How To Trade Options WITHOUT Blowing Up A Small Account

4 months ago
8

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So a comment came in yesterday asking how we trade safely, so we don't blow up the account. If you play options like stock, you can vaporize an account in seconds.

So what keeps us from blowing up? Well, we use a (Modified) barbell strategy! This technique was popularized by Nassim Nicholas Taleb and Mark Spitznagel, and their fund Universa. We blend an approach of DEEP Out of the Money Puts and Out of the money calls. This allows us to take advante of leverage, holding the equivalent of thousands of dollars for very cheap.

We play deep out of the money puts and slightly out of the money calls because, as the saying goes, the market takes the stairs up and the elevator down.

Get the full details in the video! I will give a full portfolio updated at the end of the day!

Have a great weekend!

Nassim's books:
Fooled by Randomness
The Black Swan
Anti Fragile

My brokerage: https://start.tastytrade.com/#/login?referralCode=SBGTAESDGV

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