Get Your Copy of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Best explanation of "Bull Put Credit Spread" that I have seen. Clear, Concise, Easy to Understand and covers every aspect that a beginner or even experienced traders needs to know. Thank you for taking the time to make this video.
Your explanations are some of the best I have seen online. In this Video the Bear Put Spread was not addressed but perhaps that is a different video. The second point is that a demonstration of the execution of the trade be it paper or live would complete a very informative video. Thanks for sharing!
Thanks Davis, so informative and easy to follow. I’ve been selling put credit spreads to get into stocks I want to use for the wheel strategy. I find it offers some protection by selling back the long leg, then taking assignment of the short leg, or rolling it down. I can use the profits from the long leg sale to reduce cost basis of the stock/etf when I sell calls after. Have you used this strategy before?
Thanks Davis! Great video. Can you please explain how to adjust position if it goes against you ? When the "stop loss" decision should be made. How to reverse position from bull to bear direction if downtrend continues and you do not want to roll or accept the loss. How to flip loosing position to profitable
Davis, what if you have the capital but still choose to do the Bull Put Spread instead of Short Put b/c you want to manage each leg of the BPS separately - if stock goes down, I close out the long put for profit and roll down and out the short put as needed if I don't want to get assigned. Is this a viable strategy?
Hi Davis, what would be the suggested risk:reward ratio for Broken Wing Butterfly Put Spread? I have been doing at 19:1 risk:reward. But after hearing from you I think probably its not a good idea.
Hi, for some stocks like SPY that has a high price/share, it is hard to sell cash secured put even if we dont mind buying the underlying stocks when assigned as the capital outlay is v high. Is it possible to sell bull put spread on expensive stocks instead to mimick the behavior of cash secured put?
Hi will the profit probability 66% will not equivalent with the Delta 7.93 most of the time? Because when I have about the same delta, My profit probability will be only about 45 to 47% Max. thank you.😅
Market is on a bearish sentiment now. I believe put spreads wont be as affective and a high probability play right? Isn't it better to do a call spread?
Hi Davies, can I still be profitable if I trade bull put spread only on SPY but I don’t analyse the chart? So I’ll always sell the short strike at 20 Delta with a width of $5, DTE of 45 days and either close at 50% profit or 21 DTE, whichever comes first.
Hi Davis I have a thought. What if I exit when the blue curve is giving me a loss of 50% of the max profit? Will the Win Rate work out eventually for my favour? I would not like to do a 45 days trade but monthly ones 30 days so i will not have 21 DTE to exit. So what do you say the success of this exit rule would be. Also assuming I roll over to next expiry if bullish move still expected
Correct, there's always the risk of early assignment for any ITM (in-the-money) options, unless you're trading on cash-settled index options like this: ruclips.net/video/hHK8TdVnjTQ/видео.htmlsi=52HU0iAquWI60iRX
this is why it's very important to exit at 21 DTE. Even if at, say 22 or 23 DTE, the short put is in the money slightly, there is a very low chance to actually be assigned. This is because unless the option is very deep ITM, the short put will still have a lot of extrinsic value, so it's not profitable for the buyer to exercise early.
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. 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.
Get Your Copy of My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Best explanation of "Bull Put Credit Spread" that I have seen. Clear, Concise, Easy to Understand and covers every aspect that a beginner or even experienced traders needs to know. Thank you for taking the time to make this video.
You're welcome 😊
You are an AMAZING orator, your information is very informative and easy to follow. MANY thanks!
You're welcome ☺️
Really love it
☺️
Very simply stated and easy to understand. Thank you.
You're welcome ☺️
Your explanations are some of the best I have seen online. In this Video the Bear Put Spread was not addressed but perhaps that is a different video. The second point is that a demonstration of the execution of the trade be it paper or live would complete a very informative video. Thanks for sharing!
Thanks Davis, so informative and easy to follow. I’ve been selling put credit spreads to get into stocks I want to use for the wheel strategy. I find it offers some protection by selling back the long leg, then taking assignment of the short leg, or rolling it down. I can use the profits from the long leg sale to reduce cost basis of the stock/etf when I sell calls after. Have you used this strategy before?
You're welcome ☺️ Generally for the wheel strategy, I do this: ruclips.net/video/dt5DXt5G-T4/видео.htmlsi=66PoIRWof13_oE7e
Hello Davis. Love your videos! Can you say if trading wider strikes(10wide) have any advantages over narrower strikes(5wide)?Thanks.
Thanks ☺️ As for wider vs narrower spread width, I explained it here: ruclips.net/video/exDWMEqRFAo/видео.htmlsi=gvQBcD3yGDE0dAfg
What delta do you usually sell your short put leg at? Do you always use a $5 spread? Thanks again, great videos you have.
See this: ruclips.net/video/81t8AoPOKCA/видео.htmlsi=y4ord1_sgTsMqd-E
Thanks Davis! Great video. Can you please explain how to adjust position if it goes against you ? When the "stop loss" decision should be made. How to reverse position from bull to bear direction if downtrend continues and you do not want to roll or accept the loss. How to flip loosing position to profitable
You're welcome ☺️ See these videos:
1) ruclips.net/video/ZTpbOGdzubU/видео.htmlsi=QN4DHQskUG157vOp
2) ruclips.net/video/nJeo4SCywmc/видео.htmlsi=E0ycLZhD11_Ud7Gn
3) ruclips.net/video/exDWMEqRFAo/видео.htmlsi=FEmkL8CJcH_YcXp-
Good stuff 🎉
☺️
Absolutely fantastic video!! Do you personally close out at 21dte or will you close out sooner if you hit 50% or higher profit?
The latter. Thanks ☺️
Davis, market down lot! Do share w us what strategies u wld be putting. Thx
Davis, what if you have the capital but still choose to do the Bull Put Spread instead of Short Put b/c you want to manage each leg of the BPS separately - if stock goes down, I close out the long put for profit and roll down and out the short put as needed if I don't want to get assigned. Is this a viable strategy?
Hi Davis what is the benefit to join as member?
It's just to support the channel.
What is considered a losing trade ? If you have 21dte left and you rolled it for a credit to next month, is that considered a losing trade ?
Hi Davis can you recommend ETF for small account option trader like me?
Watch these two videos:
- ruclips.net/video/2j3EWpfFa-o/видео.htmlsi=0VJ1jxIILC9wmw8B
- ruclips.net/video/UMw10pdibqA/видео.htmlsi=4TZefwr3nnMKg5C5
Hi Davis, what would be the suggested risk:reward ratio for Broken Wing Butterfly Put Spread? I have been doing at 19:1 risk:reward. But after hearing from you I think probably its not a good idea.
Hi, for some stocks like SPY that has a high price/share, it is hard to sell cash secured put even if we dont mind buying the underlying stocks when assigned as the capital outlay is v high. Is it possible to sell bull put spread on expensive stocks instead to mimick the behavior of cash secured put?
For defined risk strategies to mimic similar to undefined risk strategies, the spread width has to be very wide.
Do you use daily time frame?
Yup
Hi will the profit probability 66% will not equivalent with the Delta 7.93 most of the time? Because when I have about the same delta, My profit probability will be only about 45 to 47% Max. thank you.😅
Market is on a bearish sentiment now. I believe put spreads wont be as affective and a high probability play right? Isn't it better to do a call spread?
Hi Davies, can I still be profitable if I trade bull put spread only on SPY but I don’t analyse the chart? So I’ll always sell the short strike at 20 Delta with a width of $5, DTE of 45 days and either close at 50% profit or 21 DTE, whichever comes first.
See this: ruclips.net/video/lQ1eHivY_dc/видео.htmlsi=7YLRgURrHCw52PVq
Best 👌 👍
☺️
Hi Davis I have a thought. What if I exit when the blue curve is giving me a loss of 50% of the max profit? Will the Win Rate work out eventually for my favour? I would not like to do a 45 days trade but monthly ones 30 days so i will not have 21 DTE to exit. So what do you say the success of this exit rule would be. Also assuming I roll over to next expiry if bullish move still expected
See this: ruclips.net/video/hUkBpo5P9X0/видео.htmlsi=GYNUjlLVyBu-H9or
@@optionswithdavis Thanks
If the price of the underlying drops under the short put in the spread, you can still be assigned though can’t you?
Correct, there's always the risk of early assignment for any ITM (in-the-money) options, unless you're trading on cash-settled index options like this: ruclips.net/video/hHK8TdVnjTQ/видео.htmlsi=52HU0iAquWI60iRX
@@optionswithdavis Thanks Davis, that’s why up to now I’d been exercising stop losses for fear of being assigned. My account is very small yet.
this is why it's very important to exit at 21 DTE. Even if at, say 22 or 23 DTE, the short put is in the money slightly, there is a very low chance to actually be assigned. This is because unless the option is very deep ITM, the short put will still have a lot of extrinsic value, so it's not profitable for the buyer to exercise early.
@@lonewasian Thank you, I hadn't thought of it like that till you said.
how to much money put in each trade?? i have por than 100k
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. 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.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.