Part9 Trading Masterclass

Risk Management in Strategies
Never sell naked calls unless fully hedged.

Position size to avoid overexposure.

Use stop-loss or delta hedging.

Monitor implied volatility — don’t sell cheap, don’t buy expensive.

Strategy Selection Framework
Market View: Bullish, Bearish, Neutral, Volatile?

Volatility Level: High IV (sell premium), Low IV (buy premium).

Capital & Risk Tolerance: Large capital allows complex spreads.

Time Frame: Short-term events vs. long-term trends.

Common Mistakes to Avoid
Trading without an exit plan.

Ignoring liquidity (wide bid-ask spreads hurt).

Selling options without understanding margin.

Overtrading during high emotions.

Not adjusting when market changes.