Manage Multiple Option Positions Without Having to Be in Front of the Screen All Day

In this podcast episode, we'll break down some of the best resources and tips on managing your options portfolio with limited time.
Manage Multiple Option Positions Without Having to Be in Front of the Screen All Day
Kirk Du Plessis
Apr 18, 2018

We're all busy with work, family, school, kids, etc. And although many people might lead you to believe you have to be in front of the screen all day in order to manage multiple options positions, the reality is that's not true. Yes, you do need to have access to the markets in order to trade right now (not in the future though), but you don't have to be glued to the computer screen all day. You can use some simple triggers and alerts to keep tabs on your portfolio while you are away or at work and be just as effective, if not more, than working at the trading desk all day.

Key Points from Today's Show:

  • As a trader, you do not have to spend all of your time glued to the trading screen, watching every ticker in the market.
  • Instead, set up designated trading times that are scheduled into your calendar and automate as much as possible.
  • So how do you manage a lot of positions without spending every minute in front of a screen?
  • The key is to set up as many systems as possible in one single place that allow you to do trading activities without actually physically having to monitor your positions.

1. Use Mobile Trading Apps

  • If your broker does not have a mobile trading app, that is a big red flag.
  • In our on-the-go society, the ability to trade on a mobile app is really important.
  • You can use the mobile technology to help you trade on the go.

2. Organize Positions Based on Risk

  • This is the concept of organizing positions in your account based on how much risk they have.
  • Positions can also be organized based on contract month.
  • This allows you to focus your time and be more efficient, monitoring only positions that are in need of checking.
  • Can also group your accounts by strategy type; iron condors, strangles and straddles, etc.

3. Set Up Delta Alerts

  • Once you set up a new trade, you can go into your broker platform and set up an alert system.
  • You can then use the technology to your advantage, and it forces you to be more relaxed and patient.

Example: Sold a 15 Delta short strangle — 15 Delta calls and the 15 Delta puts. Set alerts to inform you when either of these contracts goes up in value to a 30 Delta; doubling risk. If the Delta goes from 15 to 30, you get an alert and start making adjustments. If you do not get any alerts, then that means that the trade is going well.  

4. Utilize the Trade Optimizer Tool

  • This tool allows you to run trade optimizations for every trade you enter.
  • You can set up your entire trade in advance, including your exit strategy, such as GTC automatic closing trades.
  • There is no need to monitor the trade until you get to expiration where you have to roll, adjust, or close.

Example: If you make a trade 40 days out, bearish and trading in an IRA, the optimizer tool will give you a list of strategies that work best for that market situation. It will also tell you what the most optimal exit point it, both for-profit taking and/or for stop losses.

5. Use the Autotrading Platform

  • The auto trading platform is a full-fledged automatic trading system that not only finds and manages but also exits positions.
  • This gives you full control and access to a bot that runs a trade, enters them, manages them, and exits them.
  • The platform allows you to be really hands-off in your trading strategy.
  • Ultimately, this will allow you to scale much faster and will also reduce the time required to find trades and manage positions.
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