ITPM Instructor Edward Shek on Options Trading: Avoiding the Silent Tax

ITPM mentor Edward Shek reveals the one thing most traders ignore — and it’s costing them big: execution. We’re not just talking about trade ideas… we’re talking about how you actually get in and out of the market.

Edward Shek speaks, serious traders listen. As a mentor at the Institute of Trading and Portfolio Management (ITPM), Edward recently shared some eye-opening truths about options trading — and how execution, not just strategy, can make or break your results.

In this short blog, we’ll highlight just a few of the key points he made about how to avoid one of the most overlooked dangers in trading: bad execution.

🎯 1. 48 Strategies a Year Is Conservative

Edward lays out a simple but powerful model — maintaining 10–12 positions at a time (as per the ITPM program) with an average trade duration of 2.5 months. That adds up to around 48 strategies per year.

Even with a 50/50 win-loss ratio, options give you the asymmetry to generate solid returns, especially when you manage your losing trades properly (through techniques like repairing, rolling, or restructuring).

🧾 2. Bad Execution = A Silent Tax

Most traders don’t notice it, but sloppy execution quietly chips away at performance. Whether you’re trading a $50K account or $500K, if you’re careless with your spread pricing, net spend, or timing, the costs add up fast.

“Bad execution is a silent tax on performance.” – Edward Shek

A single $400 mistake repeated 72 times a year? That’s a massive drag on returns.

⚙️ 3. Minimize Legging Risk with Tranche Execution

When trading vertical spreads, one key risk is legging — buying the long leg and getting caught by a stock move before selling the short leg.

Edward’s solution: buy and sell in tranches.Instead of going all in at once, stagger your orders:

• Buy 1 contract, then sell 1.

• Repeat until filled.

This helps reduce the exposure if the spread moves while you're still entering the trade.

💡 4. Know What You’re Spending Before You Click

It sounds simple, but you’d be surprised how many traders only realize how much they spent after placing their trade.

Shek emphasizes the importance of using execution spreadsheets to:

• Track your net spend.

• Forecast expected profit/loss.

• Adjust size or strikes before execution.

“If you get to the end of the day and realize you spent $5K when you meant to spend $4K — that’s bad trading.”

🎥 ITPM Video and the Full Breakdown?

This blog just scratches the surface of Edward Shek’s full training. He goes into:

• Spread risk and market maker behavior

• Strike selection on execution day

• Trading in high-volatility environments

• Why thoughtful execution builds lasting trader confidence

  
  

👉 Watch the full video on YouTube here:🔗 Edward Shek – Options Trading & Execution | ITPM

Disclaimer:

The information contained in this article is provided for general informational and educational purposes only and does not constitute financial, investment, or other professional advice. The content reflects the personal opinions of the author based on publicly available information at the time of writing and should not be relied upon as the basis for any investment decisions. Earnings reviews may contain forward-looking statements that are inherently uncertain and subject to change.

Readers are strongly encouraged to conduct their own research and due diligence, and to consult with a qualified financial advisor or licensed professional before making any investment or trading decisions. The author and publisher make no representations or warranties, express or implied, as to the accuracy, completeness, or reliability of the information provided and accept no liability for any loss or damage arising directly or indirectly from the use of or reliance on the information herein.