System - rules

 I will start my trading with writing credit option spread on SPY. For each written  spread, I will get premium. I will sell nearest put or call option and buy put or call option with 2$ difference as insurance in one combo order.

For my trading I have chosen  broker Internative Brokers.

When you are younger as 26 years you can open account with 3000 USD or equivalent.  After 26 year you need 10k $ to open account.

I decided to start my test account with 3000 Eur, which is 3900 $.

I will use on trading only 70% of this deposit and the rest 30% for rollover. Also I will create 2 accounts. First with 2700$ and second account with rest 1200$.

For one option spread I will risk 10% of capital on one day. One SPY option spread with 2$ difference requires 2$x100 = 200$ of margin, that will be blocked by broker.
So I will open only one spread per day.

Commision for each spread are 2-3$, but we will count with 2$.

Intro

Hi all,

my name is Chris and I was trading in forex markets for 3,5 years as part-time trader.
Daytrading requires a lot of time and concentration all the time, but when you are full-time profesional in one area and working for living, you cannot be at same time profesional in another aread and be fully concentrated.  Aslo you cannot sit on two chairs comfortable. Because Time is only one commodity, that is limited for us.

That was the reason, why I decided to start with options.  Yes, you could say: Why to start with option after 3,5 years with forex ? Becasue I got some experience with binary options on forex and I liked the style and it is not required to spend whole day by pc and watch markets. Also direction trading on long periods timeframe is very very hard to trade, becasue it is not easy predict where big players and banks want go in 1-2-3 months.


I decided to spend my study and trading with non-directional credit option spreads. Trading of options spread of stock index doesn`t require so much time as forex and market is open only couple hours, 24/5 like by forex.. I can check markets from my iPhone couple times during day and don`t reuqire to be on markets all the time and monitor graphs.

In this blog I will provide my realtime trades from beginning and every comment is welcome.