist

www.piranhaprofits.com
www.wealthacademyglobal.com

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