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How to trade the 112/jade lizard strategy on $25k, 

Thetatraderz
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111 and 112 video playlist
• How to trade the 111 f...
Welcome to our channel, where we delve deep into the exciting world of options trading! In this video, we're going to walk you through a step-by-step guide on how to sell options effectively using a $25,000 trading account. Whether you're a seasoned trader or just getting started, this video will provide valuable insights into leveraging options to generate income and manage risk.
Selling options can be a powerful strategy to generate income, especially when approached with careful planning and risk management. We'll guide you through the intricacies of assessing risk tolerance, selecting the right strategy (covered calls, cash-secured puts, etc.), and identifying setups with a high probability of success.
We understand the importance of risk management, and we'll share valuable insights on how to safeguard your $25,000 account from potential downturns. We'll discuss practical techniques to minimize losses and protect your capital, ensuring that your trading journey remains both profitable and sustainable.
To bring everything together, we'll present a real-life case study that demonstrates how a $25,000 trading account can steadily grow through consistent and disciplined options trading. Learn from the successes and challenges faced in this example to fine-tune your approach.
Lastly, we'll cover common mistakes that traders often make and provide advanced tips for refining your trading strategy. By focusing on continuous improvement and learning, you'll be better equipped to navigate the dynamic options market with confidence.
🔔 Don't miss out on the latest insights into options trading! Hit the subscribe button, turn on notifications, and join us on this exciting journey of mastering options trading with a $25,000 account. Remember, success in trading requires dedication, education, and practice. Let's embark on this journey together!
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11 сен 2024

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Комментарии : 39   
@user-sr6iz3ly4v
@user-sr6iz3ly4v 5 месяцев назад
Thank you for the strategy, it is very helpful for beginners
@Thetatraderz
@Thetatraderz 5 месяцев назад
Glad it helped
@lslurpeek
@lslurpeek 4 месяца назад
Love this trade
@fouedgrayaa5849
@fouedgrayaa5849 Год назад
Thank you for the video. When you sell a covered strangle, and in case you get assigned, you won't have margin call in a 25000 account ? for example if assigned on strike 3900, it will not cost 3900*100 =390000 to be able to take assignment ? I am new to that, maybe it is different in futures than stocks/etfs
@Thetatraderz
@Thetatraderz Год назад
Good question, I get it a lot. You would not need the full notional blue, typically you need about $1500 for 1 mes contract. I use $3k for the strategy which is 2 contracts. It varies with the price you are assigned.
@MultiBvp
@MultiBvp Год назад
Invaluable!
@Thetatraderz
@Thetatraderz Год назад
It's mechanical like how Drew won't win GM gold year after year.
@joeldepaolis3832
@joeldepaolis3832 6 месяцев назад
Another great video Lance! Question about the margin requirement on this example. If my math is correct the buying power is based on 2% of the notional value. And the 400$ buffer for span margin, how often does this additional margin get used up? Do you find in sufficient in most cases?
@Thetatraderz
@Thetatraderz 6 месяцев назад
Not an easy question to answer. Plenty of factors such as other positions and underlyings. Width of the put debit spread, how far out of the money the nakeds are etc. I have guidelines for how to deal with these variables in my group
@joeldepaolis3832
@joeldepaolis3832 6 месяцев назад
@@Thetatraderz group chat on this channel or another source? If you can share a link that would be great. Thank you
@Thetatraderz
@Thetatraderz 6 месяцев назад
On my membership at thetatraderz.com
@huguex-xx
@huguex-xx Год назад
amazing content thks
@Thetatraderz
@Thetatraderz Год назад
No problem
@rickphillips381
@rickphillips381 Год назад
Lance: Thanks for the video. What is your typical DTE on the short futures strangles you do?
@Thetatraderz
@Thetatraderz Год назад
Usually 90. Close 50% profit or stop out 3x premium. Delta and position size depends on technical analysis and stop losses taking up no more than 3% of net liq
@rickphillips381
@rickphillips381 Год назад
@@Thetatraderz Got it. Thanks so much for the response.
@Thetatraderz
@Thetatraderz Год назад
No problem
@creandolibertadfinanciera1366
@creandolibertadfinanciera1366 5 месяцев назад
I’m confused … but u still need the collateral To buy the shares of the short put if u get assigned right ?thank u
@Thetatraderz
@Thetatraderz 5 месяцев назад
Yes. But no early assignment and you'd likely stop out before that
@dennisw8026
@dennisw8026 Год назад
The $400 cash you set aside for each 112 is sufficient to cover potential margin expansion if a big move down?
@Thetatraderz
@Thetatraderz Год назад
Yes. The pds helps cushion the drawdown. We also are stopping out at a set %
@wheeliewheelie
@wheeliewheelie 4 месяца назад
good teaching...why not do 45days out...
@Thetatraderz
@Thetatraderz 4 месяца назад
You'd need to go much closer to at the money
@ramp2011
@ramp2011 9 месяцев назад
how do you manage the trade when it starts testing the naked puts? thank you
@Thetatraderz
@Thetatraderz 9 месяцев назад
3 different possible ways. 1. Let it get assigned and wheel it 2. Roll down and out for no net credit or debit. 3. Stop out. I'm running a black Friday deal on this strategy you'd get lifetime access checkout.stripe.com/c/pay/cs_live_a1okLkZi7HJMhtQ1uT6UhwbA1WBdhX44JW0J7yHzHJCsaJoIuQS6dHZrpL#fidkdWxOYHwnPyd1blppbHNgWjA0T05obnFOXEM9NjRoX1RtSkhTdH1TS2hqPFxQU0dMREYwMGlcQkxnQnI1fWFzYWZ%2Ff2lKbkIwdlVESF1Tb1xvfHBJYzd3UkZyVUZPQFJuV09wakN1VDFtNTVBZGNhM1V1UScpJ3VpbGtuQH11anZgYUxhJz8nZks3NDNkNnRxND1RYFZENDFcJyknd2BjYHd3YHdKd2xibGsnPydtcXF1dj8qKnFtYHFkcXdkYWB3fytnaWpiKid4JSUl
@lordoffliez
@lordoffliez 8 месяцев назад
HI Lance, how do you guard against being assigned the two naked puts? What does your stop limit look like on these futures?
@Thetatraderz
@Thetatraderz 8 месяцев назад
Hasn't happened in 2 years. I would stop out if it hit max profit of trap in a loss
@lordoffliez
@lordoffliez 8 месяцев назад
@@Thetatraderz If it is not too much to ask could you please provide an example with potential values for the stop loss i.e. what would the stop loss condition actually be? I just don't see how you can stop out when there is only one Put debit spread but two naked puts?
@Thetatraderz
@Thetatraderz 8 месяцев назад
Say you take in 20 on 2 puts that's 40. Pds could make 50 more. Stop out at 90. That's just 1 example. I have many other ideas at thetatraderz.com
@lordoffliez
@lordoffliez 8 месяцев назад
@@Thetatraderz I mean for example say your PDS iid the underlying is from 4250 to 4300 and the naked puts are sold when underlying is 3870. If the price starts moving very close to 3870 it is not certain that you could close your positions in the puts. By the time the price moves close to 3870 how can you ensure you will not get stuck with assignement.
@Thetatraderz
@Thetatraderz 8 месяцев назад
You can ensure by closing out the naked puts for a loss then
@KristoferKrause
@KristoferKrause Год назад
I like to stay away from MES quarterlies since these are American.
@Thetatraderz
@Thetatraderz Год назад
I usually do too but it's likely a stop out or take profit anyway. I'd rather not pay a wide bid ask
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