I like this video it was straightforward and gave me a better look at how it could be done with a smaller account/training. This gives me hope to grow a smaller account and work my way up to a larger one.
This "strategy" overstates profits and understates risk. A debit bull put diagonal spread (re-named moneypress) is directional in nature. It is a money maker if the market goes up, stays the same or goes down a little bit. The problem arises if the market goes down a lot as is often the case - at least on a weekly basis. The loss on the short put can offset gains from prior weeks or coming weeks.
I agree. If the stock goes up or stays flat, you make a profit. If it goes down, you take the loss and even rolling down doesn't make the loss go away, it just takes the loss and then enters a completely new trade to start all over again hoping the stock stays flat or goes up the next week. So if you're placing this trade on a stock going down, you'll lose week after week, just like buying a stock that goes down.
I don't think they teach this but if market conditions change, you can close your 'weekly' press and watch your security position (put) grow, i find it to be a very versatile position ... but i am not married to rolling, especially if the market displays negative or downward conditions against the reason i took the press. If market turns again, fire up the press (usually alot of time on these) and you generally only need two weeks to break even. I don't think this is beginner stuff though, you need a fundamental understanding of spreads.
This is my experience. tried this on MCD, PANW and MU on Monday. Market tanked yesterday and today. Yesterday was positive, but today all three positions are at a loss. But over time, it should work. (that's what they all say) I am just doing this on my own, without paying the fee for the direct advice.
Hi! If you would like to join just head over to www.moneypressmethod.com/insider-membership-order-form to get started! We hope you enjoyed the Money Press guidebook!
This was a very good explanation. I would love to see the journal assuming the stock steadily went down so each week the short put being rolled would be rolled at a loss. Assuming the stock stays down, then the long put protection should offset those realized losses, I'm assuming, so the max loss regardless would be still be the $158. Not sure what would happen if the stock snapped back up though which would erase the gains on the long put protection leaving you with the losses on the short puts with nothing to offset them. So maybe the loss can be larger if the stock drops and then spikes back up. Not really sure. Would love to see that laid out to help evaluate this method. Thanks.
Thanks for the video! Can you please answer these two questions - (1) What happens to Long Protection Put after you enter a GTC Sell to Close (weekly Sell Put) and it's executed? In this scenario, you will remain with only one leg (Buy Put). Should we close the second leg as well and then enter in the trade again with Sell Put and Long Protection? and the (2) question is how do you enter in a second week sell put weekly on Monday (after last week's sell put is expired). Is there any video that shows especially on Robinhood account? I entered in a trade as recommended by Mike and not sure how to enter into next week's sell put as the system is not showing any way to keep both legs together as it was showing when i entered in the trade first time. Appreciate your response. Thanks!
Hey DP! This video could possibly help with your questions ruclips.net/video/DWPvlcp-Fs0/видео.html If you are already a part of the W.O.W. Insider we would recommend going through all of the training videos in the TEAM Hub under the "Money Press Method" section. There is a lot of great information there to help with these types of questions!
When I entered my trades, I bought the put when the stock was going down. Got a profit in it, then sold the put when I saw it was hitting the resistance. So some profit built in already. Having just started this, my sense is the idea is that the trades are meant to be done simultaneously every friday. But now my short puts are deep in the money and each of them is showing a loss at the moment. How is this working out now that a year has passed since you posted your question?
Do you ever let yourself be put the stock and then sell a call at your entry price? Then when you get called away just sell another put where you sold the stock? Wheel..ing it??
Audio was painful. If I am selling a PUT and collecting .46 in credit and buying protection at double the price, how am I making money? Why not just sell the put, take the assignment if necessary, and sell calls against.
I believe you are backward on your GTC. You need to add the 10% to the credit premium for it to work as a Stop. Put in just the 10% still leaves you vulnerable.
I like this video it was straightforward and gave me a better look at how it could be done with a smaller account/training. This gives me hope to grow a smaller account and work my way up to a larger one.
Glad you found this video helpful Jason!
This "strategy" overstates profits and understates risk. A debit bull put diagonal spread (re-named moneypress) is directional in nature. It is a money maker if the market goes up, stays the same or goes down a little bit. The problem arises if the market goes down a lot as is often the case - at least on a weekly basis. The loss on the short put can offset gains from prior weeks or coming weeks.
I agree. If the stock goes up or stays flat, you make a profit. If it goes down, you take the loss and even rolling down doesn't make the loss go away, it just takes the loss and then enters a completely new trade to start all over again hoping the stock stays flat or goes up the next week.
So if you're placing this trade on a stock going down, you'll lose week after week, just like buying a stock that goes down.
I don't think they teach this but if market conditions change, you can close your 'weekly' press and watch your security position (put) grow, i find it to be a very versatile position ... but i am not married to rolling, especially if the market displays negative or downward conditions against the reason i took the press. If market turns again, fire up the press (usually alot of time on these) and you generally only need two weeks to break even. I don't think this is beginner stuff though, you need a fundamental understanding of spreads.
This is my experience. tried this on MCD, PANW and MU on Monday. Market tanked yesterday and today. Yesterday was positive, but today all three positions are at a loss. But over time, it should work. (that's what they all say) I am just doing this on my own, without paying the fee for the direct advice.
Your correct. This is why she does a GTC on the weekly. Smart technique.
Yes my thoughts exactly. In a Bull or rising market Call Debit Spreads work spectacularly, when it goes down, it hurts if you do not get out in time.
Can someone tell me how to join so I can start trading with your group? I have already read the book.
Hi!
If you would like to join just head over to www.moneypressmethod.com/insider-membership-order-form to get started! We hope you enjoyed the Money Press guidebook!
This was a very good explanation. I would love to see the journal assuming the stock steadily went down so each week the short put being rolled would be rolled at a loss. Assuming the stock stays down, then the long put protection should offset those realized losses, I'm assuming, so the max loss regardless would be still be the $158. Not sure what would happen if the stock snapped back up though which would erase the gains on the long put protection leaving you with the losses on the short puts with nothing to offset them. So maybe the loss can be larger if the stock drops and then spikes back up. Not really sure. Would love to see that laid out to help evaluate this method. Thanks.
Thanks very much!!
Do you have to fill all of that out? (In journal)
You don't HAVE to do anything. She points out the journal gives insight before and after the trade is begun.
Thanks for the video! Can you please answer these two questions - (1) What happens to Long Protection Put after you enter a GTC Sell to Close (weekly Sell Put) and it's executed? In this scenario, you will remain with only one leg (Buy Put). Should we close the second leg as well and then enter in the trade again with Sell Put and Long Protection? and the (2) question is how do you enter in a second week sell put weekly on Monday (after last week's sell put is expired). Is there any video that shows especially on Robinhood account? I entered in a trade as recommended by Mike and not sure how to enter into next week's sell put as the system is not showing any way to keep both legs together as it was showing when i entered in the trade first time. Appreciate your response. Thanks!
Hey DP!
This video could possibly help with your questions ruclips.net/video/DWPvlcp-Fs0/видео.html
If you are already a part of the W.O.W. Insider we would recommend going through all of the training videos in the TEAM Hub under the "Money Press Method" section. There is a lot of great information there to help with these types of questions!
When I entered my trades, I bought the put when the stock was going down. Got a profit in it, then sold the put when I saw it was hitting the resistance. So some profit built in already. Having just started this, my sense is the idea is that the trades are meant to be done simultaneously every friday. But now my short puts are deep in the money and each of them is showing a loss at the moment. How is this working out now that a year has passed since you posted your question?
Please explain how the wash sale applies to this strategy.
Wash Sale rule only applies to the same option sku. So this should not be a problem.
Do you ever let yourself be put the stock and then sell a call at your entry price? Then when you get called away just sell another put where you sold the stock? Wheel..ing it??
Audio was painful. If I am selling a PUT and collecting .46 in credit and buying protection at double the price, how am I making money? Why not just sell the put, take the assignment if necessary, and sell calls against.
More risk involved in a wheel Strategy.
Because you buy 1 long protection good for maybe 10 to 12 weeks of protection. But sell 10 or 12 short weekly puts & take in the premiums each week.
@@richardholt4154 Thanks for the reply, I must of missed something, I will attempt to watch it again.
I believe you are backward on your GTC. You need to add the 10% to the credit premium for it to work as a Stop. Put in just the 10% still leaves you vulnerable.