We have full set-up instructions for each of our on-line brokers to help customers setup their accounts quickly and easily. For your broker OptionsXpress please click
here for the detailed information you require.
Very simply we suggest you keep back 5% from your total investment capital for 'management moves'. The remainder of your capital we call 'total tradeable funds' this needs to be divided by the number of positions you intend holding in your portfolio to give the 'specific $ amount per position'.
For example if you have a total investment capital of $50,000 and want to trade 10 positions in Equity LEAPs. Firstly keep back 5% of $50,000 for management moves, this leaves $47500 as total tradeable funds, divide this by the 10 positions you wish to hold gives a 'specific $ amount per position of $4750.
In this way you will allocate $4750 to each of the 10 new positions and have $2500 in reserve if we need to action any managment moves, such as buying back the short call or rolling out a position.
