Having practiced this strategy since my last comment, I now do both sides at the same time, so in essence a long iron condor without the short legs initially. I think timing not a major issue IF using bollingers and waiting for that squeeze. Once the asset moves in one direction, IF it's looking likely to remain in that direction then sell a outside the long on one side and inside on the opposite untested side. Then you have one free debit spread on the good side and a credit spread that may or may not make anything on the other, but reduces costs. Works especially well around FOMC or any major news event.
Recently exposed to the idea of doing this based on not having a day trade and being worried that the stock will go down the next day, so selling a call with a higher strike price with either equal or greater value will add protection against the stock moving down before you can sell the call you bought.
I think this is a good idea if the initial long call is a leap and if you're happy to sit on your hands for a bit. Probably more suitable for Bitcoin than Coca Cola
Finally someone who isn't stoned explained it! The only way this makes sense is if you need to lock in profits on a less than 25k account so you can sell the spread the next day and not hit pdt.
Another way to trade options for free is through a ratio put spread. Sell way out of the money put options and then buy a closer to the money put option, in the ratio of 3 to 1. An example, would be to sell 3 contracts of the $120 strike apple put options and then use the credit to buy a $155 apple put option with the same expiration. The downside is that if apple tanks below $100, you will take a severe loss.
Hm... I thought a "ghetto spread" happened when a nubile woman went looking for her stepdaddy at the local trap house. Guess I was wrong again- but hey, what do I know?
very very very unnecessary action bcs profit is limited in a call spread. think ; if my timing is good and my prediction is right why I do not sell the call option as soon as price comes up and ı could make 100% sure profit in a short time and roll it over and over on other opportunities. rolling it over is more beneficiary instead waiting time expiry. time = money. so this strategy is totally useless and loss of time
Thanks for the continuous great videos. The fact is, NFTs, BTC is the future of crypto and the question most people ask themselves is - if this is right time to invest? I feel those who would allow the market dynamism to determine when to trade or not are either new in this space in general or probably just naïve..
The sphere have seen far worse times than this, enlightened traders continue to make good use of the dip and pump even acquiring more equities towards trading sessions, I’d say that more emphasis should be put into trading, since it is way profitable than holding.
@@markdonaldson3643 Trading went smooth for me as I was able to raise over 9 BTC when I started at 2.5 BTC in just 5 weeks of implementing trades with signals and insights from JEREMY NIEDERSTADT. I would advise you all to trade your asset rather than hold for a future you aren’t sure about.
Best explanation for this strategy on RUclips
Thank you very much Chiefetw, I appreciate your nice comment
Having practiced this strategy since my last comment, I now do both sides at the same time, so in essence a long iron condor without the short legs initially.
I think timing not a major issue IF using bollingers and waiting for that squeeze.
Once the asset moves in one direction, IF it's looking likely to remain in that direction then sell a outside the long on one side and inside on the opposite untested side. Then you have one free debit spread on the good side and a credit spread that may or may not make anything on the other, but reduces costs.
Works especially well around FOMC or any major news event.
Recently exposed to the idea of doing this based on not having a day trade and being worried that the stock will go down the next day, so selling a call with a higher strike price with either equal or greater value will add protection against the stock moving down before you can sell the call you bought.
I think this is a good idea if the initial long call is a leap and if you're happy to sit on your hands for a bit.
Probably more suitable for Bitcoin than Coca Cola
Interesting perspective, thank you for the comment zak
Finally someone who isn't stoned explained it! The only way this makes sense is if you need to lock in profits on a less than 25k account so you can sell the spread the next day and not hit pdt.
Thank you for the comment, much appreciated
You always have incredibly informative videos. I think I can see how this would work. Thanks for the explaination.
No problem at all, thank you for the comment John
So a covered call?
Another way to trade options for free is through a ratio put spread. Sell way out of the money put options and then buy a closer to the money put option, in the ratio of 3 to 1. An example, would be to sell 3 contracts of the $120 strike apple put options and then use the credit to buy a $155 apple put option with the same expiration. The downside is that if apple tanks below $100, you will take a severe loss.
That's an interesting idea as long as people are aware of the risk that you mentioned, thank you Fabian
Great video
Thank you Gerald, much appreciated
Josh at stock market live invented the name
Even if you sell a call against the long call and it reduces the cost of the long by %40. That sounds like a win to me.
Interesting point, thank you for the comment ej2much
what happen after we buy if it goes down instead of up.
you get blasted :D
Hm... I thought a "ghetto spread" happened when a nubile woman went looking for her stepdaddy at the local trap house. Guess I was wrong again- but hey, what do I know?
LOL you're not wrong actually
Go AMC! Haha
LOL heck yes
very very very unnecessary action bcs profit is limited in a call spread. think ; if my timing is good and my prediction is right why I do not sell the call option as soon as price comes up and ı could make 100% sure profit in a short time and roll it over and over on other opportunities. rolling it over is more beneficiary instead waiting time expiry. time = money. so this strategy is totally useless and loss of time
Thanks for the continuous great videos. The fact is, NFTs, BTC is the future of crypto and the question most people ask themselves is - if this is right time to invest? I feel those who would allow the market dynamism to determine when to trade or not are either new in this space in general or probably just naïve..
The sphere have seen far worse times than this, enlightened traders continue to make good use of the dip and pump even acquiring more equities towards trading sessions, I’d say that more emphasis should be put into trading, since it is way profitable than holding.
@@markdonaldson3643 Trading went smooth for me as I was able to raise over 9 BTC when I started at 2.5 BTC in just 5 weeks of implementing trades with signals and insights from JEREMY NIEDERSTADT. I would advise you all to trade your asset rather than hold for a future you aren’t sure about.
@@anthnioncamaroti6653 Simply search his name online or web,there is a provision for contact
More ideas coming soon