Mental Capital

In-depth discussions on options trading psychology.

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Expectancy: The Single Number That Predicts

Learn why win rate is a vanity metric and how to calculate expectancy, the one number that reveals whether your options trading strategy will actually make money.

R-Multiples: The Universal Language of Trading Results

Why professional traders measure performance in risk units, and how this simple shift transforms your trading psychology

Three Bearish Options Hedges: Calm Tape, Cheap Fear, and a Useful Moment to Be Boring

Three bearish options strategies to hedge a long portfolio, put spreads, bear call spreads, and VIX call spreads, with realistic examples and practical management rules.

The Risk Thermostat

Position sizing determines whether your options strategies survive. Learn the Risk Thermostat framework that keeps your portfolio functional when markets turn.

🧠 Risk Management With Options

Learn a research-backed framework for managing risk with options, using put spreads, collars, credit spread hedges, and volatility (VIX) protection to reduce drawdowns without sacrificing long-term returns.

🧠 The "Risk Budget" That Keeps Pros Alive (And Stops Premium Sellers From Overtrading)

You don't need a PhD in math. You need a speed limit for your portfolio, and the discipline to obey it.

The Ultimate Guide to Options Trading Psychology: The 10 Essential Articles of the Year

Master options trading psychology with 10 essential articles. Learn to overcome FOMO, sunk costs, overconfidence & cognitive biases that destroy accounts.

🧠 Mental Capital: Capital Preservation as Offensive Strategy

Not losing money makes you money. Learn why defensive thinking outperforms aggressive speculation and how capital preservation creates compounding advantages in systematic trading.

🧠 Mental Capital: The Dangerous Math of "Making Up" for Losses

Learn why trying to "make up" for trading losses destroys more capital than the original loss. Discover the psychology of revenge trading and how proper position sizing protects your account from emotional decisions.

🧠 Mental Capital: The Social Media Trap - Comparing Your P&L to Strangers

Social media comparison destroys options trading discipline. Learn how performance envy leads to oversized positions and how to refocus on your systematic edge.

🧠 Mental Capital: Understanding Options Greeks - The Foundation of Risk Management

Learn how Delta, Gamma, Theta, and Vega control options risk. Master the Greeks to build profitable, protected positions with 24+ years of proven insights.

🧠 Mental Capital: Using Bear Call Spreads to Protect Your Portfolio

Learn how to use bear call spreads as a defensive hedge for your portfolio after strong rallies. A simple, rules-based strategy to protect gains without selling your winners.