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Thanks Doug, I am in AMD but sold 1/19 calls against that position which will be exercised, glad to get out and maybe jump back in when it cools off a bit..
Great videos What happens as far as capital gains. Since the initial portion we were paid for the the first put that we sold and then we spent some of that in order to have a protective put. But how does the irs see that ? Does the one we purchased offset some of them gains ? Or are we liable for covering the taxes on the 9k ? Thank you
Wish Seth would have taken a few minutes to discuss the worst-case scenario for the Credit Spread. For example, how to monitor this trade throughout the week and how to respond if it goes against you.
Do you look at IV when you are selling SPV, IC , Cash secured puts? I believe just looking at only Delta may not give you the desired probability? Any thoughts on this?
If I understand correctly 70% to 80% winning rate. But 2K against 10k. 8 x 2k = 16K gain. 2 x 10K = $20k. There must be a risk management for this or increment premium and delta.
I have never quite understood the math. It sounds great to win 75% of the time, but if you are risking 10000 to make 2500 a couple unlucky (or poorly placed) trades can wipe you out, or at least make profitability a hard thing to achieve
For the 3rd strategy of selling naked put of $ADBE at support of 320 which to me is a very dangerous trade setup, can you please share the trade management of this trade when the price tanked and consolidated back to slightly below 320 level during the period of end of Feb till early of Mar. On hindsight from the chart it closed well above 320 but in actuality of this trade during that period it has the probability to break the support and risk management is always as important to consider.
Друг, это понятно что на байбит работаешь, но людям нужно говорить о том, что Байбит стал блокировать первое пополнение на 24 часа, это нужно иметь ввиду
@brendandonovan2476 The protection side of the trade doesn't get triggered in the afterhours. There are UA-cam videos that explain this. So if you are trading the SPY, you might think your max loss was, say, -$500 dollars for 5 contracts. Instead, you were assigned those 5 contracts and needed $250,000 in your account. If the SPY went up overnight and rose again the following morning, you would likely be ok. However, if the SPY went down, you would see the full weight of those losses that could easily exceed -$500 and perhaps be -$5,000 or even -$10,000, for example.
This is useless information. how do we find an edge to trade these strategies? Losing 30% of our trades will blow up our accounts . I would expect better information from a trading firm
The edge is your lower probability that the trade will go against you. That’s the 30% chance that’s not 30% of your account. It’s the probability that your stock will go below your option prices. Using out of the money options is a good strategy, but there are pitfalls you have to watch out for.
All education without the flashy influencer fluff, just pure straight education from the pros, thank you so much for these videos.
Love the videos, I have been profitable last few months due to you all posting and following especially options, so thank you. Great job.
Learn the top 3 trade setups we are using on the desk here: tinyurl.com/4receyjt
Thanks Doug, I am in AMD but sold 1/19 calls against that position which will be exercised, glad to get out and maybe jump back in when it cools off a bit..
Great videos
What happens as far as capital gains.
Since the initial portion we were paid for the the first put that we sold and then we spent some of that in order to have a protective put.
But how does the irs see that ?
Does the one we purchased offset some of them gains ?
Or are we liable for covering the taxes on the 9k ?
Thank you
Давно искал связку, большое человеческое спасибо
Wish Seth would have taken a few minutes to discuss the worst-case scenario for the Credit Spread.
For example, how to monitor this trade throughout the week and how to respond if it goes against you.
Set the required limit orders
Do you look at IV when you are selling SPV, IC , Cash secured puts? I believe just looking at only Delta may not give you the desired probability? Any thoughts on this?
Awesome. Just what i wanted to learn. I need to learn and apply this nowadays. Obviously.
Video starts 2:16
Are these the only strategies taught in purchasing class and are adjustments taught for when trade goes against you?
So for the iron condor and put/call credit spread you just want it to expire?
Indeed .without doing much up or down.
Is there something badly wrong with my arithmetic, or is the credit spread's EV -200?
If I understand correctly 70% to 80% winning rate. But 2K against 10k. 8 x 2k = 16K gain. 2 x 10K = $20k. There must be a risk management for this or increment premium and delta.
i like cash secure put and credit spread
What Securities license is required to be a prop trader ? SIE and S57 ?
U guys keep making the same option income strategy vid. U guys need a vid that how to adjust or manage losing trades for these 3 strategies
They would be rich if they could
Hello
Im new at trading. i cant figure out the outcome of a trade. can you explain me the outcome ?
💕 love from India
I have never quite understood the math. It sounds great to win 75% of the time, but if you are risking 10000 to make 2500 a couple unlucky (or poorly placed) trades can wipe you out, or at least make profitability a hard thing to achieve
Happy Thursday night
благодаря тебе начал пользоваться Байбитом)
For the 3rd strategy of selling naked put of $ADBE at support of 320 which to me is a very dangerous trade setup, can you please share the trade management of this trade when the price tanked and consolidated back to slightly below 320 level during the period of end of Feb till early of Mar. On hindsight from the chart it closed well above 320 but in actuality of this trade during that period it has the probability to break the support and risk management is always as important to consider.
Normally I view cash covered puts as a means to go long a stock. So in that case you would have just let it get assigned.
Друг, это понятно что на байбит работаешь, но людям нужно говорить о том, что Байбит стал блокировать первое пополнение на 24 часа, это нужно иметь ввиду
🙏🏽🙏🏽
Bueno.
Credit spreads also carry hidden risks that not everyone is aware of.
Like what
@brendandonovan2476 The protection side of the trade doesn't get triggered in the afterhours. There are UA-cam videos that explain this. So if you are trading the SPY, you might think your max loss was, say, -$500 dollars for 5 contracts. Instead, you were assigned those 5 contracts and needed $250,000 in your account. If the SPY went up overnight and rose again the following morning, you would likely be ok. However, if the SPY went down, you would see the full weight of those losses that could easily exceed -$500 and perhaps be -$5,000 or even -$10,000, for example.
@brendandonovan2476 Your broker can also explain how these risks work if you speak with someone in the trading department.
One big example is if the stock stops between your strikes on expiration. You would be assigned the short with no long protection
@@deathbybabomb Correct.
major short call pain on a day like today - it was so smooth
Am I the only guy who watches this to learn how his shop does things.
It's not that simple
Complicated ,the person only knows what's he wants to tell and explain we just understood nuts.
Most traders lose money
Plese speak in hindi
Lies
This is useless information. how do we find an edge to trade these strategies? Losing 30% of our trades will blow up our accounts . I would expect better information from a trading firm
The edge is your lower probability that the trade will go against you. That’s the 30% chance that’s not 30% of your account. It’s the probability that your stock will go below your option prices. Using out of the money options is a good strategy, but there are pitfalls you have to watch out for.