I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes.
I'm new to cryptocurrency and don't understand how it really works. how Can someone know the right approach to investing and making good profits from cryptocurrency investments?
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Myself, I’m guided by Alex Gomez. A widely known crypto consultant
I started working with Alex Gomez back in June, and my financial goals have never been clearer. It’s like having a strategic partner for my money with a solid track record.
Great Video. When it comes to professionalism, Omar Sani is one of a kind. He is committed to giving his investors passive income and financial stability. Omar is the best trader out there
Very Educative video. I have witnessed firsthand Sir Omar's dedication and commitment towards his clients. Omar pays when due without delays. I can't thank you enough sir, God bless
Funny how I started trading with just 1k almost a year ago and seeing this. Haha, I've flipped my account into 5 figures so far, and still going. I hope to attain financial freedom soon. One more thing, I always look forward to your content brother, keep up the good work.
It’s not rocket science. As I said previously, I got into trading options myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments in ways that have made me good roi. Now I sit back and reinvest at intervals while I focus on my 9-5.
Sounds like I need help so bad. To me, options are not worth it, just too risky and I know that's the same mindset holding me back from taking a step forward in my finances. I guess I'm just scared since I'm green to it.
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
VENTURING into the trading world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...
Most people don't understand the concept of "buying the dip" buying the dip is all about buying digital assets when their prices are down and selling off when the price rises.
She has been the secret of my success ever since I lost my job. She is very good on that. Thank God I met her at the right time. Now I have a house of my own and other valuables.
Hi there 😊!!! Thank you very much for sharing this strategy!!! I like it very much and had a chance to play with it today! The only thing I would say is that for example Robinhood, where I sat up $1000 account, asked to additional $1200 in funding in order to execute this strategy 🤓. So, in the end it looks like it would have to be at least $2000 account. The gain for today was $110 dollars if the trade was executed at 8:30 AM promptly and exited before 10:30 am.
I really appreciate the dedication in each video you post. Despite the dip in crypto, I still thank you for the level-headed financial advice. I started crypto investment with $4,345 and since following you for few weeks now, I’ve gotten $18,539 in my portfolio. Thanks so much Omar Sani
Practical and useful video! Please make a video on how to choose the right amount of loss. I think this will be very important. Your videos are very helpful in keeping less experienced people on track.
The stock market is more volatile than ever. recently went "all in" and bought up $80k worth of ETF's & individual stocks, my aim is to take advantage of this S&P 500 downtrend, what could be accurate predictions moving forward? Open to chat.
There are tools that allow investors to invest in companies before they hit the stock market, multiplying those potential gains that otherwise wouldn’t be available after the initial public offering. That’s what I am up to, steer clear from the equities and bond market, my humble opinion.
I agree, I have used the same money manager for close to 4yrs who have been involved in launching IPOs. We got in fairly early with a modest amount of money. Then it mushroomed like an atomic bomb. We had over 4 m dollars after GME profits in 2020/2021. Inflation has eaten away at the nest egg but we are lucky to have Monica look after it diligently like she has done the past 3-4 years.
Definitely private investing is the way to go. Our government keeps lying. I’d like to earn like that is it a private equity fund or mutual funds investing?
Thanks for your videos. Sir Omar Omar understands the importance of liquidity in investments and strives to ensure that investors can withdraw their funds quickly and efficiently. His commitment to excellence is evident in the consistent returns he delivers to his investors. With Omar, you can trust that your investments are in safe hands.
Hi, Seth. Great video. I have a cash account less than $10,000 with IBRK. My problem is when I traded this option same way as you described here, the very next day I found my account flagged as PDT and can not do any trade. I do not have $25,000 cash as required. So my question is with having $10,000 of $1,000 in my trading account, how can I do this trade repeatedly as you mentioned here?
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Omar Sani.
Interesting Video. With Sir Omar Sani you can trust that your investments are in safe hands. His attention to detail and meticulous approach to trading are what make him stand out in the industry. There are no hidden fees or surprise costs when working with Omar. His commitment to excellence is evident in the consistent returns he delivers to his investors.
Why would you trade a iron butterfly instead of an iron condor with long wings? And the securing options right behind the sell options? In terms of stress and monitoring a bit less work i would say
It's interesting, I just saw a video from invest with Henry where he ranked the various methods and I think butterfly was pretty low down. Iron condor might've been number one.
Very interesting. Are there any filters you suggest to apply on the entries, so to avoid taking positions when the market conditions are not much in favour of the iron butterfly?
There's an issue here for small accounts below the $25,000 capital requirement of FINRA's Pattern Day Trading rule. Because this trade involves SPX, just one adjustment to a multi-leg spread executes a round-trip. Thus, taking it off completely executes another. Therefore, it's safer to use futures' options (i.e. /ES) as they are governed by CFTC, who does not have a PDT rule.
I am so scared of futures, but I guess the only way to be more successful is futures. Also, most brokerages don’t allow for level 2-4 options strategies with that small account.
The Pattern Day Trader (PDT) rule doesn't directly apply to trading options within an IRA account because IRAs cannot be margin accounts. However, if you're using a limited margin IRA, you might be subject to the PDT rule. It's always best to consult with a financial advisor or brokerage firm for specific rules and regulations.
I believe that since SPX options are "European style" options, that is you cannot be assigned shares when they expire, that you can probably day trade them as long as your account is classified as a "cash" account rather than a "margin" account. SPY and QQQ options are American style, and can be assigned, therefore my broker has told me if I want to day trade spreads, it has to be in a "margin" account, which requires a 25 balance. Check with your broker on whether SPX option spreads can be day traded in a "cash" account, and if the PDT rule can be avoided in this way. I've never traded SPX options or SPX spreads, but I believe they have a different rule because they are European style. I wish SPY and QQQ were European style!
Yes you would. Also, you wouldn’t be approved for those kinds of options trades, vertical spreads or others. Everything is done to keep us poor people poor, out of profiting in markets.
You can perform 2-day trades in a ROLLING 5-day period (do not count weekends). You can do this with a small account, however you need to have your account approved to perform spread trades. When I opened with TD Ameritrade, I had to pass their free online courses. But you can always practice this technique in a paper account without having the live account approved.
@@Milen983 I have a Schwab account that I had for some time to buy and sell stocks, it’s not a big account but I was able to get approved to trade options. Maybe just open an account, trade some stocks for a few months and go through their education program on how to trade options. Paper trade first then see if you can apply to trade options. Hope this helps.
It depends… the PDT rule applies to margin accounts. My broker (Interactive Brokers) unfortunately requires a margin account for options trading. But other brokers also allow you to use a cash account for options trades, in that case the PDT rule does not apply as far as I know.
Problem 1= regulators require a $2000 minimum to put on option spreads. Problem 2 = you would be subject to pattern daytrading. Only way to dunk the pdt rule would be to let the option expire. Then it would not count against your pdt. Also, if you let options expire, it only works on cash settled options. Example spx. If I’m wrong and there is a broker who does not require the 2000, please correct me and let me know.
Tastytrade platform allows trader to trade credit spreads without min 2K deposit. You can even trade as long as your capital meets your spreads strike, even say 100 bucks if you trade SPY, eg. like spread distance between the short and long leg is 1 buck.
This strategy is good for slow days Or when markets are cold. But when the markets are on a tear either upside or to the downside then it's better to go with call or put spreads. Tell me what's your take on the different market seasonality effects on these strategy.
Are you saying call or puts when the market is volatile or are you saying people should do spreads during volatility? Thats somewhat of a good idea to limit risk and limit gains, but if the market is volatile that’s where you can make significant gains by going either long or short, not both or spreads.
@@unbelievable9750 It all depends on the day type we have and the probability of the move the market can make in that direction whether up or down. One has to be adaptive with the option strategy they deploy.
The only problem with this example and showing it for the whole week is that if you are starting with 1,000 or even a 5,000 account trading 1,000 or less. You can only trade 3 days a week because of the PDT rule.
Most cash accounts won’t let you trade spreads. You can buy single options, but most cash accounts won’t let you sell the other leg. Maybe the brokers changed, but I’d say as of about 3 years ago when I was still using cash account, no broker I found would let you sell options unless on margin.
About 3 years ago I was trying to use cash accounts. I couldn’t find a broker that allowed you to sell options on cash. So you can buy single options but could not sell the other leg to make a spread. Maybe they changed since then. What broker allows selling on cash?
if you trade the straight fly instead of iron (ex: buying.a call butterfly for a debit) you can synthetically "close" it by selling the opposite fly (in this case the put fly). The 2nd fly will incur it's own margin requirements, and you may have to switch to the smaller XSP to make this happen, but by doing it this way you do not incur a PDT hit
FIVE flaws in this strategy that is not discussed: 1) Margin account - most brokers will require it for low funded accounts, especially $1k 2) PDT (Pattern Day Trader) - Trading SPX with a margin account under $25k will trigger PDT restricting 3 trades in 5 trading period. 3) Assumption of profit 80% (4/5 days) - This is a BIG assumption. This strategy is NOT low risk low return. There is no 80% win-rate guarantee over a long period. 4) 5% limit on single trade. This strategy consumes over 50% of portfolio value. Losses if not managed can be over 50%. Two straight extreme days can wipe out the entire portfolio. 5) Fees - This strategy uses 4 trades that are opened/closed before expiry. Average fees is $9 ($2.25 X 4) per day. $45/week. This represents 22% of the profit in their example ($201).
I agree with your concerns 3 thru 5, but on 1 and 2, after doing a lot of research, I've learned that one CAN do the trades Seth is talking about if you tell your broker to make your account a "cash" account. This saves it from the dreaded pattern day trader rules, and spreads CAN be traded for European style options like SPX in a cash account (American style options like SPY or QQQ unfortunately cannot).
@@WorldSpectator705 when you are a cash account you can still get "good faith violations" which are different but still similar enough to day trading rules to get people fucked up if they dont know about it.
they also literally never talk about how most brokerages make you have the cash on hand to cover it when you sell naked calls or sell puts in the event that the underlying asset hits the strike price.
The Pattern Day Trader (PDT) rule doesn't directly apply to trading options within an IRA account because IRAs cannot be margin accounts. However, if you're using a limited margin IRA, you might be subject to the PDT rule.
In small account, example as 1K we can’t to do every day same stock trading. It will be considered as Pattern Day Trading (PDT). How we can by pass it?
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Veronica Hoy.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
This might be a dumb question but I'm fairly new to this. What is the difference in this and day trading? It's my understanding that if it is there's a requirement to have over $ 20,000 in your account
His technical analysis is excellent and his interpretation/projections of the market are so accurate’ The point is Ronal’ is the perfect trader to follow for advice and guidance
I used a well known backtesting software with your system and resulted in a net loss over the past year. Any explanation? BTW, I really like your videos and found that almost all of your strategies work well.
Just trade shares, not options. Then you dont have to worry about pdt rule anymore as long as youre on a cash account. If not, switch now from a margin to cash account. Its free and easy. Also, trading options is riskier and trading normal shares is already risky.
Despite all the financial struggles my family and I faced, everything is finally falling into place! $47,000 weekly profit and riches. I will always praise the Lord.
Sorry if this is a newbie question, but I dont understand what you mean by sell the options in Step 1. How are you selling an option you have not yet bought? Is there not a cost in "selling" the two ITM options? Also appreciate you showing the potential downside of the trade strategy.
When you sell an option, you're not selling a physical thing but rather the right to buy (call) or sell (put) stocks at a certain price (strike price) before a certain point in time (expiry). So as an example, if you sold me a call at $50 for $0.1/contract ($0.1/share for 100 shares) I would be paying you $10 for the right to buy said shares at $50 between the moment you sell me the call and the expiry of the option. Hope that helps :D
I don't think this applies for small accounts, if you have less than $25k (which is this video's case) then doing an iron butterfly (4-leg options trade) on the same day would trigger day-trade pattern, and you would be blocked from trading for a good while
You can tell your broker to make your account a "cash" account and once that's true, you can trade spreads on European style options like SPX as Seth is doing. Sadly, you can't trade SPY or QQQ or other American style option spreads.
So is the trader selling the call and put in one order and then buying the call and put in another order? or all 4 legs are being done in the same order?
Also, I’m not sure about other brokerage firms but in my case changing from a margin account to a cash account won’t solve this problem because , while it does get rid of the day trading rule it also takes away the right to buy or sell any kind of spread option legs….you can only trade straight and calls and puts
For 0 dte options if you let them expire it does not count as a day trade. You would buy in the morning or whenever and let it expire. This does not count as a round trip/day trade. But it does require a margin account and certain option permissions from your broker.
To do this in a $1000 account, you need an offshore broker because American brokers won’t allow this spread in a cash account, which a $1000 account is required to be. Also, since you get a combination of two credits from this strategy, you should aim to have them equal or close to equal as possible because you want to keep as much premium as possible at expiration. If one spread provided more premium than the other, and that side ends up worthless, then you’ve lost the trade. And last, in the example, he could have made 906 instead of 73 had he not closed the trade.
I believe that since SPX options are "European style" options, that is you cannot be assigned shares when they expire, that you can probably day trade them with far less than 25K as long as your account is classified as a "cash" account rather than a "margin" account. SPY and QQQ options are American style, and CAN be assigned, therefore my broker has told me if I want to day trade spreads, it has to be in a "margin" account, which requires a 25K balance. Check with your broker on whether SPX option spreads can be day traded in a "cash" account, and if the PDT rule can be avoided in this way. I've never traded SPX options or SPX spreads, but I believe they have a different rule because they are European style. I wish SPY and QQQ were European style!
this would get you in 5 round trip trades within 5 days, flagging your acct as PDT and requiring a minimum of 25k balance in the account. Why is this not mentioned?
0 DTE is day trading. With $1000 in the account, you are not allowed to do day trading. So, this video is not helpful for anyone with a small account....
I believe if you tell your broker to make your account a "cash" account, you might be able to dya-trade SPX options, because they are European style options, or this is what my broker told me. I was told American style options (e.g. - SPY, or QQQ) can only be traded in a "margin" account, which requires a 25K acct balance to avoid the pattern day trader rules. I've never trade SPX options much less SPX spreads so I can't confirm this. Talk to your broker.
One thing I seem to never hear, he is talking about selling a call and in the case of using Robin Hood I believe you have to be trading on margin money, or you have to own 100shares and do it as a covered call. In either case if you’re struggling and trading on margin with that low of an account you probably shouldn’t be trading. And if you can sell a covered call on a stock that price I don’t see you having just a 1000$ account. Or am I missing something. The risk reward is dangerous and using these kind of numbers may really hurt someone new to this.
@SMBCapital67 thank you for the reply but I literally was asking are you talking about these strategies based on margin trading or using them like a covered call?
Does it make sense to repeat this strategy even on the same day? If yes (or why not): why should one close and reopen?! we could just save the fee!?! and If twice is possible, then it also shouldn’t make a difference do repeat it 3x, 4x a day or to summarize, just wait for expiration on each day to maximize returns with max time decay…!!??!!
what am I missing? It is never mentioned in these videos that most brokerages require you to have the capital to cover it in the event that a put or call you sold gets executed?
wouldn't these exiting trades count as day trades? If the account is only 1k, you can't rinse and repeat this process more than 3 times for every 5 business days
I believe that since SPX options are "European style" options, that is you cannot be assigned shares when they expire, that you can probably day trade them with far less than 25K as long as your account is classified as a "cash" account rather than a "margin" account. SPY and QQQ options are American style, and CAN be assigned, therefore my broker has told me if I want to day trade spreads, it has to be in a "margin" account, which requires a 25K balance. Check with your broker on whether SPX option spreads can be day traded in a "cash" account, and if the PDT rule can be avoided in this way. I've never traded SPX options or SPX spreads, but I believe they have a different rule because they are European style. I wish SPY and QQQ were European style!
This doesn't work as described because you'd have to have a margin account to sell a position, if you are doing this in a margin account less than $25K you are subject to the PDT rule (3 round trip trades in a rolling 5 day period). You could, at the very best, perform this strategy 3 times a week... if you don't make any other day trades in the account.
You didn't tell that you need to be approved for level 3 and 4 ! If market goes little volatile you lose everything ! You will get flagged for pattern day trading ! Risking $650 for possibly win $73 and 6h be glued to PC screen ?! No thank you 😀 Don't trade options, it's too risky !!!! All these YT people are bait to get you into risky gambling !!! If you like trading, then trade shares instead, it's way less risk and you get to keep the stock if things goes south...
How can we get past options data for free to backtest these strategies for last 4-5 years? I guess for this strategy, we need intraday data of 1min or 5min or 15 min candles.
With $1,000 in an account you will be smoked by the Pattern Day Trading Rule. It’s probably best to do this on the most favorable days in order to wait for the PDT flags to clear up. Thanks for the idea though!
I believe that since SPX options are "European style" options, that is you cannot be assigned shares when they expire, that you can probably day trade them and avoid the PDT rule with far less than 25K in acct, as long as your account is classified as a "cash" account rather than a "margin" account. SPY and QQQ options are American style, and CAN be assigned, therefore my broker has told me if I want to day trade spreads, it has to be in a "margin" account, which requires a 25K balance. Or day trade less then 5 times in a 5 day period. Check with your broker on whether SPX option spreads can be day traded in a "cash" account, and if the PDT rule can be avoided in this way. I've never traded SPX options or SPX spreads, but I believe they have a different rule because they are European style. I wish SPY and QQQ were European style!
