I have been studying the stock market for years and just haven’t been in the correct financial situation to start trading. I am finally in a situation where I can and am rewatching all of these videos to refresh everything I have learned. Getting into ITPM mentoring program is my goal, once I’m a little more familiar with actually trading, I’m definitely gonna submit an application for it. Till then thank you for all the knowledge you all have shared for free!
Yes, and don't use options at first, use shares. You'll lose less when you're wrong and it won't mess with your emotions too much. You can't have your confidence eroded to the point that you can't make decisions. You may have to stop. I did that, stopped for about 2-3 years, went back, and was successful starting from the 2nd year. 1st year was break even. 2023 was my best year ever... by far.
PTM Course is amazing to start with, It gives soo many information. i have never even read before about some of them. Now i cant belive ppl trade their money without knowing those things.. Thanks @Anton Kreil, i hope i will manage one day to join Mentoring Program
But still I think for retail investors learning fundamentals and technicals to come up with great trade ideas is even more important. As Raj said in the video, you always want more gamma when you open a position and be deep in the money when options expire, basically it means when yo have a directional view, you need to buy "not too far out of money" options and hold until it becomes deep in the money if your trade idea works out, as oppose to alot of beginners do, to buy very far out of money options and expect it to move only close to money everytime?
Pretty new to investing in single stocks, and very new to trading options. But what I assumed was a smart plan was to have directional plan in mind - say, stock X is going to potentially drop $15; buy a PUT spread significantly OTM for cheap - say, .15 on options with a $1 spread. So, in theory, I sell before expiration when it hits .45 or .30. -- While I've had some successes in this way, they have not yet been consistent. But I never thought buying options ATM made much sense. Will have to look more into this.
according to this video, from my understanding, the buyside traders tend to focus on predicting the underlying price move to design their trade while the market makers focus on the greeks to hedge the portfolio?
36:06 - So let's say that there's a large open interest in call options at a certain strike price, a bit OTM. That means that the MM is short those calls, right? Which means in order to hedge their deltas, they are long the underlying stock. So if the stock moves past the strike price, moving those options to ITM, what does the MM do in response? Do they buy more stocks to rebalance their delta hedge, pushing the stocks higher? Or do they close the position, buying back the calls and selling the stocks, pushing the stocks downwards?
They dont actually have to buy stock, they can do a synthetic just by purchasing calls. Its usually a ratio x number of longs to hedge x number of shorts. By doing pure options you don't affect the stock price nearly as much as actually buying the stock outright. Market makers don't want to own stock if they don't have to.
Greek calculate is very easy example if one underlying asset delta value is 0.5 when your underlying price increases or decreases it will be calculated by 0.5 for each point moves so 0.5 will be increase or decrease from you premium
@@joshua7225 i know that. But do you know delta is constantly changing with the underlying? Yea, it's not possible to constantly buy and sell to negate delta as a retail trader.
@@murrowboy you would have to keep constantly re-hedging your delta, yeah. It's certainly possible for a retail trader, but you'd need a big account. Why do you want a delta neutral position anyway?
Man this is cool stuff. Now I can study the greeks more and learn how to use them. After 2.5 years of daytrading I found out thats not the way to go. I must learn to trade like a pro using options. I ve read and heard that multiple times but now I am convinced. This winter will be option study.
i don't understand sir. 17:13 u say when option is deep in OTM the Gamma is smaller and 26:34 u say when theyre OTM Gamma is larger. but if Gamma move in relation with Delta and delta from ATM 0.50 goes to ITM 1, it implies more gamma to move from both part. em I right? is the same for Vega and theta in relationship with gamma?
Was this at the end of the day or something? This audience is DEAD. They were all be very rich already to have the dull responses they have. Good Lord.
