About
My name is Kent Sebastiano. I've been working in the financial services industry all my life. I've always been interested in the stock market but I have always been drawn to derivatives because of the math. Putting concrete mathematical concepts from statistics and calculus on top of stock prices determined by accounting, supply and demand, and behavioural economics is something I find quite interesting.
I like milk and milk-related products. I like trading options. Both have expiration dates. How else to combine these two passions but with a blog called OptionMilk? Here we will track the performance of a market neutral option income strategy. The goal of this strategy is to earn an average of 2% per month. This is also the milk fat content of a popular milk variety. Hence the name of this blog.
I mean, there is almond milk, soy milk, rice milk, flax milk (what the heck is flax?), etc. None of those are technically milk. They just made it up! If they can do it, then so can I.
general strategy
There are four main strategies that will be employed:
A core position made up of a long SPY options position.
A short term hedge made up of weekly SPX butterflies.
A medium or longer term hedge / theta earning trade made up of monthly SPX butterflies.
One good luck share of Berkshire Hathaway. Why not?
influences
I read a number of different blogs, newsletters or services. They include but are not limited to the following:
sheridanmentoring.com
fullyinformed.com
tastytrade.com
steadyoptions.com
the-lazy-trader.com
DISCLAIMER
This blog is for educational purposes only. Nothing discussed here should be considered as financial advice. Ideas proposed here may be completely inappropriate for you or your financial situation. Seek professional advice for your own situation, as needed. Some ideas presented here are only appropriate for experienced traders. Options carry risk and you could lose all of your money. A certain level of options knowledge is assumed. Do not trade above your personal skill level and always make your own trading and investment choices. Do paper trade to develop skills before committing real money, and only trade money you can afford to lose. Option a copy of the OCC’s Characteristics & Risks of Standardized Options before trading options at www.theocc.com.