Table of Contents
In this interview, Jerremy Newsome sits down with host Anthony to unpack how he actually trades—why he sold Real Life Trading to his team, moved to Orange County, and doubled down on a lifestyle where markets fund freedom. Jerremy matters because he’s both practitioner and teacher: a full-time trader who’s refined a simple playbook (heavy focus on Tesla) into something boring on purpose—repeatable, rules-driven, and designed for real life.
You’ll learn how Jerremy uses a “points per month” target to back into income goals, why he prefers large, liquid names and accumulates shares over dollars, and how collars (covered calls + protective puts) make volatility work for him. We’ll also hit his beginner-friendly path to wealth—steady job → buy top-tier companies on a schedule → test active trading with strict guardrails—and the mindset shift from victim to owner so you can stay consistent through losing months without blowing up. By the end, you’ll have a clear, beginner-ready template you can adapt tomorrow morning.
Jerremy Newsome Playbook & Strategy: How He Actually Trades
Core Philosophy: Keep It Simple, Rule-Driven, and Scalable
Jerremy keeps his playbook deliberately “boring” so it’s repeatable. He focuses on liquid, well-known names and lets rules—not opinions—drive action. The aim is consistent monthly points, not home runs.
- Trade a small universe of A-tier stocks and ETFs (e.g., top-10 market-cap names, mega-cap tech, broad ETFs).
- Define a monthly “points” target (e.g., +8 to +12 points on anchor names) and plan positions to reach it.
- Prioritize liquidity: min 20M avg daily shares or tight option spreads (<$0.10–$0.20 on liquid weeklies).
- No thesis without triggers: price, volume, and volatility rules must line up before capital goes in.
- Default bias: own shares of great businesses, then layer options for cash flow and protection.
Market Universe & Instruments: Shares First, Options as the Engine
He builds core stock positions in elite names, then uses options to rent out premium and control risk. This keeps upside participation while cushioning drawdowns.
- Base layer = shares. Add options only after the stock position is established.
- Income lever: covered calls on 20–70% of the position when IV rank is mid-to-high.
- Protection lever: protective puts are timed around earnings, macro events, or when ATR expands >150% of its 20-day median.
- Avoid illiquid tickers and weeklies with >$0.20 wide markets; skip if OI is thin.
- If spreads are wide or fills are sluggish, trade the shares only—no forced options.
Setup Checklist: Only Enter When the Tape Invites You In
Entries are triggered by a short list of objective tells: trend, pullback quality, and buyers stepping back in. If a setup is messy, he passes.
- Structure bias: price above rising 50-SMA for longs; below falling 50-SMA for shorts or hedges.
- Pullback quality: 2–5 red bars retracing ≤50% of the prior impulse, decreasing volume into the dip.
- Confirmation: intraday reclaim of prior day’s high or a 5-min higher-low + VWAP reclaim.
- ATR gate: do not enter if the daily ATR has already expanded >2× its 20-day average for two straight sessions.
- Event filter: if earnings are ≤5 trading days away, size down to half or add a protective put on entry.
Entry Rules: Precision Beats Prediction
Jerremy waits for a clean risk box so stops and targets are obvious. He wants entries that practically “place the stop for you.”
- Longs: buy on the first strong green close after a controlled pullback; stop = low of day or low of pullback, whichever is tighter.
- If the breakout candle’s range >1.5× ATR(14), skip—risk is too wide.
- Use limit orders at or slightly below mid; if not filled within 3 minutes and price has moved 0.3× ATR in your favor, chase with a small “add-on” (≤25% of planned size).
- Never add if stop would widen; adds only when a new risk can be tucked above/below a nearby structure (prior high/low, VWAP, day’s open).
- First partial at +1R automatically; move stop to breakeven after +1R is booked.
Position Sizing & Risk: Survive First, Thrive Second
Sizing is volatility-based so that one trade can’t wreck the month. He always knows the max loss before entry.
- Risk per trade: 0.3–0.7% of account; never >1.0%.
- Dollar risk = (entry − stop) × shares; solve for shares so dollar risk hits your chosen %R.
- If ATR widens 30%+ week-over-week, cut per-trade risk by one tier (e.g., from 0.7% to 0.4%).
- Daily drawdown cap: stop trading discretionary setups after −2R on the day.
- Weekly loss stop: pause new risk if weekly P/L < −4R; review and resume next session.
Trade Management: Mechanical Exits, Not Emotional Hopes
Winners are scaled out and trailed methodically; losers are cut instantly. Time in trade shortens when volatility spikes.
- Take the first scale at +1R, second at +2R; hold a runner only if trend and volume conditions persist.
- Trail with either 20-EMA on the 30-minute or the prior day’s low for swings; whichever exits first.
- If price closes against your setup twice in a row (two consecutive closes below prior low for longs), flatten.
- News/earnings surprise gap against you: exit at open; do not wait for “fill the gap.”
- If IV crush is expected (post-earnings), take profits on options the day before.
Options Income: Covered Calls the Jerremy Way
Covered calls create steady cash flow on quality shares. The rules keep assignments controlled and drawdowns cushioned.
- Sell 20–45 DTE calls 10–20 delta when IV rank is above its 6-month median; target ≥1% of stock value in premium per 30 days.
- If price rallies and delta >35, roll up/out same day to re-center around 15–20 delta.
- Never overwrite 100% of shares—cap at 70% so you can capture unexpected breakouts.
- On large selloffs (−1.5× ATR in a day), buy back short calls for pennies to unlock rebound.
- Earnings weeks: either skip overwriting or push strikes farther OTM (≤10 delta) and reduce size by half.
Protective Collars: Cap the Downside, Keep the Upside Working
Collars (covered call + put) turn volatility into insurance you control. Deploy them tactically when risk jumps.
- Build a collar when IV rank is high, ATR is expanding, or event risk is near.
- Structure: short call at 15–20 delta, long put at 20–30 delta, same expiry; keep net debit ≤0.5% of stock price if possible.
- If put value doubles while stock is flat/down, take profits on the put and re-establish lower if pressure persists.
- If price rips, roll the short call up/out first; only remove the put after trend confirms.
- Collapse the collar once ATR normalizes back to its 20-day median.
Earnings & Gap Plays: Prepare, Don’t Predict
Earnings are opportunities and dangers. Jerremy treats them like weather: plan routes, don’t argue with the forecast.
- Into earnings: reduce net long delta or collar; if holding through, risk ≤0.5–0.7R on the event.
- Post-earnings trend: trade the second day, not the first, using opening range break with a 0.5× ATR stop.
- Gap rules: only trade gaps that hold above/below the first 30-minute range; skip “fill attempts” that fail on volume.
- Option quick hits: IV crush = close premium before the print; re-enter directionally after the move.
- If a surprise guide changes the thesis, clear the deck and reset bias in the next session.
Weekly Routine: A Boring Schedule That Prints Consistency
Consistency comes from rhythm. The routine keeps decision fatigue low and quality high.
- Sunday: build watchlist of 5–10 leaders; mark levels (weekly highs/lows, gaps, anchored VWAPs).
- Mon–Thu open: trade A-setups only during the first 90 minutes; after that, manage, don’t hunt.
- Midweek: review P/L vs. points target; adjust size down if behind to avoid forcing trades.
- Friday: close short-dated options that are <0.10 to avoid weekend gamma games; tighten stops on swings.
- End-of-week: journal with screenshots and R-metrics; tag mistakes and one improvement to test next week.
Mindset & Process: Owner, Not Victim
Jerremy’s edge is as much psychology as price action. He treats losses as tuition and keeps identity tied to process, not outcomes.
- Pre-market script: define bias, A-setup, invalidation level, and the exact dollar risk for the day.
- One loss = normal; two losses = shrink size; three losses = stop trading and review.
- Never “win it back” today—protect the next thousand trades.
- Track habits (sleep, workouts, screens-off time); reduce the size of the day after poor sleep or big life stress.
- Celebrate rule-following days regardless of P/L to reinforce the identity that prints long-term returns.
Size Risk First, Then Trade—Never Exceed One Percent Per Idea
Jerremy Newsome starts with risk, not charts. Before he touches a ticker, he defines the dollar amount he’s willing to lose and scales position size so a stopped-out trade costs no more than one percent of the account. That simple ceiling keeps a cold buffer between a bad idea and a bad month. He’ll also cut that risk in half when volatility spikes or when major events loom, proving that flexibility is part of sizing—not an afterthought.
By setting the loss first, Jerremy Newsome makes every other decision easier. Entries get cleaner because the stop is obvious and the shares are computed from it; exits get calmer because the worst-case is prepaid. If he takes two losses in a day, size steps down; three losses, and he’s done for the session, preserving mental capital. The goal isn’t perfection—it’s staying in the game long enough for the edge to play out.
Use Volatility To Your Advantage With Covered Calls And Collars
Jerremy Newsome treats volatility like rent he collects from the market. When implied volatility is elevated, he sells covered calls on quality shares to generate steady cash flow while still participating in upside. He prefers 20–45 days to expiration and strikes around 15–20 delta, aiming for roughly one percent of stock value in monthly premium. If price rips and the call delta climbs above the mid-30s, he rolls up and out to keep room for further gains.
When volatility expands or event risk looms, Jerremy Newsome adds protection with a simple collar. He keeps the same short call and buys a put near 20–30 delta so the downside is defined while the premium from the call offsets the hedge. If they put doubles while shares drift or drop, he harvests it and reloads lower only if pressure persists. Once ATR and IV cool off, he dismantles the collar and returns to normal covered-call cadence.
Own Elite Names, Diversify By Underlying, Strategy, And Duration
Jerremy Newsome keeps his core list tight—mega-cap leaders and broad ETFs where liquidity, fills, and borrow are never a problem. He builds share positions first in these elite names, then layers options for cash flow and protection so the engine isn’t dependent on perfect timing. Concentration is in quality, but he avoids single-name risk by mixing two or three uncorrelated underlyings.
Diversification continues at the strategy and time level, so one environment doesn’t sink the month. Jerremy Newsome blends shares with covered calls, occasional debit spreads, and protective puts, balancing defined and undefined risk across the book. He staggers duration—some weeklies for income, some 30–60 DTE for smoother decay, and swing shares held through higher time frames. If one ticker stalls, the others and the different expiries keep the P/L curve from getting lumpy.
Trade Mechanics Over Predictions: Price Triggers, ATR Gates, Event Filters
Jerremy Newsome doesn’t forecast; he executes. He waits for objective triggers—prior day high reclaim, VWAP regain, or a clean higher low—before committing capital. If the breakout bar’s range is too large relative to ATR, he skips the entry and protects his month instead of chasing. Stops live at obvious structure (pullback low or day’s low), so the math, not the mood, defines the risk.
ATR is the throttle: when daily ATR doubles its 20-day average, Jerremy Newsome tightens risk or stands down entirely. Event filters keep him honest—earnings inside five sessions means smaller size or a protective put, not bravado. Management is mechanical: first scale at +1R, trail with 20-EMA on the 30-minute or the prior day’s low, whichever hits first. Two consecutive closes against the trade? He’s flat and resetting, not debating.
Process Discipline: Weekly Routine, Points Targets, And Automatic Profit-Taking
Jerremy Newsome runs on rhythm, not adrenaline. Sunda,y he maps leaders, anchors VWAPs, and pre-plans A-setups so Monday’s open is execution-only. During the first 90 minutes, he hunts for clean triggers; after that, he manages positions and avoids forcing trades. Midweek, he checks progress against a monthly points target to adjust aggression up or down. The routine keeps energy steady and prevents one loud day from hijacking the plan.
Profit-taking is automatic, so good trades don’t turn into “almosts.” Jerremy Newsome scales at +1R without debate, then trails using the 20-EMA on the 30-minute or prior day’s low to let winners breathe. On Fridays, he closes cheap short options and tightens stops to dodge weekend gamma and headline risk. If he hits a daily or weekly loss cap, he powers down and journals, preserving the identity that follows rules first and lets results compound.
In the end, Jerremy Newsome’s edge isn’t a secret indicator—it’s a sequence. He sizes risk first so no single trade can wreck the month, then he lets volatility pay him with covered calls and well-timed collars on elite, liquid names. Entries are mechanical—price triggers, ATR gates, and event filters—not predictions, and exits are prewritten so winners scale and losers disappear fast. That combination makes the strategy boring in the best way: simple to repeat, hard to derail.
What ties it all together is discipline you can schedule. Jerremy tracks “points” toward a monthly target, staggers duration so income and protection overlap, and runs a weekly routine that reduces guesswork to near zero. The lesson for any trader is straightforward: build a small universe of quality underlyings, codify risk and mechanics before you click buy, and let a consistent process—not adrenaline—compound your returns.
