![]() Set target expiration dates for all options as follows:.Review/tweak Trend-Channels for all stocks in the watch list.Calculate/record Put/Call Ratios for all stocks on the watch list.Determine/update this week’s market sentiment section.Document lessons learned or new thoughts.I can open more positions with a greater accumulated premium with a shallow spread-width while staying under my Max-dollar risk. The shallower the spread-width, the higher the available premium, and the fewer dollars at risk from each open position. Open 3-6 spreads between 5-10 strike-widths each.At DEFCON 5, I will assume no restrictions to any new positions. Consumer Confidence is high, and there are love and peace throughout the world (snort). The latest economic data are all positives, and most Geopolitical news is boring. VIX is below 15, and the S&P 500 Put/Call Ratio is well below 1:0. The 5 levels of the DEFCON Trade Readiness indicator: DEFCON-5: At the end of the Market Sentiment Section (below), I will compile everything in that section into a single DEFCON level between 5-1 – with DEFCON-5 being the elusive “all clear” signal for opening new positions, and DEFCON-1 signaling a complete stand-down. For each journal entry, the expectation is to display a DEFCON level for that week.
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