Mar 28 (edited) β’ π Start Here
How Options Formula Works 𧬠(Best Practices and Guidelines)
Welcome to Options Formula.
This community is built for traders who want a cleaner, simpler, and more disciplined way to trade options using defined-risk debit spread setups.
The goal here is not to over-complicate trading.
The goal is simple:
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Find high-quality setups
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Keep risk defined from the start
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Take practical profits
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Track everything transparently
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Stay disciplined over time
This is not a hype-based trading group.
This is not about gambling on random plays.
This is not about blindly chasing unrealistic home runs.
This community is built around structure, consistency, transparency, and repeatable execution.
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What You Get Inside Options Formula π
Inside this community, you will get access to structured options trade ideas built around bullish and bearish debit spreads.
In the free community, you will receive one free high-probability trade setup per day so you can follow the process, see how the trades are structured, and learn how this system works in real time.
For members who want access to all daily trade ideas, VIP access is available inside the Classroom for $34 per month.
VIP members get access to the full daily trade flow, including:
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Current Daily VIP Trades
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Lower-cost trade opportunities
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Bullish setups
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Bearish setups
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Defined-risk structures
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Suggested take-profit targets
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Transparent trade tracking
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A repeatable trade management framework
The goal is to give members more opportunity, more flexibility, and more ways to participate based on account size, risk tolerance, and schedule.
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Why Debit Spreads? π‘
Everything in this community is centered around debit spreads.
A debit spread is an options strategy where you buy one option and sell another option with the same expiration but a different strike price.
This creates a trade with:
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Defined risk
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Defined reward
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Lower cost than buying a single option
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A cleaner trade structure
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Less exposure to time decay compared to buying single options
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Reduced assignment complications compared to other options strategies
The biggest reason we use debit spreads is control.
Before entering the trade, you already know the maximum possible loss and the maximum possible profit.
That matters.
A lot of traders lose money because they blindly buy calls or puts, overpay for premium, hold too long, and hope for a massive move.
That is not the approach here.
At Options Formula, the focus is on planned trades, controlled risk, and disciplined execution.
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Bullish and Bearish Setups ππ
Originally, the main focus was on bullish call debit spreads.
That means we were primarily looking for stocks with strong momentum, strong setups, and a higher probability of continuing higher.
Now, we are expanding.
We are also introducing bearish debit spread setups with high-probability profit potential.
That means we are no longer limited to only looking for stocks that are moving up.
We can now look for opportunity in both directions:
π Bullish setups when the stock has strong upside momentum
π Bearish setups when the stock has strong downside momentum
This gives the community more flexibility in different market environments.
If the market is strong, we can focus on bullish opportunities.
If certain stocks are weak or breaking down, we can now look for bearish opportunities too.
The logic stays the same.
We are still looking for quality setups, strong metrics, defined risk, and clean trade structure.
We are not lowering the standard.
We are simply expanding the opportunity.
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Lower-Cost Trade Opportunities π°
One of the biggest concerns many traders have is the cost required to take trades.
Some of the strongest VIP trades can require roughly $400 to $800 per trade.
For larger accounts, that may be manageable.
But for smaller accounts, especially traders with $2,000 to $5,000, taking a few larger trades can tie up too much capital.
That is why we are now adding lower-cost trade opportunities alongside the current VIP trades.
Going forward, some trades may range anywhere from around $20 to $200+, depending on the setup, pricing, and market conditions.
The goal is to make sure there is something for everyone.
Whether you have a smaller account or you are comfortable taking larger setups, you will have more choices.
These lower-cost trades are still designed to be:
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High-quality
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High-probability
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High-conviction
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Defined-risk
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Built around strong trade logic
The goal is not to take every trade.
The goal is to give you more quality setups to choose from, so you can select the trades that fit your account size, risk tolerance, and personal strategy.
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How Profit Targets Will Work π―
My personal trading style has always been focused on taking singles and doubles, not blindly swinging for home runs on every trade.
That will still apply to many of the core VIP trades.
For a lot of the standard debit spread setups, the normal profit-taking range will still be around 30% to 50% of max profit, with 40% being my preferred balance in many cases.
Here is the basic idea:
30% target: Faster profit-taking, smaller wins, usually a higher win-rate style.
40% target: My preferred balance between profit potential and practical trade management.
50% target: Larger potential winners, but usually a greater chance the trade reverses before reaching the target.
However, the new lower-cost trades will be managed differently in some cases.
Because some of these trades have a much lower cost of entry, the risk-to-reward profile can be much more aggressive.
That means we may take more doubles, triples, and occasionally bigger home-run style opportunities on these lower-cost setups when the structure supports it.
Some of these trades may still target the normal 30% to 50% profit range.
Others, especially the lower-cost contracts, may have suggested take-profit targets that aim for 100%, 200%, 300% or more when the upside potential justifies holding for a larger move.
This does not mean every lower-cost trade will hit those numbers.
It also does not mean these trades are guaranteed to win.
In fact, we should expect to lose more of these higher-upside lower-cost trades compared to the more conservative setups.
That is part of the strategy.
The logic is simple:
If the cost of entry is much lower and the winners are significantly larger, the system does not need every trade to win.
The goal is for the larger winning trades to outpace the losing trades over time.
That is why VIP members will receive a suggested take-profit target when appropriate.
Some trades will be better suited for quick, practical profit-taking.
Other trades will be better suited for letting the setup work toward a much larger potential return.
The key is knowing the difference and managing each trade based on its structure.
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Trade Management and Holding Time β³
Most trades are typically held for around 10 days on average, although some may close much sooner and others may take longer.
In many cases, I prefer to manage trades before expiration instead of holding until the final day and hoping everything works out.
If a trade is getting close to expiration and is not behaving properly, it may make sense to close for a smaller profit, break-even, or a smaller loss instead of risking a larger loss.
The goal is not to be perfect.
The goal is to stay disciplined and protect capital.
Losses will happen.
No strategy wins 100% of the time.
What matters is keeping losses controlled, taking quality setups, and staying consistent long enough for the edge to work over time.
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Transparency Matters π
Transparency is one of the most important parts of this community.
Every closed trade is tracked.
Wins are shown.
Losses are shown.
Nothing is hidden.
Nothing is cherry-picked.
The Trade Tracker is there so members can see how trades actually performed over time.
Official Trade Tracker: https://docs.google.com/spreadsheets/d/1BSpTL6rpkacKT7vbCmLD7BkXpYqI6KhW8DQ-myJkLqg/edit?usp=sharing
You can also view my personal verified trading performance here: https://kinfo.com/portfolio/98475/performance
Please note that some trades may not appear in the tracker if I am unable to get filled at my desired price.
That said, I make every effort to keep the tracker as accurate, complete, and up to date as possible.
The purpose of the tracker is simple:
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Show real results
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Build trust
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Stay accountable
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Track both wins and losses
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Prove the process over time
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Who This Community Is For π
This community is for traders who want:
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Bullish debit spread setups
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Bearish debit spread setups
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Lower-cost trade opportunities
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Suggested take-profit targets
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Defined-risk options trades
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Practical profit-taking
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Higher-upside trade opportunities
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Transparent trade tracking
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A cleaner, more structured way to trade options
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A system built around discipline and consistency
This is for people who want real structure, not random alerts.
This is for people who want to learn how to approach options trading with more control.
This is for people who understand that long-term growth comes from discipline, risk management, and consistency.
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What This Community Is Not β οΈ
This is not a get-rich-quick group.
This is not a place for guaranteed winners.
This is not a hype community built around unrealistic promises.
This is not financial advice.
This is not a promise that every trade will work.
Trading involves risk.
You can lose money.
Even defined-risk trades still carry real risk.
Past performance does not guarantee future results.
Every member is responsible for their own entries, exits, position sizing, and decisions.
If you are not comfortable with risk or the reality that some trades will lose, options trading may not be the right fit for you.
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How to Use This Community β
The best way to use this community is simple:
- Review the posted setups.
- Understand the trade idea.
- Review the suggested take-profit target.
- Decide if it fits your account size and risk tolerance.
- Enter only if the setup makes sense for you.
- Manage the trade with discipline.
- Use the Trade Tracker to review performance over time.
- Ask questions inside the community when you need help.
You do not need to take every trade.
You do not need to force anything.
You do not need to chase missed entries.
There will always be more opportunities.
The value of this community comes from structure, patience, discipline, and consistency over time.
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Options Formula is built for traders who want a smarter, cleaner, and more controlled way to approach options trading.
The mission is simple:
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Defined-risk trades
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Bullish and bearish opportunities
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Lower-cost setups for smaller accounts
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Suggested take-profit targets
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Practical profit-taking
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Higher-upside trade opportunities
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Transparent results
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Real structure
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No fluff
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No hype
If that is what you are looking for, you are in the right place. π
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How Options Formula Works 𧬠(Best Practices and Guidelines)
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