Many people ask me: “Hunter, should I take this trade?” You do not need to ask me. You only need to ask yourself.
In my trading system, there is a “circuit breaker”. Every time my mouse hovers over the “Sell to Open” button, I force myself to run through this checklist. If the answer to any question is NO, the trade is cancelled immediately. No exceptions.
💡 Silent’s Note: Screenshot this page, print it out, and tape it next to your monitor. When you are about to go on tilt, this is the rope that pulls you back to rationality.
✅ The SilentXx Hunter’s Pre-Trade Checklist
Q1. Trend: Am I Fighting the Tape?
- For Put sellers: Is the stock in an uptrend or at a support level? (Moving averages flat or sloping up)
- Ask yourself: If this is a downtrend, am I trying to “catch a falling knife”?
- Standard: Never sell Puts into a waterfall decline — unless you want to lose a hand.
Q2. Liquidity: Can I Get Out When I Want To?
- Metrics: Open Interest > 500? Bid-Ask spread < $0.10 or < 5%?
- Ask yourself: If I need to close, will the wide spread eat my profits?
- Standard: No illiquid small-cap options. Period.
Q3. Volatility: Is This Premium Worth Selling?
- Metric: IV Rank (IVR) > 30?
- Ask yourself: Is this premium “meat” or “bone”?
- Standard: When IV is too low (< 20), the risk-reward for sellers is terrible. Better to sit in cash.
Q4. Events: Are There Landmines Ahead?
- Metric: Any earnings, FDA decisions, or major product launches in the next 30 days?
- Ask yourself: Am I investing, or am I gambling on a binary event?
- Standard: Absolutely avoid trading through earnings (unless using a specific earnings strategy).
Q5. Probability: Is the Odds in My Favor?
- Metric: Is Delta between 0.2 and 0.3? (70-80% probability of profit)
- Ask yourself: Did I stretch to Delta 0.5 just to grab a few extra dollars of premium?
- Standard: Discipline over greed. Stick to your Delta range.
Q6. Risk: If This Goes to Zero, Can I Survive?
- Metric: Max loss < 2% of total account? (For spreads) Or do I have enough cash to take assignment? (For CSP)
- Ask yourself: If this trade blows up, will I go broke? Will I lose sleep?
- Standard: The 2% Iron Rule is non-negotiable.
Q7. Motive: Why Am I Opening This Trade?
- Ask yourself: Is it because the system gave a signal? Or am I feeling FOMO watching others profit? Or am I just itching for action after being idle too long?
- Standard: Emotional trading = death.
How to Use This Checklist
Trading is a mental discipline. When you can calmly check off all 7 boxes, you are no longer a retail trader drifting with the crowd — you are a hunter executing with discipline.