The Elite Trader Plan
A calm, step-by-step options plan that grows accounts and tames big swings.
Elite Trader Plan
What you’ll learn
Set firm risk limits and size trades by maximum loss, not by hoped‑for profit.
Use defined‑risk option strategies: vertical spreads, iron condors, butterflies (bullish / neutral / bearish), and LEAPS debit spreads for equity replacement.
Select, enter, and manage trades in TastyTrade / ThinkOrSwim / Interactive Brokers with TradingView for charts.
Repair or exit positions on a schedule (not on emotion), including rolling for a net credit when appropriate.
Build a simple hedge (for example on SPY), or better keep portfolio delta neutral, and keep a big cash sleeve (e.g., SGOV) to reduce swings.
Who this is for
Beginners can follow the Starter path. Advanced students can skip ahead anywhere they already pass the Skip Check.
Before You Start: Five Guardrails
Per‑trade risk: Fix a dollar amount you can sleep with and stick to it.
What we use in sessions: 5% of the allocated capital (not total account size), if allocated risk capital is $10,000 your trade size should be $500 or smaller.
Position count: Aim for 3–6 open trades max. Avoid stacking highly correlated bets (for example, two tech trades at once).
Liquidity: Only trade options with tight prices and active markets (healthy trading volume).
Events: Do not trade if earnings or other binary events are before the options maturity date, unless the strategy is specifically for that event.
Management window: Make your keep/repair/close decision about 18–21 days before expiration to reduce last‑minute risk.
Suggested Schedules
6‑Week Starter: Modules 1–6
8–10 Week Complete: Modules 1–10 (add more time where you need it)
Advanced students: Start at Module 5 or 8, prove the Skip Checks, then move to 9–10.
The Modules
❶ Setup & Workflow (TradingView + Broker)
Goal
Establish a fast, clean workflow so you stop clicking around and start making decisions with confidence.
In Session
We clean up your TradingView workspace — remove clutter, add exponential moving averages (EMAs), and set up multiple timeframes (5-min, 1-hour, 4-hour, daily, weekly, monthly).
Add your favourites drawing tool menu for quick access.
Set up Fibonacci and simple wave theory tools.
Create a Max Profit & Break-Even drawing template.
Together, we set up your TastyTrade (TT) broker account (or another platform if TT is not available).
Demonstrate how quick and intuitive trade setup and refinement is on TT.
Homework
Create an example trade (e.g., AAPL) in both your broker platform and TradingView. Mark the breakeven levels and expiration date on your chart.
Skip Check
Build a trade and save both a payoff diagram and a price chart screenshot within three minutes, without help.
❷ Sizing & Basic Math
Goal
You know your maximum loss before you click.
In Session
Convert your account into a fixed per‑trade dollar risk.
Set cool‑off rules: if you lose your daily limit, stop adding new trades; same for the week.
Performance math for credit spreads (the ones that pay you upfront):
Percent return = (credit received − debit paid to close) ÷ maximum loss.
Homework
Fill out your one‑page Risk Charter (template at the end).
Skip Check
Given one option chain, you can tell me max loss, breakevens, and why the size is safe for your account.
❸ Finding Trades That Won’t Trap You
Goal
Pick trades that are liquid and avoid landmines.
In Session
Build a watchlist that favors higher implied volatility (what we used: iron condors prefer above‑average volatility).
Confirm liquidity (tight prices; plenty of activity).
Avoid binary risk (example: many biotech names around trial results).
For ETFs, check what’s inside (use Koyfin or your preferred tool) so you know what you’re really trading.
Homework
Tag three tickers you would trade and three you will avoid and why.
Skip Check
Show me one good candidate and one no‑go with a one‑line reason for each.
❹ Vertical Spreads (Credit & Debit)
Goal
Learn the simplest defined‑risk structures first.
In Session
Build one bullish and one bearish vertical with 30–60 days until expiration.
Set exits: take a reasonable profit if it arrives early, or re‑decide about 18–21 days before expiration.
Case study: Why we don’t sell deep in‑the‑money puts (Palantir example) and how a debit call spread expresses the same idea with limited downside.
Homework
Place one tiny vertical or paper‑trade it; write your thesis and what would prove you wrong.
Skip Check
Explain, in plain words, why you chose those strikes and how you will exit.
❺ Iron Condors (Your Way, Not the Textbook Way)
Goal
Neutral or slightly directional income trades with sane risk/reward.
In Session
Build a condor with roughly 1:1 risk to potential profit (avoid the “collect pennies, risk dollars” approach).
Practice a slightly bullish or bearish tilt when the chart suggests it.
Management: Generally don’t touch for the first two weeks; closer to expiration (around 18–21 days left), decide: close, roll, or re‑structure.
Rolling for a net credit (repair):
If one side is getting hit, move that side out in time for a small debit,
Move the safer side for a credit,
Aim for an overall net credit so risk doesn’t grow.
Homework
Build one balanced and one slightly directional condor; write a two‑line repair plan.
Skip Check
Walk me through a tested‑side scenario and your net‑credit roll in plain language.
❻ Trade Repairs, Exits & Assignment (Calm Under Pressure)
Goal
Have a script for rough days.
In Session
Repair playbook on real examples (LMT, UNG, ETH): when to wait, when to roll, when to close.
Assignment drill: If you are assigned shares, use the broker’s Close Position feature or place an opposite order at the open to flatten and re‑establish your option. You do not need full cash if you reverse quickly and correctly.
Homework
Write your two preferred repairs and one hard “I’m out” rule.
Skip Check
Given a position near the “uh‑oh” zone, state exactly what you’ll do tomorrow morning.
❼ Technical Edge (Simple and Consistent)
Goal
Use a few tools well, not many tools poorly.
In Session
Add 40, 50, and 200‑day moving averages, Fibonacci levels, and volume profile.
Mark on‑chart breakevens and expiration.
Practice multi‑timeframe reads: levels where price stalled or turned.
Homework
One annotated chart with levels, thesis, and invalidation (what price kills the idea).
Skip Check
Defend your strike choices using the levels you drew.
❽ Hedges & Portfolio Mix (Keep Drawdowns Saner)
Goal
Reduce the “all‑eggs‑one‑basket” feeling.
In Session
Add a simple SPY hedge (for example, a bearish iron condor) that runs 3–4 months.
Keep a cash sleeve (you taught SGOV as an example) to reduce account swings.
Budget for hedges: about 2.5–3% of the account.
Homework
Add one small hedge and write when you’ll remove it.
Skip Check
Show how your book is safer with the hedge than without (one paragraph).
❾ Butterflies (Bullish Call Fly)
Goal
A bullish structure that can behave better than a simple debit spread.
In Session
Build a symmetrical call butterfly (one long, two short, one long at higher strike) with 90–120 days until expiration so time decay hurts less.
Compare its profit curve to a plain debit spread: it can be nicely up on an early move, and losses can be gentler on a pullback.
Homework
Build one bullish call fly on a liquid index or stock; set a clear exit plan.
Skip Check
Explain why this fly is your pick vs. a debit spread for this specific chart.
❿ Equity Replacement (LEAPS Debit Spreads)
Goal
Stock‑like exposure with less capital.
In Session
Replace 100 shares with a long‑dated call spread (LEAPS).
Plan a check‑in schedule to roll or resize rather than “set and forget.”
Avoid too‑tight expirations (example: consider going one month further out if the near month is jumpy).
Homework
Draft a one‑page plan for one LEAPS idea: why, risk, breakeven, when to adjust.
Skip Check
Show how you’d handle a 40% drawdown on a LEAPS or LEAPS debit spread without taking on more risk.
One‑Page Tools
(A) Risk Charter
Account: $10,000 • Per‑trade max loss: $500 (or less!)
Max open trades: 5 (avoid overlapping bets)
No earnings between trade opening and contract maturity.
Decision point: 18–21 days before expiration
Only trade liquid options (tight prices, active markets)
Journal. Simple screenshot of the pay-off charts enough!
(B) Pre‑Trade Quick Check
Is the max loss within your limit?
Is the market liquid enough?
Are you doubling up on the same theme?
Any earnings/event nearby?
One‑sentence thesis and what could prove it wrong?
Exit plan written (profit target or the 18–21‑day decision)?
Saved the trade / pay-off chart screenshot?
(C) Journal
Screenshot the payoff chart, should include symbol, strategy, expiration, strikes, debit/credit, max loss
What happened • P/L • What I’d repeat/change
Notes We Keep Repeating (because they work)
Start small. Defined‑risk only. Let time do its job; don’t over‑trade.
Rolling for repair: Aim for an overall net credit; if you can’t get it without increasing risk, don’t roll.
Assignment is manageable: Reverse quickly and re‑establish the option; the platform helps you do this.
Illiquid products are a trap: If you can’t roll it, don’t open it. Use liquid ETFs when most single names have earnings.
Consistent process beats prediction. We trade plans, not headlines.
Final Word
Use this page as the base plan. We’ll customize your learning journey based on your experience and personality.
🚨 Educational content only. Not financial advice. Past performance ≠ future results.