Stratagem Trading offers 4 to 8-hour courses on specific topics and/or trading strategies from time to time. These courses are designed to address and prepare for anticipated market events (such as the Crash Ready course), or to present in-demand strategies, which maybe of interest to a wider public audience. Topics range from basic to advanced.
Registration goes up to $499.00 on September 10.
When people think of Day Trading, they think of playing with stocks, and perhaps options. It conjures up images of buying 200 shares of IBM at a $125 and trying to sell it at $125.50 or $126 by the end of the day. This was very popular in the late 1990's during the DOT COM bubble. The dumbest guy in the neighborhood quit is his job and had business cards printed indicating he was a “DAY TRADER”.
That is NOT the objective here.
During the last Federal Reserve Board meeting on August 17, 2022, we had a Practical Option Tactics (POT) class on DAY TRADING of options. The goal is to create profit zones in the likely area where the market will close that day, meanwhile keeping the investment in the position to a minimum. Throughout the day, we showed students how to harvest small profits to get back any investment in the position, thus leaving a position without (if not minimal) a cost and can only make money.
The POT class on Day Trading got people excited to see a different approach.
Instead of hoping to making make money guessing the next move of a stock (or index), they learned to create profit zones around the day's expected range. The image below shows the final graph for the POT class expiring that day.
The class went in expecting the market to run higher, and close somewhere around SPX 4300 resistance (4290 – 4310). Although the market did did not close near the anticipated spot, as you can see from the graph, money was made. This position that made money everywhere got the buzz going and we received requests for a full-scale mini class on this strategy. What made it more interesting was we knew going in that it will be a bad day to attempt this technique.
We have been asked to do it on more ideal days, discuss equities, do larger size, etc. Most importantly, people wanted more tips and insight as to what to look for when watching the market.
Here is another one created the following week (August 30).
The Day Trading class was voted #1 class of the year (so far), and people were asking for more — a lot more. The only way to accomplish this is to do it in a mini class like that of the Alchemy class. The POT class on DAY TRADING was just a glimpse of what the mini class will be.
This mini class will be one (1) day of instruction and one (1) day of trading.
And a lot of people had questions we want to share. It will answer many people's questions who have not been asked, but they are thinking it, and it will provide insight in what to expect.
Question 1: Is it going to be about the alchemy style condor trade/ synthetic jelly roll or is that a new strategy?
Answer: There is not going to be anything pertaining to the Jelly Roll. That is a whole separate trade designed to take advantage of the morning expiration on the 3rdFriday of each month. There will be overlap from Alchemy as some of the techniques are similar.
The difference between Alchemy and Day Trading is: Where Alchemy is designed to augment a trade and/or find a better way of closing down a winning (or losing) trade, the Day Trading class is about creating a position that covers as much as the expected range in profit over a 1-day (or 2-day) area. The hope with Day Trading is that a position is created that can make money that day, and then is repeated again and again.
Question 2: I would like to see a Dragonfly or just the regular butterfly, in the day trading class.
Answer: You will be seeing more butterflies than you expect. There will also likely be condors, synthetic butterflies and condors, and box spreads. We will likely also start an unbalanced the Friday before the class that goes out to all the students. Lastly, the above strategies are not the only ones covered. We may enter into a D-fly, etc.
Question 3: In the Day Trading class, the following topics were introduced but not covered in any detail, so if there is to be Day Trading mini class in September, then hopefully they can be covered as part of that class.
- In a slow moving market with the SPX side trending and moving only a few $ up or down, Option Mispricing can lead to quick scalp type trades for a quick profit (in a few seconds). I know Scott mentioned in the class that next time he see’s this phenomena occur, he will record such in real time and then distribute to class students afterwards.
- Huge risk to reward ratio potential in the final 90 mins of the session into expiration of that day options. What type of trades could be considered here and what criteria would relate to these trades.
Answer: The purpose of the Day Trading mini class is to go into a LOT of details and specifics that can not be done while trading during market hours. The content for the class on September 19 (Monday) will be covered in the online classroom on September 17 (Saturday).
- Saturday class along the lines of a mini class
- Monday trading session for most of the day, with only a few breaks when things are slow in order to address the POT class in updates, coffee re-hydration, etc.
- All Slides (approx 100)
- Recordings for both days
NOTE: If you have any other questions we welcome the chance to answer them. Please feel free to send them to firstname.lastname@example.org.
Registration goes up to $499.00 on September 10.
Next Up: ViPars (Volatility Pairs)
November 5 and 6, 2022
8:00am CDT/9:00am EDT to 2:00pm CDT/3:00pm EDT
Course outline to come.
Frequently Asked Questions: Coming Soon!