====== Options Trading Master Guide ======
// Last updated: {{NEWDATE}} //

===== Foundations =====
=== 1. Core Concepts ===
<code>
**Options Greeks Cheat Sheet:**
| Greek  | Symbol | Effect               | Trading Impact                  |
|--------|--------|----------------------|----------------------------------|
| Delta  | Δ      | Price sensitivity    | Calls: +0 to +1, Puts: -1 to 0  |
| Theta  | θ      | Time decay           | Positive = favors sellers       |
| Vega   | ν      | Volatility impact    | Higher = more expensive options |
</code>

=== 2. Risk Management ===
<code>
**Capital Preservation Rules:**
1. Max risk per trade: 2% of account
2. Always define:
   * Profit target (e.g., 50% of max gain)
   * Stop-loss (e.g., 100% premium paid for longs)
3. Weekly loss limit: 5% of account
</code>

===== Beginner Strategies =====
=== 1. Covered Calls ===
<code>
**Execution Steps:**
1. Own 100 shares of stock
2. Sell 1 OTM call (30-45 DTE)
3. Target: 1-2% monthly return

**Example:**
{{ :aapl_cc.png?300 | AAPL covered call example }}
</code>

=== 2. Cash-Secured Puts ===
<code>
**When to Use:**
* When willing to buy stock at lower price
* IV Rank > 50%

**Math:**
Strike Price - Premium Received = Effective Buy Price
</code>

===== Tools Setup =====
=== Thinkorswim Configuration ===
<code toc>
1. **IV Columns:**
   - Right-click options chain → Columns → Add "IV Percentile"
2. **Probability Lab:**
   - Analyze → Probability Lab → Set 30/60/90 day forecasts
3. **Hotkeys:**
   - Setup → Application Settings → Hotkeys
</code>

=== TradingView Alerts ===
<code>
**Essential Indicators:**
1. Volume Profile (Session)
2. Bollinger Bands + RSI(14)
3. Custom IV Rank script (Pine Script)
</code>

===== Trade Journal Template =====
<code>
^ Date       ^ Ticker ^ Strategy      ^ Entry ^ Exit ^ P/L ^ Notes                ^
| {{NEWDATE}} | AAPL   | Bull Put Spread | $1.50 | $0.75 | +$75 | Closed at 50% target |
| {{NEWDATE}} | TSLA   | Long Call       | $5.00 | $2.50 | -$50 | Held through earnings|
</code>

===== Psychology & Routine =====
=== Daily Checklist ===
<code>
**Pre-Market (30 min):**
1. Scan for gappers with IV > 50%
2. Check economic calendar
3. Review open positions

**Post-Market (15 min):**
1. Update journal
2. Plan next day trades
3. Review 1 past mistake
</code>

=== Mindset Rules ===
<code>
1. **No revenge trading** - Wait 24h after 3 losses
2. **Position sizing** - Start with 1 contract until consistent
3. **Process focus** - Grade yourself on execution, not P/L
</code>

===== Learning Resources =====
=== Free Materials ===
<code>
**YouTube:**
- [[https://www.youtube.com/@OptionAlpha|Option Alpha]] (Strategy basics)
- [[https://www.youtube.com/@projectoption|Project Option]] (Advanced tactics)

**Websites:**
- [[https://www.cboe.com/learn/|CBOE Free Courses]]
- [[https://www.optionseducation.org/|OCC Education]]
</code>

=== Paid Books ===
<code>
1. "Options as a Strategic Investment" - Lawrence McMillan
2. "The Bible of Options Strategies" - Guy Cohen
3. "Trading in the Zone" - Mark Douglas (Psychology)
</code>

====== Quick Reference ======
<code>
**Sell Signals:**  
{{tag>green|IV Rank >50% + RSI >70}}  

**Buy Signals:**  
{{tag>red|IV Rank <30% + MACD crossover}}  

**Avoid:**  
Earnings weeklies, <5 DTE "lottery tickets"
</code>