1 ☀️ Morning 2 🔄 Roll 3 📥 Income/Hedge 4 🚨 Breach 5 🛡️ Gap Insurance 6 ⚡ Emergency 7 🚀 New Member 8 ⚖️ Sizing 9 🏭 Money Press 10 🚀 LEAP
💎
Diamonds Trading Program

Visual Flowcharts
If This, Then That

Ten visual flowcharts translating every decision tree into a step-by-step visual guide — for real-time reference while the market is open.

Flowcharts
10
Departments
3
Format
Visual
Companion to
Decision Trees · Master Summary
☀️ FC1 — Morning Routine
🔄 FC2 — Roll Decision
📥 FC3 — Income or Hedge?
🚨 FC4 — Breach Management
🛡️ FC5 — Gap Insurance
⚡ FC6 — Emergency Protocol
🚀 FC7 — New Member Start
⚖️ FC8 — Position Sizing
🏭 FC9 — Money Press Entry
🚀 FC10 — LEAP Campaign
TREE 1 ☀️

The Morning Routine

Run every morning before placing any trades — 8:30 to 9:00am EST

📧 Read Alex's Email — TWICEFirst pass: big picture. Second pass: every strike, expiration, credit target.
Step 1 — What expires today?
Short Put
expiring today
↓
⚑ Flag for
3:30pm roll
NOT morning
Short Call / IC
expiring today
↓
Check if GTC
close triggered.
If not → 3:30pm
Long Put within
30 DTE
↓
Plan roll
this week.
Protect BP.
Step 2 — Check Portfolio Delta
Within ±150
↓
✅ Balanced
Proceed normally
±150 to ±300
↓
⚠️ Monitor
Note it
±300 to ±500
↓
⚠️ Caution
Roll to rebalance
Beyond ±500
↓
🚨 ACT NOW
→ See Tree 6
Step 3 — Check Buying Power Usage
Under 70% used
↓
✅ Good runway
Proceed normally
70–80% used
↓
⚠️ Sweet spot
Add only if roll
restores BP today
Over 80% used
↓
🚨 STOP
No new trades.
Roll only.
Step 4 — Income trade in today's email?
Opening credit AND
GTC close target given
↓
📥 INCOME TRADE (default)
Place it. GTC close at
.65 db — immediately on fill
No instruction from Alex needed
Opening credit only
No close target
↓
🛡️ HEDGE
Place it.
No GTC close.
Step 5 — GI trigger fired today?
ATH hit today
↓
🛡️ Add ONE GI
Non-negotiable
3-ATR on
hourly/daily
↓
🛡️ Add ONE GI
Non-negotiable
4–5 consecutive
days at 2 ATR
↓
🛡️ Add ONE GI
Spirit of the rule
No trigger fired
↓
✅ No GI needed
Continue
⏰ Set 3:30pm Reminder — Step AwayTheta is earning whether you watch or not. Next action: 3:30pm rolls.
TREE 2 🔄

Roll Decision — The Money Press

Run at 3:30pm on every expiring short put position

📍 Short Put Expiring Today — Time to Roll
Step 1 — What is your current delta posture?
SHORT Delta
Beyond −300
↓
Too bearish.
Need to add
LONG delta.
NEUTRAL Delta
Within ±150
↓
Well balanced.
Roll on market
conditions.
LONG Delta
Beyond +200
↓
Too bullish.
Need to reduce
LONG delta.
Step 2 — Market condition + delta → Roll direction
Market RALLYING + Short Delta heavy
→
📈 ROLL UP aggressively
More premium + adds long delta. Double win.
Market RALLYING + Neutral delta
→
➡️ ROLL FLAT
Collect premium, stay balanced.
Market WEAK/FALLING + Neutral delta
→
📉 ROLL DOWN slightly
Safety cushion over max premium.
Market WEAK/FALLING + Short delta heavy
→
➡️ ROLL FLAT
Already short delta. Don't go further down.
Market at ATH, cautious tone
→
➡️ ROLL FLAT or slightly DOWN
Protection first. Add GI if ATH rule fires.
BIG DOWN DAY 100+ pts — "Gift Day"
→
📈 ROLL UP BOLDLY
Elevated fear premium. GI protecting you. "Love this drop."
Step 3 — What about the Long Put?
30+ DTE remaining
↓
✅ Leave it alone
Only touch the short
Within 30 DTE
↓
⚑ Plan roll
this week
Secure BP
Very far OTM
(market moved way up)
↓
🔼 Upgrade strike
while cheap
(opportunistic)
💡
No Long Put Belongs to Any Short Put
Long puts and short puts are independent inventory. Roll them separately based on their own needs — never assume they must move together.
TREE 3 📥

Income or Hedge? — Every Vertical Spread

Run every time Alex posts a call spread, put spread, or iron condor

📩 Alex Posted a New Spread / IC Trade
The One Question That Determines Everything
Is this a Daily Diamond CCS or PCS?
These are income trades by default. Alex will issue instructions only when treating as a hedge.
✅ YES — CCS or PCS
📥 INCOME TRADE (default)
↓
📥 INCOME TRADE — default
Place it. GTC close at
.65 db immediately on fill.
No instruction needed.
❌ NO — Alex says hedge
🛡️ HEDGE
↓
Place it (if delta warrants).
No GTC close.
Wait for Alex's management instructions.
50-Cent Rule — If You Missed the Morning Price
Within 50¢ of
Alex's credit
↓
Enter at
40–50% of normal size.
Add rest if price recovers.
More than 50¢
below Alex's credit
↓
❌ SKIP IT
Trade has moved.
Risk/reward no longer valid.
Price keeps dropping
after your entry
↓
HOLD — don't add.
Accept partial position.
Don't compound risk.
IC Closing Strategy — One Close or Split?
Normal market
Calm daily range
↓
One 4-leg GTC close.
Put IC on together,
take it off together.
High volatility
80–100+ pt daily swings
↓
Split: two separate GTC closes.
Close winning side immediately.
Manage other side independently.
What Happens Next — The Two Paths
Trade works — decays toward zero
↓
GTC triggers automatically.
Collect 65–75% of max profit.
"Win a little" ✅
Trade gets breached — market moved through
↓
Cancel GTC close.
MPs likely profiting from same move.
Wait for Alex → Roll for credit → Becomes hedge.
"Win a lot" ✅
TREE 4 🚨

Breach Management — A Position Has Gone ITM

Stay calm. A breach is not a loss. It is a change of role.

🧘
First: Breathe. A breach is NOT an emergency.
The position is not a loss until you close it at a loss. The system is designed for exactly this moment.
⚡ A Position Has Gone ITM — What Got Breached?
Short CALL spread
breached
(market rallied)
↓
MPs near max profit
from same rally.
Net portfolio likely +.
→ See Path A
Short PUT spread
breached
(market dropped)
↓
GI + short calls gaining.
Check their value
before reacting.
→ See Path B
MP short put
breached
(hard drop)
↓
Most serious.
GI should be
gaining big.
→ See Path C
IC — one side
threatened
↓
Cancel GTC close
on that side.
Wait for Alex.
Don't close other side.
Path A — Short Call Breach Protocol
1
Cancel the existing GTC close order
The profit-close target is no longer relevant. Cancel it now.
2
Do NOT close at a loss immediately
Closing locks in the loss permanently. The position can be managed. Wait for Alex.
3
Roll further out in time AND up in strike for net credit
Buy back the breached spread. Sell a new one higher / later for a net credit. Now a HEDGE — no new GTC close.
4
Recognize what happened
You were paid to enter, paid again to roll, and now have a free short delta hedge sitting out in time. The breach cost you nothing out of pocket.
Path C — MP Short Put Breach Protocol
1
Check GI and short call positions immediately
A hard drop means GI has gained significantly. What looks like MP loss is likely being offset right now.
2
Wait for Alex's specific roll instructions
Do not freelance an MP roll. Strike choice impacts overall portfolio delta. Follow the email.
3
Roll further out in time for credit — down slightly in strike
On a big down day, lower strike = more safety cushion AND more premium from fear. Collect credit, do not take a cash loss.
⛔
What NOT to Do
Do not panic close. Do not add trades without checking delta impact. Do not watch the screen every 5 minutes. Trust the structure. Follow the protocol.
TREE 5 🛡️

Gap Insurance — When, What, How Much

Check the three trigger rules every morning. Add one contract per trigger event.

🔍 Check the Three GI Trigger Rules Daily
Market hits
ALL-TIME HIGH
↓
🛡️ Add ONE GI
contract today.
Non-negotiable.
3 ATR on hourly
or daily chart
↓
🛡️ Add ONE GI
contract today.
Non-negotiable.
4.5%+ above
50-day MA
↓
🛡️ Add ONE GI
contract today.
Non-negotiable.
4–5 consecutive
days riding 2 ATR
↓
🛡️ Add ONE GI
Spirit of the rule.
Overextension signal.
⚠️
Maximum ONE contract per trigger event — even if all three fire the same day. And NEVER buy GI in a falling/choppy market. "Don't buy insurance in the middle of a storm."
What to Buy — GI Structure
Structure
→
Bear put spread: Buy put ~5% below market, sell put ~130 pts below that. Offsets cost dramatically vs. naked long put.
Expiration
→
Start far out in time (4–6 months). Cheap insurance. Brings in large credit when rolled forward later ("Source of Funds").
When approaching
correction
→
Roll forward to current month. Activates protection fully — closer GI moves with much more force on a drop.
How Much GI Is Enough?
Phase 1
↓
GI covers the net gap between short and long put notional values. Protects the MP exposure.
Phase 2
↓
GI exceeds MP exposure. A major correction makes you whole AND profitable. Alex's target.
GI Activation by Market Move
0–3% pullback
↓
GI barely moves.
Rolling + hedges
handle this.
3–5% correction
↓
GI starts to help.
Manageable without
GI if needed.
5–10% correction
↓
✅ GI activating.
Finances short put
roll costs.
10%+ crash
↓
✅✅ Full protection.
$500k account:
only ~$20k loss.
TREE 6 ⚡

Emergency Protocol — Portfolio Out of Control

For extreme delta, extreme BP, or extreme market moves. Fix in order: BP → Delta → Theta.

🚨
First Rule
Do NOT make emotional decisions. Read Alex's latest emails first. Assess the three pillars in order: BP → Delta → Theta. Fix them in that order.
🚨 Emergency Identified — Which Type?
Emergency 1
BP over 85% used
Emergency 2
Delta beyond ±500
Emergency 3
Market moves 150+ pts
Emergency 1 — Buying Power Crisis
1
Stop all new trades immediately
No new MPs, income trades, or hedges until BP is restored.
2
Identify the largest BP consumers
Usually far-OTM long puts consuming BP without providing useful protection.
3
Execute today's scheduled rolls — they bring credit in
Rolling short puts brings premium into the account and helps restore BP.
4
PM accounts: short calls can ADD BP
On Portfolio Margin, adding short calls against existing long delta adds BP rather than consuming it — the PM superpower.
Emergency 2 — Delta Crisis
Heavy SHORT delta
Portfolio too bearish
↓
• Roll expiring puts UP aggressively
• Add short put verticals (= long delta)
• Close some short calls
• Do NOT add more short calls today
Heavy LONG delta
Portfolio too bullish
↓
• Add short call spreads above market
• Roll expiring puts DOWN in strike
• Close some far-ITM long puts
• PM: short calls rebalance at no BP cost
Emergency 3 — Extreme Market Move
DOWN 150+ points
↓
🎁 THIS IS A GIFT
GI gaining. Short calls near max profit. Roll puts down for huge credit. Add MPs at great prices. "Love this drop."
UP 150+ points
↓
MPs highly profitable. Check if short calls threatened. Roll calls up and out. If ATH hit → add GI immediately.
DOWN 300+ points
Black Swan
↓
Read Alex immediately. GI providing major protection. Bring far-dated GI forward to current month. System designed for this exact day.
🏗️
Remember the Structure
Alex's target in a 1,000-point crash: ~$20k loss on a $500k account. In a true emergency the system is not failing. It is working exactly as designed.
TREE 7 🚀

New Member Onboarding — Your First Trades

Start here if you haven't placed your first trade yet

🎓 Before Any Trade — Study FirstVideos → Emails from Jan 1 → Webinar replays. Understand the Three-Department Framework.
Step 1 — Broker & Account Type
Under $15k
↓
SPY at any broker.
Be aware of assignment risk.
Work toward XSP.
$15k–$200k
↓
✅ XSP at Tastytrade.
European style. No assignment.
IRA eligible.
$200k+ AND
Portfolio Margin
↓
✅ SPX at Tastytrade.
Hard line: both required.
$1 less → stay XSP.
Step 2 — Your Very First Trade
1
Safe first entry right now
The month-end far-out iron condor (wide strikes, ~200-pt put cushion). Safe enough, enough time decay to learn order entry. Do NOT put on weekly or 2-day condors yet.
2
Wait for Alex to start a new MP — then mirror it
"When you see me starting one — that's when you put one on. Whatever strike I choose — that's the strike for you."
3
No GI yet? Use a FLAT MP
Sell short put and buy long put at the SAME strike (different dates). Eliminates the gap. Less premium but dramatically less downside risk.
4
Starting size
SPX: max 5 contracts. XSP: max 5 contracts. Keep 30% BP in reserve always. Scale to YOUR account — not Alex's 7-figure account.
5
Do NOT add GI, short calls, or daily spreads yet
GI needs its own trigger rules. Daily diamond spreads only make sense once MPs are running — they hedge the MPs. Nothing to hedge = nothing to add.
Step 3 — Building Over Time
1st MP running, roll process understood
→
Add 2nd MP at a different expiration. Build toward Mon–Fri. One at a time.
3+ MPs running, BP well managed
→
Begin following daily diamond income trades. One contract minimum. GTC close every time.
5+ MPs, income trades familiar
→
Add GI when the three trigger rules fire. Phase 1 coverage. Watch Alex's emails for signal.
Full system running, GI in place
→
Follow short call hedges for delta management. You are now running the full three-department system. ✅
TREE 8 ⚖️

Position Sizing — Every Credit Spread & IC

Run this BEFORE placing any daily diamond trade. Size correctly or don't place it.

⚠️
The Most Common Expensive Mistake in Diamonds
Taking too much size on daily diamond spreads. These are ~6:1 risk/reward standalones. Calculate risk BEFORE every entry.
⚖️ About to Place a Credit Spread or IC — Calculate First
Step 1 — Calculate Risk Per Contract
1
Find the spread width
Sold strike minus bought strike. Example: 6800 − 6785 = 15 points = $1,500 gross risk per contract.
2
Subtract your credit
$1,500 − $225 credit = $1,275 net risk per contract. Multiply by contract count for total exposure.
3
Compare to accumulated MP premium
Total daily diamond risk must NOT exceed accumulated MP premium. $60k in MP premium → max ~$60k at risk on daily diamonds.
Step 2 — Alex's Lot Scale (Scale to YOUR Account)
Alex puts on
5 contracts
↓
QUARTER LOT
Testing the waters.
Use 25% of your normal size.
Alex puts on
10 contracts
↓
HALF LOT — DEFAULT
Alex's standard entry.
Use 50% of your normal size.
Alex puts on
20 contracts
↓
FULL LOT
High conviction.
Use 100% of your normal size.
📐
Alex trades a 7-figure account. 10 contracts for him ≠ 10 contracts for you. Scale everything proportionally. A $200k account trading 10 contracts is the equivalent of Alex trading ~100+ contracts.
Step 3 — IC Double-Dip Risk Math
Single spread
(put OR call side only)
↓
Risk: $1,275/contract
Reward: $225/contract
Ratio: 6:1 against you
Full IC
(put AND call sides)
↓
Same $1,275 margin.
Reward: $450 total credit.
Net risk: $825/contract.
Better ratio. "Double dip."
The Key Reframe — Within the System
🔑
These Are Never Standalone Trades
A $10k IC loss on a day when MPs harvested $60k = net +$50k. "I'm perfectly okay putting on trades I purposely want to lose 100% on — because if I do, I'm winning a lot on the other side. That was the whole reason the trade was put on." — Alex
TREE 9 🏭

Money Press Entry — When, How & What Size

The core revenue engine. Use this every time Alex starts a new MP set.

🏭 Alex's Email Shows a New MP Starting — Should You Enter?
Step 1 — Is Now the Right Time?
Alex starting a new MP set
→
✅ Your signal to enter. Match his strike exactly. Scale size to your account.
Alex rolling existing MPs only
→
Roll only. Do not open new MP sets until he explicitly starts one.
Alex in defensive mode — MPs reduced
→
Match his posture. Do not add MPs when he is reducing them. Daily diamonds fill the income gap.
BP below 25% available
→
🚨 Stop. Restore BP above 30% before adding any new position.
Step 2 — Choose the Right Structure
GI already in place
Normal conditions
↓
Normal MP
Short & long at different strikes. Gap covered by GI. Maximum premium collected.
No GI yet
New member
↓
Flat MP
Same strike, different dates. Zero gap exposure. Less premium, dramatically less risk.
Alex in defensive mode
Inverted referenced
↓
Inverted MP
Long strike ABOVE short strike. Maximum protection built in. Accepts less net credit.
Step 3 — Set Up Both Legs as Independent Inventory
1
Short Put — Weekly Income Leg
Match Alex's strike and expiration exactly. No GTC close — NEVER closed for profit. Always rolled to the next week for fresh credit at 3:30pm on expiration day.
2
Long Put — Protection Leg
Use the furthest-out, highest-strike long in Alex's Current Trades tab. Roll independently when within 30 DTE — plan BP in advance. No long put belongs to any short put — they are all independent inventory.
3
Fan MPs Across Monday–Friday Expirations
Build toward one MP expiring each weekday over time. This fans gamma risk — no single expiration dominates the week. Add one new MP per week as Alex starts them.
Step 4 — Size Correctly
SPX
$200k + PM required
↓
Max 5 contracts to start. SPX is 10× XSP. Hard limit at launch.
XSP
Under $200k
↓
Max 5 contracts to start. European style. IRA eligible. Build from here.
BP Rule
After entry
↓
Minimum 25–30% BP must remain. Never exceed 70–75% usage.
💡
The MP Inventory Mindset
"No long put belongs to any short put." They are all inventory — independent items managed on their own schedules. Roll the shorts weekly. Manage the longs at 30 DTE. The machine runs on its own once it is built.
TREE 10 🚀

LEAP Entry & Covered Call Campaign

The opportunistic fourth component — deployed during corrections, harvested through the recovery

🚀 Is the Market in a Significant Correction? — Is It Time for a LEAP?
Step 1 — Check All Five Entry Conditions
1
Market has pulled back 5–10%+ from ATH
LEAPs at ATH are expensive. The strategy depends on buying long calls when meaningfully cheaper than at highs. Do not enter near ATH — wait for the correction to create the value.
2
Confirmed bounce — not a falling knife
"I was not trying to time the bottom — I am trying to get confirmation once I see the movement." Required: market stopped going down AND closed above 50 SMA with follow-through the next day. Both conditions. One day is not enough.
3
Moving averages beginning to stabilize
Spaghetti MAs starting to resolve. 9 EMA turning up. Stochastics turning from extreme oversold. Multiple timeframe confirmation the downtrend is exhausting — not a dead-cat bounce.
4
Short delta protection already in place
Short calls and/or GI must be on before adding the LEAP. Never enter a LEAP as the only position — always with protection. "I have enough short calls to sustain a potential downfall if I'm wrong."
5
Alex signals the entry — use GTC at his price
"I will not chase it. I'll let it come to me." Place a GTC buy order at Alex's stated price. If the market doesn't reach it, no fill — perfectly fine. The discipline of not chasing is as important as the entry itself.
Step 2 — Alex's Staircase Approach (Scale In)
Market reaches first support level
→
Add 1 LEAP. Sell first short call immediately on fill. Begin the income campaign.
Market continues to next support level
→
Add 1 more LEAP + begin scaling MPs. One contract per level. Never more at once.
Market reverses before hitting lower levels
→
✅ First LEAP is profitable. Recovery thesis working. Continue selling short calls weekly.
Step 3 — The Covered Call Campaign (Weekly Income Harvest)
Each week — short call expires or closes
→
Sell the next short call immediately. Keep the harvest running continuously. Every week without a short call is income left on the table.
After ~8 weeks of short call income
→
✅ LEAP is effectively free. All future income and LEAP appreciation = pure profit. "It's basically a free trade."
Step 4 — Managing Different Market Scenarios
Short call breached
Market rallies through strike
↓
✅ Ideal scenario. LEAP gaining value faster than short call losing. Roll short call up and out for credit.
Market continues lower
After LEAP entry
↓
Continue selling lower short calls. Rising VIX = more premium. Accept mark-to-market loss — offset by income. Stay the course.
Market never recovers
LEAP nears expiry worthless
↓
Short call income covers most or all of the loss. If 8+ weeks collected — still net positive. The math built this in as the base case.
Step 5 — The Hard Exit Rule
Friday close 2.5%+
below 200 SMA
→
🚨 Close ALL LEAPs immediately. Non-negotiable. Something has fundamentally changed. Exit cleanly. Short call income collected to date offsets the loss.
Friday close within 2.5%
of 200 SMA or above
→
Hold. Recovery thesis intact. Continue weekly short call harvest. 200 SMA holding as support.
💎
Why Alex Uses LEAPs
"The money press within a range is awesome — but the LEAPs capture that 25% of the upper extreme that the MPs can't fully participate in. That's why I chose that." The LEAP is the complement to the core income engine — capturing the recovery the MPs structurally cannot fully benefit from.
💎 Diamonds Trading — Visual Flowcharts  |  Companion to the Decision Trees  |  Alex Rodriguez's Options Trading Program
This document is a personal study aid. Not financial advice.

DISCLAIMER: This document is intended solely for educational and personal reference purposes. It is a member-compiled study aid based on content from Alex Rodriguez's Diamonds options trading program and does not constitute financial advice, investment advice, or a recommendation to buy or sell any security or financial instrument. Options trading involves substantial risk of loss and is not appropriate for all investors. Past performance is not indicative of future results. The strategies, trades, and commentary documented herein reflect one trader's methodology and personal account activity — your results may differ materially based on account size, experience, timing, market conditions, and other factors. Always consult a qualified financial advisor before making any investment decisions. This document has not been reviewed, endorsed, or approved by Alex Rodriguez or Trader's Edge Network.