Trading Dominion – Portfolio Margin and SPAN Margin Trading Tactics
Use trades specifically designed to take advantage of portfolio (or SPAN) margin in order to increase your returns and ease of management.
Why use portfolio or SPAN margin?
Most people think that portfolio margin (PM) or SPAN margin is just used by traders who want to get significant leverage, and therefore need to be comfortable taking larger risks.
There certainly is leverage with portfolio or SPAN margin, but what most people don’t realize is that, if used properly, you can use PM or SPAN margin in order to construct risk profiles which are much safer than what you could construct with RegT margin. There are even certain trade types which are completely not viable at all with RegT margin, and can only be done with PM or SPAN margin.
This course will teach you how PM and SPAN works, how to construct, and how to manage trades which are specific to PM and SPAN.
We primarily focus on creating trades which have much more safety than RegT trades, such that even in the event of a black swan your overall portfolio is protected.
What You’ll Learn In Portfolio Margin and SPAN Margin Trading Tactics?
Introduction
Welcome
Getting to know you
Quick personal introduction
Course overview
University tour
OptionNet Explorer discount
Analysis spreadsheets
Trading for a living
Portfolio margin
Foundations
Introduction
Quick visual intro to the first order greeks
Second order greeks
Reading the inflection points on an expiration line
Greeks of a put debit spread
Delta Power
Buying cheaper greeks
Comparing relative spread prices
OTM options decay faster than ATM options
ATM structure pricing and IV
Relationship between volatility and time
How the T+ is affected by a change in IV
Options in further out in time expirations are easier to manage
IV versus HV
Vertical Skew – part
Vertical Skew – part
Trading further out in time
Measuring skew steepness
Term Structure and weighted vega
Put / Call parity
IB TWS Tool for skew analysis
Backtesting
Market circuit breakers
Walking the option chain
Foundations summary
Space Trip Trade
STT introduction
Standard Space Trip Trade
Standard STT – sample setup
Standard STT – let’s do it live
Optimizing entry
Legging in
Middle STT
Front STT
Front STT – comparisons
Road Trip and Space Trip
Bearish STT
Bullish STT
Bullish STT – sample setup prior to the Brexit event
Trade management – intro and quick review
Downside management
Downside adjustments – rolling down
Downside adjustments – long put
Downside adjustments – put debit spread
Downside adjustments – adding another STT
Downside adjustments – adding a bearish STT
Downside adjustments – SD OTM balanced butterfly
Downside adjustments – hitting pause
Downside adjustments – hitting pause – comparing expirations
Downside adjustments – price reversion
Downside adjustments – hedging bearish adjustments
Downside adjustments – using stocks or futures
Downside adjustments – TOS contingent orders
Upside management
Harvesting
Upside adjustments
Price layering
Playing whack-a-mole
Taking profits
Quick Hit STT
Opportunistic management
STTs on the call side
Using futures options with a RegT account
STT – summary
Black Swan Hedge
Black swan examples
BSH core concepts
BSH vs teenies
First BSH configuration
Second BSH configuration
Third BSH configuration
Fourth BSH configuration
Optimizing the BSH
Upside adjustments
Long call
Peel existing upside call credit spreads
Put credit spreads
Call debit spreads
Bullish risk reversal
The kite
Call back ratio
Upside calendar
Upside ratio calendar
Short diagonal
ThinkOrSwim TOS tips
Managing your trades
Price triggered contingent orders
Study triggered contingent orders
Importing a TOS grid
Seasonality indicator
Standard deviations indicator
IV and HV indicator
Volatility term structure indicator
Triple Keltner and ATR Trend indicator combo
My main TOS grid
Butterfly pricer indicator
Managing the entire portfolio
Back STT + BSH
Entering during different IV levels
Bullish STT + BSH
Protected jeep
Portfolio sizing
Simple Trend Following System STFS – v2
STTBWB and BSH during the Feb crash
Double wide STT and BSH
Core trades and tactics
Mechanical trend following indicator DSTFSv
Simple Trend Follows System STFS – v3
STT-BWB
Dynamic sizing for the STTBWB and BSH
2021-03-24 – Group coaching
Walk through of the STTBWB+BSH during the Covid crash
Walk through of the STTBWB+LP during the Jan pullback
Hedging with futures
Summary
Final summary
That’s all folks
Refer a friend program
