The BEST Options Trading Strategies (How I Make Money)
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- Опубліковано 22 сер 2024
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Learn my top options trading strategies in today's option trading how-to tutorial. Robinhood options
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Coming in at number 5 on the list is using options to enter and exit stock positions. Now you may be asking yourself well Alex how do you use options to buy or sell stock - well if you didn’t know, options were essentially created and are still used very much for this purpose. This is what the big institutions use - this is what warren buffet uses - if they want to buy a stock they would use options - if they want to sell out of a stock, they would use options. So how do we do that? The answer is by selling options. See when you sell options - as the option seller you take on the obligation of having to buy or sell stock at the strike price. Buy selling options we can enter and exiting stock positions.
Number 4 on the list - Selling covered calls and reinvesting. I put this at number four because it goes hand in hand with the previous strategy. When you own stock of a company and have at least 100 shares of that company you can sell covered calls on your position and instead of using it to exit your position you are going to use it just collect premium. Now this is one of the most popular methods of collecting passive income on your portfolio and in fact the returns that you can make selling covered calls on your stock beats dividend investing or any other income method generated from your portfolio. So how are we going to do this? Well the first rule of selling options in my opinion is to trade based off the probability of success. You sell a call and collect a premium - do this consistently.
So the wheel strategy consists of having enough cash to start selling cash secured puts. You sell puts on a stock that you think will go up in the long run at a strike price below the stocks current price. You do this over and over again as many times as possible collecting as much premium as possible. Now at some point the stock price will drop below the strike price and you’ll be force to buy the stock. Ok we have the cash and we buy the stock. Now we own the stock. We will now sell covered calls on the stock that we just purchased. Selling these calls with a strike price above the current stock price - and again, each week, each month we are selling these calls and collecting premium.
LEAPS stands for Long Term Equity Anticipation Securities. These are any options contract with an expiration date of 1 year or more. So when looking at expiration dates, if the date is more than 1 year from the current date then that would be considered LEAPS. Now what makes LEAPS so special? Well the first advantage is that they expire so far out into the future you don’t have to worry about theta decay in your option. Theta is the rate of change in your option price through the passage of time - so if you have an option that is worth $4, theta will eat away at that price everyday until the expiration date. If you have a weekly contract that theta decay decreases your option very quickly - but if you have an option expiring 1 or 2 years out then the theta decay of your option is much smaller, almost unnoticeable
Ok so let me explain what an iron condor is and then you can go ahead and watch the full explanation of the strategy along with my other videos. An iron condor is a trade consisting of 4 separate option trades. It looks like this. You are selling a call above the stock price, you are selling a put below the strike price, you are then buying a call above the call you sold, and you are buying a put below the put you sold. Now the idea of setting up this trade is to make a bet on a stock trading between 2 points. So if I look at a stock that’s trading at $100 I might say- hey I think this stock will stay between $95 and $105 - let me put on an iron condor trade and if the stock trades between those 2 points by expiration I get to collect a nice big premium. Now just like selling options, we are using probability to determine our success with this trade. We are picking 2 points of which its most likely the stock won’t reach and placing the trade. You are going to collect a premium on both sides - so double the premium
I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.
The best way to find growth stocks, key features to keep in mind is as follows: 1. Ensure gross margins are greater than 50% 2. Ensure P/E ratio is less than 100 3. Buy companies that are PROFITABLE, very important irrespective of sector. 4. Debt to equity ratio is less than 30% 5. Current ratio is above I 6. and a Float under 100 million One stock that fits the bill is FLGT (Fulgent)
Thanks for the insight and support I have no idea of how the market work unfortunately having a job doesn't mean security rather having different investment is the real deal...... So I really appreciate your transparency.
I'm so happy for taking the bold step in working and investing $27500 with her after a week I received $120.900 to my bank.
Thats because the metal in coins is or going to be shortly worth more than the face value of the coin. They are aware inflation will make the denominations worthless and not producing any more whilst taking them off of the markets to stop people hoarding them! Like the silver ones....
Every shibah investor right now just smiling at the price of shibah as it held strong and indeed valuable enough to generating good Rol.more person are gonna become millionaires and we have shibah thanks for that
@@investanswer2823 I agree with you 💯
Because of market volatility, getting money from stocks is a long-term strategy, and I'm more interested in making money in the near term and following the stories of an investor who built his $100k portfolio to about half a million in four months. My issue is, what tactics can I use to generate this much money in the market?
Being an elite investor comes with years of expertise, so take your time.
Investing might seem like rocket science, but you stand a better chance of making good profit gains when you have a good mentor
I agree with you, I also began with a financial advisor 13 months ago and I am proud to say I have made Substantial profits and am able to start up my solo company and do some more investments, as well as give my family a whole new life and I couldn’t have done it without my advisor.
Wow, who is the financial consultant that assists you with your investment, and what is the best way to reach them?
I invest using the services of Christine Lynn Saitta, an investment consultant I came across on a Yahoo Finance interview, she spoke very fluently, you can look her up over the internet with her full name, all the information you need to know about her are all there.
Nice video!! Very engaging from the beginning to the End., I'm new to crypto trade and I have been making huge losses but recently i see a lot of people earning from it. Can someone please tell me what I'm doing wrong
That is true, you need an expert broker and account manager to make good profit from Bitcoin trade.
As a beginner who don't understand how Bitcoin trade really works and you really want to make profit from it. I will advise you to first start working with a professional
How can someone know a professional acount manager that is trustworthy when legit once are hard to find this days.
Because my portfolio has been going down the drain while I try trading, I just don't know what I do wrong!
Have a target profile on Bitcoin
Keep investing Keep holding 90% of millionaires right now are investors in the crypto market
Thanks for the Enlightenment, Stock is the oldest online market we have done in the past years , we employ it because of the highest Quality of services it renders and how successful it is today we now say crypto currency too, I'm just saying that people should develop the habit of investing , it really helpful in life.
Working with Romero pieto is the best thing that can happen to a beginner trader who is aspiring to be fruitful out of the market he is trustworthy and straightforward we surely need more men like him in trading world.
Thanks for the breakdown and nice explanation.
His trade execution quality and profiting is well structured with great financial features.
I admire his trade simplicity alot and his ability to utilise your investment and ensure it's profitable at the end.
Does Romero trade for free ?
After a successful investment,you have nothing to worry about whether the rise or fall of the economy or anything won't effect you,make your future brighter by making good investments
I agree with you mate. Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed return.
@@powerofpositivity7362 To the beginners, you should also note that this data is worthless without an existing understanding of data analysis.
@@sessenturner8341 how do i get understanding about the analysis
@@harrypower2504 an expert with good mastering of the analysis is better .
@@sessenturner8341 I would like if you refer me to your personal investment expert. I will also want to know, if while they handles my Investment, is my investment still accessible by me to monitor and authorize any action on the Investment portfolio?
I'm new to cryptocurrency and I don't understand how it really works. Can someone guide me on the right approach to investing and making good profit from cryptocurrency investment?....
All you need as a beginner to make good profit from cryptocurrency is a professional trader who will trade on your behalf else you may make losses
That is true, you need an expert trader to make good profit from cryptocurrency trade
Get an expert trader who will trade for you while you receive the profit. that's the best way to make good profit from cryptocurrency investment
How can someone know a professional trader that is trustworthy when legit ones are hard to find this days
@@douglaschalliot6874
I will recommend my current trader Mrs Johnson Brina, , she is from USA and her strategies are earning a lot of profit for me
*When it comes to the world of investing,most people don't know where to start.fortunately,great investors of the past and present can provide us with guidance*
Same here, I made $12,400 profits on investing since I started trading with Mr Grey Smith his trading strategies are too notch am winning consistently trading with Mr Grey Smith . He really the best broker I've made a lot of profit investing with him.
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Get him on Wats app 👇
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@@josechristianiniguezboniil3996 😭 Thanks a lot, I'll contact him right away...
You are a great teacher and you make your videos fun to watch. Thanks for the great humor and insights.
The video should be a cult classic. Great explanation, helped me out alot.
Thankss~~~~
Dude, you are awesome in explaining things. I appreciate that you take complex things and break them up into small bite size chunks that are good for understanding while keep us entertained.
Time to get some practical experience.
I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks (with the help of my Financial Advisor of course) and made about 246k, but guess what? I put it all back and traded with her again and now I'm rounding up close to a million.
No doubt Expert Mrs Dawn Fitzpatrick Trading Services is very good, I invested £3000 and cashedout £24,250 after 2 weeks . I still wonder how she gets her analysis.
funny enough friend that I referred to her received $35,050 profit after 10 days of investing.... I became jealous.. Lol
@Alex Pluto
Hey you're not far from making profits, she has taken care of my account for months now....I have 16 wins and 2 losses so far
Dawn Fitzpatrick Is indeed a crypto goddess. with my first deposit of £2,000 i got a payout of £17,570 in a week
.I met Mrs Dawn last year for the first time at a conference in SWITZERLAND🇨🇭, I invested $20,500 and traded in one month making close to $90,570
investing successfully in forex requires the expertise of a professional broker that is why i have made profit since i started trading with mrs Linda Bradford
wow,amazing to see others who trade with mrs Linda i am currently on my 5th trade with her and my portfolio has increased tremendously
I invest with mrs Linda too, she charges a 20% commission on profit made after every trading session
which is fair compare to the effort she put in to make huge profit
this is not the first time i am hearing of Mrs Linda her exploits in the trading world but i have no idea how to reach her
Amazing I also just started trading with Mrs Linda Bradford , she is the best at what she does with an initial
investment of $1400 i made up to $5230 in just a week of tradng with her, her strategies are mind blowing
@@robertbennett5106 kindly communicate with her on her telegram channel@ tradewithlindabradford
The best explanation of the wheel strategy I've seen. Well done. Keep crushing it.
Glad you liked it, You can reach out to me on telegram@pandreafinance
Hands down the BEST TEACHER on options, Ty so much
I’m liking your content Pandrea. I’m new to this so the info is much needed. Do you coach these techniques ?
Thanks~~~~~
In all my years trading options, I’ve come to find out that professional guidance brings about remunerative results. Excellent job Clemans, you exceeded my expectations.
There’s no doubt that Clemans is indeed a genius. He has continued to put my investments to good use in the stock market.
Hi Egan, how are you doing it? I’m interested please. I want to build my portfolio, and trade profitably.
@@Kantor895 I know that there are dangers investing in the stock market. But with professional help from Levi Clemans, I've been able to curb these dangers and even go on to make insane profit. Here to reach him
Levi
Clemans (a)
Gma
Lcom... You can reach him through that
@@Christensen554 I appreciate the response. I'll leave him a message right away!
I’m so glad you’re going into this I care across this strategy once with a guy I met with and it was all his rave and I lost contact with him and never was able to follow through on it
Enjoy your video. Great summary what the optimal trading strategies are. At the same time, it requires experienced traders. Thanks for your good presentation.
So you typically use the iron condor on spy? Weekly? Monthly? Thanks as always for the excellent content 🙏🏻
Glad you liked it, You can reach out to me on telegram @pandreafinance
Finally I understood some basic option trading concepts!
Thank you, Alex!
7 rentals 54 retired now. looking for other ways to have fun in the market, thanks for making your videos.
Options trading is so far from my own investing strategy. (Boring blue chipper here). However this is one side of finance I want to understand better and what makes people flock to it. If I never asked that question I wouldn’t have found out about selling cover calls to collect premiums on those long term holds “ideally.” Keep up the great content.
You have to learn to roll in order to keep profits
Nothing wrong with buy and holding those trusty blue chips! But yes, if you can add some options into the mix with covered calls or the wheel strategy, I think you'll find even greater results in the long-term!
My opinion: Covered calls are a no brainer!
*As the economy crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future! Wondering if viewers here are familiar with Kimberly's trading strategies*
You are right, the market is profiting if you are using really an expert that will analysis and help you trade
I have never made money from trading using forex or crypto system before, but expert Kimberly gave me clear understanding how it works
Expert Kimberly has an awesome skill that cuts down losses, I have the best trading with the aid of expert Kimberly's trading service, she is very friendly and so easy to get along with for a profitable ending
@James Smith I've been in such situation before and it wasn't an easy one
My first experience with Mrs Kimberly gave me the assurances that has made me to invest without fear of loosing, I got four of my friends involved with her already
Hi …How do you check how much profit or which % of profit you’ve gained before expiration date before deciding to close or exit your position on your covered calls ?…Thanks for sharing your knowledge with us !
Basic math. If you sold your covered call for $30 and $15 of that has been eaten away by theta, you've realized 50% of the profit.
So many different options strategies. Iron condor, leaps, great video as always!
That's what makes options trading so amazing! :)
Honestly...you gotta be honest lol, CC are fine...you damn near can't actually lose money, you can have an opportunity loss as if price goes up way past your strike, well you miss out on upside, that's fine. However, cash secured puts can absolutely thrash you if you aren't careful...gotta tell people where this stuff can go wrong, cash secured put can have you holding big bags of trash stock price if you get a bad strike, then trying to turn around and do Covered calls, premium will probably be trash. Selling options are somewhat safe, but can go really bad If you pick a bad option to sell... mainly on the put side.
Covered Calls and Cash-Secured Puts have almost identical risk profiles. Both have naked downside risk and you can get hurt badly using either strategy during a major market selloff.
Can you get assigned if the stock price falls between the short and long leg on or before the DTE and be assigned if it passes through the long leg
There is always a small chance that a short in-the-money option could be assigned before the expiration date. However, this is extremely unlikely unless there is no extrinsic value remaining in the contract. I have a video that takes a deep dive into this topic if you're interested :)
ua-cam.com/video/CX9B-qPJmMM/v-deo.html
Hello Alex!I I came across your channel a few months ago....I believe through a shout out from another UA-camr, perhaps Graham Stephen or someone like that sorry, don't have the best memory.... I watch so many videos to learn all about stocks and finance. Anyway, I wanted to give you props on your channel and content. You have been an inspiration for me to keep learning, especially about Options! You are an authority on this topic in my book. You take a somewhat complex topic and explain in layman's terms so thank you! I'll keep watching if you keep posting! Sorry for the long message....
Thankss~~~~
Thanks Alex, just one question Do we need to have stock like covered call in order to do iron condor?
Hey Pandrea, I have been watching your videos on options trading and I must tell you, quite frankly, you are the best. your method is very simple for beginners like us to understand. I say thank you and God bless you. My problem now, I need an options mentor or coach. so, i was wondering if could be available for that.
BY FAR SOME OF THE BEST INFO ON OPTIONS...
Glad you liked it, You can reach out to me on telegram @pandreafinance
Great Teacher . Thanks .
Isn't Short straddle better than iron condor if you are gonna do it on big ETFs. Buying the call and put is just for extra protection
After watching so many UA-cam tutorial videos about trading I was still losing
Sadly these are one of the change in forex trade or crypto trade is not always assured
That's why I perfer NFT crypto token than trading crypto because I NFT crypto token you have 100% sure of your profit earned
Growing an account require dedication and patience.
Throughout this 2022 I only invested in NFT crypto token because it's the most reliable since I start it
Who else think this forex is kind of easy but there's a way to nervous to start and the only way now is NFTs crypto token
Been running options on my long positions, has worked like a charm.
I found your video to be quiet informative, thanks
i like how this guy completely downplays, by basically not even mentioning, the downside of these plays. especially the wheel strategy can be quite dangerous and lead to large losses in a short period. being forced to buy a share on a cash secured put is a big L, as well as being forced to sell stock on a covered call.
he leads people to believe there is free money in selling options or a particular strategy. No word about downside risk in buying deep ITM leaps or increasing leverage, stock going down bleeding theta all along loosing money on long stock and LEAP contract. Anyone bought Leaps on PLTON at $100 now at 30, or paypal when it was $300 and today $120?
If you are just starting trading options just think why would a market maker sell an option to you with a 70% probablity win for you? or if you selling the option who is buying that contract from you giving you 70% chance of sucess?
Yup you are absolutely right! A lot of people got hurt badly with short puts and covered calls during this past month of January. There is ALWAYS risk in anything you do in financial markets!
This guy is hilarious! Love the golden pineapple 😂
Wheel is my preferred strat
Do you recommend selling and have you sold puts with a one year expiration? If you let it expire, do you get less taxed?
You can reach out to me on telegram@pandreafinance
All option selling strategies (regardless of how long the duration may last) are always taxed at short-term capital gains.
wow - the best content on options trading hands down, or should I say thumbs up.
i love how you recording your videos and editing , plus all the information in video and the way you explain . i never feel bored easy to learn thank you ❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤
Always a great video! 👍 Missing that probability of options link.
My favorite is the wheel strategy
Fantastically done. Good work!
Could you do a LEAPS call debt spread. Also what if there is no volume for someone to by your LEAPS option
Just found this channel and I LOVE YOU!!
QUESTION:
If I sell a put contract for 2024, and the value of the contract went close to zero, is there anyway I can exercise the contract before expiration and get the shares at strike price before 2024?
No you don't exercise contracts you sell only the ones you buy. You buy to close the contract back at a lower price after theta decays the value.
@@miscellaneous3372 thabk you. I wanted the shares so I will just wait until expiration I guess.
Great content! If you have limited fund to do the wheel or leap strategy, what do you think of buying weekly ITM call, exercise the option right away and then start selling covered call to start the snow ball effect? Then going into other strategies.
👆 Thanks for watching
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Thank you Alex this is a great channel for options
Thankss~~~~
Hi Alex pls show us a live options trade of iron condor in Robinhood if possible. Thanks.
You can reach out to me on telegram @pandreafinance
But isn’t all these options required you to have at least 100 shares of that stocks to sell vs at least enough money to purchase 100 shares of that company? Like for example the 5th option, don’t you have to have at least $2000 at liability to at least make the put relevant? Because as I understand, these contracts we dealing with going by A x100 shares. Everything is in 100 shares price. Is there a less riskier way for people you don’t have 1 to 3 4k a month to invest?
Skill share interesting. I love learning as well. . Thanks for your share….🎉
Great video as always! When exiting a leap early, is there a gain % that you are targetting with each trade?
Thanks for all those advices Alex.
Love the videos Alex. Thank you. Keep doing great things.
Just wondering but how long does it take to grow a 5k into 1M using options trading? Working of AVE returns of 2.5% compounding effect ....will it take a decade of options trading?!?😮
Keep it up. Learning a lot on this channel. Knowledge equals 💰
Glad you liked it, You can reach out to me on telegram@pandreafinance
Nice green screen buddy.
I am very new to options. Interested in more about the Iron Condor because it seem safer. I am going to watch other video again now. As far as the whole process. Do I need to exit always before expiration? I remember seeing someone's video ( not sure who's) it mentioned that on the actual expiration day you may be forced to purchase the stock but you may not be able to activate your option at the safety strike price. I will be using robinhood for most of these trades. Thanks
You can reach out to me on telegram@pandreafinance
Yes you really should close out your position before expiration. Unless you have a larger account and you have good reason to get assigned, then avoiding it altogether is the best choice.
My fav are selling covered calls
Great content! I’ve tried multiple strategies and have learned what to do and what not to do. Of course, there were some growing pains...
Making mistakes and losing money is a necessary part of the learning process! No successful trader ever became successful without tons of losses along the way :)
Explain straddle please
I just started to buy option on last week. I bought a call for apple the price is $150 expiration on 6/23/2023. I paid $1685. Today apple price go up. If I sell put this option I can get $1783 then I only made $98 , do I shout wait or sell now?
Thank you for your selfless sharing !! Keep up the good work👍🏻👍🏻👍🏻
Glad you liked it, You can reach out to me on telegram@pandreafinance
I have a question. When you sell calls, do you have to wait until the expiration date to collect premium or can you exercise it whenever you would like.
U can buy back before expiration and collect partial premium.
If you're the one writing (selling) calls, then the premium paid by the buyer should he immediately debited to your account. The timing might vary between broker dealers though, so maybe check to see what their policies are.
@@rayart88 ray you are brilliant.
@@kelvynmendez2178 only works if it goes ur way... otherwise u have to pay to buy back before expiration lol
You don’t have to wait until expiration date. You can sell your call/put before
you are simply the best , great content , thank you for sharing ❤ keep doing more videos plzzz 😅😝
Love your channel!
thank you diana! thanks for watching :)
Thankss~~~~
All of this is fine in theory, I tried selling secure puts of 70% chance 4 weeks away and no one bought it. By the end of the day that transaction was cancelled by the broker. What to do next?
You need to adjust your order's price or trade more liquid options. If your price is too high, no one will buy your contract.
@@scottreesetradinginvesting7936 ya, it seems like I am actual selling off goods and competing with other sellers for customers.
@@yuurishibuya4797 Yup that’s exactly right! If your price is to high, then buyers will buy from someone else :) That’s what makes the market place so efficient with its pricing.
After now trying to do different ways of trading my first 37 dollars of winning option trading is feeling like few thousand 😂
Thank you!!!
Thanks for the great video!
No more Patreon, ? Site link
Love the edit
Brilliant video.
You're the man
More videos
Thanks for another great video🙏
Would love to see a video on what all to look at or look for when choosing an option to pursue. Are you using a particular stock screener and what settings are you ballparking for?
Hi Mark You can reach out to me on telegram@pandreafinance
Hey Mark! If you're interested, I have a video that will show you exactly how to set up the stock screener in your trading platform to find the BEST stocks for options trading! :)
ua-cam.com/video/Sq7DSg6ndlI/v-deo.html
This it great. Great video
How often will a covered call be exercised if the strike price is reached? I had a CC that was about a dollar away from hitting the strike price, do they always force me to sell the 100 shares? Luckily for me the price went back down
It all depends. Strike price isn't as important as the break even. Of course the buyer of the contract can exercise the right at anytime; however most won't actually exercise until they reach and exceed their break even.
Great content!
Just be aware that the market right now is very volatile and most of these strategies carry a high risk...only my opinion though.
lol golden pineapple?? some kind of stuff from Family guy right there
Do you do the wheel strategy when you’re down on your stocks ?( -10%+)
Hi You can reach out to me on telegram@pandreafinance
Another great video! Thanks!
Glad you liked it, You can reach out to me on telegram@pandreafinance
Where did you go 🤷♂️. Hope everything is ok with you
I’m glad I found you, by far the best person to explain and break down questions we all have
Glad you liked it, You can reach out to me on telegram@pandreafinance
Thank you so much for all the great content! You have a wonderful way of explaining things and I love your humor.
What if the LEAPS have low volume?
You can reach out to me on telegram @pandreafinance
LEAP options inherently have poor liquidity...unless you are trading something like SPY. So perhaps adjust your profit target on LEAP trades to be a bit higher than usual in order to compensate for any slippage when trading these contracts.
Thanks
@@alfredpeterson8678 Sure thing! :)
You are the reason why I will always be able to afford food for my family because of your selling covered calls strategy video. You are making a difference in society!
Iron condor
Good job
I’m a little confused. You said that when selling puts (in the situation where you hope the stock prices drops below or reached the strike price) if the stock falls to $20 you would get not only the premium but also a cheaper stock. How is this possible? I thought if the stock price falls you will lose your premium but you can still buy in a cheaper price. If there is a way to get both, can someone please explain?
You keep the premium regardless of what happens. If you get assigned the shares people just subtract the premium from the cost basis to say the got in lower. Cost basis = Strike Price - Premium.
@@alark8903 Don’t you lose the cost basis? Once the price of the stock and option decrease. (Not necessarily lose but is wiped out because of the decrease in price)
@@thenormalinvestor2479 No. It is deceiving because the price can constantly change and even take huge swings but whatever you agreed to remains the same. So if you sell a $10.00 put for $1.00 ($100 premium) for a stock regardless of what happens (as long as you dont close the contract early) you get all of the premium. If you get assigned the shares you now own the shares 10-1= $9. If you dont get assigned you still keep the premium. Simply put you are making a promise or contract to buy or sell at a given price during a given time (creating liquidity). People will pay you to do that.
U the man
10:00
Time stamps would be cool
What is a premium 😭
0 DTE is gambling period.
I love you
I don't get it.