STOP LOSING MONEY - Grow Your Account With Credit Spreads

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  • Опубликовано: 10 сен 2024
  • The best traders I know when to trade long positions and when to write premium with credit spreads. Learn BOTH and watch your account grow.
    Let me know what you think in the comments below!
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Комментарии • 50

  • @stk6mkt
    @stk6mkt 2 года назад +22

    Excellent video. I've been trading options for over 20 years. Credit spreads are the single best way to become independently wealthy for two very important reasons, as outlined in this video. 1.) It greatly lowers the amount of collateral that you have to put up for each trade vs. naked options. 2.) Every trade has a defined risk. If you want to stop working for a living and become a millionaire; both at a very young age, become very good at trading credit spreads.

  • @SD-mg7np
    @SD-mg7np Год назад

    dude please read this..im 7 minutes into this video after having just watched ur video on debit spreads. this is after ive watched tons of other videos on this topic. these 2 videos of yours helped to SEAL the DEAL in understanding this topic. thanks buddy. cheers. the 4 of these CS's was a masterclass in capturing price. to this day i just learned you CAN NOT get assigned on SPX options.

  • @shama1689
    @shama1689 2 года назад +11

    Thanks man I was live on that Friday it was a real wild ride with you! This puts your decisions into even more context but you are actually really good at day trading and teaching and entertaining at the same time!

  • @janly1613
    @janly1613 2 года назад +8

    Great explanation! Can you do a video step by step process of analysing the stock chart to decide which type of credit spread to do. bull or bear call or put spread? Timing entry & exits?

  • @SteveTotoPiggy
    @SteveTotoPiggy 2 года назад +5

    Great video. Especially the summary of pros and cons
    Will need to watch this a few times...
    Will stick to buying calls and puts for the time being ☺️

  • @jgwilliams67
    @jgwilliams67 2 года назад +2

    Is there a certain Delta you prefer before making a Credit Spread trade? Thanks

  • @curtist1451
    @curtist1451 2 года назад +8

    Great video OM. Would like to see you touch on how to exit these positions before expiration properly.

  • @DirtSweatGears
    @DirtSweatGears 2 года назад +2

    I really liked your explanation, it doesn't seem *that* complicated at all. It's a higher cost of admission than just buying calls or puts, but I can paper trade this while I build capital

    • @OptionsMillionaire
      @OptionsMillionaire  2 года назад +2

      It isnt complicated at all once you get the hang of it!

  • @rkodjo1001
    @rkodjo1001 2 года назад +4

    Your comments do not match your math at 6:29 of the video. You say "you subtract" and show an addition. Please correct.

  • @TheTomG100
    @TheTomG100 2 года назад +2

    Very good explanation , I hope you do more videos like this - Thank You

  • @willgordon5737
    @willgordon5737 Год назад

    I like how you capture that dragon between your call and put credit spreads

  • @leafystreet
    @leafystreet 2 года назад +4

    Can they be closed before expiration for partial profit or loss?

    • @OptionsMillionaire
      @OptionsMillionaire  2 года назад

      Yep! They can be closed anytime.

    • @drwolfik
      @drwolfik 2 года назад

      Who can forbid you to close them anytime?)

  • @modermike04
    @modermike04 Год назад

    Awesome video, very knowledge and straight forward. Keep the great videos coming.

  • @mistletoe91
    @mistletoe91 2 года назад +6

    Been there done there. Word of caution : credit spreads have negative R:R. I would rather trade directional naked Options or Debit Spreads

    • @Sebastians-Estudio
      @Sebastians-Estudio 2 года назад

      What is R:R? Risk on return?

    • @mistletoe91
      @mistletoe91 2 года назад

      @@Sebastians-Estudio reward : risk ratio

    • @chevon1920
      @chevon1920 2 года назад +4

      There’s pretty much no difference between a debit and credit spread. A call debit spread with the same strikes as a put credit spread will have the same risk and return. I don’t see the larger risk.

    • @jsh111
      @jsh111 2 года назад

      Credit spreads were all fun and games until omricon. Gave back everything I made for months. Oil sold off too. Wasn't over positioned. Directional is the way

    • @mistletoe91
      @mistletoe91 2 года назад

      @@jsh111 Exacty my point. The losses are bigger and profit are smaller. Directional is the way.

  • @ts4426
    @ts4426 2 года назад +1

    How enlightening this video is, thank you! I have one question. Would your PCS ended up with 100% max profit had you not closed it out at the 40%? It appears thst it would have.

    • @drwolfik
      @drwolfik 2 года назад

      Yes, it would as SPX was above sold PUT.

  • @LowJackAP
    @LowJackAP 2 года назад +2

    so basically if your trading this on other tickers "spy" you would have to close the position before expiration? or what would be the best way to go about this?

    • @drwolfik
      @drwolfik 2 года назад

      You should choose it by yourself

    • @LowJackAP
      @LowJackAP 2 года назад

      @@drwolfik not sure what you mean by that. but I gave up on trying this when my broker said you have to make 250k+ a year or some crazy number like that for them to qualify you. if you make that much just invest in safe dividends or hell buy a mining farm if you wana get a little crazy. ridiculous.

  • @Vitamins1
    @Vitamins1 2 года назад

    Great video. So trades 2,3 and 4 are added legs into the first trade? If your broker doesn't allow you to add legs to existing trades, is there a way around it? Thanks!

  • @michaelbenedum1323
    @michaelbenedum1323 2 года назад +1

    Thanks Andrew. Great information. 👍👍

  • @Andrembramwell
    @Andrembramwell 2 года назад

    my question is when setting up your call and put strikes do you factor in delta at all or just look at the chart then place them accordinly? Is there a certain % you stick too once the chart has levelled out some after 10am?

  • @SPYSpreads
    @SPYSpreads Год назад

    Great video, but in my experience I found out at least 1 week expiration date is more profitable than 1 or 0 dte.

  • @ce8539
    @ce8539 2 года назад +2

    My broker wont approve me for spreads, tried 4 times =(. Its like come on my account was 2k in January and its almost 10x that now what do I have to do. Most people lose money their first year and yet I've 10x'd my acc and still cant get approved???

    • @drwolfik
      @drwolfik 2 года назад

      there are lots of other brokers. Why don't you change it?

  • @trading3072
    @trading3072 2 года назад

    Concise!

  • @jazzthedog1
    @jazzthedog1 2 года назад

    Great Vid, at the 5:12 mark, but wouldn't your MAX loss be the 5,000.00 + Premium you paid to buy? $5,300.00?

    • @drwolfik
      @drwolfik 2 года назад

      Why do you think that premium that you have already received is a loss? =\

  • @JOHNSMITH-ug2mt
    @JOHNSMITH-ug2mt 2 года назад

    So, just to be clear...All stocks trading on the S&P 500 "spy" don't assign?

    • @lilalberry2
      @lilalberry2 2 года назад +1

      You will get assigned on SPY, as I learned the hard way. Thought my max risk was $70, got assigned, turned out I did not pay attention to the ex div date, end up costing me $273.

    • @drwolfik
      @drwolfik 2 года назад

      You can read specification and understand it by yourself. No, SPY is not european settled, so you may be assigned. SPX, VIX, RUT are europeans settled.

  • @bradley7124
    @bradley7124 2 года назад

    The best decision I ever made in my life was investing in financial market. Trust me guys, it pays!😊