The Ultimate Guide to Strangle Trading!
Вставка
- Опубліковано 11 чер 2024
- To catch all my trades using options on futures live (and others), get help building your trade plan and for more advanced live trading education, visit:
Income Navigator: Income Trading, 112 Trades, Strangles, Naked Puts, Credit Spreads
mrtoptick.com/income-navigator
Active Trader Pro: Swing trading, scalping, active stock trading
mrtoptick.com/active-trader.
Use the code KING for a $50 discount on the first month!
Join the Discord at mrtoptick.com/discord
Learn how to trade options and futures using strategies that are consistent, mechanical and repeatable.
DON'T FORGET TO SUBSCRIBE TO GET NEW TRADES AND EDUCATION!
You can follow on Twitter at / tommking7
Whether you are a seasoned trader or just starting your journey, this video will provide valuable insights and recommendations on which trading strategies to add to your portfolio. With the right trading plan, you can achieve your financial goals over time.
If you enjoyed this video, make sure to subscribe ✅ to this channel!
DISCLAIMER:
Not Financial Advice! This content is for Entertainment and Educational Purposes Only. All financial decisions made by the viewer should be done after talking with a licensed professional.
I thank god daily that I found Tom King , Sweet Bobby Gaines, and uncle Tony. My trading has hit levels I could only dream of and I will be able to retire at a young age.
Great overview. You should also mention what you do for risk and loss management when the trade goes against you. It’s not about how much you make but how little you lose!
ua-cam.com/video/no9cgimyBFM/v-deo.htmlsi=p9bgxjBKPPvFDk1S
Going from single stocks to futures has changed the game for me. I’ve been consistent the entire year. Only up 12% but I will take it. 112s, strangles, short puts about covers it for me.
12% better off buying SPY
That is a great performance. This year SPY does better. Sure. But most of the years spy does not rise that much and than this strategy will outperform. Good job so far with 12%. Keept it up. In a year you make 25%.
@@steve99912 if I can keep up 2% per month that’s 24% per year. That’s over double spy average. Plus I’m hedged. Im much better off than SPY. SPY right now is doing better than it normally does. One key factor you ignore is the 2% a month is not contingent upon SPY going up 2% a month, it’s contingent upon SPY not going down 20% in 4 months. I prefer the latter. SPY goes sideways or even down I still get my 2% a month.
@@steve99912 nah because I’m hedged and don’t need SPY to go up 2% a month to get my 2% a month. I can get 24% a year and that’s over double spy average.
@@markexterkate7 thank you
Thanks Tom, very informative and well presented. Much appreciate.
Thanks Tom, I will give it a try!
Another awesome video Tom. Simple and basic if (Big 'IF') implemented and managed correctly. A powerful strategy indeed. Always a pleasure and privilege. Best.
Great Job Tom as always, demystifying and making it simple for retail traders; a very well-balanced presentation! Bravo! Keep it going Champion / Master Trader and sharing your wisdom!
Thanks for another valuable video, Tom
Great video…as always!! 🙏🏻
Thanks Tom, good vid.
This is a really good intro video to strangles on futures
I've recently found your channel and started trading these strategies. They have been a game changer. Thank you so much for sharing your knowledge Tom!
I love it king tom. Your a beast
A very valuable video again Tom especially for me a new trader with limited funds so have to protect my account as much as possibles.
Thank you
Thanks Tom. I have been 'investing' for years but your videos and methods have helped me immensley and put me light years ahead of where I was before I found you. This year has been my best and most consistant year ever and we are only half way through
That is awesome to hear!
what should we be watching for in terms of having to correct our positions? what if the slope increases or decreases more than normal? what are the corrections or is it just get out?
There's a reason why IV is high on volatile stocks. Even the market makers are concerned so they require the higher risk premium to sell the insurance that is options.
Great intro video for new folks to strangles, Tom!
I did this for two years. Turned $30k into $130k one year.
You really don't need ANY chart analysis, like you're doing. All the math and odds are done for you by the all the exchanges pricing the options.
Simply go sell 7, 8, 9, 10 delta strangles in GC, CL, etc..
45-90 DTE
Most braindead strategy ever.
The most important advice is to have a stop loss exit and stick to it. A loss of 2x the premium sold is a good one. Yes, many times it will come back but who cares - move on. You will have many more winners than losers.
Why did I quit? Now I trade futures in a prop firm. Zero risk and I can make as much as a 45 day strangle in 15 seconds.
Though watching this video nakes me want to do this again in a little side account...
Almost had me for a minute, I thought you were serious until the prop firm comment then you lost all credibility.
@@intoodeep001 Hmm. If you're going to fool around daytrading futures, it's the only way to go. Get educated my friend.
Great video. Whay are your thoughta about a covered sttangle compared to a naked strangle?
I love the covered strangle and its one of my strategies.
what is a covered strangle?
You had at one time talked about strike prices interms
of delta 6delta and 7 deltas - is this still valid?
do you put in a stop at 50% profit?
in this market playing strangles on ES is suicide.
I’ve only traded one strangle on ES all year. I do not trade underlings that do not set up correctly for my strategy. Yes has not set up properly nearly all year.
would you imagine to have a portfolio only made from strangles - 10 different futures, 90 days, delta 5?
great video btw
I think it is possible. I don’t know that I would do it necessarily, but I think the opportunity is there. Five Delta is a bit low for me. I would like something between six and eight Delta personally.
I didn’t like 112’s that much. I still use them, but the premium on the underlying I use aren’t hitting my profit targets and it locks up BP for a long time. I’ve been mostly doing strangles this year. I like that they’re shorter term, around 30 days, not 60 to 120, and I like the return on margin.
What deltas are ideal for selling strangles? Didn’t catch that in the video
I prefer between six and eight. However, there are times when I could go a little higher or a little lower, depending on the return on margin.
@Tom. I followed completely. I am lost on position size. When you say 2%, does that mean on a nominal $500,000 net liq account, that the max profit is $10,000? Or, if the buying power impact is for example, $40,000 that the position size is $8,000? And, it gets more confusing when using /ZB as it is not in dollars. Can you keep it simple? Thanks Robert P
What that means is that you size it so if you get stopped out that the maximum you will lose is 2% (so $10k).
It means max loss should be 2% of your account ie. If i have a $10k account, my max loss is $200. If i use 50% profit target and 200% SL i need to size my strangles to make $50 profit with a SL of $200. Applies to all underlyings.
@@seanhutcheson7638 Ok. How do you calculate with /ZN? Or when you collect $4000 credit from short Strangle with /6A?
2% of net liq (the total account). So on 100k the SL is 2k. So a strangle for 100k should have take profit at 500 using a 200% stop loss. You can also adjust the stop loss to 150% if you’re more conservative. Tom uses a 6/7 delta strike, but you can move that to 5/5 delta if you need to size your strangles to a smaller account or want to be more conservative. At the end of the day you have to come up with a strategy and plan that fits your account, risk tolerance, and style.
ZB is being unpleasant for me atm.
I had gc strangle and lost $10 k.
I’ve watched so many of your videos, but I must say that you don’t talk about the mechanics of the trade - what delta do you sell your calls and puts at. If I don’t have that, it’s a waste of time.
He has a video on it it’s like a 5 delta on calls and puts
ua-cam.com/video/no9cgimyBFM/v-deo.htmlsi=p9bgxjBKPPvFDk1S
I just told you (again) where to place the shorts in this video. But if you think its a waste of time to learn something, stop watching.
@@Kk-iw4ck - Thanks! With a 5 delta, I wonder what the risk to reward on the trade would be. I was hoping for a 20 delta at least to make the trade worthwhile
For Credit Spreads - I need to be able to collect more than 35-38% of the width. If width is 5, I need to collect 2 at least. If width is 10, need to collect $4. Typically, that leads to a higher risk to reward. Additionally, this comes at a delta of around 35. I am sure strangles are similar.
@@TommKing13hey, don’t take this the wrong way. You will be doing your viewers a favor if you spell out your exit strategy and trade mechanics - instead of saying I close the trade early. You could be more specific and say - I close the trade at 21 DTE or when I hit 50% profit - whichever comes first. Also when you say that you pick a strike 8% above and 8 or 9% below the current price - that means very little. You pick your strikes in relation with the premium you collect- so, what is that? Do you collect a premium of $100 to where your max risk is $1,000?
Again, don’t take this the wrong way, just giving you feedback on how your viewers can improve their trades. Talk about the mechanics and risk, max loss and sizing.
Tom I would like to be able to converse with you via email before I join your team, I just questions