Monthly Trades - Why?
Why are newsletters only released once per month?
The trades that the newsletters address are swing trades designed to address a 1 month thesis.
There are some reasons for this:
1. When the option trade lasts a month long, it is more forgiving if the trade goes against you. As the trade gets closer to expiration, the sensitivity of the trade (in other words, the gamma) increases.
2. This is a newsletter meant for people who may have another job or are otherwise not sitting at their computer all day. These trades are meant to limit risk and provide a good return while being low maintenance.
3. A thesis lasting a month has plenty of reward to leverage. It is easier to control for a risk.
4. Monthly option classes have the most volume, so it is easier to get execution on trades.
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