RED Option Mini-Basket:

RED Option’s Mini-Basket offers a diversified basket of defined-risk, positive time decay strategies. This advisory blends all of the RED Option spread advisories, including iron condors, unbalanced butterflies, verticals, calendars, diagonals and double diagonals. The objective is to generate returns through active portfolio management, adjusting the portfolio to remain mostly ‘delta-neutral’ even during periods of market volatility. Because of the unique nature of this advisory, it is more actively traded than the other RED Option strategies.

This advisory is tailored for people who want to learn how professional traders manage overlapping and offsetting complex option positions, using spreads to hedge the beta-weighted delta risk of the portfolio, while seeking profits from positive theta, defined-risk strategies. All the trades will be done in options on broad-based indices, ETFs and certain equities when we feel the risk is worth the possible reward. Our chief strategist is required to select trades that meet our risk metrics for probability and price requirements.

The advisory requires an initial capital contribution of at least $15,000. While you can get in at any time, we recommend diving in at the beginning of a new expiration cycle. There is no lock-up period and you can remove yourself from future allocations or cancel your subscription at any time. Clients can subscribe to the Mini-Basket Advisory and receive the emails with the trade recommendations and view the archives at any time. Unlike the other advisories, if you wish to participate in autotrade for the Mini-Basket, please contact RED Option directly, rather than setting up autotrade via the thinkorswim website. This process was created to ensure adequate controls over position facilitation and portfolio management.

Traders with any level of option trading experience can gain valuable trading know-how from RED Option’s Mini-Basket. Because all of the trade recommendations have defined risk, this advisory is even IRA eligible.

This advisory will employ the following strategies:

New subscriptions to this advisory are welcomed and you can subscribe at any time. However, due to the nature of this advisory, the ability to allocate funds via the autotrade management section of the thinkorswim website is unavailable. To set an allocation for this advisory, you will need to contact us at support@redoption.com. Please be aware that new trades may be seen as only a piece of the entire portfolio of trades. They may not to be intended to trade as single positions and we urge discretion on placing these trades individually.