To Mr. Jim - please note I do not comment often on YT. This is probably my third comment in my live. I have watched tones of videos about options. I have studied it for several months: books, paper trading, videos etc. I believe I had quite a lot of knowledge now. I still cannot start live trading, perhaps I do not have balls for it. I am afraid that once I enter the live strangles I will become a trader and I do not want to follow index, stocks prices all day; nevertheless, Mr. Jim you are magician. I can watch your videos all day all night; I love the way you are talking and sharing the practical approach just for free with such an enthusiasms. I wish you the best trades, stay healthy and high five to all tastytrade members!
To limit risk further, I would consider only doing strangles on index ETF's like SPY, DIA, QQQ and IWM. and also by buying some long options way out of the money for pennies.
Been trading Strangles for a while. Messed up the first coupe of tested sides, but have learned to manage better using Step 1. I like the other steps and will put them in play. Thanks for the reminder on checking the IVR with trades that are floating. Great video.
Love this guy!! Clear & structured. Always get solid info from The Doc! Feels like my homie just downloaded to me everything i need to know to get started right quick- & texted me the notes after. Perfect!!!
@@jessiejane6259 Maybe use google to quench your curiosity problem rather than complain about info that was given to you for your consumption without charges or fees.
Thank my friend for your excellent instructions but if you use a board It would be genial for me because English is my second language and graphics help a lot. For example when you said rolled down with graphics you can see it better Still one of the best videos out there
Very well done Sir. Can you redo the same on the chalk board,. Say you asre doing 40-60 strangle and stock at 50. Then how to maneuver back and forth. What is good delta to start, what is put/call strike in percentage of the stock . This will really help new guys .Please do it with graphic example , from step 1 to the end
@@scottreesetradinginvesting7936 I'm still learning all this but it seems to me that it makes more sense opening a short call or put according to the price direction. When the stock price goes up the calls premium will be bigger. Same thing when the price goes down making the put premium bigger. Am I missing something?
How did you define the minimum to be $1 irrespective of the underlying price? There is order of magnitude difference between DKNG and NFLX. What did I miss?
When you talk about reducing your Deltas 30-50% do you mean 30-50 of the actual deltas or 30-50% of the current amount of deltas. If I have a position on with 35 deltas, am I trying to eliminate All the deltas or just reduce by half, say to 15ish?
Thanks Doc. All info I have heard before BUT need to refresh as some fits other stradigys. AND I am old and need refresher courses often. Q.......Do you recomd any iron flies/Condors to expiration? Just let 3 to expire 2/19, they stayed in range nicely, so I milked them. Usually trying to get out early.
What if one side getting tested but price still in between strikes and the untested side is very low delta at +/-0.02? At this point it is not doing much in terms of profits on this side. Would you roll the untested or still wait for price to become itm? Starting delta 0.1 for each side. Thanks!!!!
Tim, It’s not about impact. It’s about how much credit you have rolled in. Once you know that you can close for less than what you have brought in, you’re good.
Implied Volatility Rank....it's basically a measure of how high or low the current level of IV is compared to the past. An IVR close to 100 means the current implied volatility is much higher than usual for the stock....and an IVR closer to 0 means the IV is much lower than usual.
Dr. Jim, help me understand, riddle me this, If i own 100 shares of the stock and have cash on hand, is the strangle or straddle really undefined risk? I look at it like as trying to run the wheel strategy by selling a covered call (since I own the stock) and selling a cash secured put (since I have the cash) at the same time. Am I missing something?
Would love if you could do Covered Short Strangle? I usually close separately, short put or covered call, depending on which one is very high profit, and then reopen the other side when there's an opportunity.
I'm still learning all this but it seems to me that it makes more sense opening a short call or put according to the price direction. When the stock price goes up the calls premium will be bigger. Same thing when the price goes down making the put premium bigger. Am I missing something?
Great video. What is the typical width for short strangles? I am currently shorting $140 calls and $100 puts (ABNB) with DTE on 12/22/2022. Do you recommend move down my short call side to narrow the width a bit for the benefit of some credit while I wait for it to expire.
Thanks for wonderful video. When we go inverted, is it possible to have a scenario , where collected credit is less than inverted strike width? If so what to do. Please advise !
Hi, I just started following your channel and I'm new to all of this. I find your videos extremely helpful. It would be great if you could include what do some acronyms means, for example IVR.
This is bad. Rolling your positions ad nauseum is guaranteed to lose you a lot of money. This is why I only sell strangles on stock I wouldn't mind owning. I never roll. If I get assigned, that's cool. If price goes up and approaches the call strike, I just buy the stock and cover myself. If it gets called, great. If it goes back down whatever, I'll just sell another call at expiration.
Nice approach! This is very similar to what I do...except if I buy the stock when it breaches my call strike, I will sell it for a small loss if it drops back below. I don't care for stock positions much because they tend to be very capital intensive.
Intriguing video, am fortunate to have invested with a professional broker Mrs Esther Lawrence during the past covid-19 pandemic which has birthed multiple streams of income for me today.
M
Jim, you are a brilliant teacher. no one comes close to your clarity. thank you so much!
To Mr. Jim - please note I do not comment often on YT. This is probably my third comment in my live. I have watched tones of videos about options. I have studied it for several months: books, paper trading, videos etc. I believe I had quite a lot of knowledge now. I still cannot start live trading, perhaps I do not have balls for it. I am afraid that once I enter the live strangles I will become a trader and I do not want to follow index, stocks prices all day; nevertheless, Mr. Jim you are magician. I can watch your videos all day all night; I love the way you are talking and sharing the practical approach just for free with such an enthusiasms. I wish you the best trades, stay healthy and high five to all tastytrade members!
To limit risk further, I would consider only doing strangles on index ETF's like SPY, DIA, QQQ and IWM. and also by buying some long options way out of the money for pennies.
The Only RUclips Channel With God Level Quality Content Learnt A Lot
This is the only strategy I do anymore. It’s completely OP. Rarely, almost never, do I have to roll one of the legs more than once.
Thanks Dr. Jim! Short Strangles are my favorite strategy, so this video gives me a lot of good information I wasn't clear on before!
The pace and level of complexity you set in this explanation are perfect for me.
His called The Doc? First Doc video and I'm liking it. Simples. To the point.
Been trading Strangles for a while. Messed up the first coupe of tested sides, but have learned to manage better using Step 1. I like the other steps and will put them in play. Thanks for the reminder on checking the IVR with trades that are floating. Great video.
Super !!! We are the Options professor !
Best options Chanel period.
Love this guy!! Clear & structured. Always get solid info from The Doc!
Feels like my homie just downloaded to me everything i need to know to get started right quick- & texted me the notes after. Perfect!!!
Who is giving thumbs down to such a great video? Please explain your reasons Senorita or Sir.
Need examples to help illustrate the steps when managing different scenarios
@@jessiejane6259 Maybe use google to quench your curiosity problem rather than complain about info that was given to you for your consumption without charges or fees.
Covered strangle is my favorite strategy. Good video.
Thank my friend for your excellent instructions but if you use a board It would be genial for me because English is my second language and graphics help a lot. For example when you said rolled down with graphics you can see it better
Still one of the best videos out there
These videos would be so much easier to follow with actual example trades (simulated)
It baffles me that they try to explain it without an example.
Clear and concise. Thank you Jim.
Jim, this has been a great series of videos. Thanks for sharing
Thank you from France 👍🏻
I just joined and have been playing around with the probabilities of various strategies.
good stuff Dr. Jim! Thanks for the education
Great job in explaining how all of this works! Thank you very much.
Thanks Jim! I have learned so much from you.
Great video and very timely! My WFC strangle got blown up last week so I will put this into action.
Great video! Learning a lot watching your videos? Can you please a make a video as to how to defend inverted strangle?
Very good explanation.
Very well done Sir. Can you redo the same on the chalk board,. Say you asre doing 40-60 strangle and stock at 50. Then how to maneuver back and forth.
What is good delta to start, what is put/call strike in percentage of the stock . This will really help new guys .Please do it with graphic example , from step 1 to the end
Will keep following. Again thank you.
Great topic and very timely for me
Keeping it simple I like it😎
Awesome explanation
thanks for the great info. It would help if you showed some examples. Im new to this.
Excellent to the point video!
This was well done video. Very easy to follow.
That was excellent.
Do you aim for $1 per option or for the total contract of both the call and put (~$0.50 each)
what do you mean by 16 delta strikes?does it mean calls/put having delta of .16?
Yup that's exactly right! I've found that selling strangles around a 16 to 20 delta is the sweet spot :)
@@scottreesetradinginvesting7936
I'm still learning all this but it seems to me that it makes more sense opening a short call or put according to the price direction. When the stock price goes up the calls premium will be bigger. Same thing when the price goes down making the put premium bigger. Am I missing something?
How did you define the minimum to be $1 irrespective of the underlying price? There is order of magnitude difference between DKNG and NFLX. What did I miss?
When you talk about reducing your Deltas 30-50% do you mean 30-50 of the actual deltas or 30-50% of the current amount of deltas. If I have a position on with 35 deltas, am I trying to eliminate All the deltas or just reduce by half, say to 15ish?
Thanks Doc. All info I have heard before BUT need to refresh as some fits other stradigys. AND I am old and need refresher courses often. Q.......Do you recomd any iron flies/Condors to expiration? Just let 3 to expire 2/19, they stayed in range nicely, so I milked them. Usually trying to get out early.
Great video
What if one side getting tested but price still in between strikes and the untested side is very low delta at +/-0.02? At this point it is not doing much in terms of profits on this side. Would you roll the untested or still wait for price to become itm? Starting delta 0.1 for each side. Thanks!!!!
great content thanks
Great videos, but would have been nice if example and back testing is shown...
What's your typical DTE for short a strangle ?
can you elaborate a bit on magnitude reduction? specifically, how do we measure impact on the tested strike by rolling the untested strike?
Tim,
It’s not about impact.
It’s about how much credit you have rolled in. Once you know that you can close for less than what you have brought in, you’re good.
Hi, loved the video but hard to understand since im a visual person, if you would have used the platform and white board it would have been better.
Another excellent video. Was that your phone buzzing in the background :)
man, im doing short strangle makes 8 months, and gaining a lot! I use all of this tatics, any anothers .. But the call side always covered.
That is my play. I like to do weekly strangles vs the 45 days. Will sell a put and a call at the .16 levels and always buy a call to cover.
Thank u jim
I'd just buy or short the underlying stock to manage it.
This is exactly what I do! Been very effective for me...hope it is for you too! :)
Thank You!
What is IVR?
Implied Volatility Rank....it's basically a measure of how high or low the current level of IV is compared to the past. An IVR close to 100 means the current implied volatility is much higher than usual for the stock....and an IVR closer to 0 means the IV is much lower than usual.
Nice info. BTW, are these strategies backtested?
What if market get reversed plz explain .
Forget IV rank, focus on IV percentile.
Yeah I dont understand to this day why they use IVR.
What’s better about one or the other? Thanks!
you are my definition
I like to do QQQ, SPY TQQQ last day option short strangle.
good stuff
For step 3, isn't there risk for being assigned early if both legs are ITM? Any way to mitigate this? Thanks again. Great explanation!
great content. your mic is really hot and staticcy tho
Dr. Jim, help me understand, riddle me this, If i own 100 shares of the stock and have cash on hand, is the strangle or straddle really undefined risk? I look at it like as trying to run the wheel strategy by selling a covered call (since I own the stock) and selling a cash secured put (since I have the cash) at the same time. Am I missing something?
Would love if you could do Covered Short Strangle? I usually close separately, short put or covered call, depending on which one is very high profit, and then reopen the other side when there's an opportunity.
I'm still learning all this but it seems to me that it makes more sense opening a short call or put according to the price direction. When the stock price goes up the calls premium will be bigger. Same thing when the price goes down making the put premium bigger. Am I missing something?
Great video. What is the typical width for short strangles? I am currently shorting $140 calls and $100 puts (ABNB) with DTE on 12/22/2022. Do you recommend move down my short call side to narrow the width a bit for the benefit of some credit while I wait for it to expire.
He mentioned that we can start looking from 16 Delta, which is 1 Std Dev. Personally I have been shorting strangles at 10 Delta
Thanks for wonderful video. When we go inverted, is it possible to have a scenario , where collected credit is less than inverted strike width? If so what to do. Please advise !
You can buy it back and start again.
What about assignment
When rolling, you already lost money. What is point to roll?
Tolling the tested side you lose money. They untested side you collect a credit and reduce delta
To take in more credit and to decrease your deltas.
Hi, I just started following your channel and I'm new to all of this. I find your videos extremely helpful. It would be great if you could include what do some acronyms means, for example IVR.
This is bad. Rolling your positions ad nauseum is guaranteed to lose you a lot of money. This is why I only sell strangles on stock I wouldn't mind owning. I never roll. If I get assigned, that's cool. If price goes up and approaches the call strike, I just buy the stock and cover myself. If it gets called, great. If it goes back down whatever, I'll just sell another call at expiration.
Nice approach! This is very similar to what I do...except if I buy the stock when it breaches my call strike, I will sell it for a small loss if it drops back below. I don't care for stock positions much because they tend to be very capital intensive.
This is hard to understand, can you explain with a example please.
First
Is he a doctor like Dr. Dre is a doctor?
Dr. As in Professor
not understand waste
Intriguing video, am fortunate to have invested with a professional broker Mrs Esther Lawrence during the past covid-19 pandemic which has birthed multiple streams of income for me today.