WHAT TO DO WHEN A CASH SECURED PUT GOES WRONG? | EP. 86
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- Опубліковано 12 вер 2024
- Let's talk about what to do when you're selling a cash secured put and the stock price drops way below your strike price. Selling puts is a great way to generate great returns but cash secured puts don't come without risks. I will show you a few tricks to potentially recover from a cash secured put thats gone wrong.
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Wow, thank you. You have taught me so much on this new options journey.
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail.
Great teaching, learning a lot from you thanks again
This is a useful info on the cash account! Nice!
(Registered accounts don't allow the option level 3 or 4)
just like to add that the premium is yours to keep no matter what the outcome of the option. i hear it a lot that can confused beginners. the option expires worthless and i get to keep the premium. if you are exercised you still get the premium.
You keep the premium at all times whether you are exercised or not.
@@MaherZananiri the "only" time you don't get the full premium is when you close early.
This channel is so underrated. Love your videos, bro.
Me: lost on several trades this week.
TechConversations: September is typically tough on the market.
Me: 😲
Is this better than opening a spread
If there is one thing I have learned in recent months it is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses.The market is very unstable and you can't tell if it's going bearish or bullish.While myself and others are trad!n without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow. I was able to make 6 BTC from 2.1 BTC in just August from implementing trades with tips and info from Aaron Choi.
So exciting to see others who made moves, I am currently on my 7th trade with choisignals and my portfolio has increased rapidly
.;@ choisignals VlA Te le gr am,.📧📧📧
My first investment with Mr Choi gave me the assurance that has made me invest without the fear of losing, I got 2 of my friends into his guidance already
People are ignorant of the profitability in bitcoin Investment and that had been their major issues limiting their Investment
I'm also member of Aaron trading session and a full time beneficiary of his daily signals, i increase my 1.6btc to 5.3btc within 5 weeks ✅
Thank you for the dark mode!!!🙏🙏
I like the AAPL example but how does this affect your taxes? Wouldn't this be considered a wash sale?
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
Great Video. This may be a dumb question. With buying only 1 call how were you able to sell 2 calls?
He sold 100 shares that he own already.
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
This would have been a nice video to remind me of the fundamentals - RIP FBRX -80% in aftermarket movement 😢 sold CSP without buying security
Same here , just hold or roll brother
Any chance of revealing your 1 year chart or all time chart?
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
Thanks for sharing! It's exactly my problem! But my stocks went Down further.😭
please help with your good idea. Thanks
Can you tell me how to become member.
I try it to down load the app. But a dont know what else to do
Hello Sam I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail.
Can I use the last strategy in the level 2 on Robinhood ? last strategy(buy 1 call, sell 2 call)
Thanks for the video..
I have a question about one of the options you have talked about in your videos...
What happens if I have 100 shares of a stock and I have placed sell/call but then stock moves past my sell/call strike price? Should I try to recover my stock by buying the call and ultimately lose some money or should I let it expire and take whatever profit I got?
If your call strike is above your cost basis, I would let it expire and have your shares called away. Personally, I don't like to close a trade for a loss. Another option is to close for a small loss, but then sell (roll) another call higher and/or at a later expiration for a net credit. So you'll still profit overall and be more likely to keep your stock. Hope that helps!
You can try to roll it over if it makes sense and if you really want to keep your shares.. otherwise I personally let them get called away and start selling puts (the wheel strategy).
What happens if it didn't move up after you did the 3 leg option? How would you go about changing the expiration date on it? Selling the ATM call and buying the 2 otm calls. Then repeating?
I learned a lot from you sir, I am In trouble with FBRX last week I received 900$ premium, on sept 17th I will have to buy at $25 where stock fell down to $4, when I sold with 25 strike it was looking really good. Tell me what to do..
Same here I sold 2 and now I’m going to ave $16 so I bought 300 shares around $5.60 to ave down when I have to buy I don’t know what else to do other than try to ave down but it kept going down
I would stay away from selling options on BIO stocks. These are stocks that can easily drop 80% plus in one day.
This is great / biglove G
Thanks great video
Newbie here. Making sure I follow - since you had sold two you would have to buy two, which would cost $294 so would you then sell two puts at $144strike in order to still get a credit?
Yes. Ur correct.
Note: he also Lowered the strike price.
@@mydaytrade7083 thank you
Great content, but i do have an issue with your very last strategy where you bought 1 call and sell 2 calls at a higher strike price, wouldnt 1 of your calls be at huge risk should the stock went sky high at expiry?
not really, you would still make some money. The issues is the other way around...if stock tanks, you would lose on the option you bought as a collateral (granted you would still make money since you sold 2 calls, however me personally consider this a fake profit, since your collateral in this case 100 shares and 1 long call option)
@@Hydralisk777 what is the title of that video?
@@Hydralisk777 you are correct, i forgot to factor in the 100 shares that was originally held so there shouldnt be much of a risk. Thanks!
@@Hydralisk777 I did this but stock tanked instead of up
@@kbuzz9607 My advice is this: forget all this fancy strategies. Learn about the wheel strategy and use it. make sure you pick good and trusted companies. you will not make a killing, but will make some profit this way. I did great on X this year, unfortunately my profits were capped by my covered call, although I still made some cash in the process. And if the company you chose for a wheel pays divvies, that even better! good luck
Can you please put a video how to roll over spread to different expiration date
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
How do you exit out of this strategy
I sold 2 $25 puts 9/17on fbrx and it tanked to $4 and I bought 300 shares at $5,50 to ave it out when it executes. What can I do to because I’m not sure what to do now. Any advise please
Buy 2 puts above or below your strikes to cancel out the puts you sold or reroll your credits into selling calls or reroll those into a stock you own an knows how it moves an sell otm puts on that to recover it's alot of ways you can recover from what you doing
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
Thanks for the video. I am new to options but isn't this strategy very risky! Your max profit is $35 while your max loss is $2265 . Or am i missing something here? Much appreciated
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
I sold a put credit spread on Friday and GME took a big dump and scared the shit out of me. TDA closed it out automatically about 15 mins before market close for about half what I was credited so I still made some cash
something doesn't add up here...
if you sold a put credit spread when, let's say, GME was at $200 earlier in the day, then in order to close out the spread when GME came down to $190, you normally would have to buy the spread back at a higher price then what you were credited with earlier.
@@llathem101 I sold it for $56 (.56) credit at market open, TDA closed it at $26 (.26) about 10 mins before market closed
@@llathem101 it was the 185/190 put spread FYI
@@johnrussell9263 was the spread supposed to be expiring yesterday Friday? sorry, I just thought normally when a stock drops, you would be losing money on a bullish play like put credit credit spread.
@@llathem101 yes it expired yesterday, you don't lose money on a spread that you recieve a credit for unless it get exercised ITM. I didn't know TDA would automatically close it out for me, I was hoping they would expire worthless but oh well now I know
You're the best
What do you do on a market crash?
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail.
Genius!
Still recovering from WKHS. Sold a 30 put back when it was in the 30s and it just tanked since then
crazy how low workhorse went. Maybe now is a time to buy??
@@joesmith9483 Yes I think so. I have bought more and now my avg price is just under $15
@@Elpique86 how about selling puts at 10 to collect a little income?
@@joesmith9483 I have been using the wheel strategy (selling covered calls) and also selling puts under the current stock price but its taking so long
For the love of god you got SMOKED
Thank u for the stock repair idea, am in the same situation with Uber..will research this strategy.
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail.
Question...
Scenario: you have 100 shares xyz
You sell call for xzy
Even if the call gets exercised, you get to keep the full premium?
So, if you expect the stock to go up fairly soon, why not sell a call at the profitable strike, with a long expiration, to make a large premium?
The risk, obviously, is it takes longer than expected for the contract to be exercised. Of course, you could buy it back. With luck, at a lower premium.
Thoughts?
Exactly what I was thinking...I guess his way was saying if youre in rush to recover
what you're saying is correct, but technically speaking, if you started with 100 shares of xyz assigned to you at a loss, yes, selling a call wayyyy far out can potentially net you enough premium to make up for the loss.
but what if the stock tanks further in the mean time though?
if it does tank, and it tanked because xyz's fundamentals changed for the worse, are you willing to hold a dying company's stock?
also, if I expect a stock to go up, I would buy calls, or sell puts, or buy the stock itself. is that what you mean?
So, what occurred to me, as I thought about this...
The wheel strategy is 100% win on options premiums. However, the trade off is potentially severely limited profit. And potentially a long (if ever) stock recovery.
what is the best way to make money from crypto trading?
I don't trade, I invest with a professional assigned by a crypto company that trades for us and returns profits on weekly basis for me and you can invest your capital and get weekly Returns of investment (ROI) without any extra fees attached
The professional is Ms Hanna Todd
yeah that's right I think the best way is to invest with a professional, at least it saves the trauma of too much losses
Excellent Thky so much for all your knowledge really appreciate it 💜🙌
I sold too
👍👍
Thanks for watching!
No need for any of that. The reason that would scare you and force you to do stressful extra steps is bc you bought options on stocks you should not buy in the first place. Just play with SPY or any major index or a top 5 stock. Then no matter how it goes down you want to own it anyway and you know it will recover
Any advise on what to do if u bought a call option and it’s tanking and expiring next week pls help !!!!
Great video. Like the stock repair strategy. I have a stock to try it on
As someone that trades cash secured puts every week, listening to your fragmented explanation as you jumped all over the place hurt my head. How many times do you need to say "how am I going to fix this" before you actually explain succinctly how to fix it? I certainly hope no one actually listens to you and then tries to trade.
Selling OTM puts works great! That's my favorite strategy I teach in my videos.
Me too!
Good going G / 2 really good strategies. I’d probably do the rounding down.
it is not worth a hassle for $13 bucks lol you will find that slight movement of the price near your strike price means you are already in the negative and will need to pay a lot more to exit the position
👍👍👍
Question / I know you rarely wanta go to full expiration with selling puts / what are the main reasons? I know with covered calls its time decay and the more likelihood of assignment. Does it work the same way with selling puts?
Yup. Same with puts. Time decay works in your favor and if you keep until expiration there's a higher chance or assignment.
@@trading5talents / Other than assignment, I would’ve thought that time decay would improve in the put-seller’s favor as time moved forward . Guess not. More oddly, today I signed-up for a paper-trading margin account with TOS and read something weird in the terms and agreements: That you can assigned if your strike price is close to the asking price at expiration. What?
@@ronrocheleau3035 As a seller (writer) of options (puts or calls), theta decay benefits the seller as the extrinsic value (theta/time) of the option decreases as expiration nears. Then we can close it out early (buy to close) if we want.
As for the TOS assignment issue, I'm not sure on that one? I have a TD account, but I don't use it for options trading.
Great content, however, you started out the video with one stock and you keep switching to other stocks. Can you please stick to the stock from start to finish with what you start the video with? You are confusing the viewers with switching up so much to make your point match the situation of other stocks. Stop doing that...geez
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail.
txfa2
vyn.fyi
YOU ARE SIMPLY MESSING UP - JUST SAY ROLL DOWN ANS EXTEND THE EXPIRY DATE -YOU ARE BEATING AROUND THE BUSH
This happened to me when I sold a $50 put on PLUG and the price tanked... now look where it is. Currently trading below $30. My cost basis is like 34 bucks. So I'm just selling covered calls now hoping that one day I can sell this trash company
Hello I live here in California, I'm just using this means urge you seeing this to give a try and appreciate me later. I saw your comment and I decided to put this down to let you know about him, He guides me with the exact time frame to trade which I made about $3k after trading alone and I recovered my losses. His strategy is really good i'll highly recommend him to you.
Steven Kurt 32 at gmail
Nothing seems to rescue my 14 cost based PSFE shares :)
lol he sold puts on PLTR at $24.50 😂 Price is what today? Folks all these internet kids are clueless on how to value companies
To the moon😂