Learn the top 3 trade setups we are using on the desk here: tinyurl.com/4r... #optionsstrategy #optionstrading #daytrading SMB Disclosures www.smbtrainin...
I am so happy that I made productive decisions about my finances that changed my life forever. I am a single mother and I live in Spain, I bought my second house in September and I hope to retire next year at 40 if all goes well. thanks to Louise O'Brien for helping me achieve this.
Thanks Doug, I am in AMD but sold 1/19 calls against that position which will be exercised, glad to get out and maybe jump back in when it cools off a bit..
Wish Seth would have taken a few minutes to discuss the worst-case scenario for the Credit Spread. For example, how to monitor this trade throughout the week and how to respond if it goes against you.
Do you look at IV when you are selling SPV, IC , Cash secured puts? I believe just looking at only Delta may not give you the desired probability? Any thoughts on this?
If I understand correctly 70% to 80% winning rate. But 2K against 10k. 8 x 2k = 16K gain. 2 x 10K = $20k. There must be a risk management for this or increment premium and delta.
Great videos What happens as far as capital gains. Since the initial portion we were paid for the the first put that we sold and then we spent some of that in order to have a protective put. But how does the irs see that ? Does the one we purchased offset some of them gains ? Or are we liable for covering the taxes on the 9k ? Thank you
@brendandonovan2476 The protection side of the trade doesn't get triggered in the afterhours. There are RU-vid videos that explain this. So if you are trading the SPY, you might think your max loss was, say, -$500 dollars for 5 contracts. Instead, you were assigned those 5 contracts and needed $250,000 in your account. If the SPY went up overnight and rose again the following morning, you would likely be ok. However, if the SPY went down, you would see the full weight of those losses that could easily exceed -$500 and perhaps be -$5,000 or even -$10,000, for example.
I have never quite understood the math. It sounds great to win 75% of the time, but if you are risking 10000 to make 2500 a couple unlucky (or poorly placed) trades can wipe you out, or at least make profitability a hard thing to achieve
This is useless information. how do we find an edge to trade these strategies? Losing 30% of our trades will blow up our accounts . I would expect better information from a trading firm
The edge is your lower probability that the trade will go against you. That’s the 30% chance that’s not 30% of your account. It’s the probability that your stock will go below your option prices. Using out of the money options is a good strategy, but there are pitfalls you have to watch out for.
If they could show 3 months statements of one of thier avg traders who use these techniques. Would be helpful. High win rates equals low profit s.......dont fool yourself s people.
For the 3rd strategy of selling naked put of $ADBE at support of 320 which to me is a very dangerous trade setup, can you please share the trade management of this trade when the price tanked and consolidated back to slightly below 320 level during the period of end of Feb till early of Mar. On hindsight from the chart it closed well above 320 but in actuality of this trade during that period it has the probability to break the support and risk management is always as important to consider.
