How I Would Start Trading Options with $3,000

Date: 2025-01-31 17:36:33

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I often get asked this question, and I’m excited to share this in-depth video on exactly how I’d approach building an options trading portfolio starting with just $3,000. While I typically recommend starting with more capital (around $5,000 or more), I’ll break down the steps for making the most of a smaller account as a new trader.

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In this video, I’ll cover:

– The importance of keeping position sizes small (around 5% risk per ticker/symbol or less).
– Why I focus on market-neutral, high-probability trades such as iron condors (70%+ probability of profit).
– The best filters to use for finding trades with positive expected value and minimum implied volatility rank.
– Why a diverse basket of ETFs across uncorrelated sectors is important for small accounts.
– My thoughts on taking profits early to boost consistency and increase your win rate.
– Additionally, I’ll review a live bot that’s been running this strategy for nearly 3 years in my live account so you can see exactly how it’s done.

Click here to view the sample bot template: https://app.optionalpha.com/community/posts/monthly-iron-condors-3k-portfolio

If you’re a new trader, I hope this video helps give you a great start with some ideas and strategies that could work for you. As always, there are many ways to trade options, and I’m not suggesting that this is the only way to do it. This is my opinion and thoughts on how to start with a small account and trade safely, and if you found this video helpful, please let me know in the comments!

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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement