Hulk's Rules

  • Lotto trades no more than 1% of account value (wkly option/earnings trade) 

  • Short-term options no more than 3% of account value (<3 months) 

  • Longer dated options no more than 5% of account value (>3 months) 

  • No more than 20% of account value in option positions at any given time

  • No more than 15 % of account value for single stock purchases

  • Have an idea of where a stock can go and how long it might take when deciding on an option strike and expiration (this skill develops as you learn how to read charts)

  • Avoid holding options through earnings (trading after earnings is lower risk and often higher reward)

  • Cut losses quickly if a stock gives a sell signal (you can always buy back)

  • Patience. The best trades come to those who wait for that supreme moment before buying

  • After a big winning or losing streak take a few days off from trading to get your emotions back in check

  • Assume that every position can go to zero when deciding on an options position size

©2019 by Hulk Capital LLC