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The Trade Busters

11 - 2-3/7/45 DTE Multi-Strategy Review

Jul 28, 2021
Explore income strategies with different DTEs for optimal risk management. Analyze Delta values, risk factors, and product choices. Compare trading strategies and the importance of brokers like Interactive Brokers for stop losses. Teasing upcoming episodes on trade sizing and portfolio allocation.
19:42

Podcast summary created with Snipd AI

Quick takeaways

  • 2-3 DTE strategy focuses on minimizing losses with 3x credit stop loss at entry.
  • 45 DTE strategy aims for safer options trading with 50-60% profit target.

Deep dives

2-3 DTE Strategy

The 2-3 DTE strategy focuses on selling options with no more than five Delta on Mondays, Wednesdays, and Fridays. The goal is to enter trades at the end of the day and set a 3x credit stop loss at entry. This strategy requires the trader to collect a dollar and set a $3 stop loss, minimizing potential losses.

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