What Theta Trend does:
Theta Trend is focused on developing consistent, high probability option selling strategies with an emphasis on avoiding excessive risk and large drawdowns. In other words, we want to collect theta, not bet too much, and stay away from pain. Conceptually, the idea is simple.
About Me (Dan):
I initially became interesting in trading during the late 1990’s near the end of the “Tech Bubble” and have been extremely interested in financial markets ever since. I moved towards options trading shortly after realizing that it was somewhat impractical to day trade using a dial up modem. At the time I thought that I might totally bypass college and immediately become a professional options trader. Ignorance is bliss. Over the next decade I wandered down some interesting paths and became very serious about trading again shortly before the Financial Crisis.
Around the time the S&P 500 hit the Bear Market low in early 2009, I began selling Iron Condors. At the time, option premium was so rich that it was hard to lose money. However, the relentless rally that took place after making the low made trading Iron Condors very challenging. During the rally I began developing a totally Systematic Trend Following system. I backtested, optimized, and continue to trade that system today, but I was always trying to find positive theta ways to trade trends. Theta Trend exists to find those solutions.
My trading has evolved over the years and my style of trading is a reflection of how I relate to markets. I believe in moving with the market rather than fighting it. I also believe that controlling risk in a position is more important than trying to make money because, over time, well managed risk tends to lead to profit. The markets have taught me more about myself than I ever expected and, for that, I’m immensely grateful.