Even though positive expectation still can be hard to accept losing trade as just part of the cost of doing business, just like commissions & etc. That is why polished clear plan. Thanks good one!
Awesome video lulu!! I learned some much from axe and couple with the wild volatility of 2020 I’m a much stronger trader. I love the McConaughey meme lmao. but it’s so very true. I love that I’m now able to take a 3x like a emotionless machine rather than a raving lunatic, pouring drinks by 11:00am lol. Position size is everything. Slow and low, is how we survive. Cheers to Axe in 2021.
Thank you Boom!! Yeah, I have made a mindset shift about losers this year. Maybe it's the PTSD from 2020. But I know I will be profitable if I just stick to the rules and accept that losers are part of trading.
I 0 dte is very high stress! I had one of my biggest wins this past Monday thx to President Biden! He came in the air to talk about the economy and covid 19, and pushed the market. After watching your video im definitely gonna become more conservative so I can be more consistent in my wins!
Actually, counterintuitively, you are not risking a large sum at all, though the trade forces your broker to take your capital "off the table" because they have to assume maximum risk, however unlikely. In many ways, this is a least risky approach, because the likelihood of wide spreads rushing past your breakevens is low to manageable, and rushing to the ultimate downside is even MORE remote. Most market days are "normal" -- plus/minus 3% kind sorta -- and reverts to the mean even on the day. Most devastating market crashes broadcast themselves in early morning futures, or at the open, or at the close, when you are out. You stay away from spreads when the market is crashing up or down and maybe instead take a flyer long on DEEP OTM calls or puts -- for example, long 3 month puts when the VIX was in the 60s back in March
@@karlpk3907 this is an amazing helpful comment. the average market day "norm" on the spx is up down 3% you say, has that been back tested by you? i would love to know what you found on this, i was looking into that exact information myself today.
Love the videos! Thank you. I have some questions if you don’t mind: -how do you determine if you do a fly spread vs directional vertical call or put spread? -when you do the fly I see you do ATM and 50 points in either direction for the wings but how do you determine strikes for the vertical call and put spreads? Thank you so much!!
Love your videos i have started trading ODTE trades every week now and is one of my FAV strategies and most efficient Your videos were the ones that made me start trading 0DTE spreads and even a couple Iron Condors THANK you so much for the great content!!!!!!!!!! ;-);-);-)
Hope you do a video about today! Learning experience. Sold the SPX 3835/3830 puts at 6:42 this morning. Held it through the low and bailed for a .25 profit per contract at 12:35. So wished I would have waited until the close. Would love to know how you played today - wicked day to trade (only my 3rd day doing these)....
@@tahntalus I wish I had to... I saw that it closed up, but happy to walk away with a few bucks than to face the $1200+ lose I was looking at early in the day. Like I said, still getting my feet wet, but never expected the drop it made mid morning.
have you considered using >15 wides (all the way up to 50-wide so it functions more like a naked put/call) assuming BP allows for it, for a faster theta decay and more delta so you could get out of the trade at 0.10 left quicker? Are stop losses set at 3x initial credit on each spread (i.e. 50 cents collected on 5-wide put credit spread, the stop loss is 1.50 (3x max credit) as oppose to on the entire IC?
I love your videos, they are very educational. I trade butterflies which I'm getting better and better at. I would like to see a video from you on that options strategy. Thank you for everything you do for us 😊
Thank you Miklos. I have another video on butterflies. Both the broken wing strategy and "Iron" butterfly strategy. Happy to share tips, email me if you want!
How has 2022 been? The possibilities are amazing in scalping/trading same day exp. /ES or SPX options. All dreams and desires are available just by cutting the losses. One decent trade more than covers the little losses. Some of my best trades happen after a few failed try’s before finally nailing the entry
In my small account, have traded it 16 times with 2 losses (almost every single 0DTE day since Dec 4). I will do a video first or second week of February. Thx!
I've never seen a 5 dollar wide spread on 10 delta/0DTE giving 65 cents (12 Aug) . You get those fills with a 50 USD spread. She's risking 50k to make around 40-60% p.a. Which sounds about right
what size account do you recommend for this strategy because it seems that it would be impossible with an account less then at least 50k in my opinion and current short lived experience in this strategy from your channel
Great stuff I wanna ask you trade mechanically completely or you also make decisions on the fly These results are based on the ORB strategy that you used?
What is delta and do you place equal trade on call and put sides . So if you make 100 on put spreads make sure you make 100 on call side ? Maybe show how you pick what your trade will be
Awesome video! Thank you so much for sharing and for your transparency. I've shared your video with my slack group, a small band of mighty swashbuckling pirates :-)
Videos are wonderful and I've learned a bunch. The real question is how you decide to sell long or short on a given day. Do you guys teach this @ axe options?
Thank you for sharing. What happened to those red months? If your win rate is 80%ish, only thing I can think of was that you didn't follow your x3 stop loss rule...Is that it?
Hi David. Yes. Obviously much safer and less agressive to go farther out of the money, and wider strikes. What you give up is your capital though, for a less appealing risk/reward.
Great sharing and very steady pace which was perfect! May I ask how you counter the potential black swan risk event where you may not be able to exit at 3X loss fast enough with a gap through?
Can you make a video addressing fees and commissions?… I’m curious to know your setup for that as well as the % allocation of your account for this strategy.
AXE , I have thought about these Tuesday, Thursdays as well. Who knows. Other posibilities would be binary options with daily or mid day expirations. I would also like to see spx options and spy options trade for longer hours. The s&p futures and futures options have longer hours already. There is now a gap between 2 pm and 1am my time where these spx/spy options don't trade. Some brokers don't allow pre-market trading in spy/spx options. IB does.
Im brand new to options trading. I have an advanced engineering degree and still find options quite confusing. Your channel is helping make it much clearer. Thank you very much for that. Btw, my wife is Tongan and I love learning people's background. May I ask, are you of Filipino descent? No particular reason other than I'm just curious (and *love* pancit and adobo).
Also, go check out the RU-vid channel Brad Finn. He's got some cool presentation approaches, like his digital whiteboard. Your presentation is great. I really like it. But you *might* find the digital whiteboard helpful from time to time.
I would edit the video so it doesnt say that two times 28k is 66k. Since you showed your data I'd assume that was a slip up. I also dont understand how you could say that you started with 5k capital but had a MAX LOSS on ONE trade that almost totals your ENTIRE starting capital amount.......
Honestly very impressive consistency, sticking to your max loss rule (3x) and would look to see scaling up after small account grows due to consistency. How do you go about with your technical analysis for the day / week.?
I had the same thought. You can stay in a trade that's 3x's your premium loss if you have reason the trade is going to turn around. Just blindly closing at 3x isn't the right call. The TA has to show that the trade is going against me, AND it's 3x loss. I wouldn't enter a 0 DTE trade and not have a solid handle on the direction for the day via TA, not some alert service.
I've also read that wider spreads 10-20 can allow for a farther out strike making less of a directional play. 5 wide is more directional given the 0.35-0.60 cent premium aimed for. What I'm saying is sticking to the max loss rule 3x when you're wrong initially especially on the call credit side should be more of a default than immediate TA while you watch your losses mound - unless you have time, experience, and ability to analyze - it may be better to avoid a big draw down/ max loss (wealth preservation) @Axe Options, any difference in premarket vs market open (or after first 1-15 minute) to enter?
ive been successful with 2 full profits trades and one loser this year. both times last two weeks, the last 5 minutes have been nerve-racking. esp yesterday as i watched it all day hover between 3700-3800 and it started toying with me at the end dipping into the 3690's
After watching your video on butterflies I put one on the stock WKHS for an experiment. I have tried to buy it back to close at a small profit about 6 times now and it never gets filled even though I try to buy it back for a little more than it's current value. Could that be just a lack of liquidity? Love your videos!
Are there any other option chains that trade multiple times a week? I found NDX (Nasdaq 100) but it seems like the strikes get wider on the put side after 1 s.d. Volume seems a bit lacking too. Also does anything with decent volume expire on Tuesdays and Thursdays?
@Joe Manfredi "Are there any other option chains that trade multiple times a week? " I only know of $SPY and $SPX, that have 3 expirations per week. "Also does anything with decent volume expire on Tuesdays and Thursdays?" You could have got an answer right away if you had Googled this question. I just did, to find you the answer. If there is a market holiday that falls on a Friday, then weekly options and monthly options will expire on Thursday. There are no Tuesday expirations, AFAIK. I don't know about volume for Thursday expirations, sorry. Maybe someone else will give you an answer.
@@thomasd5488 Thanks. I had googled it and found no helpful answers prior. I may stick with earnings plays for Tuesday amc/Wed bmo and Thurs amc/Fri bmo
Hi Ken. Appreciate your feedback. Kirk at Option Alpha has a really nicely laid out track of beginner videos for new option traders. They are free if you sign up for his site with your email. option alpha.com :)
I really like that you share P/L however i have a big concern when i see largest loss is 4500 and biggest win is 800, i recently found your channel and the content seems decent so far. What was the reason behind the big loss? being to greedy and not following your own stop/loss rule etc?
@OldSamurai She explains in another video how that max loss happened. She admits she didn't stick to the 3X loss rule and she explains why. It is a fluke. Her trading log proves it. Even with the max loss, she still made $500 that month. Look again at the total profit for the year and the 662% gain. Hope this alleviates your big concern.
Thank you for sharing your strategies. How do you monitor the options premiums to know it reached 3x while you're also checking the candles chart? What is your set-up like?
You can set an alert for when the spread reaches 3x the premium. Or you can set an alert for just the short strike/leg, when it has tripled in premium. Thanks!
Hello, I have been watching your guys' videos for a while, I must say your guys' videos are very helpful for options beginners, keep up the great work pls! I do have one question: if you opened a put credit spread on 0DTE SPX, and during the day (before market close and expiration) the price has dropped below the short put leg strike price, is there any chance that you will get assigned? Thanks!
Thanks Zy. There is no 'assignment' in SPX. So if it drops below your short strike - say you were short the 3835 and it closes at 3834. You owe your broker $100 for every contract. You still keep the credit you recv'd, so factor that in.
Great video! 2021 has been screwing me so far too with 0dte... pretty rough couple weeks we have had with world events, and market makers love to fake you out on choppy days. Fortunately I learned from my (unfortunate) max loss last year and am super on top of my risk management. Usually set my stop at a confirmation above/below a certain level and that helps me stop even shorter than 2x or 3x. I love 0dte, it definitely works... the only thing that kinda stresses me is how close the strikes can be.
Hey Steve. A typical entry would be within the first hour of the day. You can set an order to close when the price reaches certain levels (either for a profit or loss). The order will execute on its own.
Thank you for the clear honest insight into your trading its what I need not the hype of make 1000$ week trading my secret indicator or how I turned 5$ into 5$ million in one month by compounding augh. I haven't found your explanations to be lies or hype to sell something like a lot of other sites make there money doing that and not really trading. And bonus is your easy to listen to & look at 😏😉🙂 Thanks Again.
@@AxeOptions have you tried fiddling w/ expanding to $10 strike width, moving closer delta, adding both sides (ICing it) & decreasing contract size while maintaining net $ credit proceeds?
@@sshetty9683 the width of the strikes minus the credit received so since $SPX trades in 5 dollar wide increments 500 per contract. If you trade $SPY is trades in 1 dollar increments so 100 per contract. Robinhood is the only broker that’ll let you trade spreads without 2000 but they also can make you lose. I use to trade the $SPY but it’s not worth it if they will close your spreads the day of expiration if they feel it’s to close to the short strike, even if it 1 point away.
@@sshetty9683 Margin should be max risk less your credit received. say SPX is 3883.07 and an spx call spread expiring in 1 hour is 3890c = 1.45 /3895c = 0.50, if you sell the 3890 call and buy the 3895 call you will get a credit of 0.95. your margin would be 5.00 less the 0.95 credit or 4.05. The multiplier is 100 so you need to put up 405 of your own money + the 95 from the credit to margin this trade. Max loss occurs if spx settles. above 3895. Max gain if spx settles below 3890. Max loss 405 max win 95. The 2000 figure is the account size to need before your broker will allow you to do these trades. Commissions for me to do a trade like this at IB is 3.33 to open. Know your settlement times and how the options are settled. SPX are cash settled , spy are stock settled. Your broker will not let you carry a trade to expiration if you don't have cash in your accout to buy the stock. Watch some monthly and quarterly SPX expirations. They are A.M. settled and not P.M. settled. The options settlement time for AM settlment is the open of the next busneiss day and they close trading at 4 pm eastern. You are at the mercy of the market from 4pm till next days open if you don't close your positions. Note this only applies to the AM settlement options. Good Luck trading!
I like her videos because she's a good enough trader to make it interesting. She's also pretty hot, so she keeps my attention . But you know, here for the trading talk :-)
Also, looking at the spread sheet it shows the credit .50 and when it was sold .1. You must be trading at 75% probability OTM to get that kind of premium, even going 5 deep. That's so risky! You have to be sure about the direction or you're going to be taking a lot of losses. Even with 3x stop loss rule, this strategy can go south real quick if you don't have a reliable source of information, or some awesome technical analysis skills. I just don't know about paying a monthly fee for a discord chat room to trust someone else to pick a direction for the day and decide my financial future.
@@S1lv3rdo7 she aims to collect 0.50 on 4.50 of risk on $5 strike width on a 10 lot.. that's 90% prob of profit, which is the reason for the -4.5k max loss fat tail kick in the teeth wiping out many consecutive small gains (negatively skewed bell curve distribution)
trading 0 DTE at those deltas, wow....anything with gamma that high I don't know if emotionally I could handle that, although they aren't naked and you were stressing position size so I'm really curious...I might paper trade something like this and see what happens. I was talking to a guy who was swearing by 0 DTE SPX plays, although he was trading ATM calendars. Googling how index options work is actually how I found your channel. Really good content! Edit: The thing you said about losing is dead on...still in the process of learning that myself.
Thanks Beau. I know the higher delta requires closer management, and low 'implied move' days make these tougher because it's hard to get 'good enough' premium. For me, unless I can get 0.45 or higher, it's not worth it. Good luck in your trading journey!
Sorry, but I have to point out that the camera angle & her posture are designed to attract a male audience. I am a man, but I preferred listening to the video instead of watching it. If I wanted to see the female form, there are plenty of other places to visit.
