How to Become An Options Trader – Pablo Navarro’s Story

MarketHeist’s Jeffrey Lin interviews Pablo Navarro, Options Strategist for Hamzei Analytics’ HFT Stocks & Options.  The first couple of months of trading stocks and options can be hard. This is especially true if you were like Pablo Navarro, starting out in college without a lot of money. How did Pablo become a full time options trader as well as an options strategist for Hamzei Analytics? Pablo has been gracious enough to share the steps he took to succeed as a full time options trader. Learn from someone who's been there instead of starting from square one all by yourself.

TRANSCRIPT

Jeffrey: I'm here today with Pablo Navarro. He's a full-time trader and an options strategist with HamzeiAnalytics, HFT Stocks and Options. It's a live trade-alert service for options. He's been working with Fari Hamzei and a former designated primary market maker known as The Admiral. Pablo sends out option trades from entry to exit with a full trade plan and risk award analysis as a professional trader should. These options trades range from simple, directional plays to a full, complex multi-leg spread strategies. You're actually pretty young. Would you mind telling us how old you are?

Pablo: Yes, I'm 24-years-old.

Jeffrey: So, how long have you been trading?

Pablo: I've been trading for three and a half years right now. Well, my first stocks trading was back in Colombia where I'm born. I started trading, but it was a long-term plan; just bought some stocks and let it run. That was about when I was 18. And when I came to study here in Dallas, at TCU, I started trading more often. More swing trades. I got a couple of trades going on and then I got some bad trades. That's when I got interested in not only winning, but how to keep your profits on once you get some losses, because everybody got losses. And the important thing is to manage how big you win and how big you lose. So I started studying the markets pretty intensely during my college life. And then, I became engaged with options. And then I tried to gain a lot of confidence in options, tried to do some trades that were limited risk but unlimited rewards and then tried to hit a big percentage of winners. I also tried to analyze how to repair some stocks that were going wrong, maybe tried to lower your cost basis at some times.

Jeffrey: How do you make the jump from stocks trading to options trading which a lot of people don't?

Pablo: At the beginning, most of the people tried to start with a little capital, because they don't know as much as the market. They want to risk as little as possible, so that's how I started and I thought that with options, I was able to trade bigger with some of them, get bigger gains, also limit my exposure and have the same risk because I was risking essentially the same capital that I was risking on the stocks. So that's how I did it.

Jeffrey: Well, you were saying limited risk and potentially unlimited reward, right? That sounds pretty good.

Pablo: Yes, exactly.

Jeffrey: So, what did you do after that? How did you become a profitable trader from just trial and error?

Pablo: Yeah, the beginning was a lot of trial and error, as you said. I also took OptionsANIMAL trading course. I took some seminars with them, went and completed the course. It took me around six months to complete the whole course. And after that, I just started to study a lot of technical analysis, and now I'm basically a lot more technical than fundamental driven, because my trades are very shorter term. Basically, studying a lot of how options work.

What were the mistakes that most people did? That was over leveraging and then you could not resist any downfall in your market. That was important in finishing the course. Then I started talking to Fari. We met a couple of times and then we started trading together in options and that helped also. I saw a lot of his market timing webinars, his events. How he used to time the market.

I have different, separate parts of my portfolio. Some are pretty long-term, which is like 70% of the total capital. It's going to be longer term driven. And the 30% left, it's going to be either day trading that's around 10%, and the other 20%, it's going to be more swing trades on the market.

So with the long-term, what I used to do is look at fundamentals, look at technicals, combine them, because there are going to be long-term plays. And then I go with buying some leaps, some are calls. I tried to go out of the money on some and on the other percent, I go deep in the money. I try to have a 50 Delta or even a 70 Delta on some of the positions. Almost like mimicking a stock, but, at least, two to three times the leverage and then I sell some front calls against it. And that's going to be a position that lasts around two years, at least.

Jeffrey: OK. We'll continue with Pablo with our questions in the next segment, so be sure to check out our other videos for that. Thanks, Pablo.

Pablo: Thank you, Jeff.

 

CONNECT

Learn more from Pablo at HFT Stocks & Options:
http://bit.ly/hftstocksoptions

Follow Pablo on Twitter:
http://twitter.com/pnavarro88

Follow us on twitter:
http://twitter.com/marketHEIST

Follow host Jeffrey Lin on twitter:
http://twitter.com/JeffreyLin

ABOUT PABLO NAVARRO
Majored in Economics and Communications with a minor in business from Texas Christian University. Pablo graduated from OptionsAnimal and completed all levels that the CBOE Options Institute offers. Pablo actively manages his own accounts trading options, futures, and stocks for over 3 years. He is always pushing beyond the limits to achieve his goals. He is convinced that its all about going that extra mile and always having a plan for each scenario.

Beginner 1 Users Collected

Post Topics

Post Details

Market Merchandise: Options, Stock,
Skills: Risk Management,

Download Our Free eBook

25 Stock Market Indicators To Know

And subscribe to our MarketHeist Guides newsletter!

Using This Post

Free Brokers, Software, & Tools to Start.

Start with Brokers that have free accounts and professional grade software. Software that's the same whether you're practicing with fake money or trading real money.

Submit a Service

Profile Photo

TD Ameritrade Online Broker

With free thinkorswim, Trade Architect, & mobile software. Practice with virtual money. Invest and trade in stocks, ETFs, mutual funds, bonds, options, futures, and forex. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

tradeMONSTER Online Broker

Free browser & mobile software. Easy to use technology including strategySeek and paperTRADE. Invest and trade in stocks, ETFs, mutual funds, bonds, and options. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

optionsXpress Online Broker

optionsXpress offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. No minimum requirements.

☆ Collect Launch

Learn The Business. Take A Course.

What is the market and how it works
Finding Opportunities (with Technical Analysis & Fundamental Analysis)
Planning & Safety (with strategies to make smart decisions.)
Plan Execution: Buying & Selling

Submit a Service

Learn Stocks

Profile Photo

Investools Investing Foundations Program

Get trained in the foundations of the stock market and stock trading with two courses, a wealth of easy-to-use tools, and top-tier coaching support, in the program that helps you start managing your own portfolio. In the Investing Foundation Program, you’ll enjoy live and online workshops that can help you quickly overcome fears and learn […]

☆ Collect Launch

Learn Options

Profile Photo

OptionsAnimal Apprentice Options Education Program

Description Build your knowledge from the ground up. Understand key concepts and learn the basic spread trades that will give you a foundation to trade successfully. Learn how to properly structure a trade using the Protective Put, Covered Call, Collar Trade as well as applying the Straddle/Strangle. Trade Adjustment Spread Trades OptionsAnimal Trader Professional Program […]

☆ Collect Launch

Learn Futures

Profile Photo

OpenTrader Professional Training Program

The industry’s only training program built by professional full-time traders. You used to have to get hired by a professional trading firm to get world-class training. Not anymore. If you’ve been a losing trader, getting beaten down by the market again and again, low on confidence and full of doubt, things are about to change […]

☆ Collect Launch

On-The-Job Training. Earn While Learning.

Follow Live Trades, Step By Step
Detailed Trade and Market Analysis
Explanations of Strategies and Tactics
Questions Answered in Webcasts & Chatrooms
Learn by Copying The Pros At Every Step

Submit a Service

Learn Stocks

Profile Photo

Mish’s Market Minute Premium Stock Picks Video Subscription

Live-in-the-market instruction showing you how to trade in the afternoon the choice stock and ETF picks vetted by MarketGauge’s tools earlier in the day. Video up to 15 minutes: 4 times a week (M/T/W/Th) by 1:30PM ET $124.97/month Includes ETF Monitor & Nuggets List Private real-time Twitter Alerts 2 week FREE trial Learn as Mish: […]

☆ Collect Launch

Learn Options

Profile Photo

stockguy22 Live Trading & Education for Part Time Traders

What You’ll Get Learn stocks and options trading at your own pace from a group of full time traders dedicated to teaching through live trading, education, and mentoring.  See how trading is done methodologically as an occupation on a daily basis, from beginning to end.  Start with the daily in-depth analysis of stocks, the overall […]

☆ Collect Launch

Learn Futures

Profile Photo

Emini Wizard Trading System & Live Trading Chat Room

Thanks for considering The Emini Wizard System: This system is available for purchase for people who want to make a one time investment for the entire program. You get: Access to the Member’s website Spreadsheets Common plays Special plays Trade logic explained Chart patterns Chart settings we prefer Separate active chat area (30 days free […]

☆ Collect Launch

Some Partners We've Worked With

  • Download Our Free eBook

    25 Stock Market Indicators To Know

    And subscribe to our MarketHeist Guides newsletter!