1 ☀️ Morning 2 🔄 Roll 3 📥 Income/Hedge 4 🚨 Breach 5 🛡️ Portfolio Protection 6 ⚡ Emergency 7 🚀 Getting Started 8 ⚖️ Sizing 9 🏭 Weekly Income 10 🚀 LEAP
θ
ThetaTracker Pro

Visual Flowcharts
If This, Then That

Ten visual flowcharts translating every decision tree into a step-by-step visual guide — for real-time reference while the market is open.

Flowcharts
10
Departments
3
Format
Visual
Companion to
Decision Trees · Foundations Guide
☀️ FC1 — Morning Routine
🔄 FC2 — Roll Decision
📥 FC3 — Income or Hedge?
🚨 FC4 — Breach Management
🛡️ FC5 — Portfolio Protection
⚡ FC6 — Emergency Protocol
🚀 FC7 — Getting Started
⚖️ FC8 — Position Sizing
🏭 FC9 — Weekly Income Entry
🚀 FC10 — LEAP Strategy
TREE 1 ☀️

The Morning Routine

Run every morning before placing any trades — 8:30 to 9:00am EST

📧 Read Your Notes and Alerts — TWICEFirst pass: big picture. Second pass: every strike, expiration, credit target.
Step 1 — What expires today?
Short Put
expiring today
↓
⚑ Flag for
3:30pm roll
NOT morning
Short Call / IC
expiring today
↓
Check if GTC
close triggered.
If not → 3:30pm
Long Put within
30 DTE
↓
Plan roll
this week.
Protect BP.
Step 2 — Check Portfolio Delta
Within ±150
↓
✅ Balanced
Proceed normally
±150 to ±300
↓
⚠️ Monitor
Note it
±300 to ±500
↓
⚠️ Caution
Roll to rebalance
Beyond ±500
↓
🚨 ACT NOW
→ See Tree 6
Step 3 — Check Buying Power Usage
Under 70% used
↓
✅ Good runway
Proceed normally
70–80% used
↓
⚠️ Sweet spot
Add only if roll
restores BP today
Over 80% used
↓
🚨 STOP
No new trades.
Roll only.
Step 4 — Is this an income trade?
Opening credit AND
GTC close target given
↓
📥 INCOME TRADE (default)
Place it. GTC close at
.65 db — immediately on fill
No additional instruction needed
Opening credit only
No close target
↓
🛡️ HEDGE
Place it.
No GTC close.
Step 5 — Protection trigger fired today?
ATH hit today
↓
🛡️ Add ONE Protection
Non-negotiable
3-ATR on
hourly/daily
↓
🛡️ Add ONE Protection
Non-negotiable
4–5 consecutive
days at 2 ATR
↓
🛡️ Add ONE Protection
Spirit of the rule
No trigger fired
↓
✅ No Protection needed
Continue
⏰ Set 3:30pm Reminder — Step AwayTheta is earning whether you watch or not. Next action: 3:30pm rolls.
TREE 2 🔄

Roll Decision — The Weekly Income

Run at 3:30pm on every expiring short put position

📍 Short Put Expiring Today — Time to Roll
Step 1 — What is your current delta posture?
SHORT Delta
Beyond −300
↓
Too bearish.
Need to add
LONG delta.
NEUTRAL Delta
Within ±150
↓
Well balanced.
Roll on market
conditions.
LONG Delta
Beyond +200
↓
Too bullish.
Need to reduce
LONG delta.
Step 2 — Market condition + delta → Roll direction
Market RALLYING + Short Delta heavy
→
📈 ROLL UP aggressively
More premium + adds long delta. Double win.
Market RALLYING + Neutral delta
→
➡️ ROLL FLAT
Collect premium, stay balanced.
Market WEAK/FALLING + Neutral delta
→
📉 ROLL DOWN slightly
Safety cushion over max premium.
Market WEAK/FALLING + Short delta heavy
→
➡️ ROLL FLAT
Already short delta. Don't go further down.
Market at ATH, cautious tone
→
➡️ ROLL FLAT or slightly DOWN
Protection first. Add Protection if ATH rule fires.
BIG DOWN DAY 100+ pts — "Gift Day"
→
📈 ROLL UP BOLDLY
Elevated fear premium. Protection protecting you. "Love this drop."
Step 3 — What about the Long Put?
30+ DTE remaining
↓
✅ Leave it alone
Only touch the short
Within 30 DTE
↓
⚑ Plan roll
this week
Secure BP
Very far OTM
(market moved way up)
↓
🔼 Upgrade strike
while cheap
(opportunistic)
💡
No Long Put Belongs to Any Short Put
Long puts and short puts are independent inventory. Roll them separately based on their own needs — never assume they must move together.
TREE 3 📥

Income or Hedge? — Every Vertical Spread

Run every time you consider a call spread, put spread, or iron condor

📩 New Spread / IC Trade Posted
The One Question That Determines Everything
Is this a Daily Income CCS or PCS?
These are income trades by default. If no GTC target is given, treat as a hedge.
✅ YES — CCS or PCS
📥 INCOME TRADE (default)
↓
📥 INCOME TRADE — default
Place it. GTC close at
.65 db immediately on fill.
No instruction needed.
❌ NO — your plan says protective trade
🛡️ HEDGE
↓
Place it (if delta warrants).
No GTC close.
Manage it by your plan's rules.
50-Cent Rule — If You Missed the Morning Price
Within 50¢ of
your planned credit
↓
Enter at
40–50% of normal size.
Add rest if price recovers.
More than 50¢
below your planned credit
↓
❌ SKIP IT
Trade has moved.
Risk/reward no longer valid.
Price keeps dropping
after your entry
↓
HOLD — don't add.
Accept partial position.
Don't compound risk.
IC Closing Strategy — One Close or Split?
Normal market
Calm daily range
↓
One 4-leg GTC close.
Put IC on together,
take it off together.
High volatility
80–100+ pt daily swings
↓
Split: two separate GTC closes.
Close winning side immediately.
Manage other side independently.
What Happens Next — The Two Paths
Trade works — decays toward zero
↓
GTC triggers automatically.
Collect 65–75% of max profit.
"Win a little" ✅
Trade gets breached — market moved through
↓
Cancel GTC close.
Weekly Income sets likely profiting from same move.
Manage as hedge → Roll for credit → Becomes income trade.
"Win a lot" ✅
TREE 4 🚨

Breach Management — A Position Has Gone ITM

Stay calm. A breach is not a loss. It is a change of role.

🧘
First: Breathe. A breach is NOT an emergency.
The position is not a loss until you close it at a loss. The system is designed for exactly this moment.
⚡ A Position Has Gone ITM — What Got Breached?
Short CALL spread
breached
(market rallied)
↓
Weekly Income sets near max profit
from same rally.
Net portfolio likely +.
→ See Path A
Short PUT spread
breached
(market dropped)
↓
Protection + short calls gaining.
Check their value
before reacting.
→ See Path B
Weekly Income short put
breached
(hard drop)
↓
Most serious.
Protection should be
gaining big.
→ See Path C
IC — one side
threatened
↓
Cancel GTC close
on that side.
Follow your written plan.
Don't close other side.
Path A — Short Call Breach Protocol
1
Cancel the existing GTC close order
The profit-close target is no longer relevant. Cancel it now.
2
Do NOT close at a loss immediately
Closing locks in the loss permanently. The position can be managed. Follow your written plan.
3
Roll further out in time AND up in strike for net credit
Buy back the breached spread. Sell a new one higher / later for a net credit. Now a HEDGE — no new GTC close.
4
Recognize what happened
You were paid to enter, paid again to roll, and now have a free short delta hedge sitting out in time. The breach cost you nothing out of pocket.
Path C — Weekly Income Short Put Breach Protocol
1
Check Protection and short call positions immediately
A hard drop means Protection has gained significantly. What looks like Weekly Income loss is likely being offset right now.
2
Wait for specific roll instructions
Do not freelance a Weekly Income set roll. Strike choice impacts overall portfolio delta. Follow your roll rules.
3
Roll further out in time for credit — down slightly in strike
On a big down day, lower strike = more safety cushion AND more premium from fear. Collect credit, do not take a cash loss.
⛔
What NOT to Do
Do not panic close. Do not add trades without checking delta impact. Do not watch the screen every 5 minutes. Trust the structure. Follow the protocol.
TREE 5 🛡️

Portfolio Protection — When, What, How Much

Check the three trigger rules every morning. Add one contract per trigger event.

🔍 Check the Three Protection Trigger Rules Daily
Market hits
ALL-TIME HIGH
↓
🛡️ Add ONE Protection
contract today.
Non-negotiable.
3 ATR on hourly
or daily chart
↓
🛡️ Add ONE Protection
contract today.
Non-negotiable.
4.5%+ above
50-day MA
↓
🛡️ Add ONE Protection
contract today.
Non-negotiable.
4–5 consecutive
days riding 2 ATR
↓
🛡️ Add ONE Protection
Spirit of the rule.
Overextension signal.
⚠️
Maximum ONE contract per trigger event — even if all three fire the same day. And NEVER buy Protection in a falling/choppy market. Don't buy insurance in the middle of a storm.
What to Buy — Protection Structure
Structure
→
Bear put spread: Buy put ~5% below market, sell put ~130 pts below that. Offsets cost dramatically vs. naked long put.
Expiration
→
Start far out in time (4–6 months). Cheap insurance. Brings in large credit when rolled forward later ("Source of Funds").
When approaching
correction
→
Roll forward to current month. Activates protection fully — closer Protection moves with much more force on a drop.
How Much Protection Is Enough?
Phase 1
↓
Protection covers the net gap between short and long put notional values. Protects the Weekly Income exposure.
Phase 2
↓
Protection exceeds Weekly Income exposure. A major correction makes you whole AND profitable. That is the target.
Protection Activation by Market Move
0–3% pullback
↓
Protection barely moves.
Rolling + hedges
handle this.
3–5% correction
↓
Protection starts to help.
Manageable without
Protection if needed.
5–10% correction
↓
✅ Protection activating.
Finances short put
roll costs.
10%+ crash
↓
✅✅ Full protection.
$500k account:
only ~$20k loss.
TREE 6 ⚡

Emergency Protocol — Portfolio Out of Control

For extreme delta, extreme BP, or extreme market moves. Fix in order: BP → Delta → Theta.

🚨
First Rule
Do NOT make emotional decisions. Re-read your written plan first. Assess the three pillars in order: BP → Delta → Theta. Fix them in that order.
🚨 Emergency Identified — Which Type?
Emergency 1
BP over 85% used
Emergency 2
Delta beyond ±500
Emergency 3
Market moves 150+ pts
Emergency 1 — Buying Power Crisis
1
Stop all new trades immediately
No new Weekly Income sets, income trades, or hedges until BP is restored.
2
Identify the largest BP consumers
Usually far-OTM long puts consuming BP without providing useful protection.
3
Execute today's scheduled rolls — they bring credit in
Rolling short puts brings premium into the account and helps restore BP.
4
PM accounts: short calls can ADD BP
On Portfolio Margin, adding short calls against existing long delta adds BP rather than consuming it — the PM superpower.
Emergency 2 — Delta Crisis
Heavy SHORT delta
Portfolio too bearish
↓
• Roll expiring puts UP aggressively
• Add short put verticals (= long delta)
• Close some short calls
• Do NOT add more short calls today
Heavy LONG delta
Portfolio too bullish
↓
• Add short call spreads above market
• Roll expiring puts DOWN in strike
• Close some far-ITM long puts
• PM: short calls rebalance at no BP cost
Emergency 3 — Extreme Market Move
DOWN 150+ points
↓
🎁 THIS IS A GIFT
Protection gaining. Short calls near max profit. Roll puts down for huge credit. Add Weekly Income sets at great prices. "Love this drop."
UP 150+ points
↓
Weekly Income sets highly profitable. Check if short calls threatened. Roll calls up and out. If ATH hit → add Protection immediately.
DOWN 300+ points
Black Swan
↓
Re-read your written plan immediately. Protection providing major protection. Bring far-dated Protection forward to current month. System designed for this exact day.
🏗️
Remember the Structure
A reasonable design target in a 1,000-point crash is a loss of only a few percent — for example ~$20k on a $500k account. In a true emergency the system is not failing. It is working exactly as designed.
TREE 7 🚀

Getting Started — Your First Trades

Start here if you haven't placed your first trade yet

🎓 Before Any Trade — Study FirstRead the Foundations Guide. Understand the Three-Department Framework.
Step 1 — Broker & Account Type
Under $15k
↓
SPY at any broker.
Be aware of assignment risk.
Work toward XSP.
$15k–$200k
↓
✅ XSP at Tastytrade.
European style. No assignment.
IRA eligible.
$200k+ AND
Portfolio Margin
↓
✅ SPX at Tastytrade.
Hard line: both required.
$1 less → stay XSP.
Step 2 — Your Very First Trade
1
Safe first entry right now
The month-end far-out iron condor (wide strikes, ~200-pt put cushion). Safe enough, enough time decay to learn order entry. Do NOT put on weekly or 2-day condors yet.
2
Start your first Weekly Income set when you are comfortable carrying the exposure
Choose the strike yourself, by your delta target and your buying power.
3
No Protection yet? Use a flat Weekly Income set
Sell short put and buy long put at the SAME strike (different dates). Eliminates the gap. Less premium but dramatically less downside risk.
4
Starting size
SPX: max 5 contracts. XSP: max 5 contracts. Keep 30% BP in reserve always. Scale to YOUR account.
5
Do NOT add Protection, short calls, or daily spreads yet
Protection needs its own trigger rules. Daily income spreads only make sense once Weekly Income sets are running — they hedge the Weekly Income sets. Nothing to hedge = nothing to add.
Step 3 — Building Over Time
1st Weekly Income set running, roll process understood
→
Add 2nd Weekly Income set at a different expiration. Build toward Mon–Fri. One at a time.
3+ Weekly Income sets running, BP well managed
→
Begin following daily income income trades. One contract minimum. GTC close every time.
5+ Weekly Income sets, income trades familiar
→
Add Protection when the three trigger rules fire. Phase 1 coverage. Check the rules daily.
Full system running, Protection in place
→
Follow short call hedges for delta management. You are now running the full three-department system. ✅
TREE 8 ⚖️

Position Sizing — Every Credit Spread & IC

Run this BEFORE placing any daily income trade. Size correctly or don't place it.

⚠️
The Most Common Expensive Mistake in ThetaTracker Pro
Taking too much size on daily income spreads. These are ~6:1 risk/reward standalones. Calculate risk BEFORE every entry.
⚖️ About to Place a Credit Spread or IC — Calculate First
Step 1 — Calculate Risk Per Contract
1
Find the spread width
Sold strike minus bought strike. Example: 6800 − 6785 = 15 points = $1,500 gross risk per contract.
2
Subtract your credit
$1,500 − $225 credit = $1,275 net risk per contract. Multiply by contract count for total exposure.
3
Compare to accumulated Weekly Income premium
Total daily income risk must NOT exceed accumulated Weekly Income premium. $60k in Weekly Income premium → max ~$60k at risk on daily incomes.
Step 2 — Lot Scale (Scale to YOUR Account)
A full-size trade for you is
5 contracts
↓
QUARTER LOT
Testing the waters.
Use 25% of your normal size.
A full-size trade for you is
10 contracts
↓
HALF LOT — DEFAULT
The standard entry.
Use 50% of your normal size.
A full-size trade for you is
20 contracts
↓
FULL LOT
High conviction.
Use 100% of your normal size.
📐
Example sizes may come from a much larger account than yours. 10 contracts on a large account ≠ 10 contracts on yours. Scale everything proportionally. A $200k account trading 10 contracts is carrying far more relative risk than a seven-figure account trading 10.
Step 3 — IC Double-Dip Risk Math
Single spread
(put OR call side only)
↓
Risk: $1,275/contract
Reward: $225/contract
Ratio: 6:1 against you
Full IC
(put AND call sides)
↓
Same $1,275 margin.
Reward: $450 total credit.
Net risk: $825/contract.
Better ratio. "Double dip."
The Key Reframe — Within the System
🔑
These Are Never Standalone Trades
A $10k IC loss on a day when Weekly Income sets harvested $60k = net +$50k. Be willing to put on trades that might lose 100% — because if they do, you are winning a lot on the other side. That is the whole reason the trade was put on.
TREE 9 🏭

Weekly Income Entry — When, How & What Size

The core revenue engine. Use this every time you consider starting a new Weekly Income set.

🏭 Considering a New Weekly Income Set — Should You Enter?
Step 1 — Is Now the Right Time?
You are comfortable adding a new Weekly Income set
→
✅ Your signal to enter. Choose your strike by delta target. Scale size to your account.
Rolling existing Weekly Income sets only
→
Roll only. Do not open new Weekly Income sets until you decide to add one.
Defensive mode — Weekly Income sets reduced
→
Stay defensive. Do not add Weekly Income sets while you are reducing them. Daily income trades fill the income gap.
BP below 25% available
→
🚨 Stop. Restore BP above 30% before adding any new position.
Step 2 — Choose the Right Structure
Protection already in place
Normal conditions
↓
Normal Weekly Income set
Short & long at different strikes. Gap covered by Protection. Maximum premium collected.
No Protection yet
New to the system
↓
Flat Weekly Income set
Same strike, different dates. Zero gap exposure. Less premium, dramatically less risk.
Defensive mode
Inverted referenced
↓
Inverted Weekly Income set
Long strike ABOVE short strike. Maximum protection built in. Accepts less net credit.
Step 3 — Set Up Both Legs as Independent Inventory
1
Short Put — Weekly Income Leg
Choose your strike and expiration by your delta target. No GTC close — NEVER closed for profit. Always rolled to the next week for fresh credit at 3:30pm on expiration day.
2
Long Put — Protection Leg
Use a far-dated, high-strike long. Roll independently when within 30 DTE — plan BP in advance. No long put belongs to any short put — they are all independent inventory.
3
Fan Weekly Income sets Across Monday–Friday Expirations
Build toward one Weekly Income set expiring each weekday over time. This fans gamma risk — no single expiration dominates the week. Add one new Weekly Income set per week.
Step 4 — Size Correctly
SPX
$200k + PM required
↓
Max 5 contracts to start. SPX is 10× XSP. Hard limit at launch.
XSP
Under $200k
↓
Max 5 contracts to start. European style. IRA eligible. Build from here.
BP Rule
After entry
↓
Minimum 25–30% BP must remain. Never exceed 70–75% usage.
💡
The Weekly Income Inventory Mindset
No long put belongs to any short put. They are all inventory — independent items managed on their own schedules. Roll the shorts weekly. Manage the longs at 30 DTE. The machine runs on its own once it is built.
TREE 10 🚀

LEAP Entry & Covered Call Campaign

The opportunistic fourth component — deployed during corrections, harvested through the recovery

🚀 Is the Market in a Significant Correction? — Is It Time for a LEAP?
Step 1 — Check All Five Entry Conditions
1
Market has pulled back 5–10%+ from ATH
LEAPs at ATH are expensive. The strategy depends on buying long calls when meaningfully cheaper than at highs. Do not enter near ATH — wait for the correction to create the value.
2
Confirmed bounce — not a falling knife
Do not try to time the bottom — wait for confirmation once you see the movement. Required: market stopped going down AND closed above 50 SMA with follow-through the next day. Both conditions. One day is not enough.
3
Moving averages beginning to stabilize
Spaghetti MAs starting to resolve. 9 EMA turning up. Stochastics turning from extreme oversold. Multiple timeframe confirmation the downtrend is exhausting — not a dead-cat bounce.
4
Short delta protection already in place
Short calls and/or Protection must be on before adding the LEAP. Never enter a LEAP as the only position — always with protection. Have enough short calls to sustain a potential downfall if you are wrong.
5
Your plan's entry level — use GTC at your price
Do not chase it — let it come to you. Place a GTC buy order at your planned price. If the market doesn't reach it, no fill — perfectly fine. The discipline of not chasing is as important as the entry itself.
Step 2 — The Staircase Approach (Scale In)
Market reaches first support level
→
Add 1 LEAP. Sell first short call immediately on fill. Begin the income campaign.
Market continues to next support level
→
Add 1 more LEAP + begin scaling Weekly Income sets. One contract per level. Never more at once.
Market reverses before hitting lower levels
→
✅ First LEAP is profitable. Recovery thesis working. Continue selling short calls weekly.
Step 3 — The Covered Call Campaign (Weekly Income Harvest)
Each week — short call expires or closes
→
Sell the next short call immediately. Keep the harvest running continuously. Every week without a short call is income left on the table.
After ~8 weeks of short call income
→
✅ LEAP cost recovered. All future income and LEAP appreciation = profit.
Step 4 — Managing Different Market Scenarios
Short call breached
Market rallies through strike
↓
✅ Ideal scenario. LEAP gaining value faster than short call losing. Roll short call up and out for credit.
Market continues lower
After LEAP entry
↓
Continue selling lower short calls. Rising VIX = more premium. Accept mark-to-market loss — offset by income. Stay the course.
Market never recovers
LEAP nears expiry worthless
↓
Short call income covers most or all of the loss. If 8+ weeks collected — still net positive. The math built this in as the base case.
Step 5 — The Hard Exit Rule
Friday close 2.5%+
below 200 SMA
→
🚨 Close ALL LEAPs immediately. Non-negotiable. Something has fundamentally changed. Exit cleanly. Short call income collected to date offsets the loss.
Friday close within 2.5%
of 200 SMA or above
→
Hold. Recovery thesis intact. Continue weekly short call harvest. 200 SMA holding as support.
θ
Why Use LEAPs
Weekly income works well within a range, but a LEAP captures the upper extreme that the Weekly Income sets cannot fully participate in. The LEAP is the complement to the core income engine — capturing the recovery the Weekly Income sets structurally cannot fully benefit from.
θ ThetaTracker Pro — Visual Flowcharts  |  Companion to the Decision Trees
This document is a personal study aid. Not financial advice.

DISCLAIMER: This document is intended solely for educational and personal reference purposes. It does not constitute financial advice, investment advice, or a recommendation to buy or sell any security or financial instrument. Options trading involves substantial risk of loss and is not appropriate for all investors. Past performance is not indicative of future results. The strategies and examples documented herein describe one methodology — your results may differ materially based on account size, experience, timing, market conditions, and other factors. Always consult a qualified financial advisor before making any investment decisions.