The first 15 mins (so far) is just jabber about how great you are. I don't know who taught you how to set up a seminar/presentation, but they fell down on the job.
Does that really means we have to rush into but buying of the mentioned stock to level up our stock growth by a greater percentage or are we to seek adviser from a professional... cause i aren't know where the stock market is actually heading to in this recent time
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
I’ve actually worked with Lina Dineikiene. What I like about her is that she doesn’t just give generic advice. She really takes the time to understand your situation and help you come up with a plan that makes sense for you
Thank you for sharing this. I took the time to Google the individual you mentioned, and after reviewing her resume, it is evident that she is a seasoned professional. I have reached out to her and am eagerly awaiting her response.
Thanks Seth. Surpirsed to see you recommend this as a entry level strategy as the max loss on the first trade would have wiped out all of your Capital. Always interesting to hear these ideas though. You did a great job with your examples. Adding another minute or two on trade mgmt if it went against you would be nice. Follow up questions: Why ATM? Why 60 DTE?
ATM to get more credit, so you risk less, its 5 point gap, and you get about 1.8$, and risk 3.2$ for each lot out of 15. If you win 2 times while losing 1 its a profitable strategy
ATM has the biggest risk premia and takes most advantage of theta decay. 60 days to be close to the acceleration of theta decay. Why the advice/idea is to open a position sized nearly 100% of NAV is crazy to me tbh. Granted: he mentioned to size accordingly but to give this as an example on a 5k portfolio is a bit crazy
While I overall agree (full-time option trader here), please cover the potential loses also. Sure, if you make a few wins, one loss on a 5 point spread will wipe out your recent gains.
As an option trader myself, credit spreads bear less risk in European style options... For stocks better go with debt spreads. This wasn't mentioned, risk wasn't discussed at all.
Works until it doesn't then you blow up your account. Seems pretty easy peasy. What about rules for closing and or defending. This is pretty lazy video.
I've been saving about 1k per month from my job and also selling weekly cash-secured puts on NVDA. My goal is to grow my account to at least 30k. At the beginning of September, I got assigned 100 shares of NVDA at 105 and sold yesterday at 120. Made about $1900. Should have held them longer (today NVDA hit 127 briefly) but whatever. This channel has helped me a lot.
The fact you got lucky is not a reason to be chearful. It's not only about a total return but also about how much risk you bore to achieve that total return. You simply have no idea if NVDA will go to 80 over next few weeks, and you had no idea back in September when you got assigned.
@@silentexploration very true. My thinking when I sell cash secured puts is that I only do that strategy on stocks that i would be ok with holding for 6+ months if it did continue dropping and just wait it out for a recovery. I did get lucky for sure though.
@@pauliusmatiusovas4102Thats right 4102… good reply…He did mention the other side of the coin. The required margin is ..the risk ..and anyone who can’t figure that probably shouldn’t be considering the mighty SPX☠️.
There are many ways to defend a losing credit spread... max loss only if you bury your head in the sand as any knowledgable options trader knows.... good video Seth 😁
Why would you do that? If you want the properties of stocks, trade stocks, if you want the properties of options, use options. Options are a great tool to adjust your stock trades, or protect you from losses on stocks, or a number of other things. I don't understand why you'd want the same from options like you want from stocks. An easy answer to your question would be no - options have leverage and are waste assets (have expiration date), so you have to approach them differently than stocks.
Thank you so much for the video. Helped a ton . Also could you please outline the risk involved for ex if selling put got early assignment and what will be the implications. Do I need to shell out the money to buy 100 stock?
You can but that doesn't mean you should try it :) You should take the context into account, and the context is that SPX index generally goes up (you can, for example, calculate the mean daily % change or display the distribution of daily changes), so you're likely running more risk with a bear call spread. It might be safer to try both a bull put spread and bear call spread in one expiration, which gives you an iron condor strategy but most importantly it puts your breakeven points further from the short options, therefore your profit range is wider.
So basically "put 100% of your account at risk." Which no sane trader ever does (2% per trade/10% at any given time, max.) One single time of being wrong - which you *will* be some percentage of the time - completely wipes you out. Nice.
@@m2michael23 Awesome. Go ahead and explain how that relates to anything I wrote, or modifies the risk picture. While you're at it, do a backtest with RSI and see if you can detect any repeatable alpha in it. Good luck with any of that...
if u move to min 6:22 in the video, you will find that there are two points of oversold as well before the one SMB got it as an example, in which the spx continues to go down letting you hit the MAX loss !!! am I wrong?
Like your videos but this is the 2 or 3rd time you mention selling a put without explaining how you can do that without buying it first. Asked this question on Gemini and they explained the naked put process. Hope this will be added to your next oresentation on the subject. Looking forward to your next one!
This is a Put Credit Spread, so you are selling it and buying it at the same time. The broker knows this when you enter the trade. You don’t sell the put first and then buy it, it is done simultaneously.
Hi Mike, I have a question not related to this video, but it is about managing options. I have a covered call position that got away from me. Tesla purchased at 235, but I sold an ATM call expiring today (I second guessed my original strategy and sold that call as insurance) but I was correct and TSLA rocketed up, and I just watched it happen. My shares will be exercised at 235 and I'll profit the premium, but what if I was to purchase another 100 shares today? My average cost would go up, but it would be much lower than its current value of 256. Is this just a wash? I lose my profit on the first call and get it back on the second one? Or should i take advantage of my cost basis since I'll be selling at 235. Does the cost averaging really even matter in this case?
This is working with a index in a primary uptrend, ( I think you should have mentioned that). Have you guys back tested selling call credit spreads over 70 RSI in primary down trending stocks and index’s?
risking profit on account plus original balance too not good. better to risk less.. Even 15 SPX options is too much risk... very dangerous to account without a FULL plan.
You should calculate your breakeven point. In the first example in the video, your credit per lot is $175, so your breakeven point is 4,308.25. If the index closes below that on the day of your spread expiration, you'll lose money on the trade.
So you blow up your 5k account in 1 trade if it goes wrong 😢. This is bad risk management poor the ones who tried this and bed the whole account in 1 trade
Well and good when the market goes up. Market has been going gangbusters for several weeks. The RSI is at overbought condition. With a mega rate cut by FOMC and the prospect of further rate cuts, wouldn’t S&P/RSI stay at overbought condition for an extended period and therefore, a Bear Call Spread may not achieve expected results? In this exceptional scenario, which strategy would work best? How about an Iron Condor that expires two months from now?
if both the short and put options are way below the index, why are you buying back and selling the original options , instead of letting them expire like the first two examples?????
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Nicole Miller.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
damn. pretty aggressive but interesting. If all you have is 5k, definitely dont do this size. Risk no more than $500 I would say. If you dont care about 5k then by all means gamble it away like this. Anyways, is this using the daily chart or monthly?
If your buying puts while simultaneously selling puts, i dont understand how this could end up in a total loss, like people are commenting. Sideways action would be total loss, right?
If your account is 5k and you're opening 5 point credit spread with 15 lots, then your max loss on the trade could be 5 x 100 x 15 = 7,500, minus your credit received for opening the positions, which, in this example, was around 4,800. That basically mean you could be wiped out in one trade if not managed otherwise.
Right so if that first trade was a loser you would have wiped out half of your account and your ability to enter into a second trade because now you lack the buying power necessary to open a second trade. This is a absolutely terrible idea and it only works IF your first few trades are successful. Not to mention the risk to reward is nearly 2:1 so each loss wipes out ~2 previous wins.
And why is that exactly? I'm not saying I'd recommend this 5 point spread with 15 lots where you're basically risking your whole account, but on the other hand such general statements like you posted are not helpful either. Options can nicely protect you from huge losses, it's just a matter of how they are used, there's nothing inherently wrong with them.
![Quando Rondo - Grow Up [Official Music Video]](http://i.ytimg.com/vi/8zFnCg3BO4Q/mqdefault.jpg)
Options Class: bit.ly/3XWG8lG
The first 15 mins (so far) is just jabber about how great you are. I don't know who taught you how to set up a seminar/presentation, but they fell down on the job.
Does that really means we have to rush into but buying of the mentioned stock to level up our stock growth by a greater percentage or are we to seek adviser from a professional... cause i aren't know where the stock market is actually heading to in this recent time
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
I’ve actually worked with Lina Dineikiene. What I like about her is that she doesn’t just give generic advice. She really takes the time to understand your situation and help you come up with a plan that makes sense for you
Thank you for sharing this. I took the time to Google the individual you mentioned, and after reviewing her resume, it is evident that she is a seasoned professional. I have reached out to her and am eagerly awaiting her response.
Thanks Seth. Surpirsed to see you recommend this as a entry level strategy as the max loss on the first trade would have wiped out all of your Capital. Always interesting to hear these ideas though. You did a great job with your examples. Adding another minute or two on trade mgmt if it went against you would be nice.
Follow up questions:
Why ATM?
Why 60 DTE?
Good points. Good questions!
ATM to get more credit, so you risk less, its 5 point gap, and you get about 1.8$, and risk 3.2$ for each lot out of 15.
If you win 2 times while losing 1 its a profitable strategy
@@pauliusmatiusovas4102 this helpful. Simple. But I see now. Thank you
ATM has the biggest risk premia and takes most advantage of theta decay. 60 days to be close to the acceleration of theta decay.
Why the advice/idea is to open a position sized nearly 100% of NAV is crazy to me tbh. Granted: he mentioned to size accordingly but to give this as an example on a 5k portfolio is a bit crazy
And if you'd done this in 2022 you'd have wiped your whole account out a couple of times
That’s because they never talk about stoploss, adjustments or risk management. Since every scenario is cherry picked.
Exactly
@@Eqnotalenttrading is cherry picking boi 😂😂😂
@@heuksalman forward, not backward picking with 100% WR so no need for risk management
Doing it ATM is too aggressive imo, they should have done it at like 20 to 30 delta
While I overall agree (full-time option trader here), please cover the potential loses also. Sure, if you make a few wins, one loss on a 5 point spread will wipe out your recent gains.
As an option trader myself, credit spreads bear less risk in European style options... For stocks better go with debt spreads. This wasn't mentioned, risk wasn't discussed at all.
This is a great video for small accounts and trading overall. Thanks so much!
Informative but many things can go wrong- should talk about risk management- no easy money :D God bless us all-
Great option trade techniques, thank you both of you ❤
Works until it doesn't then you blow up your account. Seems pretty easy peasy. What about rules for closing and or defending. This is pretty lazy video.
What settings for the RSI?
I've been saving about 1k per month from my job and also selling weekly cash-secured puts on NVDA. My goal is to grow my account to at least 30k. At the beginning of September, I got assigned 100 shares of NVDA at 105 and sold yesterday at 120. Made about $1900. Should have held them longer (today NVDA hit 127 briefly) but whatever. This channel has helped me a lot.
The fact you got lucky is not a reason to be chearful. It's not only about a total return but also about how much risk you bore to achieve that total return. You simply have no idea if NVDA will go to 80 over next few weeks, and you had no idea back in September when you got assigned.
@@silentexploration very true. My thinking when I sell cash secured puts is that I only do that strategy on stocks that i would be ok with holding for 6+ months if it did continue dropping and just wait it out for a recovery. I did get lucky for sure though.
Благодаря тебе стал разбираться в арбитраже и связках)
What broker do you recommend to trade options on spx and allows for spreads for newer traders
Thank you,Sir.
Спасибо 🙏
Come on SMB. You're not talking about the other side of the coin - what's at risk. Lazy.
Required capital ~4775$ at risk each trade
@@pauliusmatiusovas4102Thats right 4102… good reply…He did mention the other side of the coin. The required margin is ..the risk ..and anyone who can’t figure that probably shouldn’t be considering the mighty SPX☠️.
Muy interesante. Sería muy bueno conocer cómo gestionar el riesgo ¿qué es lo que se debe evitar hacer?
Good information however, I'm limited to Level 1 options.
I had the same problem with Charles Schwab since they are very picky. I moved to Tasty Trade and problem solved.
Thanks
There are many ways to defend a losing credit spread... max loss only if you bury your head in the sand as any knowledgable options trader knows.... good video Seth 😁
Can you treat options like stocks?
Why would you do that? If you want the properties of stocks, trade stocks, if you want the properties of options, use options. Options are a great tool to adjust your stock trades, or protect you from losses on stocks, or a number of other things. I don't understand why you'd want the same from options like you want from stocks.
An easy answer to your question would be no - options have leverage and are waste assets (have expiration date), so you have to approach them differently than stocks.
It's so easy
Thank you so much for the video. Helped a ton . Also could you please outline the risk involved for ex if selling put got early assignment and what will be the implications. Do I need to shell out the money to buy 100 stock?
how would you adjust put if market moves against you
You would need to buy and sell the puts you made and then move further down to create another spread.
Can we use the similar approach for overbought scenario with call options?
You can but that doesn't mean you should try it :) You should take the context into account, and the context is that SPX index generally goes up (you can, for example, calculate the mean daily % change or display the distribution of daily changes), so you're likely running more risk with a bear call spread. It might be safer to try both a bull put spread and bear call spread in one expiration, which gives you an iron condor strategy but most importantly it puts your breakeven points further from the short options, therefore your profit range is wider.
Лучшее что есть, я начинаю это путешествие
What timeframe are you looking at the RSI?
Daily
Sorry but I doubt that, that’s either a monthly or quarterly chart.
@@markosedrak2187 no. Those are daily candles.
It literally says daily on the chart dude@@markosedrak2187
So basically "put 100% of your account at risk." Which no sane trader ever does (2% per trade/10% at any given time, max.) One single time of being wrong - which you *will* be some percentage of the time - completely wipes you out. Nice.
lol I was just thinking the same thing
this is option trading not equity trade. but main contest is to long the SPX at oversold.
@@m2michael23 Awesome. Go ahead and explain how that relates to anything I wrote, or modifies the risk picture. While you're at it, do a backtest with RSI and see if you can detect any repeatable alpha in it. Good luck with any of that...
“Grow your account quickly”
Just buy cds or bond nor risk
With the put credit spread; if you sell an in the money put aren’t you at right or getting immediately assigned since it’s in the money?
SPX cash settled, No assignments allowed.
if u move to min 6:22 in the video, you will find that there are two points of oversold as well before the one SMB got it as an example, in which the spx continues to go down letting you hit the MAX loss !!! am I wrong?
that's why he traded 60dte instead of 30dte to give the market enough time to bounce.
Where does someone find an RSI indicator? Is this something you can find on any brokerage website?
just
search it.
the term used to be google it I guess..
Rsi of spx
rsi of qqq
etc..
I just want to know how accurate is the RSI?
Which broker allows credit spread for beginners?
None really, you gotta lie to them about your income so you can get options approval level high enough to do them.
Like your videos but this is the 2 or 3rd time you mention selling a put without explaining how you can do that without buying it first. Asked this question on Gemini and they explained the naked put process. Hope this will be added to your next oresentation on the subject. Looking forward to your next one!
This is a Put Credit Spread, so you are selling it and buying it at the same time. The broker knows this when you enter the trade. You don’t sell the put first and then buy it, it is done simultaneously.
you do need to own a Long Put first. you can sell a put without owning one if you have the required cash. Options are not stock.
Hi Mike, I have a question not related to this video, but it is about managing options. I have a covered call position that got away from me. Tesla purchased at 235, but I sold an ATM call expiring today (I second guessed my original strategy and sold that call as insurance) but I was correct and TSLA rocketed up, and I just watched it happen. My shares will be exercised at 235 and I'll profit the premium, but what if I was to purchase another 100 shares today? My average cost would go up, but it would be much lower than its current value of 256. Is this just a wash? I lose my profit on the first call and get it back on the second one? Or should i take advantage of my cost basis since I'll be selling at 235. Does the cost averaging really even matter in this case?
This is the worst trading advice I’ve heard so far. One bad trade and you wipe your entire account
This is working with a index in a primary uptrend, ( I think you should have mentioned that). Have you guys back tested selling call credit spreads over 70 RSI in primary down trending stocks and index’s?
why not increase the lot size each time and compound the profits
risking profit on account plus original balance too not good. better to risk less.. Even 15 SPX options is too much risk... very dangerous to account without a FULL plan.
quesion: when SELL PUT `in the money` it is potential to be Assignment, and whole deal will be runned, correct?
Index options are European style, no early assignment. Since it's an index, it is cash settled, there is no underline asset.
You should calculate your breakeven point. In the first example in the video, your credit per lot is $175, so your breakeven point is 4,308.25. If the index closes below that on the day of your spread expiration, you'll lose money on the trade.
So you blow up your 5k account in 1 trade if it goes wrong 😢. This is bad risk management poor the ones who tried this and bed the whole account in 1 trade
А как прокрутить её с телефона? Вы показали с компьютера
I was hopeful after seeing the thumbnail, but no, he's still looking down his nose at you.
Well and good when the market goes up. Market has been going gangbusters for several weeks. The RSI is at overbought condition. With a mega rate cut by FOMC and the prospect of further rate cuts, wouldn’t S&P/RSI stay at overbought condition for an extended period and therefore, a Bear Call Spread may not achieve expected results? In this exceptional scenario, which strategy would work best? How about an Iron Condor that expires two months from now?
Why sell 15 5-width credit spreads and not one wide credit spread with the same risk? We will save on commissions, after all
if both the short and put options are way below the index, why are you buying back and selling the original options , instead of letting them expire like the first two examples?????
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Nicole Miller.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
You trade with Nicole Miller too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Clark Timothy Johnson Michelle Robinson Patricia
This is a specifically crafted scenario, this doesn't happen irl
Rodriguez Gary Rodriguez Eric Taylor Sharon
damn. pretty aggressive but interesting. If all you have is 5k, definitely dont do this size. Risk no more than $500 I would say. If you dont care about 5k then by all means gamble it away like this.
Anyways, is this using the daily chart or monthly?
Half information is too dangerous I wonder why u avoid sharing the other side or risk
Hall Brian Robinson Sharon Clark Sharon
Walker Anna Clark Laura Taylor Scott
If your buying puts while simultaneously selling puts, i dont understand how this could end up in a total loss, like people are commenting. Sideways action would be total loss, right?
Oh I see maybe if you get assigned then you could have a massive margin call situation... I've had some interesting assignments
If your account is 5k and you're opening 5 point credit spread with 15 lots, then your max loss on the trade could be 5 x 100 x 15 = 7,500, minus your credit received for opening the positions, which, in this example, was around 4,800. That basically mean you could be wiped out in one trade if not managed otherwise.
Jackson Robert Thomas Frank Thomas Susan
Right so if that first trade was a loser you would have wiped out half of your account and your ability to enter into a second trade because now you lack the buying power necessary to open a second trade. This is a absolutely terrible idea and it only works IF your first few trades are successful. Not to mention the risk to reward is nearly 2:1 so each loss wipes out ~2 previous wins.
HaHa small account. I only have $300. $5000 is out of the question.
options are never a good option for a rookie
And why is that exactly? I'm not saying I'd recommend this 5 point spread with 15 lots where you're basically risking your whole account, but on the other hand such general statements like you posted are not helpful either. Options can nicely protect you from huge losses, it's just a matter of how they are used, there's nothing inherently wrong with them.
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️
I'm 37 and have been looking for ways to be successful, please how??
Sure, the investment-advisor that guides me is..Lau ra shi ne
Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!
😱Sounds familiar, I have heard her name on several occasions.. and both her success stories in the wall Street journal!
Same, I met Laura shin last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Laura shin
Instead, please give credit to SMB, not your Lord Jesus; he doesn’t know how to play stocks or options. 😅
Naked put process