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Operating checklists

Use these in a batch session. They encode the operator trial rules as percent of equity. Dollar caps live in your private log.

Not financial advice

Checklists are process aids, not trade recommendations.

Before the session

  • Kill-switch is off only if you intend to consider new risk
  • Heat before any new trade is under 12% of equity
  • You know whether you are on ladder step 1 (long calls/puts), 2 (covered calls), or 3 (CCS/PCS)
  • USD account is enabled if the underlying is U.S.-listed
  • Earnings calendar checked for names you might touch
  • If the cash market is closed: stock/ETF ticket is Limit at last close, not Market (order types)

Entry

  • Thesis in one or two sentences (journal first)
  • Name is on the starter watchlist, not the later/high-vol bucket, unless you explicitly override
  • Stock/ETF: limit (or you are watching a live tape and accept a market print)
  • Options: regular hours only; you can see a two-sided market you would actually trade
  • Expiration: prefer a monthly; if weekly, size smaller
  • Max loss of this structure ≤ 2% of equity
  • After a hypothetical fill: heat ≤ 12%; this name ≤ 5%; this sector ≤ 15% of heat
  • Open positions still inside the 6–8 soft cap
  • Not inside the 5-trading-day earnings blackout for new short premium (spreads / covered short calls)
  • Covered call only if you already hold 100 shares per contract in the same account
  • No naked / undefined short options

Management (default)

  • Default: close or roll around 21 DTE — do not sit expiration week as the base case [operator preference]
  • If the short strike is tested or the thesis is dead: close or roll with a new max-loss check
  • Rolling must still pass the 2% / 12% / 5% tests on the new structure
  • Long options: have a time stop (e.g. 21 DTE) or a thesis invalidation — do not “hope” through decay

Exit / weekly review

  • Every close has a reason in the journal (profit, 21 DTE, thesis fail, heat, earnings)
  • Count open max losses vs 12% heat
  • Note rule breaks (even tiny ones)
  • No new risk if you are tired, rushed, or unclear on max loss

Not financial advice. Verify broker rules yourself.