Turning The 112 Trade Into A Free $5K Hedge (After Making 75%)

Подписаться 28 тыс.

Просмотров 3,3 тыс.

50% 1

🚀 Make $300 In The Next 15 Days Using My Options Selling Bot Or I'll Give You $400:
www.optionsaut...
📚 Get Instant Access To My Training On How To Turn Any Options Selling Strategy Into A Stream Of Passive Income (Limited Time Training ONLY)
go.optionsauto...
🚨 Request Access To The Options Auto Trader
www.optionsaut...
📜 DISCLAIMER
Legal Notice: The views and opinions expressed on Austin Bouley (ABTrades, LLC) are provided for information purposes only and should NOT be taken as (a) a solicitation of an offer to buy or sell a security, (b) an endorsement or recommendation of any particular security or trading strategy, or (c) investment advice.
BEFORE MAKING ANY INVESTMENT DECISION, IT IS STRONGLY RECOMMENDED YOU SEEK ADVICE FROM A QUALIFIED BROKER OR INVESTMENT ADVISOR.
AUSTIN BOULEY (ABTRADES, LLC) DOES NOT PROVIDE OR GUARANTEE ANY FINANCIAL, LEGAL, TAX, OR ACCOUNTING ADVICE OR ADVICE REGARDING THE SUITABILITY, PROFITABILITY, OR POTENTIAL VALUE OF ANY PARTICULAR SECURITY, TRADING STRATEGY, OR INFORMATION SOURCE.
All content appearing on Austin Bouley (ABTrades, LLC) is protected by copyright law. Rebroadcasting or any other commercialized use of our program content is strictly prohibited.

Опубликовано:

4 окт 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 38

@ryanmocerino7698 8 месяцев назад

sheesh that’s a brilliant management strategy, thanks for sharing

@AustinBouley 8 месяцев назад

My pleasure!

@judio50 8 месяцев назад

You could roll up the two short puts for credit to help cover the cost of buying back the short put of the PDS. Then it would really be a "free" hedge.

@AustinBouley 8 месяцев назад

That's an interesting idea! Definitely going to look into this!

@lasvegasadventures8729 4 месяца назад

Sure...but that increases your risk. There's always a trade off.

@vincentlarochelle6521 8 месяцев назад

This was the final puzzle piece I needed to complete my futures option trading plan campaign! Thank you thank you thank you! 🎉🎉🎉🎉

@AustinBouley 8 месяцев назад

Truly my pleasure!! I absolutely love this strategy because it's a free hedge that actually hedges well even during the trade and not just at expiration :)

@michaelernst9124 8 месяцев назад

Did I understand it correctly, the plan is at 75% you buy back the debit spread short put and convert it to a giant ratio spread. Does this mean you have to return all your profits from selling the 1-1-2 to get this „free“ hedge then or do you still make some money from the initial trade? In Tom‘s variant of the trade he closes the 2 short puts at 95% and still has the debit spread for maybe 10 to 20 DTE but he keeps a lot of the initial premium received.

@Thetatraderz 8 месяцев назад

Good video. I'd rather just start off with the ratio spread as it is

@AustinBouley 8 месяцев назад

Fair enough! We all have our own strategies we like best :)

@mustaqayube6495 8 месяцев назад

Wow, love it!

@AustinBouley 8 месяцев назад

Thanks, glad you like the idea :)

@bluffbattalion 8 месяцев назад

buying power is crazy on those naked puts not covered by the buys

@AustinBouley 8 месяцев назад

Right! Gotta love it

@lasvegasadventures8729 4 месяца назад

When u close the put for 75%, havent you effectively paid more for the PDS? So you are paying extra for this hedge. No>? So the net profit of this 112 is lower when you do this.

@AustinBouley 4 месяца назад

A 75% profit on the short puts is kind of the break even price, once you hit 75% return then you should be able to close it and have a PDS hedge for free. However, if you shoot for a 80-90% profit then you'll have a hedge and profits.

@chrisanstis 6 месяцев назад

Ok you have taken of the option sold at 75%, to hedge the downside, what do you do when the makes then turns around and go up again

@AustinBouley 6 месяцев назад

You will accept a loss on the hedge but the loss won't exceed the profit you take early

@chrisanstis 6 месяцев назад

So really you can not lose on the strategy really

@davidgallimore9656 8 месяцев назад

real-life question, if the hedge (or bear trap part of the trade) is at or near 75% profitability, then your 2 short puts are likely to have increased in value? Am I thinking correctly about the trade mechanics?

@AustinBouley 8 месяцев назад

If you are talking about the 112 trade when it's still completely together before you take it apart to create the hedge, then you are right.

@gobo2435 8 месяцев назад

By the time your Short Put becomes 75% profitables, it will probably be very close to O DTE!

@AustinBouley 8 месяцев назад

Great question! Based on backtests (so the average over 10 years)... 90 DTE will hit 75% profit in 49 days so 41 days left with a free hedge 120 DTE will hit 75% profit in 64 days so 56 days left with a free hedge Either way, you still have over a month where you are left with a free hedge so placing a 112 once a month to create a free hedge is a solid strategy.

@ryanmocerino7698 8 месяцев назад

not really… that one he is showing is already at 50% profit and still has 98 DTE… really depends on strike selection and how far out DTE you start