Thanks. I guess what I meant more was, roughly how many of them would you have on at one time, and what percentage of the fund/account would you put on each. I'm assuming that you are talking about max risk on one contract per leg (or more for balance), but some are scaled up?
Max risk on the trade as written. I would consider putting roughly 1% of your portfolio per trade. I generally wouldn't put this many trades on a single name, but these were high conviction (also, I probably lost track of exactly how many trades I had open on them, to be honest). As far as how many trades I have open at one time, I don't really keep track of that. If I have buying power available, and I see an attractive trade idea, I place it. And by aiming several months out, as time goes by, we end up with some temporal diversity, i.e., if the market crashes in July, that might be a problem for our trades expiring in July, but probably not for the ones expiring in December.
How are you sizing these trades? I take it you are usually not holding the stocks, and trading only options?
Yeah, those are all options trades. I usually size them so our max risk is between ~$700 and ~$1,000.
Thanks. I guess what I meant more was, roughly how many of them would you have on at one time, and what percentage of the fund/account would you put on each. I'm assuming that you are talking about max risk on one contract per leg (or more for balance), but some are scaled up?
Max risk on the trade as written. I would consider putting roughly 1% of your portfolio per trade. I generally wouldn't put this many trades on a single name, but these were high conviction (also, I probably lost track of exactly how many trades I had open on them, to be honest). As far as how many trades I have open at one time, I don't really keep track of that. If I have buying power available, and I see an attractive trade idea, I place it. And by aiming several months out, as time goes by, we end up with some temporal diversity, i.e., if the market crashes in July, that might be a problem for our trades expiring in July, but probably not for the ones expiring in December.