The Easy Way to Grow a Small Account With Options
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- Опубликовано: 13 июн 2024
- Learn the top 3 trade setups we are using on the desk here: tinyurl.com/3sezfak6
#smallaccountdaytrading #optionsstrategy #optionstrading
SMB Disclosures www.smbtraining.com/blog/smb-...
I make huge profits from my trades now as I follow your instructions sir God bless you Ronal’with more knowledge you are the greatest trading guru sir 💯
he’s mostly on Telegrams, using the user.
@R o n a l f x 2.
@R o n a l f x 2’.
His technical analysis is excellent and his interpretation/projections of the market are so accurate’ The point is Ronal’ is the perfect trader to follow for advice and guidance
Ronal’ strategy has normalized winning trades for me and it's a huge milestone for me looking back to how it all started.
Thanks @Seth. At that time (and even now) SPY could have easilly moved 10 points in either direction in a day or two. We can see 10 points wide bars even on the daily chart that you showed. Without risk management, any one of these trades could have wiped out that 5k account in a single trade. It would be good for you to warn your followers that this is a real possibility and is not even unlikely.
Further, even if you are right 5 times in a row and wrong on the 6th losing entire 5k spread, the account would be left with 1-2k losing 80% or so in a single trade.
I've been watching and learned a lot from SMB's videos. I could imagine the scenario where the price closes in between the spread and banker takes all. Anything other than Covered Call and Cash Put should be executed by experienced traders only.
Seth knows what he's doing, but just 1 5k loss, and I would never trade those again. LOL. But, it is up to the traders, and how good they are at the markets. Their seasoned trader prolly make money in all scenarios.
@@insurancecasino5790, I have no doubt that Seth knows what he's doing. I will also bet that Seth would never bet entire account on a single trade. It's the novice traders who have no clue about risk management who could get in big trouble quickly following this strategy.
@@beLIEve77well said, plan on owning the shares to go long but im ok w poor mans covered calls too. Your thoughts?
Or poor mans covered put
@@marksoberay2318
For Poor Man's Covered Put, i'd prefer using the Wheel strategy instead. Covered Call and Cash Put all the way until i'm very familiar with risk management for Options
Thanks again. I have been watching your posts for a few years now. Primarily the options. I feel all your input is excellent. Also I feel it would be beneficial to offer another delivery device. Hence, someone other than Seth offering the options strategies. I understand Seth is your premier options guru but sometimes it’s great to hear it in a different way. Sometimes hearing from another source or perspective just helps some people. With all due respect after two years of watching your videos I now often have trouble comprehending because he sounds like a broken record. Sorry Seth! Give this guy a nice office and give us a new options face! Thanks again.
Thank you😊
My three favorite channels: SMB Capital, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
Smb is definitely my favorite also. But I also really like trader talk (Schwab) and trader tv.
I can't see the video about learning options that they mentioned would popup on the screen
So if the trade wasn't going your way you could buy back the PUT close to your breakeven to avoid excess loss? If the market was a BEAR market you would do the opposite and sell CALL credit spreads?
thank you
If you sell a put at 370 and buy a put at 320, that's a 50 point spread. You have a max loss of $5000. If you only have a $5000 account, you are risking your entire account on just one trade. That's a REALLY bad idea. Something can easily go wrong and then you are out that money. You should never risk more than 5% of your account on any one trade.
What happens if your short put does gets assigned? How do you get out of that with a small account?
In the other similar video with weekly puts on QQQ, it was switched to PMCC after the first loss, can it be done here too?
Curious in this too! Watched the previous weekly qqq's
@smbcapital how do you roll over in case it goes 60 points down to max loss within the 30 days?
Good video with one omission.You should have mentioned the section 1256 60/40 tax advantage on $spx put spread gains.
nice....
can we use this method on stocks?
Sure you can. But if you need to ask this question, Options is not for you yet.
@@beLIEve77 hhhhh 😃I only trade selling put with stocks I like to own but I never try credit spread and iron butterfly and the others
May I know what delta you select when selling short put?
In this strategy delta is not looked at, only that it's 10 pts below the current price
Looks like 30 delta
@@jesuscastillo4033 thanks
How is the amount required by the broker for this trade calculated?
Maximum possible loss, i.e. SPY closes at or below your Long Put
Why expire 1st Friday of the month. Don't the institutions trade on the 3rd Fridy of each month. Thank you.
Good introduction - but incomplete. Seth, I think you present an unbalanced view of the rewards of the credit spread. You really need to show and highlight the risks, especially the risk / reward tradeoff. Success for the credit spread trade is, of course, not a guarantee, and losses for credit spreads can be much larger than their wins. Also, timing matters for when you try to buy stuff back. If the trade is going against you, and you wait too long you may not be able to close it when you wish.
Yup, I've noticed that I often can't close a position when I'm losing, even at a loss, to get out of it before close. I adjust the price but it makes no difference. Sometimes I get assigned when I didn't want to.
Would love to see a video on how to manage these types of trades as the risk to reward ratio in this example is upside down. If I understand correctly, you have $50 or 5K at risk. (difference in strikes). You pick up on average $350 and in one month you lose 2.5x your average gain in October. You have to be really right consistently for this strategy to work. Another 1 or 2 more like October and you are in the red.
I also preach on the behalf of SMB for retail traders. Go now in peace. 🙏
Far too risky for a $5000 account. Way too close to the money. Should place the legs at least 15 to 20 delta. Selective year to do a PCS. I really like this channel but any newbie’s watching this will definitely blow their account up, guaranteed.
Agree 100%. Well, at least he covered a scenario in which the trade didn’t work instead of going over a trade that works perfectly which rarely happens.
Also, I prefer to use real standard deviation analysis of past price behavior instead of the delta which is totally based on "air" only (speculative).
Thank you. How do you do this when the spy is in a sell off and be profitable?
As long as the selloff doesn't reach your Short Put, you win.
In hindsight
I would love to look into there course but it's a bit out of price range
We just launched Inside Access which is much more affordable for most which is a really good alternative. You'll get access to every meeting we've done and we hold +100 of them a month bit.ly/smbinsideaccess
Your vids are really amazing I learn alot , i appreciate you guys but why don't you talk on forex 😢?
How about if you are wrong? If it was that simple everything would become millionaire.
It's NOT that simple and that's WHY not everyone is doing it. Anyone doing these types of trades, risking entire account value on trades like that will wipe out their account sooner rather than later.
You will not blow away the market but this one will blow away your account if you follow blindly this strategy.
You have to roll your options if your sold put strike is breached otherwise in a bear market or in a choppy market you will blow away your account.
Another good alternative to look at for small accounts is the poor man's covered put.
Too bad you need a margin account for option spreads, eh? at least on webull which is what I use. Otherwise I would be interested in this strategy.
☦🕊💛❤☦
All these videos promoting one strategy or another pick a time frame where it works great, without talking about the risks involved, which can be significant.
At the start of the video, he says (paraphrased), "The market was down in 2022, so it was reasonable to expect an up year in 2023", and that is what happened. How about a companion video to this one, showing how this strategy would have worked in 2022? Probably not +55%, I would guess.
Every time my trading account gets close to a certain number I start taking losses back to back. Trying so hard to break out of this rhythm.
look at your metrics it might be able to tell you something you cant see, maybe your doing something right but also something wrong, its hard to know how your wrong sometimes
My broker requires that in order to sell a put, it needs to be a cash option put, so I would need $37,000 in my account not $4,501.
Level 0 actually. I would have to have a certain amount of assets and trading experience to go higher.
@@paulkozar7454 I might be missing something buy they really look scary risking 5k to make 500. LOL
@@paulkozar7454 You can always apply for level 1 or 2 and likely it would be approved. I suggest trying paper trading first though
This only works in 2023. If you back test this. A 2% downside credit spread most of the years you are at max loss. 2023 you had like 1 month greater than -2% return. Which was -5%.
But your gains are short term capital gains so you would pay taxes and not really have 50%
Is this strategy also know as the ''Wheel" strategy?
no
No. In the "Wheel" strategy, the investor does not buy back the put spread SPY during the "down" month. He allows assignment of the underlying SPY shares and then sells calls against those shares.
Unbelievable
It's unbelievable because it is unbelievable. Do this often enough and you WILL have trades that wipe out your 5k completely.
@@markl431 exactly - so irresponsible
your risk management is very crucial in this strategy. when Im wrong with the market direction, I exit the trade. don't wait to reach your maximum loss.
@@ivansam2207, no doubt but there is no mention of any risk management in this video. On the contrary, it appears to advise traders to enter these short spreads and wait till expiration.
The issue with this trade is your using 100% of your capital in only 1 position to make this trade happen.
I turned 2,500 to a 100k in 2 weeks. Just need to be consistent
Yeah, and I'm the pope. Even if this was true (which it probably is not), you got extremely lucky.
Yeah ok, open an account tomorrow and do it again and I will give you the $2,500 and we will split halfway. Looking forward to see it
@@javigil7024, lol, I wouldn't give him $5, much less $2,500.
@@javigil7024 send me the moneu
@@markl431 🤣🤣🤣 Yup Extremely