What are realistic returns for options income trading?

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  • Опубліковано 31 лип 2019
  • Register for our free intensive trading webinar smbu.com/seth
    Traders interested in options income trading frequently ask us what can they realistically expect to make trading options income strategies. In this video we tackle that question and provide specific examples of trading strategies and how much they tend to make on an annualized basis.
    #optionstrading #stockmarket #daytrading
    SMB Disclosures www.smbtraining.com/blog/smb-...

КОМЕНТАРІ • 47

  • @pauljnolan1000
    @pauljnolan1000 3 роки тому +5

    I always like Seth. Very straight-forward delivery. Doesn't shy away from the truth. Just the facts. Would be an excellent boss or platoon sergeant.

    • @smbcapital
      @smbcapital  3 роки тому

      haha that's true Paul

    • @urosuros2072
      @urosuros2072 2 роки тому

      Excatly lol , it looks like who would be better suited in Army than Wall Street

  • @sc0or
    @sc0or 4 роки тому +6

    Cit.: "in the bull market of 2014, the average return from the top five funds in the small-cap segment was 85% higher than that from large-cap funds. Similarly, in 2017, their returns were 45% higher than the large-cap segment. The outperformance of the mid-cap segment over large-caps in 2014 was 56% while it was a more moderate 10% in 2017"
    I think this is true regarding SMB and individuals who have relatively small trading accounts. Of course, they are always under a risk of loose everything because of risky strategies they trade. But this is as true as 2x2=4, that beginners will trade aggressive strategies until they earn enough money to be satisfied of 7% ann. return.

    • @sethfreudberg4750
      @sethfreudberg4750 4 роки тому

      D Shchurov, I don't think, at least for as portion of your portfolio, that you should ever be satisfied with a 7% annual return. But that's just me....

  • @terrywilliams2349
    @terrywilliams2349 4 роки тому +6

    I love options income trading such as the Covered Call & the Buffett strategy aka Cash-secured Puts

    • @sethfreudberg4750
      @sethfreudberg4750 4 роки тому

      it's truly fun when you understand the basic principles. There are so many different strategies to employ.

  • @Krogzaxants
    @Krogzaxants 3 роки тому +3

    I aim for around 2/4% a month from selling options or 24/48% a year. Beside this i also have growth and dividend stocks for the long term and swing trading some of them, for example if a stock hit RSI of 80 like MO did i sold out. Now waiting for a pullback to sell a PUTS on MO, if not then fine. Never force someting.

    • @smbcapital
      @smbcapital  3 роки тому +1

      sounds like a promising strategy to long term stable gains :)

    • @senadt2495
      @senadt2495 2 роки тому

      4% a month translates into 60% yearly compounded (with reinvesting). In other words a $10.000 investment would make you more than a million dollars in 10 years. Highly unrealistic, unless you have a holly grail.

    • @Krogzaxants
      @Krogzaxants 2 роки тому

      @@senadt2495 Yes i agree with that, it's a unrealistic goal. Perhaps i should aim for a 1/2% instead. Right now i am doing 2.3% on average.

    • @senadt2495
      @senadt2495 2 роки тому

      It actually depends on your trading frequency, not on a time frame. It is not the same if you make a single trade or 200 trades a month for the same return. The return should be measured per say 100 trades in order to get more proper picture. Then one can evaluate time averages IMO.
      So there is no need to aim at anything daily, monthly... as long as one is positive in the long run with statistically significant amount of trades, that should be proper measure and something to rely on.

  • @foley2k2
    @foley2k2 4 роки тому +5

    Maybe I'm an outlier or maybe this week was. I got about 2k out of a 4k account this week daytrading options. I missed another 3k due to timing. I'll know in a month if I can keep it up. I have to pass up a lot of potential opportunities due to wide spreads and/or low volume. The plan is to draw my account down to 4k each week and repeat. This is definitely not a passive strategy.
    My fastest trade trade this week made $400 in four minutes trading 2 contracts (SHOP Aug 09 $345 P on 8/1 at 9:40am in for 11, exit at 13).

    • @smbcapital
      @smbcapital  4 роки тому +1

      Glad you are seeing good results! Hopefully consistent ones :)

    • @sethfreudberg4750
      @sethfreudberg4750 4 роки тому

      Foley, my comments were aimed at options income traders, which is a bit of a different discipline from day trading options.

    • @jackhudkins542
      @jackhudkins542 4 роки тому

      How is this possible? If you are day trading options in a 4K account, after 3 round trips....that's it due to the PDT rule.....unless I'm missing something.

    • @bernard7057
      @bernard7057 3 роки тому

      @@jackhudkins542 maybe he used multiple different accounts. Like, maybe he was 2k in robinhood and 2k in webull for example

  • @michaelwescott8064
    @michaelwescott8064 2 роки тому +2

    I got lucky and got 44 percent over two weeks on an iron butterfly on VRAY. Too bad I only put up 300 bucks.

  • @alanbeshore943
    @alanbeshore943 4 роки тому

    This is great info. I would like the equity side of SMB to have the same discussion. I think some people hear about green and black shirt traders, then think they can do something similar with their 25k pdt account.

    • @sethfreudberg4750
      @sethfreudberg4750 4 роки тому

      That could be the topic of another video, Alan. Thank you for the suggestion.

  • @cchoi108
    @cchoi108 2 роки тому +2

    Super helpful thank you.

  • @chriskabanda2167
    @chriskabanda2167 9 місяців тому

    I can make 100% interest per month with binary options. I made 42% interest in April before adding more backtests.

  • @ryanlong6535
    @ryanlong6535 2 роки тому +11

    I turned 7k into 3.2 million in one year so.

  • @razzyp3999
    @razzyp3999 4 роки тому +2

    What about covered calls can you make 500 a week.?

  • @zefside84
    @zefside84 2 роки тому

    I mean options give you massive leverage so it's not really 5k he's working with. If he drops that on $100 options he's working with 2 million dollars so this doesn't make sense, what am I missing? If S&P moves 7% for the year that's 140k on those options so why are you comparing it straight to the S&P as if you don't get leverage with options??

  • @nicolasjomolca2205
    @nicolasjomolca2205 4 роки тому

    #achreevable #af

  • @AJohnson0325
    @AJohnson0325 4 роки тому +11

    2 to 3% per month I think is realistic for most markets.

    • @sethfreudberg4750
      @sethfreudberg4750 4 роки тому +2

      I think that's in the ballpark, yes, A. Johnson.

    • @Frankincensedjb123
      @Frankincensedjb123 4 роки тому +1

      $150 / month on $5,000? Dafuq? Waste of time.

    • @mattthebeast9666
      @mattthebeast9666 3 роки тому +1

      Frankincensed then trade with more money. Or, if you don’t have enough, then just reinvest the gains on that 5000. At about 2 percent a month, you can get about 30 percent a year. That 5k turns into 1 million in 20 years at that rate

    • @mattthebeast9666
      @mattthebeast9666 3 роки тому +2

      Jesse Mitchell I hope you’re joking. 800% a month consistently is impossible

  • @foodpimpz9086
    @foodpimpz9086 4 роки тому +1

    Has anyone reported having connection problems with the 2 hr. training? It froze half a dozen times before I finally quit watching.

    • @jensonphan
      @jensonphan 4 роки тому

      i have mine in 30 minutes

  • @FuturesTraderMorales
    @FuturesTraderMorales Рік тому

    I must not be understanding the proper definition of options income trading. I am going to have to disagree with this gentleman and agree with Foley and many other Option snipers, who exist and are thousandaires and millionaires. My knowledge of chart analysis, my chart set up, and ability to scalp, day trade long, and swing monthly contracts short term with practicallly a 100 win rate and timing will create millions in my lifetime alone. I am very interested in getting sponsored to fast track my results as I have spent months obsessing and learning from the greatest to be able to be this talented with trading options with superb discipline, consistency, and profitably. I will give your ageny a call, or shoot you a email sometime soon to ask about possible capital to be sponsored with.

  • @anonymous7810
    @anonymous7810 3 роки тому +2

    I made 100% over this last month is it just beginners luck???

    • @thegormlesstwit849
      @thegormlesstwit849 3 роки тому +1

      How many months in a row have you been able to do that?

    • @anonymous7810
      @anonymous7810 3 роки тому

      Kern Bells one month just got started

    • @thegormlesstwit849
      @thegormlesstwit849 3 роки тому

      @@anonymous7810 Whatever you did to get 100% in a month might not hold water over many months. Backtesting is needed.

    • @anonymous7810
      @anonymous7810 3 роки тому

      Kern Bells I did it on DFS calls

  • @hitarthraj5205
    @hitarthraj5205 Рік тому +1

    Can we earn 20-25% per month in options trading. Please answer me, I'm slightly confused.

  • @Mikegritz
    @Mikegritz 3 роки тому +1

    I think you can make $500 a week. Compound that $5k for ten years at 22% - 88%, and viola - you’re making more than $500 a week.

  • @muhammadisraa6856
    @muhammadisraa6856 4 роки тому +2

    1st