Trading CHEAP Vertical Spreads For A Living (Under $100 Risk)
Вставка
- Опубліковано 31 тра 2024
- Download My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-bluep...
One of the more popular strategies that many beginners like to trade is what's called the "Cheap" Vertical Spreads.
This strategy is "cheap" because your risk can be as little as $50 or even $25, and you can potentially make hundreds of dollars.
However, is this really a good strategy to trade?
And can you actually make a living trading this strategy?
I dive deep into this strategy in this video...
Other videos you might be interested in...
1) Generating Income With Credit Spreads: • Credit Spreads
2) Consistent Income With The Iron Condor:
• Iron Condor
3) Recurring Profits With The Wheel Strategy: • The "Income Grid" Whee...
#optiontradingforbeginners #optiontradingstrategies #debitspread
Please subscribe & hit the notification bells for more videos like this just for you:
/ optionswithdavis
Join this channel to get access to perks:
/ @optionswithdavis - Навчання та стиль
Get My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Davis, very nice coverage, especially extending the DTE and managing the trade at 50% profit to improve the win rate. In upward trending markets I’ve had decent success by selling bullish put credit spreads at a delta between 10-15, although there’s always the risk of assignment should the share price plummet quickly. I’ve seen your other videos regarding credit spreads and have found them to be very thorough, especially regarding risk management. Thanks for all and keep up the good work!
You're welcome 😊
Thanks for another awesome instructive video Davis!
Hi, may i know what are the advantages of bull call spread and bear put spread VS Long Call and Long Puts
Do you have a stock picking (a trading )service ?
What does IV have to be to use the debt spreads?
Davis, thanks for this. Two questions; 1) Wouldn't stochs and all other tech and fundamental analysis be represented by the Delta value? 2) This site and 1 other (OP) are my favorite sites for education. OP suggests that an "optimal" set up for a selling vertical is, 45dte, selling an ATM and buying a 25 delta. What are your thoughts?......Bonus question..Do you think it's possible to be successful trading purely as a "quant"? THANKS AGAIN.
1. It doesn't.
2. If you mean credit spreads, see these:
- ua-cam.com/video/lQ1eHivY_dc/v-deo.htmlsi=vWYUpyasweW7pSKo
- ua-cam.com/video/81t8AoPOKCA/v-deo.htmlsi=QfjwhmIJsyoSf4vs
3. Possible depending on your mechanics.
I would try it around an earnings announcement and get out quickly.
😊
When to execute bull put spread? When to execute bear put spread?
Bull put spread when you're bullish, bear put spread when you're bearish.
It seems that you need to be certain of direction and time. Otherwise, you have a 90% chance of losing. So if you're that certain of direction and timing why wouldn't you just buy a put or call, which has a 50 % chance of winning?
Correct. You would want to use a debit spread in the same cases you would buy a call or put. The reason you sell one also is to lower cost/max loss.
Buying a put/call is pretty much the same as buying a put/call spread but with lesser risk. And buying a put/call doesn't necessarily mean it's 50% PoP by default. It entirely depends on the strike you choose (ATM strike would be 50% PoP). In this case, it would no longer be "cheap", but certainly a better way to trade debit spreads like this: ua-cam.com/video/Bv0XPsob2Bg/v-deo.htmlsi=1vdCRzIEFykFCIxj
Setting up a vertical spread correctly will actually put time decay in your favor. You are trading unlimited upside for that but in my opinion you can often increase your overall probabilities greatly by doing this.
@@jeremysautomobile assume a call debit spread. If the stock goes down a lot you lose, if it goes down a little you lose, if it stays the same you lose, even if it goes up a little you lose. The only way to make money is if it goes up a lot and right away. And even then your profits are capped. So again, if one is that good at predicting large movements in a short time span like minutes or hours, buy calls and puts. Those with the highest verifiable income percentage of principle day trade options, not debit spreads.
Hi Davis , do you have any learning content for beginners to subscribe and learn
Here you go:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
@@optionswithdavis But this is free content . Do you have any video content for deeper learning as paid subscription
Given the probabilities involved I think these cheap verticals should be treated like lottery tickets.
Exactly.
They are.
@@optionswithdavis Ironically, one’s chances of being right with one of these cheap vertical spreads are probably much better than the odds of winning the lotto.
How did your determine $412 max profit?
The spread width minus the debit you paid for the spread. Or you can simply look at the p&l graph.
Should the max profit be $420?@@optionswithdavis
I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.
Please educate me. I've come across this name before. Now I am interested. How can I reach her?
Yes, I agree with you. Her platform is wonderful, and her strategies are exceptional
It doesn't matter if you are a current hodler or a newbie. You can capitalize on the fluctuation of Bitcoin by trading with good strategy/signals
She's on Facebook
That's her username
Its cheap for a reason...markets are efficient..without an edge this is a long term losing strategy
Correct, but not many people know this, hence this video. But that is not to say it can't be profitable, although difficult. It depends on how the trader is using it.