Get My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
00:02 Simple put Condor strategy for consistent profits in options trading. 02:14 Put Condor combines bullish and bearish strategies to generate a net credit 06:21 Utilize long put spread strategy for consistent profits 08:18 This strategy has a high win rate and a risk-to-reward trade-off. 12:27 Choose the right DTE for consistent profits 14:38 Edge in options strategy comes from 45 days onwards 18:30 Choosing the right strikes for a put debit spread based on market conditions and risk management. 20:25 Choosing the long strike and width for the put debit spread 23:58 Understanding the importance of net credit in options trading 25:37 Free Options Income Blueprint available for download.
I will have to watch this video a couple of more times, but I have to say that you are an excellent teacher. I love your presentation style and how you explain different strategies. 🔥
I use this on alot of my etfs 30days out to generate income. Things to note on US options you can close out early still profit even though the options are in the money.
No plans for now since I'm not too fond of giving the fish (trade alert service) as opposed to teaching to fish (mentorship) 😉 On another note, I've been made aware of scammers impersonating me. Their handle will be a slight variation of mine (I only have 1 account). Please stay vigilant as I will never pm/dm you.
Just curious what the moving average purple line is on your actual stock charts is: 200 ema sma vwap? Your vids are by far the best and most educational on RUclips. Keep up the great work, thanks Davis!
why don't you just use a Bull Put Spread (rather than add the Long Put) ? It seems you must assume that the price will go down slightly from current but remain above the Bull Put level. Whereas the Bull Put allows for a price greater than its break even. So you will get a high return with the Put Condor but only over a narrower band of outcomes (therefore lower probability) . Is this correct?
You have a nice style of teaching these concepts I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price I tried this with a few individual stocks and also SPX Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ? Thanks
Davis ___The man ____The Myth_____The Legend !! Davis, most of your strategies are great but the premiums are usually low while the risks are high. For example, risk $ 500 or a $ 1000 to win a measly $ 50 bucks.
It depends on how you're constructing the trade. If you're getting too little premium, it just means you went too far otm. If you want more premium and better r:r, then go nearer the atm strikes.
@@optionswithdavis I knew that you would answer the way you answered. But what I am saying is no matter how you construct your trade, the strategies in general are of measly return !!
@@GB-kl2pd Right, what I tried to communicate is that to get a measly $50, you have to risk $500 or even $1000, even then the $50 is not guaranteed :).
@@Virtues162 it's because many of them are premium-SELLING strategies. I think you'd be more interested in premium-BUYING strategies, which Davis has actually done a few videos on. And while you might risk $500 and get "measly" $100 or $150, the difference is you can win 8/10 trades, minimize losses with proper management, and come out ahead in the end. If you're risking $500 and only getting $50...you need to re-evaluate your trades. I've done nothing but safe premium-selling strategies and have had great results.
Hey Davis , I have question what is the basic difference between from Jade IC and Put IC . I know the construct will be different and when it comes Payoff graph is the same . If my question makes sense please answer
great videos , but please fix your microphone gain. the gain is too high and keeps clipping when you have loud bursts in your voice. it’s gotten better since your early videos which where bordering on pure distortion. just a little more mic trim please or add a compressor to your signal chain , or simply talk at an even volume . Thanks , just a note from an investing fan who happens to be an audio engineer.
Just a minor comment. It will help to show where the stock price is when showing the slide with 477 472 levels for the puts. To show if these Are these ATM Or how far OTM
Commission has come down so much compared to when I first started trading so it's no longer much of an issue. But yes, ensure your credit covers your commission if you don't want risk to the upside.
Great idea to use long spread to prevent loss when the market goes down. I just wonder what a stop loss can be used for the short spread. If the market goes down aggressively, the stop loss will be triggered, the long spread can make up the loss or even make some profit.
I'm not sure if I missed the part with managing the trade? Do you take 50% profit if the price is in the max profit zone, otherwise leave to expiry? Or do you close at 21dte regardless?
That's what I was trying to figure out. He mentions at 12:03 that if you're going with cash-settled indexes, there's no risk to assignment and one can leave the trade to expire.
To answer your question, watch financial planning videos (not trading ones). Learn about the GO-GO, Slow-go and no-go phases. Make a budget. You probably need less than you think.
You have a nice style of teaching these concepts I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price I tried this with a few individual stocks and also SPX Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
You have a nice style of teaching these concepts I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price I tried this with a few individual stocks and also SPX Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ? Thanks
You have a nice style of teaching these concepts I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price I tried this with a few individual stocks and also SPX Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
You have a nice style of teaching these concepts I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price I tried this with a few individual stocks and also SPX Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ? Thanks
Yup, either go to a higher delta, increase the width of your put credit spread, purchase a cheaper further otm put debit spread, or wait til IV increases to put it on.
Get My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
00:02 Simple put Condor strategy for consistent profits in options trading.
02:14 Put Condor combines bullish and bearish strategies to generate a net credit
06:21 Utilize long put spread strategy for consistent profits
08:18 This strategy has a high win rate and a risk-to-reward trade-off.
12:27 Choose the right DTE for consistent profits
14:38 Edge in options strategy comes from 45 days onwards
18:30 Choosing the right strikes for a put debit spread based on market conditions and risk management.
20:25 Choosing the long strike and width for the put debit spread
23:58 Understanding the importance of net credit in options trading
25:37 Free Options Income Blueprint available for download.
Nice!
Your videos on this subject are some of the best on You Tube, excellent all around!
Thanks ☺️
I will have to watch this video a couple of more times, but I have to say that you are an excellent teacher. I love your presentation style and how you explain different strategies. 🔥
Thanks ☺️
I use this on alot of my etfs 30days out to generate income. Things to note on US options you can close out early still profit even though the options are in the money.
Just learned something new today. Gonna try put condor next time to see how it actually works. Appreciate the joke at the beginning too 😂
Thanks Davis! Have you considered starting a Discord and releasing suggested trades? I would definetely pay to subscribe!
No plans for now since I'm not too fond of giving the fish (trade alert service) as opposed to teaching to fish (mentorship) 😉
On another note, I've been made aware of scammers impersonating me. Their handle will be a slight variation of mine (I only have 1 account). Please stay vigilant as I will never pm/dm you.
It’s very crystal clear 🎉 amazing Davis . Great lecture 🙏
☺️
Thank you very much for the strategy. What is the difference between this strategy and Iron Condor?
The IC has risk to the upside, this doesn't.
@@optionswithdavis Davis, thank you very much!
Just curious what the moving average purple line is on your actual stock charts is:
200 ema sma vwap?
Your vids are by far the best and most educational on RUclips. Keep up the great work, thanks Davis!
why don't you just use a Bull Put Spread (rather than add the Long Put) ? It seems you must assume that the price will go down slightly from current but remain above the Bull Put level. Whereas the Bull Put allows for a price greater than its break even. So you will get a high return with the Put Condor but only over a narrower band of outcomes (therefore lower probability) . Is this correct?
Please answer this question, Davis. I also don't see the advantage of the Put Condor over a Bull Put Spread.
Great video! What’s a reasonable percentage of max profit you use to close for a winner?
@optionswithdavis Any chance of making a follow-up video for adjusting these if the downside is challenged?
So you basically are buying a debit spread but finanice it with a credit spread?
You have a nice style of teaching these concepts
I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price
I tried this with a few individual stocks and also SPX
Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
Thanks
LOL - That made me laugh again. I saw it the first time too! Thanks for the funny mistake Davis, and the super video.
You're welcome ☺️
Davis ___The man ____The Myth_____The Legend !! Davis, most of your strategies are great but the premiums are usually low while the risks are high. For example, risk $ 500 or a $ 1000 to win a measly $ 50 bucks.
Hahahaha....If a trader made $50 on every trade....he/she would be doing better than 95% of traders out here.
It depends on how you're constructing the trade. If you're getting too little premium, it just means you went too far otm. If you want more premium and better r:r, then go nearer the atm strikes.
@@optionswithdavis I knew that you would answer the way you answered. But what I am saying is no matter how you construct your trade, the strategies in general are of measly return !!
@@GB-kl2pd Right, what I tried to communicate is that to get a measly $50, you have to risk $500 or even $1000, even then the $50 is not guaranteed :).
@@Virtues162 it's because many of them are premium-SELLING strategies. I think you'd be more interested in premium-BUYING strategies, which Davis has actually done a few videos on. And while you might risk $500 and get "measly" $100 or $150, the difference is you can win 8/10 trades, minimize losses with proper management, and come out ahead in the end. If you're risking $500 and only getting $50...you need to re-evaluate your trades. I've done nothing but safe premium-selling strategies and have had great results.
Thanks for the helpful video! Does it have some parallels to 112 strategy?
You can compare it by watching this: ruclips.net/video/44uXP0pFBg8/видео.htmlsi=CbDPmuRAYgD9nRvT
Hey Davis , I have question what is the basic difference between from Jade IC and Put IC . I know the construct will be different and when it comes Payoff graph is the same . If my question makes sense please answer
great videos , but please fix your microphone gain. the gain is too high and keeps clipping when you have loud bursts in your voice. it’s gotten better since your early videos which where bordering on pure distortion. just a little more mic trim please or add a compressor to your signal chain , or simply talk at an even volume . Thanks , just a note from an investing fan who happens to be an audio engineer.
Got it, thanks for the advice. Will pay more attention to it in future videos.
It's almost impossible for an asian/American to speak at an even volume 😂
Just a minor comment. It will help to show where the stock price is when showing the slide with 477 472 levels for the puts. To show if these Are these ATM Or how far OTM
Hi Davis thanks for sharing. Learn new strategy today. 4 legs strategy commission is higher. Your credit enough to cover the commission?
Commission has come down so much compared to when I first started trading so it's no longer much of an issue. But yes, ensure your credit covers your commission if you don't want risk to the upside.
You could do this both sides sell call spread and long another call spread
Damn I thought I was in a different tube site for a minute 😂 As always, thanks for the great video!
Haha 😂 You're welcome!
what is the adjustment if the price comes to selling of credit side spread put ..
Great idea to use long spread to prevent loss when the market goes down. I just wonder what a stop loss can be used for the short spread. If the market goes down aggressively, the stop loss will be triggered, the long spread can make up the loss or even make some profit.
RUT , MRUT , spx , xsp , ( European version/cash sette ) any thing MORE that I should know ???? thanks . please kindly advise
Good stuff. Thanks…😊
You're welcome ☺️
Why are we using a PUT debit spread on something that has positive drift? That means more than likely we will collect the minimum profit and not more?
I'm not sure if I missed the part with managing the trade? Do you take 50% profit if the price is in the max profit zone, otherwise leave to expiry? Or do you close at 21dte regardless?
That's what I was trying to figure out. He mentions at 12:03 that if you're going with cash-settled indexes, there's no risk to assignment and one can leave the trade to expire.
All are viable.
Great video. thank you 🙏🏼
You're welcome 😊
Long Put Spread is Bear Put Spread?
Yes
how is this compared to Jade Condor?
Hi Davis..
Can we closed this put condor before expired date?
Can.
Thq Davis👌👍
Hi. I am preparing retirement next 3 yrs. How much nest egg is needed to replace $150k annual income roughly with selling option strategy?
To answer your question, watch financial planning videos (not trading ones). Learn about the GO-GO, Slow-go and no-go phases. Make a budget. You probably need less than you think.
thank you!
Welcome!
please share all free excel thanks
Does anyone know about an international comissions free option broker?
Firstrade
You have a nice style of teaching these concepts
I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price
I tried this with a few individual stocks and also SPX
Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
You have a nice style of teaching these concepts
I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price
I tried this with a few individual stocks and also SPX
Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
Thanks
You have a nice style of teaching these concepts
I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price
I tried this with a few individual stocks and also SPX
Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
You have a nice style of teaching these concepts
I have tried replicating this pit condor but I am finding that it often results in debit rather than a credit when selling a 15 delta and purchasing a put debit spread at or slightly below market price
I tried this with a few individual stocks and also SPX
Is it just not the right time to set up or do I have to go to selling a 20 delta (put credit spread) ?
Thanks
Yup, either go to a higher delta, increase the width of your put credit spread, purchase a cheaper further otm put debit spread, or wait til IV increases to put it on.