I hope you are enjoying this video. If you are interested in a more detailed analysis, it is definitely worth it to look into some of the research reports that I linked in the description box.
Great presentation of the concept of selling hope/insurance via the derivatives that is available to the retail trader. Managing trades/risk is probably a topic for at least 10+ more lectures ...
Louis, Another Great video- Thank You! I’ve been selling puts (on stocks I would like to own) and covered calls ( on stocks I own) on a weekly time frame. I noticed that the weekly options (7 DTE) repeated 4 times generate more premium than the monthly (30 DTE) Is that stock specific? Also, I noticed if the IV is 33% or less, the premium is thin and not attractive. I target strikes that are 30% ITM or less. Can you share why you prefer monthly time frames over weekly- Thank You in advance.
Hi Pete, Thanks for the comment. Firstly, I certainly agree that when IV is relatively low, it often isn't really worth it to sell options. I typically use IV Rank to determine whether IV is relatively low or high. As for weekly vs monthly options, one advantage of monthly options is that they tend to offer better liquidity. This might not be a problem when you are trading highly liquid underlyings such as major market ETFs, but for some securities this can be a problem. But as long as liquidity isn't an issue and you can collect enough premium, weekly options certainly are a viable alternative to monthly options. One reason why I focused on monthly strategies in this video is that there was more research and longer term data on monthly options compared to weekly options. I hope this helps.
Hi Jason, Thanks for your comment. My favorite options trading system is selling volatility and thereby taking advantage of the volatility risk premium.
@@TradeOptionsWithMe I thought you meant you were going to share your favorite options strategy. Yes selling high volatility helps bring in more premium. Guess this was more geared to the newbie who doesn't know that. Thanks for all you do.
Hi Jason, Thank you very much for the feedback. This video was mainly meant to present the idea behind premium selling and show some historical evidence of why it works. The exact implementation of this trading style heavily depends on the trader, account size, risk tolerance, and other preferences. Since there are many different ways to implement a premium selling trading style, I didn’t want to present a specific strategy. But I’ll definitely go more in depth with specific strategies in future videos.
I hope you are enjoying this video.
If you are interested in a more detailed analysis, it is definitely worth it to look into some of the research reports that I linked in the description box.
Great presentation of the concept of selling hope/insurance via the derivatives that is available to the retail trader. Managing trades/risk is probably a topic for at least 10+ more lectures ...
I hit a like button always ur great contents and emails have been much appreciated keep up ur great wotk. Mahalo
Louis, Another Great video- Thank You!
I’ve been selling puts (on stocks I would like to own) and covered calls ( on stocks I own) on a weekly time frame. I noticed that the weekly options (7 DTE) repeated 4 times generate more premium than the monthly (30 DTE) Is that stock specific?
Also, I noticed if the IV is 33% or less, the premium is thin and not attractive.
I target strikes that are 30% ITM or less.
Can you share why you prefer monthly time frames over weekly-
Thank You in advance.
Hi Pete,
Thanks for the comment. Firstly, I certainly agree that when IV is relatively low, it often isn't really worth it to sell options. I typically use IV Rank to determine whether IV is relatively low or high.
As for weekly vs monthly options, one advantage of monthly options is that they tend to offer better liquidity. This might not be a problem when you are trading highly liquid underlyings such as major market ETFs, but for some securities this can be a problem. But as long as liquidity isn't an issue and you can collect enough premium, weekly options certainly are a viable alternative to monthly options.
One reason why I focused on monthly strategies in this video is that there was more research and longer term data on monthly options compared to weekly options.
I hope this helps.
I dont see BXMD on thinkorswim paper and PUT is not tradable. Which platform should i use?tastytrade doesn't have either of them.
feels like i just listened to Michel bury selling his insurance for shorting mortgage bonds... so complicated
Awesome!
great material !
Thank you!
📈 💯
Ok i watched this but it does not answer the question of what is your favorite options trading system
Hi Jason,
Thanks for your comment. My favorite options trading system is selling volatility and thereby taking advantage of the volatility risk premium.
@@TradeOptionsWithMe I thought you meant you were going to share your favorite options strategy. Yes selling high volatility helps bring in more premium. Guess this was more geared to the newbie who doesn't know that. Thanks for all you do.
Hi Jason,
Thank you very much for the feedback. This video was mainly meant to present the idea behind premium selling and show some historical evidence of why it works. The exact implementation of this trading style heavily depends on the trader, account size, risk tolerance, and other preferences. Since there are many different ways to implement a premium selling trading style, I didn’t want to present a specific strategy. But I’ll definitely go more in depth with specific strategies in future videos.
So BXMD is basically a poor mans covered call if you can buy the long itm call during low IV
BXMD tracks a hypothetical portfolio of a regular covered call