Options Trading and RiverTree

RiverTree’s guidelines are intended to help structure income trading processes and improve performance outcomes in a variety of market conditions.  However, these strategies are not without risk, and individuals unfamiliar with these trades should seek additional information.

RiverTree Guidelines

RiverTree’s guidelines are intended to make decisions more routine, objective, and measurable as well as profitable.  Guidelines also consider trade selection, trade size, and time until expiration.  The guidelines are also a working document that will be periodically revised and supplemented with articles and spreadsheets.

Portfolio Management and Trading Guidelines

  1. General Guidelines
    1. Monitor economic activity and events that affect the market.
    2. Trades and portfolio adjustments are small and routine.
    3. No naked puts or calls (funds are reserved to secure puts).
    4. The overall portfolio Delta is near zero to slightly positive.
  2. Volatility
    1. Review IV rank and Delta for potential trades.
    2. Balance options premium with the likelihood of being ITM.
  3. Time - Until expiration
    1. Limit expiration dates to between 30 and 60 days.
    2. Overall Theta values are moderate.