Get Your Copy of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Outstanding explanation Davis. Instead of over analyzing, use the simplified method that trading experts have already figured out. Your videos are the best!
Thanks for the guide. I follow all your stuff just for confirmation of my own strategies, but I gotta ask what’s in it for you? Lol - your content is awesome and I get your newsletter which leads to your YT.. but how can we help support you more?
Another great video Davis.I have 3 questions I noticed you use 20-30 delta for bull put spread and 16-20 for IC. Are you strictly following TT study or are you willing to take slightly more risk on the bull put spread b/c market travels higher over time and you would be getting less premium if you chose the smaller delta like IC? Also, in general, if you choose a 1-5% risk per trade, what portfolio risk would you be taking on if you had several trades on at once? Lastly, strategy wise, are you scanning your watch list and put on bull put, bear call and IC based upon where the stocks in your watch list are in relation to the stochastics trading range? I’ve only done CC’s and cash secured puts and have gotten burned too many times. Wheel strategy is nice in theory or maybe should only be done with ETF’s that aren’t ARKK. lol.
Thanks ☺️ 1) Depending if I'm more bullish/bearish I'll go with a higher delta. 2) General rule of thumb is to not exceed 50% of your capital allocation at any one time. 3) ua-cam.com/video/81t8AoPOKCA/v-deo.htmlsi=6qrfyG2n0eUiWLuX
Thanks for the good video. Just two questions 1) how do you account for underlying etf with skew e.g. Gold? Just trade based on 16 delta? 2) Any considerations of commission to the total credit & wing size since there's 4 leg? Having smaller wing size means less credit and commission can eat into profit
Hi Davis, thanks for the informative video. Very helpful. It's would also helpful to compare against the returns of the S&P in the same period so that we know whether this strategy beats the S&P over the long run and it won't sense to trade with the strategy when you can just invest in the ETF and get higher returns. Appreciate it!
Hi Davis. Thank you for the video. Could you tell me how to easily calculate right price to close a trade. if I build Iron Condor or some kind of Spreads and would like create a GTC limit order on 50% of profit?
Another great video Davis. I have watched a lot of your videos and you always look at charts to pick support and resistance levels, but it is never clear what time frame you consider. Do you have a "standard" time frame? I ask because if you look too far back in time, the highs and lows and support/resistance levels would not be the least bit applicable to the current price trading ranges. How far back do you look?
Hello, I am a new subscriber, I downloaded your blueprint and read it all. Loved it! Per your advice, I am starting my >50k account with Iron Condor trading. I do have 1 question... if I'm trading on SPY, as long as the stock market doesn't crash $20 in a minute, why wouldn't the iron condor be 100% win rate? What am I missing? Can't I set an alarm to go off if the price nears let's say $3-$5 away from my borders, then just sell before it gets there? I know I might be losing potential gains but wouldn't that be worth it for 100% win rate? Thank you.
Hello Davis, I’ve learned so much from your videos. I’m a beginner and I was wondering which etfs are best to start learning with and if I want less max loss risk is it ok to narrow the spreads ? Thank you!
So what you are saying is I should put on the IC trade and close at 21DTE no matter what. Even if I lose many in a row, in the long run I should still be profitable? Sounds like I need to put one on everyday and not miss a single day to not “miss” profits (assuming I have the capital)? Do you randomly on any given day just put on the trade? Sounds like we don’t even need to look at the chart if the stats are on our side.
Hello Davis, thanks for yet another amazing video. Would like to clarify on the ‘Max Loss’ concept where - is it only applicable if you hold the option to expiration? Recently Salesforce (CRM) stock price had way surpassed long call of my credit spread and it is currently at 19 DTE (tried waiting 2 additional days for CRM to drop but it didnt). The max loss to close the trade is way higher than the width - premium. What are your thoughts to close it higher than Max Loss or wait till expiration?
Hi DAVIS, stumbled upon this video just recently.. I watched some of your videos, you have great content, keep it up.. I have quick question.. how far you go to look for prev lows and highs? 1 year, 6 months.. thanks in advance
Davis, at16:51 you show a $6 wide IC and an assumed $1.50 credit. "Assuming" you take profits at 50%, that would be a 16.7% ROI (75/450) every 3 weeks aprox.. Has your REAL-LIFE experience borne this out ? That would double your money every 4-5 trades.....FANTASTIC !!
Don't forget there will be losers and winners and you'd have to exercise proper capital allocation. So doubling your money every 4 - 5 trades wouldn't be very realistic when all that comes into play.
Broker makes money out of bid spreads, the less liquidity in your legs, the wider the bid\ask spread, the more challenging it gets as the spread eats out of your premium. Its not gonna be easy to fill at mid price either buying or selling. Never make orders with market price, mist always use LMT
You will lose a lot doing this... you must skew 3 to 1 the bullish leg or omit the bearish leg altogether. Best to use bullish put spreads... if they drop, plan to add.
Get Your Copy of My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Happy new year Davis! Left a comment - curious on your intent - love all your content just trying to get to understand you as a trader.
Outstanding explanation Davis. Instead of over analyzing, use the simplified method that trading experts have already figured out. Your videos are the best!
Exceptional video Davis learnt a lot. Your videos are the art of option trading
"Learnt". is that a word? Speak ENGLISH
@@thonatim5321 Third form of learn bro
Love these Davis! You’re the Master Spread Trader!!
😊
Thanks for the guide. I follow all your stuff just for confirmation of my own strategies, but I gotta ask what’s in it for you? Lol - your content is awesome and I get your newsletter which leads to your YT.. but how can we help support you more?
You're welcome. If you found my videos helpful, would appreciate if you share it to others who might find it helpful too 👍
Another great video Davis.I have 3 questions I noticed you use 20-30 delta for bull put spread and 16-20 for IC. Are you strictly following TT study or are you willing to take slightly more risk on the bull put spread b/c market travels higher over time and you would be getting less premium if you chose the smaller delta like IC? Also, in general, if you choose a 1-5% risk per trade, what portfolio risk would you be taking on if you had several trades on at once? Lastly, strategy wise, are you scanning your watch list and put on bull put, bear call and IC based upon where the stocks in your watch list are in relation to the stochastics trading range? I’ve only done CC’s and cash secured puts and have gotten burned too many times. Wheel strategy is nice in theory or maybe should only be done with ETF’s that aren’t ARKK. lol.
Thanks ☺️
1) Depending if I'm more bullish/bearish I'll go with a higher delta.
2) General rule of thumb is to not exceed 50% of your capital allocation at any one time.
3) ua-cam.com/video/81t8AoPOKCA/v-deo.htmlsi=6qrfyG2n0eUiWLuX
Another great video Davis! Appreciated as always. Cheers.
Best content PERIOD !!
☺️☺️
Great video, thanks for sharing
You're welcome 👍
Thank you for another great video Davis! You nailed it on Step 7. Before you ever enter a trade, know when the hell you're gonna get out!
You're welcome 😊
Your explanations are very clear and extremely helpful. Thanks again for your content.
You're very welcome :)
How to close the iron condors. Do I need to close one by one or completely close all four at once
How about just selling strangles on mini es futures ? Would like to see your thoughts.
I've yet to trade strangles on futures.
Thanks for the good video. Just two questions
1) how do you account for underlying etf with skew e.g. Gold? Just trade based on 16 delta?
2) Any considerations of commission to the total credit & wing size since there's 4 leg? Having smaller wing size means less credit and commission can eat into profit
You're welcome 👍
1) Same. Many equity Index etfs have put skew.
2) Avoid going for very narrow wings (i.e. $1 - $4 wide).
Hi Davis, thanks for the informative video. Very helpful. It's would also helpful to compare against the returns of the S&P in the same period so that we know whether this strategy beats the S&P over the long run and it won't sense to trade with the strategy when you can just invest in the ETF and get higher returns. Appreciate it!
You're welcome 👍
Hi Davis. Thank you for the video. Could you tell me how to easily calculate right price to close a trade. if I build Iron Condor or some kind of Spreads and would like create a GTC limit order on 50% of profit?
Another great video Davis. I have watched a lot of your videos and you always look at charts to pick support and resistance levels, but it is never clear what time frame you consider. Do you have a "standard" time frame? I ask because if you look too far back in time, the highs and lows and support/resistance levels would not be the least bit applicable to the current price trading ranges. How far back do you look?
Hello, I am a new subscriber, I downloaded your blueprint and read it all. Loved it! Per your advice, I am starting my >50k account with Iron Condor trading. I do have 1 question... if I'm trading on SPY, as long as the stock market doesn't crash $20 in a minute, why wouldn't the iron condor be 100% win rate? What am I missing? Can't I set an alarm to go off if the price nears let's say $3-$5 away from my borders, then just sell before it gets there? I know I might be losing potential gains but wouldn't that be worth it for 100% win rate? Thank you.
Thanks ☺️ Unfortunately there's no 100% win rate Iron Condor 😅 Losses are part and parcel of trading.
Hello Davis, I’ve learned so much from your videos. I’m a beginner and I was wondering which etfs are best to start learning with and if I want less max loss risk is it ok to narrow the spreads ? Thank you!
Watch these:
1) ua-cam.com/video/YcH2UmWVaWs/v-deo.htmlsi=M_lcMq-N0iOiE_ZT
2) ua-cam.com/video/hHK8TdVnjTQ/v-deo.htmlsi=bUpG8BCOl1oP8P7Y
3) ua-cam.com/video/2j3EWpfFa-o/v-deo.htmlsi=pk9YJkUKGU6JvfPv
Great video. What are the chances of getting assigned early on one of the sides?
Explained here: ua-cam.com/video/kSVQ1pSR_zE/v-deo.htmlsi=Vvxj-BEAE4cgrCSY
Trade SPX or XSP, and the answer is zero chance. They’re also tax advantaged
Thank you. What broker should I use to trade those? They’re not on robinhood. That’s what I’m currently using.
So what you are saying is I should put on the IC trade and close at 21DTE no matter what. Even if I lose many in a row, in the long run I should still be profitable? Sounds like I need to put one on everyday and not miss a single day to not “miss” profits (assuming I have the capital)? Do you randomly on any given day just put on the trade? Sounds like we don’t even need to look at the chart if the stats are on our side.
But. How much do you win on average and just as important is how much do you lose on average???
Hello Davis, thanks for yet another amazing video. Would like to clarify on the ‘Max Loss’ concept where - is it only applicable if you hold the option to expiration? Recently Salesforce (CRM) stock price had way surpassed long call of my credit spread and it is currently at 19 DTE (tried waiting 2 additional days for CRM to drop but it didnt). The max loss to close the trade is way higher than the width - premium. What are your thoughts to close it higher than Max Loss or wait till expiration?
Appreciate your input on this davis!
Hi DAVIS, stumbled upon this video just recently.. I watched some of your videos, you have great content, keep it up.. I have quick question.. how far you go to look for prev lows and highs? 1 year, 6 months.. thanks in advance
Davis, at16:51 you show a $6 wide IC and an assumed $1.50 credit. "Assuming" you take profits at 50%, that would be a 16.7% ROI (75/450) every 3 weeks aprox.. Has your REAL-LIFE experience borne this out ? That would double your money every 4-5 trades.....FANTASTIC !!
Don't forget there will be losers and winners and you'd have to exercise proper capital allocation. So doubling your money every 4 - 5 trades wouldn't be very realistic when all that comes into play.
Hunting the purchase price seems weird, shouldn't your broker get you the best price?
Broker makes money out of bid spreads, the less liquidity in your legs, the wider the bid\ask spread, the more challenging it gets as the spread eats out of your premium. Its not gonna be easy to fill at mid price either buying or selling. Never make orders with market price, mist always use LMT
Hello Davis,
I don't really understand why I should look at the chart when delta 16-20 will always give you the right spot for the sell options...
You will lose a lot doing this... you must skew 3 to 1 the bullish leg or omit the bearish leg altogether. Best to use bullish put spreads... if they drop, plan to add.
Even a 3:1 bull/bear split will cause losses to quickly mount in a rapidly upward moving market.
Learn from others mistakes or learn the hard way
european style option like xsp,mrut ....is better than etf, will not get assign, can hold to expired....
Interesting. Have you ever backtested one of them against the US-style option type to see how they would have fared over the last few years?
Bid-ask spread is bigger than spx, rut, etc.
Watch this: ua-cam.com/video/hHK8TdVnjTQ/v-deo.htmlsi=Oq7qJvipzVxTWQI3
Very Insightful
Thanks ☺️