Spread Trading: Ultimate Steady Guide To Grow A Small Option Portfolio
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- Опубликовано: 8 мар 2023
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This is the best guide to spread trading. Growing your portfolio using spreads. Managing, closing and consistently winning using spreads. Both credit spreads and debit spread examples are mentioned. Ultimate Steady Guide To Grow A Small Option Portfolio is about efficiently profiting with a system and I cover everything in this video.
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!
Smashing the like button is good luck ;)
You can schedule a call and discuss following my trades and also coaching with me.
calendly.com/invest-with-henry/option-income-academy
Hey brother do you give out your phone number? Because I made comment i wanna learn and phone number was provided on the comment area. Please clear this out am I getting scammed by someone?
Did I make an appointment with you already?
If you make $100 and maximum loss is $400, that is not a 25% return. You would then need forur winners to make up for your loss.
Your awesome in explaining thank you
@InvestwithHenry When you say "credit" and "debit" spread, call, or put, are you referring "buy" vs "sell" calls and puts, and which are you referring to for "credit" and debit"?
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@KevinClarke9 Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
@@ScottArmstrong12 My advisor is Dawn Maureen Humphrey she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I had two "click" moments on this video. #1 paying attention to the top or bottom of the Bollinger band in how you set up your option. #2 it finally cut through some confusion between buying and selling calls. Buying a call, you benefit if it goes up. Selling a call, you benefit if it goes does. I thought of the options as two train engines pointed up and down. When one gets weak according to stock price, it's pulling the other one. The second benefit may be the loophole by selling a call that is not covered but using the spread to reduce your bottom line. I wasn't sure if your sold call was covered here. It has helped me a lot to immediately imagine an ARROW POINTING up or down the minute you mention "Sell Call" (Benefit going down), "Buy Call" (Benefit going up), "Sell Put" (Benefit going up), "Buy Put" (Benefit going down). I can imagine the box that forms around these arrows and how it shows a profit zone from one or the other option on the spread. I hope that helps some people. I'm a visual learner.
This was a lot of information and I need to watch a few times but this has been one of the best vids ive seen on credit spreads. Thank you for the detailed explanation.
Id like to see more on being able to protect my small upcoming portfolio. Maybe more vids on explaining hedging and ways to use hedging strategies that’s if there is such a thing, with (multiple) ways of hedging since there are multiple option strategies and I’m probably showing how much of a newbie, I am. ❤
But I love hearing how Henry teaches his passion on options 😊
THANK YOU for the great explanation. I love trading put credit spreads!!
Thank you! very much for your videos. I'm trying to get this to soak in. This will help me make enough to live without stress. Greg
I like your presentation s, Henry. You speak so clearly and explains everything so good..
Thank you for explaining. it's very helpful as a new option trader.
I love your comments on bolinger bands. I use 2 bolinger bands. 20,1 and 20,3. this forms a 3 way highway. as long as the stock is in the fast lane or upper lane, I keep the stock.. if it goes into the middle lane, I consider selling, but if it goes in the slow lane I sell it. you have a great idea to use 1 bolinger band as an upper and lower limit to determine how high or how low in general a stock will go .. what a great idea to set up an option spread. I use a horizontal price volume now.. but now I have two ways to do this.. thanks a bunch
Fantastic video. So much information presented quickly and clearly. Thanks!
Wow. This really clarified a lot for me. Thank you.
I learned alot of information from this video. Thank you I appreciate it.
I really appreciate the high level you talk at. I also used to be a geneticist so liked the genetic reference
This video was fire information thank you! I will start studying about this more very interesting!
Appreciate the vid!
Henry, I love your vids.
Best analogy for Bollinger bands I've ever heard!
nice strategy...uncle henry 😊😊😊 Thanks again for sharing 👍 👍 👍
Great info!!! Thank you!
Great video I appreciate all the free knowledge you are sharing 👍
Hey, what did you do on DOCU? Got assigned? Closed at a loss or rolled over?
Excellent presentation!
Thank you
@InvestwithHenry Thank you for all you do! I am brand new to this and learned a TON from you. I watched 10+ hours worth of videos before stumbling upon your channel, but your videos are the ones that helped me to understand the best.
With AMC announcing it is going to sell an additional 40 million new shares, is this a good time to go in and sell puts with the goal of getting paid to own shares long term? If so, what kind of theta range should we be operating in with the stock dropping so rapidly?
I have a very small account of $2000 that I am currently operating with and looking to grow big-time. My thoughts are that this AMC announcement may be a good way to start.
Looking forward to hearing your thoughts. Maybe even do a video on this situation and put it in your small accounts playlist?
Thanks again!
Additionally, on the flip side, how would you operate with covered calls in this situation?
To be honest, I was a bit uncomfortable with this video at first (It is tough to see someone working so hard and risking soo much to earn so little) until you stroke me at min 9:20, the statistics/psychology of people losing money when buying options AND at the Casino... After you said that, from questioning mode, I immediately changed to listening/student mode... Cant debate your point, you are definitely right. Thanks for this great video.... One question, I understand Robinhood is really cool and easy when it comes to deal options but aren't you concerned or scared to have sooo much money with them? After the scandal they had with hedge funds and other people getting outrageous errors with debts... I left RH because one day I was showing a typo of -$37K on an option.... They recognized the mistake, I never looked back afterwards
I like watching the numbers flicker up and down. 😊
Do you have a bull call spread video?
Can you recommend which company's to have a practice account
You explain things very well! Smart kid.
Thanks.
Thanks for watching!
Do you do live trades? If I join your discord or group, can I do credit spreads with a FT job? I am on the west coast and mostly work remotely.
How much % would you use in spreads in a small portfolio?
Thanks 🙏
You’re welcome 😊
Is not much better to do out of money credit spreads that expire same week since they expire worthless faster than 2-3 week ones who can change based on stock price in later weeks?
Hi Henry! Thank you for the video, it was really useful and clear.
I'm into TSLA and would like to hear your thoughts. TSLA earnings is upcoming and I'm thinking of buying call for TSLA as I'm bullish.
Thinking of doing a LEAP which your videos suggested to lower the risk. What do you think?
This is a wonderful video. I can’t believe it’s free on RUclips. Thank you so much. This was extremely helpful
You're so welcome!
Could you please cover the leaps if it's OK with you or just attach older video you have covered? I truly understand by the way you teach.
Isnt there a bot for trading - to close out an option before it goes into a "loss" ?
I love how every video I hear you meantion that you worked for Goldman Sacks😂 it’s hilarious 🤣
I like this video Henry. When you set up your spread how many days out do you go? And when do you take profit? These are my main doubt when trading spreads. Thank you
I only watch his videos and I’m not an expert but he usually does two weeks to a month out but he emphasizes that it’s entirely up to you.
The spread strategy only requires small amount however, the platform doesn't give permission to trade this strategy having $2k account. What set up am I going to use? DO I need to ask approval from TWS?
I was looking at my Robinhood account and it won’t let me buy more than one option and says I have to place separate orders
How does gamma effect my weekly credit spreads ?
Hi Henry the period in the bollinger bands is 20 days which is equivalent to 20 business/ 1 month?
wait, do u let a put credit spread expire if the price has kept going up away from the strike price?
You could just let them expire worthless if they are above your strike price but it’s not worth the risk I would just buy it back for a couple bucks 1 day or same day of expiration
very cool
I did paper trades with spreads and did pretty good but when I went to start trading I found I couldn't do spreads without margin and couldn't get approval for the higher options without $$$. I was told I had to stay with covered calls or covered put's. Its a real bummer as spreads would be a better options with less capital for newbies
Yep me too. And if you've got enough experience to be approved for level 4 you probably don't need this...
My MAN!! Love your videos.
I appreciate that!
With a $1.00 dollar width CS and receive $20.00 that means you are risking $80. 00 to make $20.00 with a 80% winning percentage ( 8 out of 10 ). So you win $20.00 × 8 = $160. You lose 2 × $80 = $-160. 10 total trades = 0 profit. The point is, those 2 losses have to be less than full losses in order to profit. The other point is that high winning percentage is overrated. It's P& L that matters.
Factor in trading fees you loose
Amazing king video, I only do spreads on SPY only and been very successful to me. I think picking one stock or etf isn’t a bad idea because you get to know how that specific stocks trade or move. SPY been the safest and most volume.
100% agree with you.
90% of my trades are SPY or SPX. It's much easier to focus on 1 ticker and working on perfecting strategies on it. Plus SPY/SPX/ES is much more predictable than any other stock/etf
agree as well. no need to worry about single stock news and the bid ask spreads and minimal
How many days out do you go? Can I ask you that?
@@atereshkov Alexander how many days out do you go when selecting the spread?
@@Jazzycat50 How many days out do you go?
Really grateful for this content thanks 🙏 I have dealing with options but mostly stocks for a while focusing on income but struggling to scale it due to having a smaller portfolio. But like your mindset with a conservative, income focus since it resonates with mine too. Thanks again for sharing value👍 as a pro risk manager, makes the stuff total sense to me😉
In order to do credit spread, does your acct have to be on margin? My cash acct won't allow credit spread. Please advise.
Yea needs to be margin, just in case your put goes ITM so you have enough capital to buy the underlying stock at that price
@Sarim Raza ya but doesn't make sense to need margin with a spread because the long offsets the risk.
@@86753091974 Yeah it does, in fact I really wish more people would cover the "hidden" risks of "defined risk" option trades like debit and credit spreads (where both options expire the same date). The problem is if you don't close out of the options you sold prior to expiration then on the day of expiration, the "defined risk" strategy actually goes to an "undefined risk" strategy. On the day of expiration you don't know yet whether or not you were assigned on the option you sold, meanwhile the option you bought to define the risk expires. So essentially after the close on expiration day you actually have a naked short option position open.
There's also the risk that going into expiration the stock could be halted not allowing you to close the options you sold, which puts you right back into the above risk. Only way of managing that risk would be to trade some type of diagonal or calendar spread rather than a straight up spread.
@@benjnse thx. Good call about being safer with a diagonal
How do I attend your Monday and Wednesday sessions? Do I need a link from you?
calendly.com/invest-with-henry/option-income-academy
Great video as usual. Do you ever close the contract before expiration?
Yes I do! It depends though and I mentioned in the middle of the video that I usually don't unless it hits the 2 criteria I mentioned
@@InvestwithHenrywhat were the criteria? I couldn't make them out.
Hey dude, BABA ended under 83 so your 10 83 puts ended in the money. You either got assigned or rolled over or closed your position at a loss. What was it?
He prob took profit at 10-30% or rolled over
So first, great videos!! Im struggling with your bollinger band explanation; I am under the impression the bollingerband is a lagging/historical indicator, so instead of projecting out 20 periods, it is tracking the previous 20 periods. Also the price staying inside the bollingerbands for pretty much the entire chart is deceiving; EXAMPLE: AAPL 1/11/23 upper bolli is 142.36; 20 periods later @ 1/31/23 the price is 144.29… The price is still within the bolli bands at this point, but it’s outside the upper bolli 20 periods earlier.
Please correct me if I am wrong, I’m not trying to be rude. Your explanation has helped me understand bolli bands better than I did previously, because I was only using it to predict volatility when the bands tighten. I like your strategy trading spreads around the upper and lower bolli, but I think you might have better success if you are trading the opposite bolli from where price is currently: more specifically , if price is trending toward lower bolli or even hugging the lower bolli then trade some bearish spreads around the upper bolli and vice versa
@Drake Hamilton try trading with just price action and just support and restiance. No indicators just a clean chart for a month I bet you'll do even better.
@@spydamarkBollinger Bands are a form of support and resistance trading.
Is it possible to roll credit spreads?
Yes it is
I feel like you missed the most important part which is, if youre in a put credit spread and the stock closes below your spread, then you lose all your money. if it closes above, you make money. You lacked that explanation in the call credit spread as well.
Henry, I love Your channel, and the content, I just wish You would put put a lot more content
In a credit spread you need to own the shares? or you only need to have enough money in the account to offset the max loss of the credit spread?
The latter. You would only need to own the shares if you are selling a naked call. And you need enough money in your account for 100 shares of a stock to sell a naked put
Henry were u were recording this with someone telling them to press something?
what you talking about
very interesting, i love your video
Where can we follow your trades?
Hey! Sure you can schedule a call and discuss following my trades and also coaching with me.
calendly.com/invest-with-henry/option-income-academy
Respect to what you do brother but what I would like to see is a live trade where you enter and exit, even if is a 3 or 4 days trade….even a week or a month 😊
That is exactly I need to buy in
Better yet, an account statement or 3rd party audited trades using this strategy for several years. One trade proves nothing.
Hey Henry I was doing good trading spreads but robinhood always sells my position at 12:30 of expiration day and doesn’t let my spread I’m selling expire worthless?
I guess you are in Pacific time zone. Keep rolling your position.
always close position or roll before expiration is better overall. Case study on after market big move and option assignment that could screwed you up big time, in just few point spread is scary.
Robinhood calls it risk management and they have done it to me to. I noticed when it is same day expiration they do it. Try weekly and go farther out on the spread like a 20 delta has been safe with qqq in my experience.
So put credit spread is better.
Hey Henry, loved watching your videos. Since you mentioned about Bollinger Bands and Standard Deviations, may i suggest you do a separate video on how to use these tools to come up with a strike price/expiration date for which ever option strategies used? That would be interesting.
Theta GANG checking in!!
Let's go
@Invest with Henry Henry you should do a video about the pros n cons of a call credit spread vs a put debit spread. Stuff like when to use and why kinda. Other then you get a credit for one vs the other.
My put credit spread short call is 5$ under with 1 day left till expiration yet I’m still down 😕
Why is that ? Love your videos by the way.
Your % chance of profit on your debit spread example was based on your strike prices not the strategy being used. The way you worded it might lead people to believe the chance of profit is strictly strategy based. But over all good info!
I keep seeing videos about spreads, but they are a level 3 trade. RH won't allow me to even apply until 2024 for level 3, despite having 6 figures with them. So many strategies you teach I can't even attempt, what other brokers do you recommend.
I’m having the same problem, don’t know what to do
You might be able to reach out to them to do a manual review to allow for level 3 trading. They will call you and “quiz” you on your knowledge of spreads. I did this last week and they approved me.
you need to show how to close these options
Hey Henry, I appreciate your vids. Can you please talk about risk to reward because I don't want one trade to wipe out all of my consistent gains.
Best to sell options when IV is above 50%
What's the name of the software he used to find option ideas?
optionsfy
How can I get approved for level 3 option trading on Robinhood?😢
I already upgraded to a margin account..
What did you put on your application? You should call them
@@InvestwithHenry I was honest about income, net worth, etc. I was also honest and put that I have under a year experience trading options, but a fair amount of investment knowledge. I said I have high risk tolerance.
@@gmoney6046 saying less than a year in options is the mistake. You have to have 5+
Why would you be leaving a spread worth $.01 open??
Hi Henry, do you journal all your trades? If so, How or what platform do you use?
Not really. I let the profits basically do the talking
What do you do if robinhood doesn’t give you level 3 options and you can’t reapply for them until November
You call Robinhood I guess. I don't work there so not sure
How are you Henry? Did you felt a shake on the earth today?
In a future video could you please discuss how to set up stop losses on credit spreads on Robinhood?? Thank you!
Put in a limit order. The contract won’t be placed until that price is within the bid ask spread. He also states that you have to monitor these more. What I usually do is focus on the visual robinhood gives you prior to placing the trade. Those prices are what it has to stay within in order to come out of the trade with a gain.
Is doing credit spreads on SPY or QQQ only with a 40k portfolio smart if you’re trying to scale up your portfolio safely and fast ? Or just go with 10-15 different stocks
Did you get an answer for this question?
You meant to say 2 cents @ 24:52
quick question, I see you have some options that are at 100% gain, why haven't you sold those positions? I usually set my tolerance to like 50-70% gain to close. Do you just let most of your credit spreads expire if they are in the money?
Where is the link to the discord??
First link in description
where is the 300 per day ?
I will be forever grateful to you, you changed my whole 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 Maria Reyes.
I invest with Maria Reyes too, she charges a 20%commission on profit made after every trading session which is fair compare to the effort she put in to make huge profits.
this is not the first time i am hearing of Maria Reyes and her exploits in the trading world but i have no idea how to reach her.
With the consistent weekly profits I'm getting investing with Maria Reyes, there's no doubt she is the most reliable in the market. such a genius
she often interacts on Telegrams, using the user below.
REYES40 💯
Something don't add up here.
You are showing an example with 80% likelihood of succeeding. Fair enough. You also show that you will earn $19 on this trade, and you even say, that you will make money 4 times out of 5. Great. But the last time you will lose $81.
This gives you a negative expected value here: (4x19)-(1x81) = -$5. This you divide by 5 trades which gives you -$1 en statistical value per trade.
So if your numbers are correct this trade might end up giving you +$19, but if you continue doing this 50 or 100 times you will have a statistical guarantee of losing money.
Or did I miss you point?
If you blindly just continuously put on trades then yes. If you use bollinger bands with 2 std deviation you can place safer trades.
@@drip6337 Drip can u explain what "2 standard deviation means"?
HARD TO GET FILLS
Not 'anybody' can use spreads. Most people on Robinhood are not allowed to trade spreads.
this video doesn't make much sense to me. you say around 28:50 that the price never touched the bollinger bands on the 3 month chart, but don't take into account that the bollinger bands move and the opened position doesn't. for example if you opened a position on the upper band on its very low, it would have touched it and went past it a few days later.
Seems like you want to make sure to be 100% invested… or more.🤔
Hi Henry. I have a small accounts under $75. Out of all the brilliant videos you have made, which one would you recommend. I am looking to grow this account quickly, easily. I realize trades come with risk. I admire your work and chose to ask your opinion on which one of your video methods to use. Thank you for your time.
Win 80% and lose 20% of times. But $19 x 8 = is $152 but
$81 x 2 = is $162 a total of - $10 nice business! 😎
You are set at 2 million, at 2% a year (basically a savings account) your making 40k a year...that's like the median income of families in most states. Here I am just trying to figure out how to make $8000 a yr trading and it seems impossible.
But don’t you need to make sure that your r/r plays out profitable over 10 trades or 100 trades. In your one example it did not. In the other it did. Sure it’s a good return but if you choose and 80% strike and those 2 losses out of 10 wipes out your 8 wins who cares ? Need to be sure of this long term profitability before entering, correct?
It really depends
Just opened a credit spread with Nvidia 250 / 252.5 expiration is tomorrow
I actually like it. I'm on spy and QQQ
@@daverauser9594 Thanks! it's my first one
@Daniel Rodriguez get an options calculator if you don't have one.
AND WHATEVER YOU DO, don't get caught with any in the $$
@@daverauser9594 👍👍
So im up $17 right now could i close this spread with this profit if i wanted too?
Bollinger is pronounced with a J, not a G it sounds like Bollinjer
Paper account
Anyone watch m mans account while he was talking? It went up 3 thousand dollars during the duration of just this video