2nd time I’ve watched this episode. I watched the series on the ttlive website. This is like info overload. I’ve decided to be delta neutral and theta 0.3-ish. You’re doing a great job explaining these complex concepts.
This year instead of buying SPY & QQQ I was going to sell at the beginning of every month a 60 day 40 delta put , and clothes at the end of the month or 30dte
I'm considering a review of my small $100k portfolio allocations, particularly in light of the pause in interest rate hikes. I'm curious about strategies in response to this that can make me a fortune during the election year.
The issue is most people have the “I want to do it myself mentality” but not equipped for a crash. Ideally, advisors help with investing jobs and at first-hand experience, my portfolio has yielded over 300%, summing up nearly 7-figure since covid-19 outbreak to date.
i'm blown away! been looking at creating an investmnt account to fund my millionaire goal before 45, but dont know exactly the best way to go about this, mind leaving details of your advisr here pls? I could really use a help right now
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Natalie Lynn Fisk‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Thank you for this great overview of how to build an option portfolio. You mentioned "too much theta" being a thing but not really why/how. Since we're looking for time decay as option sellers, how can "we're making too much money too fast" become a problem? Thank you again. :)
thanks for the content. I wonder if capital allocation should also be a key aspect of building portfolio. A lot of tastylive research mention one should dynamically allocate 20%-50% based on the VIX. I wonder if VIX is lower and thus capital allocation is lower, should the portfolio theta also be lower?
When calculating portfolio delta, do you consider the positive delta provided by your "held stock" positions? If yes, then your option positions will be skewed negative to a large degree. I continue to struggle with this. My natural inclination is to ignore my deltas provided by my stock and treat my options positions as a separate entity... trying to keep them close to neutral. I appreciate any light you can shine on this, and thank you in advance.
hey man I used to have this issue and as soon as I split them off into different accounts a couple years ago it makes it better when it comes to portfolio management. Overall, keeping a slightly negative deltas on short premium trade account like what dr Jim said feels manageable so far even in black swan events.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Thanks for sharing this here. A lot of beginners Like me are smashed out there every day. It's a good thing we have nice people here who want others to become successful as they are.
@@davec3689 true but is there no way to hedge buying power so it doesn't expand or something? wonder if there was research that shows the best % of buying power to use?
I agree with Dave. If you use 100%, you will cry in your sleep when volatility spikes . There's another tasty video on this that take into account the current IV environments. Basically low BPR usage in low IV environment and higher BPR in high IV environment.
I heard every word he said, but I'm lost in the details. I think I need a tutor to translate the theory of what he is showing here, into actual practice.
Watch video from years ago up to now. Nothing new in this video, but it is a good recap. And donot expect to understand all in short time either. Learn options take time, learning different market type also take sometime (stock option, indexes option, future options)
@@ksnskw9108 Thanks for the reply. I'm not the sharpest tack in the box, but I really want to learn these skills to keep me busy in retirement and earn a little scratch. So I will be consuming all the education I can so I don't make any boneheaded mistakes.
A good place to start would be our full beginner options crash course - ua-cam.com/video/89NHBLDTQyk/v-deo.html. We also have crash courses on the option greeks on our UA-cam homepage that you could watch. Enjoy the journey! This is part of the fun.
I was just like you when I started listening to these info dumps 😅. Over time you start catching the lingo as you go. I can understand some now, this is complex stuff!
Question: At 21 DTE mark- If I am up only 8% do I still get out of trade and take the 8 percent. If I understand this correctly EVERYTHING is determined at the 21DTE unless the strike price goes unto the money then I could roll etc.. Do you roll at 21DTE if delta is over 20 ? Thank you!
Not Jim but.....I think it depends on IVR and if you want to carry it. Consider Earnings date. I prefer not to roll in to an earnings window. IF rolling to a similar or move favorable IVR, I might keep it and get more credit. Probably would recenter a strangle or IC. If IVR is less I might just close it for a small gain or scratch and find a more favorable trade. FWIW - I'm in a short strangle now that I had to roll in to an earnings window b/c my strike was breached a few weeks ago and now I'm 19 DTE. I'm probably going to close it for a small loss vs. rolling it and carrying the risk through earnings.
Paying attention to delta and theta when entering each trade is necessary. When I have several positions on, how can I get an estimate of my portfolio delta and theta, so I can tell if I am where I want to be?
![Options for Beginners [2024]](http://i.ytimg.com/vi/89NHBLDTQyk/mqdefault.jpg)
2nd time I’ve watched this episode. I watched the series on the ttlive website. This is like info overload. I’ve decided to be delta neutral and theta 0.3-ish. You’re doing a great job explaining these complex concepts.
Yaaaa. Best Christmas GIFT ever.. Knowledge Sharing from Dr. Jim - Thank You So Much for your Time and Sharing.🙏
This year instead of buying SPY & QQQ I was going to sell at the beginning of every month a 60 day 40 delta put , and clothes at the end of the month or 30dte
Great Info Jim, Amazing knowledge base and thanks for sharing this.
Always the best teacher around. Thank you!
I'm considering a review of my small $100k portfolio allocations, particularly in light of the pause in interest rate hikes. I'm curious about strategies in response to this that can make me a fortune during the election year.
S&P 500 fund is all you need, recent gains will invite profit-taking at the start of 2024. do not trade unless you are a market guru.
The issue is most people have the “I want to do it myself mentality” but not equipped for a crash. Ideally, advisors help with investing jobs and at first-hand experience, my portfolio has yielded over 300%, summing up nearly 7-figure since covid-19 outbreak to date.
i'm blown away! been looking at creating an investmnt account to fund my millionaire goal before 45, but dont know exactly the best way to go about this, mind leaving details of your advisr here pls? I could really use a help right now
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Natalie Lynn Fisk‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Thank you for this great overview of how to build an option portfolio. You mentioned "too much theta" being a thing but not really why/how. Since we're looking for time decay as option sellers, how can "we're making too much money too fast" become a problem? Thank you again. :)
This is perfect. Thank you.
I liked this segment Jim. Thanks for sharing your knowledge!
this is very good, thx
Those who have the willing ears to hear, do exceedingly appreciate every thing you offer us, Jim. Happy New Year, brother.🙃
thank you ❤
Nice, digestible, easy to understand. Standing ovation.
Thanks very much for this. Excellent information.
Thanks Jim for this interesting and very helpful video keep the gems coming
How do you track your portfolio Delta ?
Jim, these guidelines also applies to options on futures such as ES, NQ or GC which uses span margin?
Thank Jim for this video. I needed a review of these principles.
Am I correct in thinking that the positive bias in _Black Scholes_ is equal to the *risk-free interest rate?* Or is there another factor I'm missing?
thanks for the content. I wonder if capital allocation should also be a key aspect of building portfolio. A lot of tastylive research mention one should dynamically allocate 20%-50% based on the VIX. I wonder if VIX is lower and thus capital allocation is lower, should the portfolio theta also be lower?
What citadel use to make big profits
Thanks Doc!
When calculating portfolio delta, do you consider the positive delta provided by your "held stock" positions? If yes, then your option positions will be skewed negative to a large degree. I continue to struggle with this. My natural inclination is to ignore my deltas provided by my stock and treat my options positions as a separate entity... trying to keep them close to neutral. I appreciate any light you can shine on this, and thank you in advance.
hey man I used to have this issue and as soon as I split them off into different accounts a couple years ago it makes it better when it comes to portfolio management. Overall, keeping a slightly negative deltas on short premium trade account like what dr Jim said feels manageable so far even in black swan events.
great breakdown of how to plan and manage an account
Mic looks like a light saber! Thanks for the video!!
Merry Christmas
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Thanks for sharing this here. A lot of beginners Like me are smashed out there every day. It's a good thing we have nice people here who want others to become successful as they are.
what about buying power? heard 50% is good target but is there safer ways to put all 100% of buying power to use?
You do not want to have 100% of your buying power in use because an increase in volatility will get you a margin call.
@@davec3689 true but is there no way to hedge buying power so it doesn't expand or something? wonder if there was research that shows the best % of buying power to use?
I agree with Dave. If you use 100%, you will cry in your sleep when volatility spikes . There's another tasty video on this that take into account the current IV environments. Basically low BPR usage in low IV environment and higher BPR in high IV environment.
I heard every word he said, but I'm lost in the details. I think I need a tutor to translate the theory of what he is showing here, into actual practice.
Watch video from years ago up to now. Nothing new in this video, but it is a good recap. And donot expect to understand all in short time either. Learn options take time, learning different market type also take sometime (stock option, indexes option, future options)
@@ksnskw9108 Thanks for the reply. I'm not the sharpest tack in the box, but I really want to learn these skills to keep me busy in retirement and earn a little scratch. So I will be consuming all the education I can so I don't make any boneheaded mistakes.
A good place to start would be our full beginner options crash course - ua-cam.com/video/89NHBLDTQyk/v-deo.html. We also have crash courses on the option greeks on our UA-cam homepage that you could watch. Enjoy the journey! This is part of the fun.
@@tastyliveshow Thank you, I will study it.
I was just like you when I started listening to these info dumps 😅. Over time you start catching the lingo as you go. I can understand some now, this is complex stuff!
ive never seen anybody on tasty build a portfolio
Question: At 21 DTE mark- If I am up only 8% do I still get out of trade and take the 8 percent. If I understand this correctly EVERYTHING is determined at the 21DTE unless the strike price goes unto the money then I could roll etc.. Do you roll at 21DTE if delta is over 20 ?
Thank you!
Not Jim but.....I think it depends on IVR and if you want to carry it. Consider Earnings date. I prefer not to roll in to an earnings window. IF rolling to a similar or move favorable IVR, I might keep it and get more credit. Probably would recenter a strangle or IC. If IVR is less I might just close it for a small gain or scratch and find a more favorable trade.
FWIW - I'm in a short strangle now that I had to roll in to an earnings window b/c my strike was breached a few weeks ago and now I'm 19 DTE. I'm probably going to close it for a small loss vs. rolling it and carrying the risk through earnings.
Paying attention to delta and theta when entering each trade is necessary. When I have several positions on, how can I get an estimate of my portfolio delta and theta, so I can tell if I am where I want to be?
Tastytrade calculates that for you.
Fire Up Chips!
I’m up 45% 2023, but down 50% 2022. I’m still catching up.
I can never understand anything you say.
I understood nothing 😂
In my view, this video suffers immensely from showing zero actual examples of what is discussed.
🫰
Merry Christmas.