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A Trader’s Holiday Cheer

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by Gavin in Blog
December 2, 2024 0 comments
A Trader's Holiday Cheer

December is that time of year,

Where people talk in rhyme and spread holiday cheer.

 

All day the trader watched the delta and the theta,

All night he studied the vega and the gamma.

 

The Greek numbers danced in his head,

Until he fell sound asleep in bed.

 

Will the stock rise or will it fall?

Consumed with indecision, he dropped the ball.

 

Next day he would repeat,

Wondering when his learning will be complete.

 

He watched the Dow and the S&P,

Never gaining the confidence to trade stress-free.

 

He studied price action,

But it never worked to his satisfaction.

 

Monitoring for that perfect sign,

When charts and numbers both align.

 

His eyes grew weary,

He can not see clearly.

 

He tried every indicator,

Even used a trade generator.

 

Fundamental and technical analysis,

Too much left him with analysis paralysis.

 

For weeks and months he toiled,

Trying his hand in futures on crude oil.

 

From the famous iron condor

to calendars and butterflies galore.

 

Seeking strategies like this and that,

Following magicians pulling money from a hat.

 

He watched traders do zero-DTE,

And heard their many shouts of glee.

 

When he tried it with a vertical spread,

His heart was filled with dread.

 

“Maybe this is not for me”,

As he watched the clock ticked three.

 

When the clock ticked four,

The trade is no more.

 

Penny stocks made his heart jump,

Hoping not to get caught in a pump and dump.

 

One trade after another, he would adjust,

Only to see them fall to dust.

 

While working on a trade he tries to repair,

Seeing numbers red, he would despair.

 

The market makes moves that keep him busy,

He knows it’s a job that is not easy.

 

Watching options expire into thin air,

He thought the system was not fair.

 

Running from risk, he would flee,

Still no profit for him to see.

 

He would blame his failure on the market’s whim,

Deep down he knew it was just him.

 

Based on methods he was shown,

He found something he called his own.

 

Reading the market sentiment,

He picked the right instrument.

 

With an understanding of the VIX,

He combines longs and shorts in a perfect mix.

 

Tracking risk-reward ratios,

He diversified his portfolios.

 

He continues to hone his craft.

A detailed trade plan he would draft.

 

Watching IV in the option’s display,

He knows how to plot his trade.

 

One play after another, he would master.

Seeing his gains grow faster and faster.

 

Seeking options of great liquidity,

He maneuvered with fluidity.

 

More and more trades he would win,

Knowing the key strikes that he should pin.

 

He would let his winners run,

Finally seeing his day in the sun.

 

“I got this”, he would exclaim.

He found his edge in this game.

 

Slowly increasing his position size,

But not too fast, he was wise.

 

He had learned and struggled through,

Maybe this can be you too.

 

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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Options Trading 101 - The Ultimate Beginners Guide To Options

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