In the world of trading, the pursuit of success is fueled by knowledge, skill, and dedication. During an Annual Holiday Trader Party, we had the opportunity to speak with Tano, a committed options trader with a wealth of experience. His journey into options trading began in 2006, and since then, he has navigated various trading strategies and environments, all while balancing owning and operating a restaurant business. Tano’s insights on developing skills in technical analysis, market analysis, and understanding implied volatility provide valuable lessons for aspiring traders.
Click here to watch and learn how to succeed from this exciting interview.
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Embracing Change: From Restaurant to Trading
After 24 years in the restaurant business, Tano made the life-changing decision to close his restaurant and devote more time to trading. This transition allowed him to explore new trading strategies and invest in himself as a trader. “Now is the time to build skills in technical analysis, market analysis, and implied volatility,” he emphasized, highlighting the importance of continuous learning for those serious about becoming consistently profitable options traders.
Tano’s background in options trading included participating in the Locke Options Community since 2012, where he honed his strategies around trades like the M3, Bearish Butterfly, and ROCK. While managing a busy lifestyle, he found success by favoring trading structures that fit his available time and personality, ultimately gravitating towards the broken butterfly structure.
The Calendar Trade Exploration
With newfound time on his hands, Tano embarked on backtesting a shorter-term trade known as the “Calendar 916,” which involves placing a calendar spread on the Russell 2000 Index (RUT). His meticulous backtesting, which spanned from 2017 to recent times, provided insightful data on the performance of the strategy across different market conditions—illuminating how external factors, such as the COVID-19 pandemic, can impact trading outcomes.
During his presentation, Tano detailed his process: entering trades on Wednesdays at 3:30 PM, selling the 9 days to expiry (DTE) option, and buying the corresponding 16 DTE. His approach involved making upward adjustments based on price action while favoring positive Delta positions, and maintaining a positive Vega profile.
Key Findings from Backtesting
Through extensive analysis and data collection, Tano discovered a notable correlation between the peak value of the tent (the option pricing structure) and potential profitability. His research revealed that trades entering with a peak value greater than 12,000 accounted for 97% of the total profits, indicating a critical threshold for successful trades.
Tano’s findings led him to explore further questions: How could this trade be adapted to different underlyings? What if he adjusted parameters like the exit timing? These inquiries reflect the ongoing evolution of a trader’s mindset, emphasizing the importance of flexibility and adaptation in market strategies.
Continuous Learning and Community
As we wrapped up, Tano expressed his excitement about diving into the Calendar course offered by the Locke community. Continuous education is paramount in trading, and Tano’s enthusiasm showcased the value of community support and shared learning among traders.
For those looking to gain expertise in options trading, consider exploring the memberships offered by LockeInYourSuccess.com. With options ranging from the GO membership focusing on rules-based trading to the PRO membership advancing subjective trading skills, there’s a pathway for every trader to grow.
Conclusion
Tano’s journey exemplifies the essence of resilience, adaptability, and continuous improvement in the realm of options trading. As he steps into this new chapter post-restaurant life, his commitment to mastering technical and market analysis positions him well for future success in the trading arena. Whether you’re a novice or seasoned trader, Tano’s insights can inspire you to deepen your knowledge and refine your strategies as you navigate the dynamic world of options trading.
For more information on how you can enhance your trading journey, visit LockeInYourSuccess.com/memberships. Your path to trading success starts today!
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