I understand the math of it, but what I haven't found an answer anywhere is how do you sell options for stocks you don't own? When talking about small accounts, it doesn't make sense to buy a ton of stock in one high volatility company just to sell options, but it seems to be implied that's not how it works. I currently have less than 1k so I haven't done any trades
You wouldn't sell naked options you would use spreads which is how you can do it. Might be worth taking our beginner course on our website (it's free!)
Looking at 5:55 , when we see the "Cost of Trade including commissions" section, it says "- $2.50" as commission. Does TD Ameritrade not charge the $10 Base rate on small option trades?
We negotiated them down to $1.20 per contract right now which is fairly easy to do - see here: optionalpha.com/show-020-how-i-negotiated-a-17-reduction-in-my-trading-commissions-17421.html
That's awesome! I was confused when I was doing small simulated trades and it'd show commissions less than $10. Thanks so much for your help! Signed up for the watchlist and couldn't be happier with it, keep up the great work!
This Option Alpha you tube video ate really full of good information. Thanks
So then would it be safe to have your entire portfolio (eg: $5000) invested in options, as long as none of the positions exceed the 1-3% range?
I don't think you should - I would keep some money in cash or reserve.
nice video, very fluid and concise, would like more about what delta trades are placed at and generally how the prices change as the underlying moves.
thanks for the info. I enjoy many of your videos.
Very welcome Joe!
I know this is not ideal but could a 1k start up be profitable within a year?
To be honest it would be tough - we suggest around $3-5k to start.
I understand the math of it, but what I haven't found an answer anywhere is how do you sell options for stocks you don't own? When talking about small accounts, it doesn't make sense to buy a ton of stock in one high volatility company just to sell options, but it seems to be implied that's not how it works. I currently have less than 1k so I haven't done any trades
You wouldn't sell naked options you would use spreads which is how you can do it. Might be worth taking our beginner course on our website (it's free!)
I enjoyed your video , informative
Thanks glad it helped!
Great Learning
amazing info!
Looking at 5:55 , when we see the "Cost of Trade including commissions" section, it says "- $2.50" as commission. Does TD Ameritrade not charge the $10 Base rate on small option trades?
We negotiated them down to $1.20 per contract right now which is fairly easy to do - see here: optionalpha.com/show-020-how-i-negotiated-a-17-reduction-in-my-trading-commissions-17421.html
That's awesome! I was confused when I was doing small simulated trades and it'd show commissions less than $10.
Thanks so much for your help! Signed up for the watchlist and couldn't be happier with it, keep up the great work!