Lesson Overview

Introduction to Track #3

Track #3 at Option Alpha was built for the serious trader who has mastered nearly all of the beginner and intermediate concepts with options trading. If you're an active trader each week and have a complete understanding of the statistics and probabilities, this course will help perfect and tweak your long-term strategy. We built this course specifically to boost your confidence with the mechanics behind automated trade exits, profit taking levels, adjusting/hedging trades, and rolling trades near expiration. This is where you learn to build a trading system that regularly generates "Alpha" or excess returns month after month.

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Whether you're starting out with Track #3 or you’ve moved here after completing Track #2, it’s important that you take a moment to watch this video and understand what we’ll be covering moving forward.

Now, Track #3 is for advanced traders only and focuses on the following core concepts.
#1: We’re going to talk in depth about adjusting and hedging trades as well as the timing for these types of adjustments.
#2: We’re going to be talking about creating an automated system for exiting trades. We’re also going to be talking about income consistency and portfolio balance on a very high level.

And then finally, we’re going to be talking about how you can manage to trade as a business. Now I promise you, if you invest as little as 30 minutes a day in this, it’ll payout huge dividends over the course of your life because we consistently see that the most active and successful traders in our community are always in here learning a little bit more and hopefully we can get you to that level here in Track #3.

Now, your fast-track program starts tomorrow and basically what this means is that if you’re just starting out with Option Alpha, we’re going to be sending you a series of emails as you get on board with our program that helps guide you through Track #3 and it’s going to be important that you take a look at each of these emails because we’re also going to be adding some tips and advice on how you can get the most out of your time here at Option Alpha.

Again, that starts tomorrow, be on the lookout for that first email in your inbox. Now, before we talk about the topics we’ll be covering, I need to tell you a few things. There are some knowledge requirements that you should understand before you get into Track #3 here.

Now in our opinion, the difference between Track #2 and Track #3 is order entry and fill, basically that in Track #2, we worked you all the way up to order entry and filling a trade, so how to find a trade, how to select the strategy, how to fill the trade, etc.

Track #3 takes everything beyond order entry and fill to the next level, so you should have a good understanding at this point of what implied volatility is, what implied volatility rank is and how it's important to determining our edge in trading.

You should have a good understanding of how to select an options strategy, how to correctly price strategies and options trades and then a very good understanding of option probabilities.

And I lump this last one into things like how you should be managing trade size, account capital allocations, things like that. If you don't know any of those or don't have a good understanding of it, just make a note to go back and start reviewing some of the video tutorials in Track #2.

You can still work your way through Track #3, but it might be good to refresh some of your knowledge in some of the areas as you keep moving forward. Now, we do have members-only webinars and workshops that we’ll be inviting you to as you get further down Track #3.

These are going to be tailored to where you are in your education here at Option Alpha. We don't do them often, but when we do, they are only for members and the spots do fill up very fast.

If you're interested in jumping on one of these streaming workshops or webinars, please make sure that you lookout for those emails from us because we don't do them often and when we do, they tend to fill up very, very fast.

Now, it’s important that we talk at this point about debt versus width here. Now, this is the difference between our tracks and our modules. If you're new to Option Alpha, we have two main categories of education.

We have these tracks which you are now in right now, Track #3 and then we have our video tutorial modules. Tracks are a little bit longer in form; there’s not as many of them. We go a little bit more in depth with the topics that we talk about in the track videos, and they’re mainly to get you through the entire process of trading from start to finish.

The modules are going to be a little bit more shallow in content, meaning they’re not as long and they’re going to be a little bit more specific to whatever the topic is that you’re searching for.

If for example, you want to know how to place an order to get into a calendar spread, then we’ll have a video tutorial module on just that process, but nothing beyond that. We’ll show you the basics in there. They’re a little bit shorter in length.

That doesn't mean that they’re less powerful or less educational. It just means that there’s going to be more of them and you can quickly find them in the video tutorial and module section.

Again, you can use the search functionality here at Option Alpha to find hundreds of different videos and articles and guidelines and case studies on how you can trade, but I think it's important here to distinguish the difference between our tracks and our video modules.

If you haven’t already taken a quick tour of the platform, I encourage you to do so especially if you’re new here. The platform tour that we have put together is set up to help you get the most out of the Option Alpha experience and education here.

It shows you the 4 or 5 different areas that we’ve taken an approach to in building out this platform based on all the feedback from our members. And if you haven’t already taken the quick platform tour, make sure you do that. Understand exactly what we have available here for you at Option Alpha.

Finally, if you do have questions, we encourage you first to check out our popular answer vault. When we recently surveyed the thousands of members that we have, 86% of people said that they found an answer to their question inside the answer vault very quickly (less than 5 minutes in most cases) because we've basically done the heavy lifting for you and have taken all the questions that we’ve received, about 200+ questions in detailed format, broken them into categories and put them into this massive answer vault.

I encourage you to either use the search functionality on the top of the navigation or check out the answer vault which is located in the support center. It might be the quickest way to find an answer to the question that you’re looking for.

Finally, it's incredibly important to realize that everything I do with my trading here is my account, my money, my portfolio size, market perspective, etcetera, so I am not recommending that you do anything. Obviously, options trading carries an inherent risk.

You probably know that if you're in Track #3 now, but it's worth saying again that nothing that we do here is a recommendation of buy or sell any security. You should obviously consult with a licensed professional if you want to do that.

And please check out our risk disclosures at the bottom of each page here at Option Alpha. Here’s the deal. I’ve laid out the entire process procedure, guidance, etcetera on everything I do and why for free. I’m never going to charge you. 100% publicly open and available, not to everyone else out there online free because I think that that's how a business should be run.

In that sense, I give everything away for free, all of our guides, PDFs, downloads, everything I possibly can to get you from point A to point Z as quickly as possible. In that sense, you do not have to sign up for a pro or elite membership unless you want to see what I’m doing on a daily basis and the trades I’m making.

That’s it! There’s nothing more; there are no hidden secrets that you’ll learn by signing up for a pro or elite membership. I want to let you know that you’re going to get everything you need to be successful. It's just a matter of how willing are you to implement and learn and take the time to understand these concepts.

And if you need extra help or if you want to see what I’m doing on a daily basis or join our weekly strategy calls with other members, then you can upgrade, but it’s not a requirement to be successful here.

Here's the roadmap of what we’re going to cover here in Track #3. The first part of Track #3, we’re going to talk about developing a daily trading routine, a little bit different spin on how we start our tracks, but I think it's important to understand what your day should look like or what maybe an average day might look like in the mind of a trader.

We’re also going to be talking about avoiding black swan events, the importance of adjusting and hedging trades, and then, later on, we’re going to be talking about exiting option trades automatically, some big picture adjustment strategy and then option strategies we don't adjust.

We’ll next get into knowing when to adjust a trade or not, start talking in-depth about defined risk trade adjustments and undefined risk trade adjustments, so this is going to be talking about how to adjust a credit spread versus a strangle or an iron condor versus a straddle, etc.

Next, we’ll talk about applying smarter stop loss orders to your portfolio, how to build a diversified portfolio going forward in the future, and then we’ll talk through rolling for duration and premium whenever necessary, so when do you roll, and if you do, how far out do you roll, how much money should you be taking in.

We’ll start answering questions like that. Next, we’ll talk about expiration week position checklist, so what you should be looking out for as you near every single expiration week for contracts that you’re trading, selectively exiting losing trades as you close out a portfolio towards expiration, and then talking about how to free up margin and cash if needed which is a really important topic especially if you have a smaller account, and you’re limited in some of the capital that you have.

And finally, we’re going to have an in-depth longer talk on running a professional options trading business, so how you can setup this entire thing as far as structure, taking distributions of income, expenses, things that you might need, home office, other stuff like that that really surround this concept of running options trading like a truly professional business.

As always, I want to thank you for taking the time to watch this video, for joining Option Alpha, for choosing us. I’m extremely humbled that you’re here and you’re part of this journey. I want to let you know that you're not alone and that if you ever need any help, there are multiple ways you can get in contact with us, either through the comment section on multiple video pages, through our support center, our forum, social media or through email.

As always, I hope you enjoy your time here at Option Alpha. If you need anything at all, please let me know. And until next time, happy trading!

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