Diamonds Trading Journal
Master Reference Summary
Alex Rodriguez's Options Trading Program — Compiled from daily emails, trade alerts & webinar content
Core Glossary of Terms
| Term | Definition |
|---|---|
| MP (Money Press) | Alex's core trade. Sell a short-dated put (weekly income), buy a longer-dated put (protection). The short put is rolled weekly. Primary cash flow engine of the entire system. |
| BTO / STO | Buy to Open / Sell to Open. Entering a new position. BTO = buying an option. STO = selling an option and collecting premium. |
| BTC / STC | Buy to Close / Sell to Close. Exiting a position. BTC = closing a short. STC = closing a long. |
| Credit (cr) | Money coming INTO your account when you sell options. Always desirable. |
| Debit (db) | Money going OUT of your account when you buy options. Accepted as a cost of protection or rolling. |
| GTC | Good Till Canceled. The order stays open until filled or you cancel it manually. |
| 0DTE | Zero Days to Expiration. A same-day trade that expires at market close (4pm EST). |
| Iron Condor (IC) | A 4-leg trade: sell a put spread + sell a call spread simultaneously. Profits when the market stays within a defined range by expiration. |
| Portfolio Delta | Your account's overall directional bias. Negative delta = profits more on down moves. Positive delta = profits more on up moves. Target: within ±150 ideally, ±500 as warning level. |
| Theta | Time decay. The daily dollar amount your portfolio earns simply from time passing. Alex's primary income engine — runs ~$10,000/day at full size. |
| Gamma | How fast an option's delta changes with market movement. Gamma explodes near expiration. This is why Alex rolls before expiration. |
| BP (Buying Power) | Capital available to place trades. Alex targets keeping 25–30% in reserve at all times. |
| GI (Gap Insurance) | Long put spreads as portfolio-level protection against a large market drop (10%+). The one area where time decay works against you — accepted as cost of doing business. |
| ATR | Average True Range. A volatility measure. At 2–3 ATR on the hourly chart, Alex sees the market as "extended" and expects a pullback. |
| ITM / OTM | In The Money / Out of The Money. ITM means the market has moved past your strike. OTM means you are safe from assignment. |
| Inverted MP | When the long put strike is ABOVE the short put strike. Built-in downside protection from the start at the cost of a higher entry debit. |
| BE (Break Even) | The price at which a trade is neither profitable nor losing. |
| PM (Portfolio Margin) | Advanced account type with significantly more buying power. On PM, adding short calls against existing long delta can actually INCREASE available BP rather than consume it. |
| LEAP | A long-dated option (6–12+ months out). Alex buys these as core long positions and sells shorter-dated calls weekly to generate income against them. |
| DTE | Days to Expiration. Calendar days remaining until an option expires. |
| VIX | The market's "fear gauge." Higher VIX = more expensive options = more premium to collect. Lower VIX = less premium. |
| Source of Funds GI | GI purchased far out in time at maximum cheapness. Designed to be rolled forward later for credit, funding future protection purchases. |
| High Gamma GI | GI purchased closer in time, more responsive to current market moves. Used when Alex wants immediate protection coverage. |
| Breach / Being Breached | When the market moves through a strike price you sold. A breached position is NOT a loss — it becomes a hedge that Alex continues to roll for credit. |
The Three-Department Business Framework
The single most important concept: Think of your trading portfolio as a business with three departments. Every trade belongs to one department. Every decision is evaluated against all three simultaneously.
Core Revenue Engine — everything else exists to support this
- STO short-dated put (weekly income)
- BTO longer-dated put (protection)
- Roll short put every week for cash flow
- Long puts are independent inventory
- Goal: 20–75+ points premium per roll
Income trades that automatically become hedges when breached
- Call credit spreads, put credit spreads, ICs
- When working: income trade, close at 65%
- When breached: becomes hedge, roll for credit
- Either way the portfolio benefits
- "Win a little or win a lot"
Portfolio protection — the one cost of doing business
- Bear put spreads for 10%+ crash protection
- Time decay works AGAINST you here
- Minimized through smart spread structure
- Straight put: ~$9k → spread: ~$2k/contract
- Add one on every ATH / 3-ATR / +4.5% above 50MA / 4–5 days riding 2-ATR
How a Breached Income Trade Becomes a Hedge
Step 1 — Income Trade Placed
Alex sells a call credit spread for 2.25 cr and places GTC close at .65 db. Market is flat to down — easy profit expected.
Step 2 — Market Rallies Through Strike
Market rallies above the sold strike. The call spread is breached and under pressure. The GTC close doesn't trigger — it's ITM, not profitable.
Step 3 — MPs Are Profiting
The same rally that breached the calls is making Alex's short puts MORE profitable. MPs are printing money on the very same move.
Step 4 — Roll for Credit, Convert to Hedge
Alex rolls the breached calls further out in time and up in strike for additional credit. They become short delta protection. He was paid to enter AND paid to roll.
Gap Insurance — The Four Rules and Black Swan Numbers
The Four Rules for Buying GI
Buy ONE contract when ANY of these occurs. Maximum one per trigger event even if multiple fire the same day:
- Market hits 3 ATR on hourly or daily chart
- Market hits an all-time high
- Market is more than 4.5% above 50-day MA
- Market rides the 2 ATR band for 4–5 consecutive days — within the spirit of the overextension rules
Black Swan Scenario (Alex's Real Numbers)
Account: $500k+ | MP exposure: ~$200k
GI coverage: ~$120k | Short call protection: ~$60k
In a 1,000-point (20%) SPX crash:
Net loss: ~$20,000
On a $500,000+ account. Recovery from the subsequent bounce likely recouped in hours.
| Phase | Coverage Target | Description |
|---|---|---|
| Phase 1 | Cover the MP gap | GI covers net difference between all short and long put notional values. Example: 40 contracts × 50-point gap = $200k exposure → need ~$200k GI coverage. |
| Phase 2 | Cover entire portfolio | Advanced. GI exceeds MP exposure. A major correction makes you whole AND profitable. Alex achieved 1.5x portfolio coverage in a prior run. |
The LEAP — An Opportunistic Fourth Component
The LEAP (Long-term Equity Anticipation Position) is not a permanent fourth department — it is an opportunistic layer Alex deploys selectively during significant market corrections to capture the eventual recovery. It activates when specific conditions align: a confirmed market bottom signal, a meaningful pullback from ATH, and Alex's read that the risk/reward of a long-dated long call is favorable. It deactivates via short call income harvest and eventual closing as the recovery plays out.
What a LEAP Is
- A long call option 6–12+ months out in time
- Buys the right to profit from a sustained market rally
- Low cost relative to its delta exposure — leveraged long position
- Alex uses SPX or XSP LEAPs — index options, no assignment risk
- The long call is the core position; short calls are sold weekly against it for income
How Alex Monetizes the LEAP
- Sells short-dated calls weekly against the long LEAP (covered calls)
- "A weekly 50-point OTM call is paying ~65 credits per week"
- 23 weeks × ~50 points = ~1,150 points — more than the LEAP cost
- Even if the LEAP expires worthless: paid for by short call income
- "It's basically a free trade" — the math makes it very low-risk long-term
When Alex Deploys LEAPs — The Entry Conditions
| Condition | Detail |
|---|---|
| Market has pulled back significantly | 5–10%+ correction from ATH. LEAPs are meaningfully cheaper than at highs. Lower VIX on the long call side means maximum value per dollar spent. |
| Confirmed bounce signal — not a falling knife | Market stopped going down AND closed above 50 SMA with follow-through the next day. "I was not trying to time the bottom. I am trying to get confirmation once I see the movement." |
| Moving averages beginning to stabilize | Spaghetti MAs starting to resolve. 9 EMA turning up. Stochastics turning from extreme oversold. Multiple timeframe confirmation. |
| Short delta protection already in place | Short calls and/or GI already on as downside hedge. "I have enough short calls to sustain any potential downfall if I'm wrong." LEAPs always deployed with protection — never naked long. |
| GTC at his price — never chased | Alex places a GTC buy order at his target level and waits for the market. "I will not chase it. I'll let it come to me." If the market doesn't drop to his price — no fill, and that's perfectly fine. |
LEAP Deployment Scale — Alex's Staircase Approach
Alex does not buy all his LEAPs at once. He scales in methodically as the market moves lower, adding one contract at each key support level. If the market reverses before hitting lower targets, he still has a profitable position from the higher entry. Telegraphed explicitly in the March 7, 2026 email:
- SPX at 6600: Add 1 LEAP (initial entry)
- SPX at 6500: Add 1 more LEAP + start 5-lot MPs
- SPX at 6400: Add 1 more LEAP only
- SPX at 6300 (10% correction): Add 1 more LEAP + start 10-lot MPs aggressively
LEAP Math — Why It Often Becomes "Free"
| Component | Example | Outcome |
|---|---|---|
| LEAP purchase cost | 400 points (~$4,000/contract on SPX) | Out of pocket at entry |
| Weekly short call income | ~50 points/week (conservative) | ~$500/week per LEAP contract |
| Weeks to expiration | 23 weeks | 23 × $500 = ~$11,500 potential short call income |
| Break-even point | 400 ÷ 50 = 8 weeks | LEAP cost recovered in ~8 weeks of covered calls |
| Market never recovers | LEAP expires worthless | Still net positive if 8+ weeks of short calls were collected |
| Market recovers strongly | LEAP gains intrinsic value | Short call income PLUS LEAP appreciation — double win |
LEAP Management Rules
| Situation | Action |
|---|---|
| Short call gets breached (market rallies) | Roll short call further up and out for credit. The LEAP's value is increasing even faster — this is actually the ideal scenario. The breach signals the recovery Alex bought the LEAP for. |
| Market continues lower after LEAP entry | Continue selling short calls at lower strikes. Rising VIX means more premium per contract. Accept mark-to-market LEAP loss — it is offset by short call income and will recover with the market. |
| Market recovers strongly | Let the LEAP appreciate. Roll short calls progressively higher as market rises. Eventually close LEAP for profit when target levels are reached. |
| 200 SMA closes 2.5%+ below on a Friday | Alex's hard exit rule. Something has fundamentally changed in market structure. Close the LEAP. Take the loss. The environment that warranted the position no longer exists. |
Alex's LEAP Philosophy: "I am long the market long-term. I want to be able to capture nice sustained up moves — because if you know the money press, within a range it's 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 Three-Legged Stool — Every Trade Decision
Every trade Alex places is simultaneously evaluated against three metrics. He never optimizes for just one in isolation. BP is the invisible hand behind every single decision.
Your account's overall directional bias.
- Target: within ±150
- Monitor: ±150 to ±300
- Caution: ±300 to ±500
- Act now: beyond ±500
Daily income from time decay.
- Alex's target: ~$10,000/day
- Grows as more MPs are added
- Earns 24/7 including weekends
- The "always-on" income machine
Capital available to trade.
- Sweet spot: 25–30% available
- Aggressive max: 80% used
- Conservative: 40% available
- Reserve covers long put rolls
Decision Priority Order
| Step | Check | If Issue Found — Action |
|---|---|---|
| 1st | Buying Power | If approaching maximum, reduce or rebalance before adding anything new. No exceptions. |
| 2nd | Delta | If outside comfort zone, add offsetting trades first — short calls for long delta, put spreads for short delta. |
| 3rd | Theta | If theta is too low, add income trades — but only if BP and delta allow it. |
| 4th | Income | Only after the first three are healthy. Never chase income at the expense of the others. |
Trade Management Rules
Rolling Rules
| Situation | Action | Why |
|---|---|---|
| Short put expiring today / tomorrow | Roll to next week | Collect new weekly premium, maintain income stream |
| Rolling UP in strike | Move to higher strike on the roll | Market is strong. More premium + adds long delta. Do when short deltas are too heavy. |
| Rolling FLAT | Same strike, new expiration | Cautious about direction. Maintain safety cushion over maximum premium. |
| Rolling DOWN in strike | Move to lower strike | Defensive — prioritize safety over premium. Used in uncertain/bearish conditions. |
| Long put within 30 DTE | Roll out 3–6 months | Maintain ongoing protection. Net debit — plan BP well in advance. |
| Breached income trade | Roll further out in time, up in strike for credit | Converts to hedge, continues generating premium. No cash out of pocket. |
When to Act vs. When to Wait
| Scenario | Alex's Response |
|---|---|
| Market moves 20–40 points | Do nothing. This is noise. Let theta work. |
| Market moves 80+ points | Begin monitoring — may need to manage positions |
| Market moves 120+ points | Active management required. Rolls and adjustments likely. |
| ATH hit today | Add one GI contract. Non-negotiable — no exceptions. |
| 3 ATR on hourly or daily chart | Add one GI contract. Market is extended — non-negotiable. |
| 4.5%+ above 50-day MA | Add one GI contract. Historically elevated — non-negotiable. |
| 4–5 consecutive days riding 2 ATR | Add one GI contract within the spirit of the overextension rules. Sustained 2-ATR riding signals the same overextension risk as the three hard triggers. |
| Income trade at 50–65% profit | GTC close order triggers automatically. Take the gain. |
| Income trade breached | Roll further out in time and up in strike for credit. Convert to hedge. |
| Long put approaching 30 DTE | Start planning the roll. Protect BP now, execute soon. |
Portfolio Delta Management
| Delta Range | Status | Interpretation |
|---|---|---|
| 0 to ±150 | ✅ Ideal | Well balanced. Theta is primary income. Small daily P&L swings normal. |
| ±150 to ±300 | ⚠️ Monitor | Still manageable. Larger daily swings but not dangerous. |
| ±300 to ±500 | ⚠️ Caution | Getting directional. Account swings noticeably with market moves. |
| Beyond ±500 | 🚨 Manage Now | Too directional. Add offsetting trades immediately. |
The 30/30 Daily Routine
This is all the active time you need each trading day:
- 30 minutes in the morning: Read all emails, understand the day's plan, place GTC orders for any income trades.
- 30 minutes at 3:30–4:00pm: Execute rolls and adjustments on expiring positions.
- Evenings (optional): Study videos, chat, re-read emails for deeper education.
"Why wait until 3:30pm? Because Alex needs to see where the market will close to choose the right strike. This is by design, not procrastination."
GTC Stop Rules — Quick Reference
The Single Question to Ask: "Did Alex give me a specific closing price in the same email as the opening trade?"
CCS or PCS (Daily Diamond) → 📥 INCOME TRADE by default Place GTC close at .65 db immediately after fill — no instruction from Alex needed. Alex will issue specific instructions if the trade is to be treated as a hedge instead.
All other trades with no GTC target → 🛡️ HEDGE or 🔄 ROLL No GTC close. Wait for Alex's management instructions.
| Trade Type | GTC Close? | Typical Target |
|---|---|---|
| Iron Condor (0DTE or short dated) | YES — immediately on fill | .95 db or .65 db (50–65% of max profit) |
| Bear call credit spread — Daily Diamond (CCS) | YES — .65 db immediately, no instruction needed | .65 db — automatic default |
| Put credit spread — Daily Diamond (PCS) | YES — .65 db immediately, no instruction needed | .65 db — automatic default |
| Money Press (MP) short puts | NO — rolled weekly | Roll on expiration day per Alex's instructions |
| Long puts (MP protection) | NO — rolled at 30 DTE | Roll when approaching expiration |
| Short calls as delta hedge | NO — managed manually | Rolled when threatened or at expiration |
| Gap Insurance spreads | NO — held long term | Rolled when within 30 DTE |
| LEAP long calls | NO — held long term | Managed as long-term position |
| Short calls against LEAP | NO — rolled weekly | Rolled as market moves |
Getting Started — Step by Step
Alex's exact guidance from the webinar for members starting fresh or switching brokers:
- Find the furthest out expiration date on the short puts in the Current Trades tab. Sell that one first.
- Find the furthest out AND highest strike long put currently listed. Buy that one.
- That one set is your first Money Press. You are now in the system.
- Every roll going forward: follow Alex's roll for that day's expiration. Keep adding to the longest-dated, highest-strike longs as you build.
- Do NOT add GI or short calls yet. "If you don't have anything to hedge, you don't need to hedge."
- Build toward one MP per weekday (Mon–Fri expirations). Take months — this is not a race.
Recommended Instruments by Account Size
| Account Size | Recommended Instrument | Notes |
|---|---|---|
| Under $15,000 | SPY | Be aware of assignment risk (American style). Work toward XSP as soon as possible. |
| $15,000+ | XSP at Tastytrade | European style — no early assignment. Works in IRA accounts at Tastytrade. Game-changer. |
| $50,000+ | XSP or SPX | SPX = 10x the size of XSP. More capital efficient at larger account sizes. |
| Large accounts | Portfolio Margin (PM) | Unlocks the BP superpower — short calls add BP rather than consuming it. |
The Anchor Rule for Following Alex's Strikes
"99% of the time I am touching that day's expiration contract. Whatever you have expiring that day — that is what you are touching."
Find your position matching the EXPIRATION DATE first. The strike is secondary — yours may differ due to different entry points. That is completely fine.
Weekly Trade History Summary
Market: Up 5 consecutive days before launch. Alex cautious — wanted negative delta until 6885 was broken convincingly.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Dec 1 | MP #1: Sell Dec 9 @6800 / Buy Feb 20 @6825 (Inverted) | ROLL | Inverted for 85-pt downside cushion. Short call hedge 1:2. |
| Dec 5 | MP #2: Sell Dec 15 @6875 / Buy Mar 20 @6850 + CCS 7000/7020 | ROLL | Second MP, still cautious. ~12k net debit entry. |
| Dec 5 | Roll Dec 9 @6800 → Dec 10 @6850 for 10+ cr | ROLL | Market rallied — locked in extra premium early. |
Key Lesson: "Good trading is BORING. Set it and forget it. Do not watch every tick."
Market: FOMC Wednesday. Alex rolled Tuesday to sidestep it. Market dropped ~120 points Dec 12 — first real test of the system.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Dec 9 | Roll Dec 10 @6850 → Dec 17 @6850 (28–30 cr) | ROLL | Sidestepped FOMC. Rolled day early by design. |
| Dec 10 | 0DTE IC: Put 6755/6740 + Call 6900/6915 @2.50 cr | INCOME | FOMC elevated premium. GTC close at .95 db placed immediately. |
| Dec 12 | Multiple rolls — shifted to long delta, reduced short calls | ROLL | Market dropped 120 pts. Flipped to long delta ahead of expected bounce. |
Key Lesson: Never adjust intraday on emotion. Wait until 3:30pm minimum. A 30–40 point move is noise.
Market: Alex trading from his phone on a cruise. Volatile but recovering. Launched the Diamond LEAP strategy.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Dec 18 | XSP LEAP: BTO Jun 18 @670 / STO Dec 26, Dec 31, Jan 9 short calls | HEDGE/INCOME | Long-term bullish position. Weekly short calls generate ongoing income against the LEAP. |
| Dec 18 | Bear CCS Dec 22 @6885/6900 @2.05 cr min | HEDGE | Near-term short delta hedge on market strength. No GTC close. |
Key Lesson: PM accounts allow LEAP purchases to ADD buying power due to delta offset — a structural advantage unavailable on standard margin.
Market: Strong rally through Christmas. Multiple ATHs triggered GI purchases. Alex briefly hit ZERO portfolio delta — rare "unicorn" moment.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Dec 24 | GI: BTO May 29 @6700 / STO May 29 @6550 (~29.40 db) | HEDGE | ATH triggered non-negotiable GI rule. Source of Funds GI. |
| Dec 24 | Roll all Dec 31 short calls → Jan 9 @6975/6990 | HEDGE | Extended protection past year-end to avoid breach risk. |
| Dec 26 | Second GI addition (new ATH) | HEDGE | Second ATH = second GI. Rules are Rules. |
Key Lesson: "I would love to lose 100% of the GI premium cost." Losing on GI means the market kept going higher — and MPs paid well.
Market: Slight pullback Dec 29. Very active Dec 31 with ICs placed for both that day AND Jan 2 to capture holiday theta.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Dec 29 | New Inverted MP: STO Jan 2 @6950 / BTO Mar 20 @6925 (189 db) | ROLL | Pullback = cheaper entry. Inverted for built-in protection. |
| Dec 31 | 0DTE IC + IC for Jan 2 (both placed same day) | INCOME | Captured weekend + holiday theta. GTC close at .65 db on both. |
| Dec 31 | GTC New MP @122 db — filled same day | ROLL | Placed at desired price and let the market come to him. |
Key Lesson: GTC orders at YOUR price are a powerful tool. Place them and let the market come to you — often fills days later at exactly your price.
Market: Tariff ruling expected Jan 9. Alex added tail risk insurance (strangle) before the event. New ATH triggered GI addition.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 6 | Added 5 more Jan 14 @7000/7020 short calls at 5.25 cr | HEDGE | Market up 15+ pts. Added short delta. No GTC close. |
| Jan 8 | GTC close: Jan 12 @6875 MP + Feb 20 @6900 long (100.25 cr) | CLOSE | Reducing long delta + freeing BP ahead of Feb 20 roll deadline. |
| Jan 8 | Strangle: BTO Jan 9 @6820 Put + @6995 Call (4.20 db) | HEDGE | Tail risk insurance for tariff day — cheap options for potential 100-pt move. |
| Jan 9 | MP rolled UP: @6925 → Jan 16 @6975 | ROLL | Market strength + ATH hit. GI protection gave confidence to be aggressive. |
| Jan 9 | New ATH → New GI (Jun 30 set) | HEDGE | ATH rule triggered. Non-negotiable. |
Market: Futures down double digits Jan 12 — a "gift." Alex closed XSP LEAP, added multiple MPs, took GI profits, shifted defensive. Jan 16: 100% return in 46 days.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 12 | Closed all XSP LEAP positions at open | CLOSE | ~15% gain locked. Major BP recovery to fund new MPs. |
| Jan 12 | Added multiple new MPs across all weekday expirations | ROLL | Down day = cheaper entries + higher premium. Building toward 5 MPs per weekday. |
| Jan 12 | Closed 50% of High Gamma GI for profit | CLOSE | Down day made GI profitable. Took gains + recovered BP for new MPs. |
| Jan 16 | Closed short puts outright — did NOT roll | STRATEGIC CLOSE | Technical signals showed bearish edge. Converted long puts to new GI instead. |
Milestone: $300k deployed Dec 1 → $600k+ by Jan 16 = 100% return in 46 days through three significant market drawdowns.
Market: Futures down 100+ pts Jan 20. VIX reset day. Alex had been preparing since Jan 16. Pure gift for his short delta positioning.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 20 | Restructured all GI to Mar 20 expiration (from May/June) | HEDGE | Brought protection closer for more gamma responsiveness to near-term drop. |
| Jan 20 | Added new MPs on the down move | ROLL | Big down day = higher premium + cheaper long put entries. Opportunistic. |
| Jan 21 | Multiple short call spreads — "fading the rally" | HEDGE | Expected bounce to be temporary. Short calls = short delta positioning. |
| Jan 22 | Short put verticals Jan 30 @6855/6875 @2.75 cr | INCOME | Delta at -988. Added positive delta while collecting credit. GTC close at .65 db placed immediately. |
| Jan 22 | MP roll: @6925 → Jan 29 @6950 (50.05 cr — rolled UP) | ROLL | Heavy short delta justified aggressive upward roll. $5k daily cash flow target achieved. |
Key Lesson: "The stock market is not staying at 6800 the rest of the year. If you know this, why be anything but fully exuberant on a big red day?"
Market: Short puts rolled successfully at asking price. Short put verticals expiring that day closed for profit. Short calls required a debit roll — Alex's framing: a debit-roll now makes the position a "paid-for hedge," where the notional spread value becomes downside protection.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 23 AM | MP short put rolls — two sets: one a week out, one to Monday | ROLL | "Daily roll" MPs being rolled day-to-day while the market stays within range. Will shift to weekly when it stops paying. |
| Jan 23 AM | Short call verticals expiring today — wait-and-see until afternoon | HEDGE | Too early to see direction. Alex waited to determine if roll needed or if they'd expire worthless. |
| Jan 23 PM | Short call vertical roll — paid debit to roll | HEDGE | Market stayed elevated. Rolled for debit. "This now becomes a paid-for hedge — the spread value is your notional protection to the downside." Rolled into existing Feb 13 7020/7045 or Mar 2 7025/7050 pile. |
| Jan 23 PM | Short put verticals — sold to partially offset short call roll cost | INCOME | Used credits from new short put verticals to offset debit cost of rolling the short calls. |
Key Concept — "Paid-For Hedge": When a short call position requires a debit to roll, Alex reframes it: the original credit received paid for the hedge, and the current spread value represents real downside protection. It is not a loss — it is an insurance policy that has been building in value.
Philosophy Drop: "Trading is 70% mental, 10% strategy, and 20% execution. Work on your mental game — it will serve you so well."
Market: Live webinar Jan 26. Multiple ATH contingent orders placed. FOMC Jan 28 — Powell press conference delivered a nothing burger (less than 10 point move). Approximately 12 consecutive days of strong premium credits by Jan 27.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 26 AM | MP short put rolls + long put GTC to roll up strikes (35 DTE) | ROLL | Routine weekly roll. Long put GTC set to bump up strikes at Alex's price — leave on until filled. Restores some BP when filled. |
| Jan 26 AM | Multiple short put and short call vertical closes at .65 db (GTC) | INCOME | Closing both sides to maximize credit on whichever side is profitable, to offset any management costs on the other side. |
| Jan 27 AM | Roll 6950 short puts expiring today → same strike next week | ROLL | Strong credits for past 2 weeks. Raised some 6900 sets to 6925 for extra credit. |
| Jan 27 AM | Contingent GI order: triggers if SPX hits 6970 | HEDGE | ATH-proximity trigger. Contingent — only fills if market hits the level. Non-negotiable GI rule in action. |
| Jan 27 AM | Contingent short call order: triggers if SPX hits 6975 | HEDGE | Paired with GI contingent. If market rips to new ATH, short call activates for delta protection. |
| Jan 27 PM | GI contingent order filled at asking price | HEDGE | Market hit 6970. GI automatically executed. Short calls order did NOT fill — canceled. |
| Jan 27 PM | Long put roll: Mar 31 @6825 → Apr 17 @6850 (raised price to fill) | ROLL | Open GTC order from prior days finally filled after price was raised to market. Routine long put upgrade. |
| Jan 28 | Short put rolls only — wait until 3:30pm for Powell press conference | ROLL | FOMC day — "sit on your hands" until after Powell. Market moved less than 1 point after press conference. Perfect theta decay day. |
| Jan 29 AM | Roll 6950 short puts → same 6950 strike next week | ROLL | Would prefer 6925 but not enough premium. Staying at 6950 unwillingly. GI contingent at 7005–7010 as day order only. |
Key Lesson — Contingent Orders: Alex uses contingent (conditional) orders triggered by SPX reaching a specific price level. This allows him to set up GI and short call triggers, then step away from the screen. If the market hits the level, the order fires automatically. If not, it falls off. "I have no plans to sit in front of my computer all day and watch every meaningless tick."
Market: Alex telegraphed a detailed 5-week forward-looking game plan for the first time. Beginning of a deliberate defensive repositioning. Short puts still printing strong credits. Account at ATHs of yearly gains (~125% return in first 35 days).
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Jan 30 AM | Short put rolls + short call vertical closes at .65 db | ROLL | Routine rolls. 6950 short calls also rolling off. "Enjoy these immersively high profitable times — winter days will come." |
| Jan 30 PM | Philosophy email — 7 Uncomfortable Truths About Trading | — | No trades. Pure mindset content. See Philosophy section. |
| Feb 2 AM | All short puts rolled to Feb 13 expiration at 6950 strike (asking 50 cr) | ROLL | Strategy: consolidate all short puts to Feb 13 expiration — the same date as the big pile of short calls. Creates a "resolution day" where both sides get evaluated simultaneously. "Win-win threading the needle scenario." |
| Feb 2 AM | June 30 GI rolled forward to March 20 | HEDGE | Brought far-out Source of Funds GI closer in time. Increases gamma coverage and positions for potential Feb correction. Also brings in credit. |
| Feb 2 PM | Confirmed all trades filled. Huge premiums brought in. Added short calls for members light on short delta. | HEDGE | Alex at -1643 delta. Encouraged members not heavily short to consider adding short calls at current strikes for great credits. |
| Feb 3 AM | Today's expiring put → Feb 13 pile. 10% reduction of MPs (close 5 short / 4 long). | PARTIAL CLOSE | First deliberate MP size reduction. Keeping one extra long put to organically increase short deltas without adding new short calls. "I'd rather be out wishing I was in, than in wishing I was out." |
| Feb 4 AM | Short put vertical credit spread — if filled at price, GTC close at .65 db immediately | INCOME | "Either my price or I'm not playing." Income trade only if market conditions warranted the fill. |
| Feb 4 PM | Additional short put vertical for next day's expiration — filled same day | INCOME | "Adventure trade" for next day. Not drama-free given vol. GTC close placed on fill. |
The 5-Week Game Plan (Announced Jan 30): Feb 1 typically an UP day → ride the rally and harvest premiums. First 2 weeks of Feb: try to tag 7000 again for nice premium. Latter part of Feb historically weak → let OTM short puts expire, sell some long puts to reduce long delta exposure. When recovery and upward momentum re-establish → reload MPs aggressively for next bull run. Target: protect current gains, give back no more than 20%, let new trend emerge in March or whenever price action confirms.
Key Concept — Organic Delta Shift: By closing a short put but keeping the corresponding long put, the portfolio naturally shifts shorter delta without needing to add new short calls. The extra long put provides incremental downside protection at no additional cost.
Market: Below 21 EMA. Multiple failed rally attempts. Alex escalated from "cautiously cautious" to "outright cautious." Account at 125%+ YTD return. Stated explicitly: largest drawdowns in his career have always followed large run-ups at ATHs. This check box was now ticked.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 5 AM | Closing ~60% of short puts (rolling/closing to reduce), keeping ~20 of 50 for Feb 13 | PARTIAL CLOSE | Major risk reduction. Keeping skeleton crew of MPs through Feb. Leave 2–3 extra long puts for organic short delta. Feb 13 becomes the "resolution day." |
| Feb 5 AM | IC for Tuesday (Feb 17 — long weekend): further strikes, wider cushion | INCOME | Hedging both directions over long weekend. GTC close at .65 db on fill. |
| Feb 5 AM | Closing 40–50% of GI (the sets with short calls attached) | PARTIAL CLOSE | Reducing MPs = less need for protection. Taking some GI profit. Recovering BP. |
| Feb 5 AM | GTC LEAP orders: BTO SPX Sept 18 @6500 and @6350 (day orders) | HEDGE/INCOME | "Extremely premature" seed planting. Only fills if market drops to ~6500 or ~6350. Set and forget — may sit for weeks. If filled during a fast drop, immediately sell short calls against them for income. XSP equivalent: 32.50 and 22.50 on Sept 18 @670. |
| Feb 5 PM | Short put side of IC: roll to tomorrow same strikes — paying debit | ROLL | IC short put side breached. Options: close for ~$2 gain if bounce at close, or roll same strikes to next day. Alex waited until 3:57pm to maximize optionality. |
| Feb 6 AM | Close today's expiring MPs (BTC short puts + STC nearest dated long puts) | CLOSE | "Dead cat bounce" — took the opportunity to reduce long exposure while market temporarily elevated. Still below 50-day MA. Not a bullish environment. |
| Feb 6 AM | Short put spread from rolled IC — GTC close at .65 db | INCOME | Let GTC close handle it. No further alert needed when filled. |
Key Concept — Proactive LEAP Seed Orders: Alex places deeply discounted LEAP buy orders far below the market — not because he expects them to fill immediately, but so that if a fast, sharp drop occurs while he's at the gym or having lunch, the orders automatically execute at great prices. "I don't want to miss a great buying opportunity getting a hugely discounted price." This is the system thinking ahead of itself.
Market: SPX in a 45-day downward-sloping channel (Alex's TA). Bouncing between channel bands. Short-term bullish rallies being faded. Below 50 MA = not bullish by definition. Feb 11 jobs report surprise — gap up open, faded by afternoon. Multiple members reporting ATH accounts.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 9 AM | Short call closes for today: .45 db GTC (6970 short calls) | INCOME | Short calls expiring today targeted for near-max-profit close. Friday's short calls also set at .65 db GTC. |
| Feb 9 AM | Short put vertical — offered at asking, not chased if not filled | INCOME | Attempted income trade. Did not fill — Alex did not chase. "Either my price or it's OK, I don't need the drama." |
| Feb 9 PM | Short calls closed at .45 db — confirmed | CLOSE | Closed for nice gain. At -1450D, 33480Th at time of email. No positions for Monday. |
| Feb 10 AM | IC for tomorrow: asking 5.05 cr, adjusted to fill at open (got 5.80 cr) | INCOME | No expiring positions. IC placed for Tuesday. GTC close at .95 db (80% of max). Added 10 more contracts at ~7 cr during the run-up. |
| Feb 10 PM | Closed half the IC at 50% profit | CLOSE | Took partial profits on the run up. Remaining 10 contracts still open with .95 db GTC. Note: BP temporarily elevated — $100k withdrawn from account for personal use (Ferrari upgrade). |
| Feb 11 AM | Closed 5 of 15 remaining Feb 13 @6900 short puts (securing gain, reducing risk) | PARTIAL CLOSE | Jobs report gap-up opportunity. Took profit on portion. Keeping short deltas strong — only 4 of corresponding longs closed. |
| Feb 11 AM | Rolled remaining 6900 short puts → 6950 (same Feb 13 date) | ROLL | Added to existing 6950 pile. Raising strike = more premium + slight delta rebalance. |
| Feb 11 AM | Rolled up IC put side for more credit | ROLL | Gap-up = opportunity to extract more premium on put side of IC. |
| Feb 11 AM | Short put credit verticals — income trade on gap-up | INCOME | GTC close at .65 db placed immediately on fill. Short-dated income on the rally. |
| Feb 11 PM | 6950 put spread → rolled to 6945 expiring tomorrow for more downside protection | ROLL | Biting the bullet to stay close to market. If we go back up tomorrow, more protection. If account gets hit on short puts, account likely hits another ATH. Win-win framing. |
Key TA Lesson — The Channel: Alex identified a 45-day downward-sloping channel: lower band ~6725, upper band ~6985. Bottom target eventually ~6300 (standard 10% annual correction from ATH). Support at 50 MA (~6894). Below 50 MA = not bullish by definition. "We can go as high as 6985 and still be in the downward channel and nothing has changed."
Market: Feb 12 big sell-off intraday — another ATH in the account. Feb 13 became the major "resolution day" Alex had telegraphed for 2 weeks. All 150 short calls closed at max profit (.35 db). Significant MP restructuring. Multiple member ATH reports.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 12 PM | Closed ALL short calls (all 150 contracts) at .35 db — max profit | CLOSE | Massive gain locked in. "I do not have any short calls — all 150 of them closed for a massive gain." March 2nd short calls still active. |
| Feb 12 PM | Short put credit spreads expiring today → rolled to March, lowered strikes | ROLL | Pushed out in time to let market recover. Getting closer to spot incrementally while keeping the position alive. |
| Feb 12 PM | Expiring tomorrow (Feb 13) short puts rolled out — not closed | ROLL | Only set actually rolled out rather than closed. Everything else closed outright. |
| Feb 13 AM | 20% of remaining MPs closed (5 of 25): BTC short puts + STC nearest dated longs | PARTIAL CLOSE | Continued reduction. "Inch closer to spot, don't let yourself get too deep ITM." Asked over market price — will take whatever market gives by EOD if not filled at target. |
| Feb 13 AM | Remaining 6950 short puts → Mar 2 @6900 (using longs to offset cost) | ROLL | Lowered strike 50 points closer to spot. Used long put rolls to generate credit to offset move. Mar 2 is target landing zone. |
| Feb 13 AM | Additional sets: rolled to 6900 using April and May longs as credit offset | ROLL | Same concept — lowering short puts toward spot using long put reductions to fund the credit needed. "Trade the spirit of the trade." |
| Feb 13 AM | Short call spreads — 5 sets each at 4 different strikes (conservative to aggressive) | HEDGE | Quarter positions to "get feet wet." Testing the waters. Two conservative, two "poking the bear" aggressive. Getting short delta exposure back after clearing all 150 prior calls. |
| Feb 13 PM | All trades filled at asking. IC for Tuesday (Feb 17) — long weekend hedge | INCOME | Another ATH in account. IC set for Tuesday with wider strikes to hedge both directions over Presidents' Day weekend. GTC close at .65 db placed. |
Feb 13 Resolution Day Summary: All 150 short calls closed at max profit. ~60–80% of MPs reduced or restructured. Short puts moved closer to spot (6900) and further out in time (Mar 2). Short call exposure rebuilt from scratch at fresh strikes. The portfolio entered the long weekend dramatically leaner, lower risk, and with significant accumulated profits locked in.
Key Concept — "Inch Closer to Spot": As the market drifts lower, Alex's ITM short puts get deeper in the money. Rather than panicking, he systematically rolls them LOWER in strike (closer to current spot) and FURTHER out in time, often using long put sales to generate the credit needed to make the roll cost-neutral or small credit. This keeps him from being deeply ITM while also not locking in losses. "Don't let yourself get too deep ITM on your short puts."
Market: Presidents' Day long weekend. Feb 17: SPX bounced from lower channel band as Alex had telegraphed. Feb 18: still in downward channel. Rally being faded. Futures at ATH earlier in morning, came down — "rallies are being faded." 6800 = key support line. Below 50 MA = not bullish.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 17 AM | IC for today closing orders: call side .65 db GTC, put side .15 db GTC | INCOME | Took profits on put side (closer to max profit). Left call side for a bit more decay. |
| Feb 17 AM | Rolling call side: moved strike down slightly, tightened width for extra premium | ROLL | Extracting more premium if market gets a mid-day rally. If not, call side expires worthless. |
| Feb 17 #2 | Short put vertical — aggressive 0DTE-style, closing orders on each side independently at 1.00 db | INCOME | "Dab toes in the water" on possible rangebound day. Two sets placed. Aggressive — only for members able to be nimble. |
| Feb 18 AM | Wait for market open — will send #2 update with trade by 10:30am based on first 30 min | — | Chess not checkers. Watching for tipping point before committing. "It needs to make sense, not just because the market is open does it mean a trade has to happen." |
| Feb 18 #3 | Cancel all IC put spread closing orders — close ALL short put vertical sides immediately at .15–.25 db | CLOSE | Gift day. All short put verticals across all open ICs closed for near-maximum profit. Then set .65 db GTC on all remaining call sides. "Take this opportunity to continue to reduce risk." |
Key Lesson — "Chess, Not Checkers": Alex's Feb 18 approach crystallized a core operating principle: never force a trade just because the market is open. Wait for an edge to develop with a clear entry thesis AND a clear exit plan if it goes wrong. "I always try to position myself with a few moves ahead scenarios — where I can either continue to benefit, or have a clear out that won't hurt me as much."
Running Metrics at Feb 18 End of Period: Account in significant defensive mode. Short calls being rebuilt from scratch in small sizes. MPs reduced to skeleton crew (~20 of original ~50). GI restructured closer in time for gamma responsiveness. Short puts being systematically rolled closer to spot. Market still in downward channel — no new MP additions until price breaks above 21 EMA with all MAs stacked positively.
Market: OPEX Friday Feb 20. Below all short-term and medium-term MAs. Bottom half of the channel range. Alex accelerated chip removal before the weekend. IC for Friday hit max gains on both sides. Post-OPEX/VIX expiry bounce expected early the following week.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 19 AM | Close 50% of remaining MPs (10 of 20): BTC short puts + STC April longs | PARTIAL CLOSE | Going into next week with only 10 short puts and 11 long puts (one extra long for organic short delta). Close all short calls expiring this week simultaneously once MPs filled. |
| Feb 19 AM | Stop loss order: trigger at 175 on extra long put, limit sell at 170 | HEDGE | Passive alert mechanism — if long put drops to 175, market moved higher and extra long protection is no longer needed. Hard line in the sand. If market goes lower, stop doesn't trigger and extra long adds protection. |
| Feb 20 AM | No trade at open — waiting for 10:30am edge development | — | 6860 still the pivotal level. Below = lower prices. Above = sustained move. "Hovering around it — we just need to see it happen before taking action." |
| Feb 20 #2 | IC for today — two price tiers, same strikes. Closing each side independently at .35 db. | INCOME | "Vanilla trade with clear lines in the sand." Two credit asks in case price moves intraday. Not a trending market — take whichever side pays first and deal with the other independently. |
| Feb 20 #3 | GI roll: same structure, strikes moved lower, expiration extended further out | HEDGE | Took advantage of the down move. Lower strikes = better coverage on a 5%+ selloff. With fewer MPs, no need for tight near-strike protection. Flat roll — small credit or small debit both fine. |
| Feb 20 PM | IC closed for max gains on BOTH sides. Short put vertical for Monday placed. | INCOME | Post-OPEX / VIX expiry = typical small bounce expected Mon–Tue. Short put vertical set to ride anticipated bounce. Wiggle price by 3:57pm if not filled. |
Key Concept — Stop Loss as Passive Alert: Alex uses stop loss orders not just for risk management but as passive monitoring tools. A long put stop loss at 175 tells him: if this triggers, the market moved up and the extra long protection is no longer needed — it fires automatically while he's at the gym. If the market drops instead, the stop never triggers and the extra long continues providing protection. No screen-watching required.
Alex's Mindset Statement (Feb 19): "The year can end today and I had a phenomenal year — and it's only Feb 20. The one thing I would not like is to get silly and have the rest of the year be me trying to get back to what I've already accomplished." Going into Week 17: 10 short puts, 11 long puts, all short calls cleared, GI rolled to lower strikes and extended dates.
Market: Overnight Sunday Feb 22 futures down 50+. Alex placed overnight hedges. Feb 24: another ATH in the account despite underwater rolled short puts. NVDA earnings after close Wednesday — muted market reaction. Feb 27: same 200–300 point channel, MAs "all spaghetti," no clear trend. Alex now only 25% invested — maximum dry powder.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Feb 23 AM | 4 overnight hedge trades already in metrics at open — came in short delta | HEDGE | Overnight futures drop 50+. Short delta working immediately at open. GTC close on expiring short put spreads left to work. No new DD trades — waiting to see if short-term bottom develops for "Turnaround Tuesday." |
| Feb 23 PM | Rolled expiring short put spreads → March 20 pile (pre-emptive) | ROLL | Could not manage past 1:30pm — Ferrari delivery. Rolled early as precaution. March 20 pile = "like a few added MPs delta-wise." Benefits on up days, far enough out to need no active management for 3–4 weeks. Members available at EOD could wait and possibly close for a winner instead. |
| Feb 23 PM | Short put vertical for Tuesday placed | INCOME | Set up for anticipated Turnaround Tuesday bounce. GTC close at .65 db on fill. |
| Feb 24 | No new trades. Monitoring for short call fade on any rally. | — | Short puts expiring tomorrow — if rally comes, those capture the gains. No need to be aggressive. Priorities reaffirmed: #1 Preserve capital, #2 Preserve gains, #3 Reduce risk, #4 Maximize gains — in that exact order always. |
| Feb 24 | ANNOUNCEMENT: Tastytrade commission reduction + PM threshold reduction | — | Alex negotiated two policy changes for all Diamonds members: (1) Commissions cut to $0.80/contract entry, $0 exit = $0.40/contract round trip (from $1.00). (2) PM minimum reduced from $175k required to $125k required / $100k to maintain. PM now accessible to significantly more members sooner. |
| Feb 25 AM | Roll short puts → Friday (not next week) — keeping nimble | ROLL | Rolling to Friday not next week: if market sells off by Friday, close them and remove risk entirely. If market rallies, double-dip with another Friday roll. Perpetual "win a little, win a lot" scenario. Short calls managed at EOD alongside short puts — they protect each other. |
| Feb 25 AM | Roll March 20 short put verticals → further out in time, lower strikes (~100 pts), paying debit | ROLL | Moving from ITM to OTM on the verticals. Paying a debit accepted — "inventory that will pay off in a couple of months once the market recovers." Extended GI long leg strike slightly upward to increase downside protection on these spreads. |
| Feb 26 AM | Short calls: .10 db GTC to close (70 contracts). Pairing plan if market goes up. | INCOME | Down day: short calls in the clear, bank the premium, pivot attention to short put verticals. Up day: short puts pay, roll short calls down for more credit as paired IC. "We have a lot of options dealing with these options." |
| Feb 27 AM | IC — asking 4.25 cr. Closing each side independently at .45 db. | INCOME | Clean canvas — no existing positions coming into the day. ~100-point cushion to both sides. High-vol environment favors closing each side independently. Text alerts enabled for rapid strike/price adjustments. Size to your own account — do not mirror Alex's size. |
Major Announcement — Feb 24 (Tastytrade Policy Changes): Alex's behind-the-scenes advocacy for Diamonds members produced two concrete results: (1) Commission reduction to $0.40/contract round trip — meaningful savings at scale. (2) Portfolio Margin minimum lowered from $175k → $125k required / $100k to maintain. This accelerates PM access for a large portion of the membership, unlocking the BP superpower much sooner than previously possible.
Key Concept — The March 20 Pile: Alex deliberately consolidates rolled short put spreads at the March 20 expiration date. This pile functions "like a few added MPs delta-wise" — benefiting the portfolio on up days with long delta gains. Placed far enough out in time that they require zero active management for 3–4 weeks. Whatever is not directly making money is hedging the other side — there are no bad positions, just different inventory playing its role.
TA Overview — Feb 27: Same 200–300 point channel for 2+ months. MAs "all spaghetti" — no clear trend. Large daily bars = high volatility = trend trades impractical. Channel: ~6750 bottom, ~7000 top. Seasonal outlook: late March flat to down → April picks up → summer slight bearish → June/July new highs → late July/Sept selloff → late October year-end rally begins. Current stance: 25% invested, maximum dry powder, nibble — don't jump in.
Market: Mar 2 futures down ~70 pts — muted vs. Alex's hoped-for 200+ (would have preferred a large overreaction bounce opportunity). Mar 3 futures down 125+ pts — channel holding. Mar 4: still in channel, futures basically flat. Weekly webinar with Tasty's Paul on Mar 4. Alex "mentally exhausted" from full day in chat and webinar — spirits high.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 2 AM | IC adjusted from Saturday video: asking 9.25 cr (min 9.05 cr). Closing each side independently at 1.95 db GTC. | INCOME | High premium available due to elevated volatility. Separate side GTC closing orders — more efficient in high-vol, large-bar market. No new short calls added — "rip-your-face-off" rally risk too high with existing short call exposure already in place. |
| Mar 2 AM | Prior IC expiring today: call side .05 db GTC (likely expires worthless), put side .95 db GTC | INCOME | Managing prior week's IC. Call side near max profit. Put side — if not filled or breached by 3pm, adjustment alert to follow. Short put verticals further out in time not touched today. |
| Mar 2 | MILESTONE: "Road to a Million" snapshot shared | — | Alex shared visual documentation of account growth trajectory from Diamonds inception (Dec 1) through Mar 2. Progress toward $1,000,000 account value documented despite defensive positioning through volatile period. |
| Mar 3 AM | Close 20% of GI (1 set: 6780/6650 Apr 10) — asking 40.05 cr | PARTIAL CLOSE | Big down day = GI has gained significant value. Low MP count = less need for full protection. Taking profits on a portion while market cooperates. Will wiggle by 3:45pm if not filled. |
| Mar 3 AM | Roll 1 long put: May 15 @6700 → 6650 same date (15.05 cr) | ROLL | Lowering long put strike. With fewer MPs, high-strike protection less necessary. Collects credit while repositioning. |
| Mar 3 AM | Roll long puts: May 15 @6850 → May 29 @6800 (4.05 cr) | ROLL | Extending long puts further out in time AND rolling to lower strike. Credit collected. Reduces near-term gamma exposure. Maintaining protection while reducing cost of carry. |
| Mar 3 AM | Short call GTC close moved: .65 db → .35 db on Mar 5/6 short calls | CLOSE | Big down day = short call strikes now far OTM = appropriate to be more aggressive on the close target. Maximizing the gift the down day provides. "Take advantage of this drop." |
| Mar 4 AM | IC for the week: asking 4.25 cr (min 4.05 cr). GTC close at .95 db per side independently. | INCOME | "Wash, rinse, repeat" in the channel. ~100-point cushion each side. Fill target by 10:30am. Week-long trade. Appropriate even as a first trade for newer members — manageable if breached. Prefer not to change strikes — will alert if material adjustment needed. |
| Mar 4 PM | Put side of IC closed for profit. No trades placed for tomorrow. | CLOSE | One side harvested. Call side GTC still active. Tomorrow: watching for direction before committing. "This market can shoot up 80 points as easily as drop 120 — or do both in the same day." End of day: "wishing I had more short deltas." |
"Road to a Million" Milestone (Mar 2): Alex shared a visual snapshot of account progress from Diamonds inception through March 2, 2026 — documenting the trajectory toward $1,000,000 in account value. The system has now produced this growth across multiple significant market drawdowns, defensive pivots, and a sustained volatile/choppy period — all while maintaining risk control and capital preservation as the primary objective.
Current Portfolio State (as of Mar 4): ~25% invested. 10 MP short puts + 11 long puts (skeleton crew). Short put verticals consolidated in March 20 pile + further-out rolls. GI restructured to lower strikes, extended dates, 20% closed for profit. Short calls active on Mar 5/6 expirations. IC placed for the week with call side still open. Maximum dry powder ready to deploy on confirmation of new uptrend.
Alex's Explicit Re-Entry Signal: "When the 9-21-50 MAs are stacked one on top of the other, and the market is above the 21 and the 50 for a few days — this will instill confidence in buyers to come back and force shorts to exit. This is where I would like to jump back on the train." Current channel: ~6745 bottom, ~6950+ top. 6800 = key support. Still ~4.5% off the highs. A full 10% correction from ATH = 6300 — still possible. "Wash, rinse, repeat" the IC strategy until the channel resolves.
Market: Payroll Friday Mar 5 — futures flat pre-data, market moved materially post-report. 6800 broke on March 5 PM — key support loss with "a lot of negative gamma below 6800." Alex flying to Utah Sunday night with futures down 125. Full week game plan telegraphed in advance.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 5 AM | 0DTE IC for payroll day. Split GTC: .65 db put side / .15 db call side (each independently) | INCOME | Payroll data uncertainty — IC set up in advance with framework in place. Warned: if material move occurs before open, adjustments to strikes and/or price would follow via phone update. Closing each side separately — high vol environment demands it. |
| Mar 5 #2 | IC strikes adjusted post-payroll move. Call side .15 db GTC / Put side .65 db GTC | INCOME | Market moved away from original strikes. Adjusted while keeping the framework. Slight "poke the bear" on call side — willing to roll and build short call inventory if breached. |
| Mar 5 PM | Both IC sides closed within 1 hour of open. Short put vertical roll placed. | CLOSE | Quick profitable day. Market broke below 6800 — a crucial support level. "A close below 6800 could easily open the doors to 6600. A lot of negative gamma below 6800." No trades for Friday — "this market is not giving me a fuzzy feeling." Low exposure: "aren't we glad we don't have 70% exposure?" |
| Mar 6 AM | No new trades. Defensive short put rolls — striking lower for protection. | ROLL | "I don't want to go into the weekend with extra weight." Mantra re-read: preserve capital first. Moving strikes lower — win-win: great premium if rally back to 6900s, protection if further drop to 6600. |
| Mar 6 #2 | Short calls added (6850/6860, 10-wide). GI rolled to month-end. Short put roll price adjusted. | HEDGE | Market up-to-down 40 intraday swing. "Poke the bear" short call stance — if breached, short puts are 100% profitable. GI expanded to month-end for greater protection. "You gotta love this business." Win a little, win a lot — both scenarios planned. |
| Mar 6 PM | Short calls rolled to Monday (10-wide). Short put roll filled. Week wrapped. | ROLL | Keeping short delta on books — rolled calls rather than closing. Short put roll filled at great credit while moving strikes materially lower. "It's been a great day, great week, great month, great year." |
| Mar 7 AM | Futures down 125 Sunday night. LEAP GTC set at 6600 spot. Full week game plan telegraphed. | HEDGE | Alex flying to Utah 6am Monday. Game plan: LEAP at 6600, +1 more at 6500/6400/6300. MPs: 5-lot at 6500, 10-lot at 6300. TA: 2ATR at 6685, 3ATR at 6595, 200 SMA at 6585 — 6600 zone has strong support. LEAP math: Sept call at 400 cost, offset by ~50 pts/week in short calls = paid off before Sept. "Im sooooo pumped!!!!" |
Key Lesson — Trade Your Plan, Not the Outcome: Market never reached 6600 on March 9 — LEAP not filled. Alex's response: "I'd rather not take a particular trade and have it work out, but traded my plan, traded well, and traded with patience. That to me trumps any potential win I might leave on the table by not sticking to my rules." 10 out of 10 times: trading well within the plan beats chasing a windfall.
Alex's 6600 Thesis: 2ATR ~6685, 3ATR ~6595, 200 SMA ~6585. If 6600 holds: bounce play. If it breaks: 6500 next, then 6300 (10% correction from ATH). At 6300: "premiums on MPs will be insane." Deployment plan: LEAPs first (easier to bail than MPs if market keeps falling), then MPs at confirmation. "I'm seeing what's going to come next — the harvest of our sowing. A truly beautiful thing."
Market: Continued volatility below 6800. Market never reached 6600 — patience prevailed. Alex managing remotely from Utah through Wednesday. Short call inventory actively harvested intraday. Short put rolls continuing lower. New MP seeds planted. Week ended with historic announcement on March 12.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 9 PM | Short calls closed for near-maximum profit early in day (GTC .15 and .05 db). | CLOSE | "I'm so glad my short calls were closed for close to maximum profit early. This is why you have your GTC close, and you don't stay in too long for an extra 10 cents." Market never hit 6600. LEAP not filled. Patience rewarded. Lesson: a trade that didn't execute but followed the plan is a win. |
| Mar 10 AM | Short calls: STO Mar 11 6855/6870 calls. Full lot. Any credit above $2 is great. | INCOME | Harvesting elevated VIX premium. Short dated — expiring tomorrow. More aggressive short call placement as part of ongoing short delta harvest campaign while market in downtrend. |
| Mar 10 #2 | New MPs placed — win-win structure. Both sides designed for either market direction. | INCOME | Seeding new long delta inventory. Market still volatile — MPs structured with enough time and buffer to survive further pullback to 6600, while paying off if market stabilizes or bounces. |
| Mar 11 AM | No new trades. Focus on clearing CCS expiring today. Theta working regardless of market. | — | Flying home. 6750 short-term support. 6600 still the key bounce target. "Today should be another fun day of theta decay, no matter what the actual market does." |
| Mar 11 PM | Quarter-lot IC for Friday placed. Asking 2.05 cr min. 10-wide for roll flexibility. | INCOME | "Picking up loose change." Small size intentional — not trying to be aggressive, just harvesting available premium with minimum risk heading into the weekend. |
| Mar 12 AM | No trade at open. #2 update by 10:30am once direction established. | — | Historic announcement: 70 days to make $1 million, 335% YTD return. Account reset strategy announced — will periodically withdraw excess over $1M to perpetually trade a consistent $1M base. "Removes inconsistencies, protects wealth, and keeps a performance mindset not a comfort zone mindset." |
| Mar 12 #2 | Half-lot IC day trade. Split GTC: call side .35 db / put side .65 db. | INCOME | OPEX March 20 hedge rationale: "This market will continue to be volatile through OPEX. When that Friday comes, volatility will shrink — even if we get in trouble strike-wise, the vol reduction will help. A hedge within a hedge." Market 200+ point range days = day trade structure with roll-out plan if breached. |
| Mar 12 PM | Both IC sides closed at targets. Short put verticals for tomorrow placed if intraday bounce. | CLOSE | Call side .35 db, put side .65 db. Both filled. Tomorrow: short puts to roll. "Dead cat bounce" anticipated — short put verticals placed to harvest that move. |
| Mar 13 AM | Short put verticals close moved to .35 db (from .65). Short puts rolled 6800 → 6725. | ROLL | Bounce materializing. Lowering close target to extract more juice on short put verticals. ITM 6800 short puts have no extrinsic value — rolling immediately. Target: 6725 strike, max credit possible without going over 200 points ITM. "Anything you can get is a bonus — we are in management mode." Short calls for Monday also placed (asking elevated, will lower if needed). |
| Mar 13 #2 | Opportunistic roll filled — extra premium added as cushion for Monday short calls. | ROLL | "Opportunity came knocking and I answered." Extra roll to hedge the heavy short call position for Monday. Every trade either enhances or protects what is already on — or what will be on. |
| Mar 13 PM | All trades filled. Great week end. Set up well for Monday. | — | "Tremendous profitable day. All trades filled beautifully as we asked them to — can't ask for more than that." |
Key Lesson — Always Have Your Closing Order: March 9 PM email: "This is why you have your GTC close, and you don't stay in too long for an extra 10 cents. You can get hurt really quickly. Hope this was a lesson today — always putting on your closing order and taking risk off the table as soon as possible."
OPEX Hedge-Within-a-Hedge: Alex's March 12 insight: OPEX Friday March 20 creates a natural volatility compression event. Even if strikes get breached during the volatile week, the vol reduction at OPEX will shrink option prices and reduce damage. This makes OPEX week a good time to place slightly more aggressive income trades with the built-in "vol cushion" at expiration providing an extra layer of protection.
Market: Continued downtrend — spaghetti MAs, squeeze in compression, stochastics crossing lower. 6700 failed to hold as support. Market touching 200 SMA. Alex described as "slowly, crawling, parking lot over a speed bump in my Ferrari slow" beginning to shift posture toward long delta. OPEX Friday March 20 — vol compression event. New MP planted. LEAP filled on XSP.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 16 AM | Short puts rolled down 50 pts for defensive posture. LEAP GTC order canceled. GI rolled out and wider. | ROLL | Nice gap-up morning — taking advantage to roll short puts down defensively AND roll GI further out with improved protection. LEAP at 6600 canceled — will not get filled today and too restrictive to carry around. "Materially increase our downside protection at very good value — and get paid for it handsomely." GI expanded from 150-wide to 200-wide with extension in time. Don't foresee 20% further drop — if 10% correction arrives (~6300), current setup survives without stress. |
| Mar 16 AM | Short calls for Tuesday: asking 2.05 cr. Will adjust strikes lower by 11am if not filled. | INCOME | Fading any rally. "I still feel this market is heavy." Short calls provide short delta income while MPs provide long delta — balance maintained. If breached, short puts benefit greatly from same up move. |
| Mar 17 AM | No short put rolls today (tomorrow's). Short call GTC lowered to .35 db. New MP set for new/sideline members. | INCOME | 6700 failed to hold — weakness not strength. New MP set up at 50% invested for members still on sidelines or just starting. "No reason to not be in the game with this trade." Long puts rolled to better protection setup — removes May 29 6675s from inventory. |
| Mar 18 AM | Short puts rolled 6750 → 6700. No short calls added — baby stepping. | ROLL | 30+ point down morning. Rolling with credit — asking minimum 20 points. "Do not force trades just because the market is open." No short calls: "full of land mines, we can easily get an 80 point reversal and hurt on both sides." Long put protection makes short calls less necessary here. Theta decay doing its thing — stay patient. |
| Mar 18 PM | Fed conference day — muted response. No trades. Inverted MPs working perfectly. | — | "I was expecting a 120+ point move — just had to settle for watching paint dry and collecting major vol contracting on theta decay." Short delta fully absorbed. Even last few hours with long delta, PnL kept rising as market fell — inverted MPs working exactly as designed. "Very, very, very slowly starting to shift posture toward long delta." |
| Mar 19 AM | Clean slate day — no positions to manage. Do-nothing day. | — | Short-term extremes on multiple timeframes. 200 SMA reached. "Ideal setup: pierce the 200 for an hour, then recovery rally later — then fade that rally." No trade = trading well. "Days like these can be dangerous — you've had great gains and feel invincible, and that's when the market puts you in check." Following the mantra: levels 1–3 only today. |
| Mar 19 #2 | XSP LEAP placed — getting feet wet. Will not chase — take my price only. | HEDGE | "It might be a bit early, but I think we are more than halfway on the down and less to go than more to go." Small start — XSP for cost-of-entry reasons. Will add at 6500, 6400, 6300 if market continues lower. GTC set at asking — not chasing. |
| Mar 19 PM | XSP LEAP filled. Short calls sold against it immediately. | INCOME | Any bounce — sell short calls to harvest premium against the long LEAP. Immediately beginning the covered call income campaign against the new long position. |
| Mar 20 AM | OPEX Friday strategic moves: GI rolled in as source of funds, LEAP additions (optional), short call to fade rally, new MP added. | INCOME | Preston's historical data: 14-week average from correction high to new ATH. Timeline suggests potential return to 7000 by mid-to-late May — July historically very positive. April re-entry playbook: slowly dip toes in while being prudent. GI rolled in to be both protection AND source of funds for short put roll financing. Market still heavy — 6700 failed, 6300 (10% correction) still on table. "I welcome it." |
| Mar 20 #2 | New MP filled. | INCOME | Adding long delta inventory methodically. Market drop = buying opportunity for the long game. |
| Mar 20 #3 | GI roll adjusted due to market move during the day. | HEDGE | Dynamic adjustment to GI roll as intraday conditions changed. Nimble execution on strategic moves. |
| Mar 20 PM | All AM trades filled. Short put for Monday placed (asking 3.35 cr, min 2.70). Short calls for XSP LEAP as working orders into next week. | INCOME | "Awesome day to end an even awesomer week." Short put for Monday: size accordingly to YOUR account. Short calls for LEAP: working orders — will not chase, my price only, into next week if not filled today. Monday AM email timing may shift to post-open for better market reading. |
The April–May Playbook (Alex's Forward View, Mar 20): Preston's historical average: 14 weeks from correction high to new ATH. Starting now, that implies potential return to 7000 area by mid-to-late May. July historically makes new ATHs. April = strong re-entry month for MPs. Plan: slowly add long delta exposure while market confirms a bottom, harvest elevated VIX premium on short calls, use GI as source of funds to finance MP rolls, expand MP count once MAs stack positively again.
Portfolio State as of OPEX Mar 20: XSP LEAP on at ~6600 equivalent. New MP seeds planted. GI restructured — rolled in as source of funds AND expanded protection. Short calls active as working orders. Short puts at ~6700 area with rolling plan in place. Short delta absorbed. Slowly shifting to long delta posture. "I really like and feel really good how we are set up right now." Next key levels: 6600 support, 6300 for 10% correction, 6900 for re-entry confirmation.
Market: Continued correction — market oscillating between sharp down days and violent bounce attempts ("TACO trades" — Turn Around Tuesday / fade the rally). Back-to-back 100-point down days by Friday Mar 27. Alex increasingly enthusiastic about proximity to a bottom. Put/call ratio approaching 1. Stocks above 50 SMA at 20% — extreme reading. Market down ~8% from ATH, road to 6300 (10% correction) strengthening. Alex's YTD return: 407%. Only 20% of the world's best professional traders profitable in 2026.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 23 AM | Major schedule change announced: AM emails moving from pre-market to 9:45–10:15am after market opens. PM emails: 3:15–3:45pm. Chat times: ~9am and ~3pm. | — | "It keeps being proven that pre-market emails aren't worth it — prices are 50/50 by the time they're filled." Post-open emails give real, accurate option prices, allow Alex to assess the true picture, and flow better with his schedule. "Having a consistent structure and set schedule will be better for all of us." Triggered by market swinging from -60 to +180 futures pre-market that morning. |
| Mar 23 AM | Rolled 6725 short puts → March 31 same strike. Sold XSP LEAP short calls March 27 @671 cr. Rolled CCS 6590/6600 → March 27 6670/6685 for small credit (risk removal). | ROLL | Market up on the day after wild pre-market. Kept aggression — rolled short puts to same strike. XSP LEAP covered calls sold immediately to begin income harvest. CCS rolled proactively to remove risk "for free" — small credit means essentially free roll to better positioning. |
| Mar 23 PM | No new trades. TACO trade building — fade rally mode continues. | — | "Not convinced we've put a bottom yet." Big AM rally faded — went from 2 ATR extended back to 1 ATR and failed. "This rally could easily be a short-term over-extended bounce — there is a lot of overhead resistance." Tomorrow could drop 80 points and resume downtrend. "Turn Around Tuesday" in play. Not leaning to either side. |
| Mar 24 AM | New MP with built-in protection — "planting seeds for future harvest." Short put roll lowering strike (nearby date). | INCOME | "Yesterday's TACO trade paid us well, now back to the continued downtrend." Starting to cautiously lean toward building April credits. New MP is "win a little, win a lot" — if downtrend continues, 110 short calls pay off the loss. If market recovers, MP profits greatly. NOTE: Only take this trade if you have 20+ short calls for Friday AND BP is not strained. Not for non-PM accounts under strain. |
| Mar 24 PM | Both AM orders filled. No new trades. Theta decay day. | — | "In no man's land — market trending lower with fade-the-rally sentiment." Positioned super balanced: plethora of short calls for Friday, healthy short puts. "As long as time keeps moving, which I bet it will, I will make money." Nothing to force. No trades Thursday — just roll any expiring short puts to date/strike of the Mar 24 AM new MP. |
| Mar 25 AM | No trades. AIC futures trade closed at open for profit. No expiring positions (rare). | — | "It's a beautiful day of ongoing theta decay — market up, down, flat — we harvest our strategically placed assets." LEAP timing was great — paying well. New MPs yielding a nice bump. Cease-fire news caused uptick — watching whether 200 SMA holds as resistance. "The why is sooooo irrelevant — I care about price action." Potential for TACO trade still in effect. "The day will pass, and the premium in our assets will continue to decay — this is what pays our daily bread." |
| Mar 25 PM | No new trades. Multiple new ATHs in account. 6700 short puts noted for tomorrow's assessment. | — | Earlier PM email — Alex heading out for first round of golf in 8+ months (played to 7 handicap previously). "Day by day, week by week we manage our inventory based on the market presented in front of us — with poise, confidence, and from a place of strength." Huge pile of short calls still expiring Friday. Smaller set of short put verticals expiring Friday — "win a little or win a lot." |
| Mar 26 AM | Simple roll: 6700 short puts expiring today → April 6 same strike 6700 (uniting with existing April 6 6700s). No PM email. | ROLL | "Another day, another dollar — quick and simple." No extrinsic value left in today's 6700s. Fill at scheduled screen time. No edge to force a trade on either side. "Plenty of short calls for tomorrow to pay me off if we go down, plenty of short puts to pay me if we go up — happy camper." Key message: "Don't force trades because you are bored." |
| Mar 27 AM | Rolled expiring short calls in and up (clearing exposure before weekend). Rolled ITM short puts for minimum 25 cr. Harvested GI premium — rolled down and wider. Flat roll on Monthly IC short puts → April 30. XSP LEAP short calls rolled → April 6 @665. Alex personally adding more long LEAPs at 41 (only if BP usage under 60%). | ROLL | Market down 8% from ATH. "Only 20% of world's best professional traders are profitable in 2026 — we have doubled and tripled accounts. 407% YTD." JPM collar at 6470 noted for month-end. "We are 80% into a potential 10% correction — less to go down than back up." Clearing short call exposure before weekend: "Don't want news events ruining a perfectly profitable trade." GI roll = harvesting premium from "life insurance that also pays us." LEAP: "Don't add more short calls than longs — for all that is holy, keep them even in quantity." |
| Mar 27 PM | Additional bear poke trades placed for Monday: new short put verticals, short calls added, XSP LEAP short calls rolled for credit. All filled by EOD. | INCOME | "Wild ride today — I actually feel relief. Finally a red day in my account. I love it." Back-to-back 100-point down days. "I am salivating right now. This is AWESOME." Capitulation forming — put/call ratio near 1, stocks above 50 SMA at 20% (extreme = below 24%). "I can smell it and taste it — the good times are very near." "Hopefully we gap down even lower Monday — we can only hope." Market as "our little ATM machine." |
The TACO Trade Pattern — Week 22 Signature Move: Turn Around Tuesday / Fade The Rally. Market drops sharply, bounces violently the next morning, then fades back. Alex fades the rally with short calls, collects premium on the bounce, then waits for the resumption of the downtrend. Back-to-back 100-point down days on Thursday-Friday confirmed the pattern. The discipline: never get overly bullish just because of one big green day. "We basically went from 2 ATR over-extended to hitting 1 ATR and failing."
Portfolio State as of Mar 27: XSP LEAP on with covered calls running. New MPs planted (seeds for April harvest). Massive pile of short calls providing short delta hedge. Short puts across multiple strikes (6600, 6650, 6700, 6725) spread into April. GI harvested and repositioned. Alex personally at 90 long LEAP contracts, 120 short calls. Setting GTC close orders at 45 cents on all short calls. Market at ~8% correction — Alex says we are "closer than further" to the bottom. April 6–mid-April named as the window to watch for a confirmed bottom and reversal.
Market: Gap up Monday morning — all weekend-planned trades upgraded financially by the rally. XSP close: 634.37 (Open: 640.34, High: 642.73, Low: 631.69). ATH: 700.23. Market still ~9.4% off ATH. All weekend trades executed within 15 minutes of the open at better prices than Alex had set up on Saturday. Sentiment index at extreme low — historically coincides with market bottoms. Alex still in "protective mode" — rallies to be faded until key resistance levels cleared.
| Date | Trade | Type | Key Reason |
|---|---|---|---|
| Mar 30 AM | March 31 6725 / May 29 6800 closing order: filled at 140+ (vs. weekend plan of 50). March 30 6600 roll → April 9 6570: filled at 10+ (vs. plan of 5). All short call closing orders filled at .45 db. XSP LEAP short calls rolled: April 2 @657 → April 10 @665 for 1.00+ (vs. weekend plan of .61). | ROLL | "All trades upgraded by this nice up day." Same plan, same structure — just got paid significantly more on everything. "I had my plan — my plan just got financially improved, but the plan is still in place." Rallies still being faded: "We are in protective mode — this market can still drop another 5% and be normal." Nothing new to add during the day. Sent sentiment index graphic showing daily sentiment at extreme low — historically marking market bottoms. "We are almost there to the eventual bounce — patience and discipline will prevail." |
Alex's Weekend Video TA — Saturday March 29 (for Monday March 30 planning): Full Fibonacci and TA analysis recorded Saturday. Key levels identified: 6300 area (10% correction, 50% fib retracement from major low) as potential flush level. Squeeze fired on daily — 7 bars in, 1–2 more bars of red possible. Hourly squeeze also at 10 bars — stochastics flat-bottomed, hammer candle visible. First resistance on bounce: 6625 area (78% fib retracement coinciding with 200 SMA and 21 EMA). Target range for initial recovery: 6700–6725. Alex's timeline for full ATH retest: 12–16 weeks from correction start — potentially late May to early June for 7000 retest. "Getting back to the highs won't be anytime until mid-May or later." XSP 5% in-the-money threshold at TastyTrade also explained — solution: roll out and down to within 2–3% of spot.
Portfolio State as of Mar 30: All weekend trades filled at open at improved prices. Short puts spread across April 6 (6700), April 9 (6570), April 30 (pile). Long puts in June. XSP LEAP with April 10 @665 short calls running. GI repositioned. Alex still in protective/fade-the-rally mode. Watching for confirmed bottom signal — will send "red flare" the moment it arrives. Next major milestones: 6300 as potential flush low, then 6625–6725 as first meaningful resistance on the recovery.