How to Use "Delta" In Option Trading Like a Pro [SUPER IMPORTANT] | Episode 223
HTML-код
- Опубликовано: 13 июл 2024
- How to Use "Delta" In Option Trading Like a Pro | Coffee With Markus | Episode 223
Intro: 0:00
What's Happening In The Markets: 1:25
How To Use Delta In Options: 3:40
Viewer Questions: 21:52
My Current Trades: 27:19
Ask Me Anything: 37:06
Delta is one of the most important concepts in options trading. But it can be difficult to understand at first, and that's where this video comes in!
I'm going to show you how delta works, what it means for your trades, and how to use it like a pro.
In this video:
- What Is Delta?
- Understanding Delta
- Delta and the "Probability ITM" feature
- Applying delta to decision making
- Example on how to use delta for PowerX Strategy and The Wheel Strategy
When you understand delta in options trading, you will definitely have an edge.
Recommended Links & Videos:
How To Fly Rescue Missions: • Wheel Strategy Tips - ...
My Trading Routine: go.rockwelltrading.com/my-tra...
Wheel Strategy Playlist: • The Options Wheel Stra...
PowerX Strategy Playlist: • The PowerX Strategy
#StockMarket #TradingOptions #OptionsTrading
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: go.rockwelltrading.com/my-tra...
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: go.rockwelltrading.com/the-wh...
💻 Need a broker? We prefer trading using Tradier! Sign up here: go.rockwelltrading.com/tradie...
📈 TradingView is my favorite charting platform. I use the Pro Version: go.rockwelltrading.com/tradin...
================================================================================
I hope you found this video helpful. In the meantime, check out some of these other videos, and if you have any questions let me know in the comments.
Recommended Links & Videos:
How To Fly Rescue Missions: ruclips.net/video/OlTD9h_ZNd8/видео.html
My Trading Routine: go.rockwelltrading.com/my-trading-routine
Wheel Strategy Playlist: ruclips.net/p/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
PowerX Strategy Playlist: ruclips.net/p/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB
Remember, options are like an insurance company. The profit bias is with the insurer, i.e. selling options. Buying out of the money options is not the higher probability trade. Always buy ATM or, even better, ITM options. If out of the money delta is less than .5, you are not gaining as much appreciation as the share moves. Even better are ITM at delta .8 or better LEAPS (look them up if you don't know what they are). You can sell covered calls against them if you wish. It's a long term play, but if you want only, say a covered call for a week or two 3 months at .8 delta is fine. People usually do not associate options with long term strategies, but they can certainly be used that way. Just a note to Markus, he might like to add using his strategy on weekly or even monthly charts. Just an idea.
Thankus Markus, really informative as usual best regards.
Awesome! Thank you for watching. 😉
Thanks Markus for the Delta information, well explained.
Go take advantage of it.
Greetings from Rudolf from Rotterdam
You are welcome! I am glad that this helps. 😉
Thank you Markus.
You are welcome! ;)
Great video Markus, I really like this kind of videos on how you trade calls and puts in your portfolio, I watch your videos religiously 👍👍👍👍🙏🙏🙏
😊 You are welcome! I am glad that this helps!
Brilliant. New sub. Thanks
Awesome! Thank you! ;)
Hi, I am sorry. I wish I had finish the video, you answered my question. Thank you.
I am glad that I answered your question in this video. 😉
@@rockwelltradingservices
Thank you
Great video
thank you for watching!
Mr. Markus can you give stratergy for option that will fit in low budget and work.
VERY GOOD. PLEASE ADDRESS THE VARIABLES THAT IMPACT DELTA AND HOW TO HEDGE OR CALCULATE BASED ON POTENTIAL PRICE MOVEMENTS. I INQUIRE MARKUS AS MANY OF MY FAR OTM PUTS DISTURBINGLY BECAME DEEP ITM WITH THE RECENT MARKET DOWNTURN. THANK YOU.
Hi Gladys, you can hedge by buying VIX Calls or SPX / SPY Puts. I'll so a video on that topic soon.
Probabilities of delta is based on Implied volatility, which is based at nearest history volatility, because market cannot see the future. But, as we know, market never repeats twice and always unpredictable, all this means that Delta is just a math. statistic measure. Real market probability for puts with 4% Delta might be 10-50%
This might help a lot as my platform seems to show every trade I pull up in the profit calculator as very very low percentage
Awesome!
Thanks
You are welcome! ;) What did you like from the video?
@@rockwelltradingservices The clarity and the specific examples :)
Awesome! ;) Thank you for your kind feedback!
This is very helpful. I never knew this as a new options trader. Thanks Markus, Can you also help me to know when to close my put & call traders? Do I leave it until expiration or do I sell earlier? And if so when do I sell earlier?
Great question: You can set yourself some profit targets. Many traders use a profit target of 50% or 100% to sell an option, i.e. if you buy an option for $1, you might consider selling it for $1.50 or $2.
I use the PowerX Optimizer to calculate my stop loss and profit target for options.
Does this help?
Thank you@@rockwelltradingservices it does help me , but I still don't understand the option chain price movement to see quickly when I am in profit or not. Maybe I must get your software. So if I sell options do I only make money from the premium or can the trade also give me profits? If so where can I see what my profits are at any given time on tastyworks?
When you are BULLISH on a stock, you can buy a CALL OPTION. It will increase in price as the stock moves higher. Have you had a chance to watch my Options 101 tutorial?
ruclips.net/video/XMD5kJ62D5U/видео.html
Take a look. I think it will make it easier to understand what's happening.
good good good 😊 👍
Awesome! Thank you for watching! :)
You trading wheel right now as before? Everybody rumoring about big market crash? Do you changing your strategy??? Are you buying FB now? Please reply
YES! Trading it the same as before. No changes just yet. And no, I decided NOT to buy FB.
@@rockwelltradingservices When would you consider adding FB?
But. If stocks crash...whwel surely will make huge loses...
People will always rumor a big market crash. You’ll hear about it every day.
Isn't weird, all the cool youtubers are from Austin, TX. Joe Rogan, Markus, etc.
Thank you! 😎