@@RichPlusHappy It looks a lot like TOS (Think or Swim) to me. If you use that platform you can easily replicate that style of chart or use this shared link tos.mx/wjD8ra8. I recreated it but wasn't exactly sure what period was used for the SMA. Hope that helps.
@@richherbert7791 Thank you very much, will try on TOS! I wish Tradingview also had proper implied volatility indicator, but it seems there are none...
thank you Tony. Your video is the best explained by far the option video i ever seen. Very clear example, chart and th stratgy is very doable. I learned a lot from you and really appreciate.
Correct me if I'm wrong. I think the biggest takeaway from the short straddles video is that selling COVERED straddles is the recipe for 0 risk. Appreciate the advice!
Not a fan of undefined risk strategies but Tony laid out these strategies very nicely and clearly. I like that these strategies once mastered will lead to the infamous iron condor and iron butterfly.
@@OptionsPlay Tony, you are a very patient and thorough teacher. You have much to offer your students. Personally my favorite strategy is the diagonal bc it's a close cousin to the Covered Call. Once I find a good story that's my play. I have never gotten used to time spreads bc I don't truly feel comfortable with the adjustments. But I know I need to add time spreads into my portfolio. Credit spreads seem like a good place to start. How about a juicy bear call credit spread on TSLA to start off the week, lol. Have a good weekend Tony.
Very interesting! Please do an updated video on strangles in today’s market 2024. Especially how to handle when one side take losses, which should be quite often.
Thank you. Your explanations are very clear. Is it possible to track option volume momentum? Can it provide early clues to stocks that are about to move?
There are services that provide real-time option volume alerts, however I personally do not believe that they provide any value in generating profitable trades.
what happens if at 15 days you are not at the 25% profit? Would you close and then reopen another 45 day or try to wait longer until it hits the 25% profit?
The risk in all income trades is the "GAP." There is no defense for the gap. Most gaps occur when mkt is closed. If a trader is seeking 25% returns, which is really quite extraordinary, but can lose 100% bc of a gap, then logic says 1 gap can wipe out 3 winners. The reason I asked in the last post if there are any mutual funds that take investor money and deploy it exclusively to options strategies is bc 25% returns per trade are not heard of any where so if the pros ain't doing it...how can retailer's expect to make 25% per trade??? Kinda like watching tiger or jack slice a drive into the woods. It shows how difficult golf is for even the best. Sure would be nice to see the data of a pro money manager trading these strategies to gauge whether newbie retail traders will be hitting in the center of the fairway or slicing in the woods. Just food for thought.
Another great video! If the risk profile is so high, how comes the Tastytrade bunch use it and advocate it a lot? Is it a case of a broker advertising a strategy that can make them money, not their client? I always wonder why you’re more into spreads and they’re into straddles and strangles...
Just to be clear, brokers do not make money when you lose money or vice versa. They believe that they advocate for it because it is a high probability of profit strategy and there are ways to mitigate some of that risk by adjusting the trades when they go against you
@@adaml2932 Hi Adam, I agree but the returns here seem quite impossible to achieve consistently, especially for retail folk like moi. I just keep thinking a lot of attention is paid to option's education etc but not much data to confirm whether these strategies truly produce these returns. It seems to me if these returns were really achievable, a guy as knowledgeable as Tony would simply open some kind of Options Fund and run it and crank out those returns for his clients. Instead he's running an education site where he has no skin in the game and gets paid upfront regardless of results, which are a MYSTERY. Every mutual fund publishes results. Personally, i know so many strategies but truly feel the Covered Call or the Diagonal are the BEST and easiest strategies. I use the diagonal to lock in a stock price, buy a year out and sell front month OTM calls against the long. after a year the shorts finance the long and if I picked the correct stock it should be higher than the strike i own. Then I exercise ( bc I pick stocks I actually want to own) and have a stock with a low cost basis. Then I'm free sell calls until the cows come home. If I can sell a 25-30 Delta monthly that will easily be a 12-15% annual return. This strategy is realistic and very repeatable. There are NO FREE lunches. The mkt gives nothing away. If you need help with strategy just read up on it. But IMO my focus needs to be on the stock or "story." If you pick the correct story the diagonal should work out. If not at least the short calls pay for the long.
@@brianquigley6862 funny you mention it. I'm actually looking to start an ETF or similar investment vehicle and use these premium strategies because my account is proof that they can be successful. Only problem is barrier to entry. Ive spoken w/ several companies and every thing I try ends up a dud. My only option would be to try to get listed as a corporation on an OTC exchange, but even that costs $50k + . I don't have that kinda money right now, and who wants to buy a ticket on an OTC exchange. Some brokerages won't even allow it on there.
@@adaml2932 I'm glad you understand my perspective. I get bombarded by these people selling options education. I'm educated I can read myself. The few options strategies that exist are all you need know. The most important thing is the right pony and timing. NOBODY can do that dirty work for you, lol. I say get a few friends to give you their money, keep good acct records etc. I'm sure Tony is more knowledgeable than me but he can still open a short straddle or naked put and lose a bundle. The basic options strategies IMO are the best bc they are the easiest. EASY is best. KISS. ICs etc are attractive but they can easily blow up on you and difficult to hedge. The Covered Call or "Poor Man's CC" are so easy to defend. I wish I could back test a strategy I came up where I buy a long dated option (LEAP), sell front months on the underlying but buy PUT protection until the stock behaves as I wanted it to. Once it has gone up I don't need to hedge again. If the stock goes down, the PUT allows me to get my money back and reset. I'm not looking to DONATE to the market.
Two words. Covered straddle. Sell inverted one at a strike that I think it won’t drop below and get it enough premium to expire above cost basis on stock side
Straddles has no unlimited losses if u own the underlying stock,a covered straddle,u just renounce to price appreciation for huge premium Or u can just do a big lizard to cover ur risk on the upside And try to close the trade between 25% 50% profit
For the gme trader in the red, I feel for the ppl that can least afford to lose. I hope gme goes up in the next day or two and they can at least recoup some loses, it would be a good lesson.
Thank you so much for all of your webinars. By far the most educational compared to so many others out there.
Happy to hear that! Thanks for watching.
This channel is a hidden gem 💎
Thank you!
@@OptionsPlay Which platform is the chart with implied volatility (58:56)
@@RichPlusHappy It looks a lot like TOS (Think or Swim) to me. If you use that platform you can easily replicate that style of chart or use this shared link tos.mx/wjD8ra8. I recreated it but wasn't exactly sure what period was used for the SMA. Hope that helps.
@@richherbert7791 Thank you very much, will try on TOS! I wish Tradingview also had proper implied volatility indicator, but it seems there are none...
thank you Tony. Your video is the best explained by far the option video i ever seen. Very clear example, chart and th stratgy is very doable. I learned a lot from you and really appreciate.
You are a best teacher in options.
Glad you found value in this lecture. Thank you for watching!
Tony Zhang is an excellent speaker, and articulate speaker. Very well done video.
Thank you. I appreciate the kind words
Correct me if I'm wrong. I think the biggest takeaway from the short straddles video is that selling COVERED straddles is the recipe for 0 risk.
Appreciate the advice!
There is no such thing a zero risk. Get real.
@kurtsalm2155 sure there is. It's just the person who's taking the lowest statistical risk. Literally printing money.
As always another great video on my favorite strategy, Thanks Tony...
Thank you!
Not a fan of undefined risk strategies but Tony laid out these strategies very nicely and clearly. I like that these strategies once mastered will lead to the infamous iron condor and iron butterfly.
Thank you very much Brian!
@@OptionsPlay Tony, you are a very patient and thorough teacher. You have much to offer your students. Personally my favorite strategy is the diagonal bc it's a close cousin to the Covered Call. Once I find a good story that's my play. I have never gotten used to time spreads bc I don't truly feel comfortable with the adjustments. But I know I need to add time spreads into my portfolio. Credit spreads seem like a good place to start. How about a juicy bear call credit spread on TSLA to start off the week, lol.
Have a good weekend Tony.
Thank you for this video! You are amazing Tony! Keep up the good work.
Will do, thanks for your support!
excellent. it'd be interesting to have a session specific on how to manage the trade. Many thanks for all these webinars
Great contents as always! Well organized and easy to understand. Thank you very much!
Happy to hear that you have been enjoying the content!
Very interesting! Please do an updated video on strangles in today’s market 2024. Especially how to handle when one side take losses, which should be quite often.
Very opportune instructions
Very good and effective learning. Thanks.
Glad it was helpful!
You make simple things sound like rocket science ... SIMPLIFY !
I guess I am watching CNBC at 5:30 every Friday. Great video.
Thank you. Your explanations are very clear. Is it possible to track option volume momentum? Can it provide early clues to stocks that are about to move?
There are services that provide real-time option volume alerts, however I personally do not believe that they provide any value in generating profitable trades.
great video! very informative! you have made what has been very confusing quite clear. please keep them coming.
Will do, thank you for watching!
what happens if at 15 days you are not at the 25% profit? Would you close and then reopen another 45 day or try to wait longer until it hits the 25% profit?
Is there more to make with this strategies versus just put or call spreads?
Glad u found this channel. 1,2
Can you sell calls and puts on an asset that you own and have enough cash to cover, without using margin in this way?
Very good video . Thanks so much Tony . We can’t wait to see you every Friday’s Options action . I am your big fan . !!!!!
Thanks Tommy!
@@OptionsPlay you
High IV -> Iron Condor/Butterfly; Low IV -> Double Diagonal
The risk in all income trades is the "GAP." There is no defense for the gap. Most gaps occur when mkt is closed. If a trader is seeking 25% returns, which is really quite extraordinary, but can lose 100% bc of a gap, then logic says 1 gap can wipe out 3 winners. The reason I asked in the last post if there are any mutual funds that take investor money and deploy it exclusively to options strategies is bc 25% returns per trade are not heard of any where so if the pros ain't doing it...how can retailer's expect to make 25% per trade??? Kinda like watching tiger or jack slice a drive into the woods. It shows how difficult golf is for even the best. Sure would be nice to see the data of a pro money manager trading these strategies to gauge whether newbie retail traders will be hitting in the center of the fairway or slicing in the woods. Just food for thought.
Is Tesla a good stock for a stranddle call and a put option
Sold Tsla straddles/strangles for the past three months. Made 50%gain easily
Curious what delta do you usually sell at? And what’s your exit strategy?
Tony you are awesome 👏🏾 thank you
Thank you!
bomb s away! bangin content! ty!
Excellent!
Thanks Don!
Another great video! If the risk profile is so high, how comes the Tastytrade bunch use it and advocate it a lot? Is it a case of a broker advertising a strategy that can make them money, not their client? I always wonder why you’re more into spreads and they’re into straddles and strangles...
They require larger portfolios in order for it to work well because of the risk.
Just to be clear, brokers do not make money when you lose money or vice versa. They believe that they advocate for it because it is a high probability of profit strategy and there are ways to mitigate some of that risk by adjusting the trades when they go against you
great content
Thanks!
Does anyone know of a mutual fund or hedge fund that uses all these option strategies?
Hedge funds probably do these things, but their trades are usually not very public. Mutual funds, I doubt it.
@@adaml2932 Hi Adam, I agree but the returns here seem quite impossible to achieve consistently, especially for retail folk like moi. I just keep thinking a lot of attention is paid to option's education etc but not much data to confirm whether these strategies truly produce these returns. It seems to me if these returns were really achievable, a guy as knowledgeable as Tony would simply open some kind of Options Fund and run it and crank out those returns for his clients. Instead he's running an education site where he has no skin in the game and gets paid upfront regardless of results, which are a MYSTERY. Every mutual fund publishes results. Personally, i know so many strategies but truly feel the Covered Call or the Diagonal are the BEST and easiest strategies. I use the diagonal to lock in a stock price, buy a year out and sell front month OTM calls against the long. after a year the shorts finance the long and if I picked the correct stock it should be higher than the strike i own. Then I exercise ( bc I pick stocks I actually want to own) and have a stock with a low cost basis. Then I'm free sell calls until the cows come home. If I can sell a 25-30 Delta monthly that will easily be a 12-15% annual return. This strategy is realistic and very repeatable. There are NO FREE lunches. The mkt gives nothing away. If you need help with strategy just read up on it. But IMO my focus needs to be on the stock or "story." If you pick the correct story the diagonal should work out. If not at least the short calls pay for the long.
@@brianquigley6862 what's the old addage- those who can - do. Those who can't- teach ? Or something along those lines
@@brianquigley6862 funny you mention it. I'm actually looking to start an ETF or similar investment vehicle and use these premium strategies because my account is proof that they can be successful. Only problem is barrier to entry. Ive spoken w/ several companies and every thing I try ends up a dud. My only option would be to try to get listed as a corporation on an OTC exchange, but even that costs $50k + . I don't have that kinda money right now, and who wants to buy a ticket on an OTC exchange. Some brokerages won't even allow it on there.
@@adaml2932 I'm glad you understand my perspective. I get bombarded by these people selling options education. I'm educated I can read myself. The few options strategies that exist are all you need know. The most important thing is the right pony and timing. NOBODY can do that dirty work for you, lol. I say get a few friends to give you their money, keep good acct records etc. I'm sure Tony is more knowledgeable than me but he can still open a short straddle or naked put and lose a bundle. The basic options strategies IMO are the best bc they are the easiest. EASY is best. KISS. ICs etc are attractive but they can easily blow up on you and difficult to hedge. The Covered Call or "Poor Man's CC" are so easy to defend. I wish I could back test a strategy I came up where I buy a long dated option (LEAP), sell front months on the underlying but buy PUT protection until the stock behaves as I wanted it to. Once it has gone up I don't need to hedge again. If the stock goes down, the PUT allows me to get my money back and reset. I'm not looking to DONATE to the market.
Two words. Covered straddle. Sell inverted one at a strike that I think it won’t drop below and get it enough premium to expire above cost basis on stock side
Wow very new to me
I made $30,350
Straddles has no unlimited losses if u own the underlying stock,a covered straddle,u just renounce to price appreciation for huge premium
Or u can just do a big lizard to cover ur risk on the upside
And try to close the trade between 25% 50% profit
Why is it called big lizard?
How can something be exercised after it has already expired worthless?
For the gme trader in the red, I feel for the ppl that can least afford to lose. I hope gme goes up in the next day or two and they can at least recoup some loses, it would be a good lesson.
1
I vowed to myself long ago to never sell calls naked.
Buy the stock then you covered call side
@@billestep6804 I know what a covered call is.
@@asiac8968 I mean buy the stock for straddle and strangle
1