Share your options trades that stood out

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My Options Learning Curve (Part 2)

👉 If you missed the beginning of this journey, Catch Part 1 here ☺️

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How Filtering, Not Following, Changed My Curve

It didn’t take me that long to become profitable, but not because I’m some kind of prodigy. I just skipped a few common detours.

Like most people, I started by following analysts I admired. Some free, some paid. But at some point, I had to ask: If their signals are that flawless, why spend time selling alerts or building a following? Wouldn’t they just size up big and be done for the year?

What I saw instead was a pattern: people follow alerts, lose, and then get told it’s their own fault. “You didn’t size it right.” “You didn’t follow fast enough.” “You should’ve trusted every call.” Meanwhile, most analysts never show how many contracts they bought or whether they’re scaling in, trimming %, or averaging down. So unless you’re a mind reader, you’re trading half-blind.

I’ve seen people beat themselves up for doing everything “right”, and still getting blamed when the trade didn’t go as expected. If that’s ever happened to you, just know: it’s NOT your fault.

What helped me was cutting the noise early. Instead of chasing every opinion, I focused on building something I could rely on day after day. I studied price action, watched volatility and sentiment flow, and wrote down every trade, especially the bad ones. I kept it simple, small, and consistent.

That’s when things started clicking. It wasn’t about knowing more; it was about learning to filter better.

And honestly, that shift from reacting to building process is what made all the difference.

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How I Actually Learned Options: No Shortcuts, Just Solid Sources

I didn’t learn options through memes. 🤓 I went to the source: books, conversations, and structured insights recommended by traders who actually work the markets.

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Here’s what shaped my foundation:

📘 Options & Volatility

• “Option Volatility and Pricing” – Sheldon Natenberg

A true cornerstone of options theory, dense but necessary. It clarified how volatility is not risk, but opportunity (if understood).

• “Volatility: Practical Options Theory” – Adam S. Iqbal

Written by a Goldman Sachs MD. Cleanly explains how options pricing behaves around macro events and sentiment shifts.

• “Trading Volatility” – Colin Bennett

Especially useful for understanding flow, positioning, and implied vol dynamics in equity options.

• “The Options Edge” – Michael C. Khouw & Mark W. Guthner

Focuses on real-world trade construction. Helped bridge theory with actual execution.

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🌍 Commodities & Macro Context

• “Energy Trading & Investing” – David W. Edwards

Introduces futures/options trading through energy markets. Made it easier to grasp contract behavior in commodities like oil and gas.

• “Prisoners of Geography” – Tim Marshall

Not a trading manual- but sharp geopolitical insight. It helps contextualize how global dynamics affect commodity pricing and cycles.

• “The World for Sale” – Javier Blas & Jack Farchy

Exposes the real commodity trading world- Glencore, Vitol, Trafigura- showing how deals, access, and politics drive the supply side. It reads like a novel. 🤤

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⚙️ Market Structure, Strategy & Execution

• “Volatility Trading” – Euan Sinclair

Focused on strategy and mindset. Helped shift my approach from “trying to be right” to “getting the odds in my favor.”

• “Positional Trading” – Euan Sinclair

More strategic, slower-paced setups. Gave me tools to think in terms of risk-reward geometry rather than precision.

• “Trades, Quotes and Prices” – Bouchaud etc.

Heavy reading, but illuminating. I finally understood why market makers behave the way they do.

• “Inside the Black Box” - Rishi K. Narang

Broke down quantitative strategy layers, from signal design to execution. Especially useful for understanding what algos might be reacting to.

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How I Trade Now: Structure First, No Forecasts

The market isn’t something to outsmart. I treat it as something to read. I’m not in the game of guessing direction. My edge comes from knowing how to manage risk and respond to what the structure shows me. If price isn’t respecting key levels, or if the order flow feels off, I just sit out. I want clean setups, clear risk, and room for asymmetric reward. That’s the lens I trade through.

Price Structure: The Primary Filter

Everything starts with how price behaves at key levels. A breakout isn’t real unless it can hold, and a level doesn’t matter until it forces traders to commit: rejecting, chasing, or getting trapped. Often it’s the failed moves that reveal the most. They show where liquidity is thin, where positioning is wrong, and where the market is about to adjust. That’s where edge is built, by reading reactions, not by drawing patterns.

Volatility and Options Context

For options traders, implied volatility is the foundation. Before earnings, CPI, or FOMC, IV expansion shows you what the market thinks risk looks like. The edge is not in labeling IV as high or low, but in comparing what’s priced in against what actually plays out. That gap between implied and realized is where the trade lives.

GEX (Gamma Exposure) and VEX (Volatility Exposure) sharpen the view. When gamma flips negative, dealer hedging accelerates price moves; when it’s positive, flows dampen volatility. VEX adds another dimension. It shows how demand for options reshapes implied ranges in real time. Together they set the tone for whether I should press size, cut hold times, or adjust strikes.

Sizing Through Volatility

I size my options trades off volatility, not conviction. Average True Range (ATR) tells me how much the stock normally moves in a session, while implied volatility (IV) tells me how much the options market is pricing in. If ATR and IV are both elevated, I cut my size so the position can breathe without blowing up the account. If volatility compresses, I’ll scale up, but only where there’s structure on the chart to lean against. Options exaggerate every tick, so exposure has to be tied to the volatility backdrop, not emotion.

Order Flow and Sentiment

Golden sweeps, dark pool prints, and repeat flow from size buyers aren’t setups by themselves, but they contextualize them. When I see size buyers stacking at the same strike near support, I note it. It doesn’t send me rushing in, but it does go into the equation. Sentiment can be noisy, but when capital concentrates at key levels, it often leaves a footprint worth respecting.

Execution Discipline: The Real Edge

Execution is where most traders fall short. The research can be solid, the direction roughly right, but if size is off or stops aren’t respected, the trade unravels. Positioning has to be tied to volatility and risk, not gut feel. Stops should be treated as automatic as capital only lasts if you protect it.

On the other side, the mistake isn’t only holding losers too long. Exiting winners too early is just as costly. Cutting a trend that’s still intact throws away the very edge you worked for. When the setup is valid, let it run - don’t exit out of fear. Risk gets capped with structure; upside needs room to breathe.

Consistency doesn’t come from calling every move. It comes from applying discipline when it’s hardest: size, stops, and exits managed the same way, every single time..

Less Noise, More Signal

There’s always a narrative. Don’t get trapped in it. Our job is to listen to the market’s language: price, vol, flow. And when it’s unclear? I stay flat. Cash is a position. So is patience.. ☺️

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Final Thought

I didn’t come from a perfect starting point. No formal training, no early advantage, no chorus of encouragement. But I kept showing up. And over time, I learned to build quietly, even when the room didn’t believe in me.

If you’re arriving late, don’t worry. The market doesn’t care when you start. If you’d rather tune out the noise, great. Clarity lives in silence. And if you’re crafting your own trading voice instead of echoing someone else’s, you’re already ahead.

Stay focused. Stay curious. Stay yours. You don’t need to shout to make progress. You just need to keep going. ❤️

👉 If you missed the beginning of this journey, check out Part 1 of my Option Learning Curve: Catch Part 1 here

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Just dropping a few P/Ls here - hopefully they spark a little inspiration 🤩