You said three dollars for the buy contract and then two dollars for the sell contract but then you said three minus 1 but it should be three minus two. I think anyway.
This seems like the worst period. Even the market are now very unpredictable. Started investing recently when the market prices were a bit high, today I am more than 60% down!
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to Juliana Heidi
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!Juliana heidi
I'm new here and really want to know some important things about her . Does she also offer mentorship, lectures and tutorials? How do I reach her please?
Another note about spreads: If the stock is between your strike prices at expiration, you may have to buy or sell 100 shares of the stock. If you don't have the buying power for this, your brokerage will put your account in a deficit. So if you think the stock might land between your strike prices at expiration and you don't have the buying power to buy or sell 100 shares of the stock, close it before it expires. Great video, Alex. Well explained 👍
Bro, both of you guys i am subscribed and follow and there is not a single day when i don't see y'all videos. Pandrea and "Everything options" love your work.
@@xrm1185For closing the trade, you have to do exactly opposite For example in the above Pandea example, He Sold a $190 call And Bought a $185 call To safely close the trade you have to BUY $190 Call and SELL $185 Call Most brokerage accounts will automatically make this trade for you when you hit the close button, its always better to close the trade on expiry because if the price goes down you have a risk of a Margin call
Yup I let an amazon buy call contract expire and they made me buy 100 shares of amazon at $129 per share So they took $12,900 from my buying power to cover it Luckily after I was forced to by the shares next day went up $3 made $300 by mistake
This is not correct for debit spreads, but is for credit spreads. In the example of Apple bullish call debit spread buying 185 and selling 190 calls, by cashing out you will have only made a tad more than your initial debit if Apple is above s ay 183, but if you let the 190 expire there would be no assignment since the sold 190 call is OTM and would expire worthless. You can sell the purchased 185 call and make that profit. If Apple exceeds the 190 it is then you need to buy back the sold 190 call because it is ITM and would be assigned. The profit is also capped so going much beyond 190 is not advantageous so you'd just sell the debit spread to collect that max profit.
wow I am just shocked someone mentioned expert Mrs Hannah I thought I'm the only one trading with her She helped me recover all I lost trying to trade myself
I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
@JoanConner987 It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
To obtain financial freedom, one needs to be a business owner, an investor or both generating passive income particularly on a monthly basis... Thank to Mrs Louise O'Brien for helping me achieve this.
I have traded with a lot of individuals but I have never come across anyone as good as Mrs Louise O'Brien, just by applying her strategies, I now trade independently. she is the best I'd advise any novice in investing to trade with her
Amazing I also just started trading with her, she is the best at what she does with an initial investment of$1400 i made up to $5230 in just a week of trading with her. her strategies are mind blowing.
Wow this is the kind of examples we need more of! I've seen a lot of videos of start trading do this do that but THIS makes sense and you SHOWED us how thank you
Love all the videos from Pandrea Finance! Very easy to understand. With call or put debit spreads it's probably better to do weekly options vs monthly on because it's harder to sell put/call debit spreads if it's farther out from the option expiration date. Plus you're risking less money as options are cheaper closer to the expiration date. As an example, let's say your call is deep in the money (ITM) but your option expires a month from now. It'll be really hard to close out early on unless you sell it closer to the bid price which is usually less profit for you. It's also contingent on the difference in cost between the call/put you're buying vs the call/put you're selling. If both your calls/puts are deep in the money closer to the expiration date, it becomes much easier to close. For standard options, selecting a further expiration date is of course a good idea. Just my 0.02.
Enjoyed and appreciate this video! Would like to see the other side of this - Put Debit Spread. Also am interested in your exit strategies. Awesome - you are my FAVORITE go to option learning source! Also a Patreon member. I did buy the Market Wizard book as well.
In my opinion, credit spreads are safer for smaller accounts. You can earn more with a debit spread, yes, but I also feel like debit spreads generally have a bit more risk too.
Credit spreads actually have greater risk...your profits are usually a fraction of what you are risking in a max loss scenario. But you also do have a much greater probability of profit. Debit spreads are basically the opposite...less risk but lower chances of profit. So I think it really depends on your risk tolerance as to which strategy to choose.
Investing in cryptocurrency is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent Payouts, with the rights skills and proper understanding of how the market works, i pray that anyone who reads this become successful in life.
Valuable. Thanks a lot! I've explored the idea of debit spread with ATM long option. You get about 1:1 Risk reward, but you can manage to close at half the loss, so you get 1 risk for 2 of profit. And probability goes much higher.
Referring to the apple example, at what point would there be risk of early assignment? What conditions would have to be met and how could you avoid it? I feel like that may be important for people to know just so they don't freak out when it happens eventually :)
Hi Alex, quick question for Debit Spread strategy - Robinhood shows Risk and Reward in the chart clearly, the Asymmetric return concept you explained is very helpful; but how can I know the probability of success? If I want to calculate expected value of this trade before placing the trade. Thank you!
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Alex, great content!!! Would it be possible for you to do a video on how you chose a stock and determine its direction for the debit spread strategy? If already have done so, please point us to it!! 😃
Another entertaining very well-presented trading video " Congratulations". But wish you would have included closing out the Debit Spread Option. What happens if you can't close out the Debit Spread Option and what to do if you're in this situation? Or if you thought the stock would go down instead of up, is it still a debit spread and is it the same procedure for buying, and selling a put and how do you close out the position? Thanx Pandrea
I have a question. If the stock price is 140 dollars and I buy a call at 145 because I am saying that it should reach that and I am also selling a call at 150 but the option expires at stock price 145. Why don’t I make some money off my selling call because when I sell a call I make a profit if it doesn’t reach the strike price and it didn’t this time??
If the stock expires at $45, then you lost 100% of what you paid for the $145-strike option. So the losses on that option wiped out your profits on the short $150-strike option.
This is pretty new to me, but by looking only at the max loss and max profit and saying it's 4:1 don't you ignore the probability of each of those outcomes? If the likelihood of the bad outcome is 80% and that of the good is 20% then the expected value is .8*-100 + .2*400=$0 Isn't the real skill/gamble here that one is a good guesser on the probabilities of these outcomes?
@@PandreaMoney then that's really a good strategy, I am just learning all of this before committing any money and your channel is of great help thank you.
Question: Why not just buy a call on AAPL, for instance, set your option to expire a month from today, and just hold for max profit? The max loss on buying a call is the same as the debit spread trade so I'm wondering why the debit spread is better. Is it the psychology of having a 5x profit target?
To reduce your expense and limit the profit you can get from one trade. Sure, buying one $185 call and watching it skyrocketing is exciting, but what if it doesn't reach $185 by expiration day?
Thanks Thomas for the question. Chris and Xian are correct - when just buying calls/puts the price can be expensive for expensive stocks - by selling the option at the same time you are collecting a premium to offset the price paid for the option. So you can take smaller bets to get huge returns rather than investing a lot into one trade. Hope that helps!
Love your videos! Have been following you since your magic journey and was pleasantly surprised to see you make these! Thank you so much! Haven’t seen you post a lot anywhere, hope everything is good and we will see you soon!! 😊
debit spread in bull market is amazing but if stock price is under your sell call strike price you lose all and when its close to strike price at expiry robinhood just close your spread at a loss instead of getting max profit. its their risk management policy to prevent from you losing all.
Hey Andrew - you do NOT need to own shares since this is a spread. Only when you are selling calls individually would you need the shares as collateral.
Hey Alex I love your videos and I have watched most of them My question is: can I sell one of the legs of this contract if the stock is going down? selling the call before expiration and let the one I sold run? Thank you
Am I doing something wrong because when I click on the plus sign it just takes me to buy the call instead of highlighting it? Do I have to enable something in my settings?
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Great explanation and thank you for showing actual examples. I’m finding that to trade spreads on Robinhood (or any platform) you need to be approved as a level 3 options trader. People with little experience and a small fund are not allowed to trade spreads. Is there any tips on how to get a level 3 approval?
I watched a very informative video on UA-cam a while back, it was short and simple. I forgot what the video was called. maybe you could find it. It helped me reach level 3.
not sure how this is good or even feasible for small accounts. selling options requires collateral correct? which means that to trade Apple you'd need to have over 10 grand in liquid assets or already own 100 shares of apple just to do a single debit spread on top of the premium you pay when buying the option
Educate me here. Are the sell-call price let’s say $195 based on “what you think”? Or is that based on looking at the charts for this stock and coming to valid technical analysis? I just tapped into learning about anything trading 3 weeks ago. And looking into forex, or potentially this type of trading as well.. any help appreciated.
Hi, just wanted to ask when you sell a call option, do you want the price to stay below the break even price or go above? As in which direction will guarantee profits? As in if the break even price on selling a $10 call is $11, would you lose the premium credited if the price went to $9 on expiration?
Do you have a standard deviation for this one? Actually, if you 'sell a call' before 'buying a call' you can see the chance of profit column. If you 'buy a call' first then that column changes to 'To Break Even' so would it be better to sell a call before buying a call so that you can see the chance of profit column?
It wouldn't make too much a difference in my mind because the idea is that you WANT the call you sold to get hit as opposed to stay under that price (like you would when selling a call for example). So it would make sense that the further out you go out-of-the-money the less chance there is for profit. Hope that helps!
Alex, I’ve been watching your videos and you truly inspire me. I have learned so much!! Debit spreads, leaps and iron condors. I just came up with an issue when I tried to put these strategies in act. I have a new “one month old” account in robinhood and another one in E*Trade. Both accounts under $5k. Neither of them allows me to do any of the options trading you recommend. I’ve searched so much on Google asking what are the best strategies for these kind of accounts and I found nothing. So my question, how can you grow a small account when it’s new and not eligible yet for option trading and what can I do to get upgraded? Thanks!!! Pat
Great video fantastic live it when you upload makes my day and gives me options thanks a lot can you do a video on put credit spreads and what it’s like managing it threw the week ?
It makes my day when you comment :))) - you can of course manage it - roll it out, roll it up just like any other trade. I usually have a mental stop loss set and exit out if its hit to keep those losses as small as possible.
Does this mean an Iron Condor would be a Call Debit Spread combined with a Put Debit Spread? (Maybe that's different.) Thanks for the vids, Alex. I think this one will help me the most in growing my capital.
i don't get the max loss and max gain. If the max loss is equal to the price you had paid buying the call option, then it will always be deducted from the account even if you get the max profit right? if you gained max profit, you also have to subtract from the max loss because that is the cost of buying the call option. Is that right?
I wanted to learn LEAPS from skill share. But i didn''t see any one available there. I didnt see a single video related to LEAPS. I would like to talk to some one regularly who have already done lot of real LEAPS trades. I wanted to learn in depth first before i put my money to trade LEAPS.
Very Nicely Explained. As a follow on video can I suggest a related topic of how these "spreads" can reduce your margin requirements - If one is doing this in a margin account. Thanks for your efforts. appreciate.
I’m confused. If you sell a call at 190 and it goes past 190 won’t you start to lose profit on the sell? And isn’t profit loss on sell calls unlimited? Help me out I’m missing something
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Bro, How does it feel making so much money ? I'm a long haul truck driver, I wanna learn your skills and quit trucking, I will watch all of your videos. Well done 👏🏽
Not sure what I'm missing, but when I analyze prospective trades I get a 1:2 max ratio. Can you tell me what the factor in a scan determines increasing this return? TIA
The first 1,000 people to use the link or my CODE: PANDREAFINANCE will get a 1 month free trial of Skillshare: Link In Description!
You said three dollars for the buy contract and then two dollars for the sell contract but then you said three minus 1 but it should be three minus two. I think anyway.
This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high, today I am more than 60% down!
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to Juliana Heidi
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!Juliana heidi
Amazing You trade ?? Wow that's huge, how do you make that much monthly?
Juliana heidi' is my hope on the current 'bear summer' . I did so many mistakes but also learned so much from it, and of course from Juliana heidi..
I'm new here and really want to know some important things about her . Does she also offer mentorship, lectures and tutorials? How do I reach her please?
Another note about spreads: If the stock is between your strike prices at expiration, you may have to buy or sell 100 shares of the stock. If you don't have the buying power for this, your brokerage will put your account in a deficit. So if you think the stock might land between your strike prices at expiration and you don't have the buying power to buy or sell 100 shares of the stock, close it before it expires.
Great video, Alex. Well explained 👍
By ‘closing’ do you mean buy the sell option back or sell the buy option, or both?
Bro, both of you guys i am subscribed and follow and there is not a single day when i don't see y'all videos. Pandrea and "Everything options" love your work.
@@xrm1185For closing the trade, you have to do exactly opposite
For example in the above Pandea example,
He Sold a $190 call
And Bought a $185 call
To safely close the trade you have to
BUY $190 Call and
SELL $185 Call
Most brokerage accounts will automatically make this trade for you when you hit the close button, its always better to close the trade on expiry because if the price goes down you have a risk of a Margin call
Yup I let an amazon buy call contract expire and they made me buy 100 shares of amazon at $129 per share
So they took $12,900 from my buying power to cover it
Luckily after I was forced to by the shares next day went up $3 made $300 by mistake
This is not correct for debit spreads, but is for credit spreads. In the example of Apple bullish call debit spread buying 185 and selling 190 calls, by cashing out you will have only made a tad more than your initial debit if Apple is above s ay 183, but if you let the 190 expire there would be no assignment since the sold 190 call is OTM and would expire worthless. You can sell the purchased 185 call and make that profit. If Apple exceeds the 190 it is then you need to buy back the sold 190 call because it is ITM and would be assigned. The profit is also capped so going much beyond 190 is not advantageous so you'd just sell the debit spread to collect that max profit.
Thanks Alex, im very much good with my earns with coach spencer
reach him
tradinghold 7
he's username
on Tele
gram
This video is awesome. One of the best explanations of the spreads I have see 🏆
Thanksss! Was indeed my goal :))
MRS HANNAH IS LEGIT AND HER TRADING METHOD WORKS LIKE MAGIC I KEEP EARNING EVERY SINGLE WEEK WITH HER NEW STRATEGY
wow I am just shocked someone mentioned expert Mrs Hannah I thought I'm the only one trading with her
She helped me recover all I lost trying to trade myself
I think that she is the best broker I ever seen...her method is nice thanks for introducing me to Mrs Hannah
Mrs Hannah is obviously the best, I invested $2,500 and she made profit of $15,000 for me just in 15days
she's awesome ♥️
wow I just make my second withdraw again today trading with expert Mrs Hannah
Alex, you are changing people's lives. I think you are a teaching wizard and phenomenal entertainer. Please keep the videos popping out.
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I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
@JoanConner987 It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
@JoanConner987 How do I connect with him or her?
In my opinion if you wait to time the market you will wait forever and never invest. Start now.
Just invest. Don’t try to time the market perfectly. You never will.
Start now. Invest in good companies. Buy, hold, enable DRIP.
To obtain financial freedom, one needs to be a business owner, an investor or both generating passive income particularly on a monthly basis... Thank to Mrs Louise O'Brien for helping me achieve this.
wow.. amazing to see others who trade with Mrs Louise O'Brien, i'm currently on my 5th trade with her and my portfolio has grown tremendously.
She's often interacts on Telegrams, using the user-name below.
@INVESTWITHTAMYLOUISE
I have traded with a lot of individuals but I have never come across anyone as good as Mrs Louise O'Brien, just by applying her strategies, I now trade independently. she is the best I'd advise any novice in investing to trade with her
Amazing I also just started trading with her, she is the best at what she does with an initial investment of$1400 i made up to $5230 in just a week of trading with her. her strategies are mind blowing.
The way Alex explains things makes everything easy to understand. The way he uses his words for explanations blows my mind. Its very well explained
Wow this is the kind of examples we need more of! I've seen a lot of videos of start trading do this do that but THIS makes sense and you SHOWED us how thank you
Love all the videos from Pandrea Finance! Very easy to understand. With call or put debit spreads it's probably better to do weekly options vs monthly on because it's harder to sell put/call debit spreads if it's farther out from the option expiration date. Plus you're risking less money as options are cheaper closer to the expiration date. As an example, let's say your call is deep in the money (ITM) but your option expires a month from now. It'll be really hard to close out early on unless you sell it closer to the bid price which is usually less profit for you. It's also contingent on the difference in cost between the call/put you're buying vs the call/put you're selling. If both your calls/puts are deep in the money closer to the expiration date, it becomes much easier to close. For standard options, selecting a further expiration date is of course a good idea. Just my 0.02.
so simple and yet so effective ways of explaining debit spreads.
Enjoyed and appreciate this video! Would like to see the other side of this - Put Debit Spread. Also am interested in your exit strategies. Awesome - you are my FAVORITE go to option learning source! Also a Patreon member. I did buy the Market Wizard book as well.
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You also need option tier level 3 on RH to do this trade.
In my opinion, credit spreads are safer for smaller accounts. You can earn more with a debit spread, yes, but I also feel like debit spreads generally have a bit more risk too.
Credit spreads actually have greater risk...your profits are usually a fraction of what you are risking in a max loss scenario. But you also do have a much greater probability of profit. Debit spreads are basically the opposite...less risk but lower chances of profit. So I think it really depends on your risk tolerance as to which strategy to choose.
THE BEST DECISION I EVER MADE IN MY LIFE WAS
INVESTING IN FINANCIAL MARKET. TRUST ME GUYS, IT
PAYS!
You are right, to be a successful person in life requires
him or her of hard work and time
Investing in cryptocurrency is the best way of getting
ahead to build wealth, investing remains a priority. The
stock market has plenty of opportunities to earn a
decent Payouts, with the rights skills and proper
understanding of how the market works, i pray that
anyone who reads this become successful in life.
Valuable. Thanks a lot! I've explored the idea of debit spread with ATM long option. You get about 1:1 Risk reward, but you can manage to close at half the loss, so you get 1 risk for 2 of profit. And probability goes much higher.
Referring to the apple example, at what point would there be risk of early assignment? What conditions would have to be met and how could you avoid it? I feel like that may be important for people to know just so they don't freak out when it happens eventually :)
I've got a video that takes a deep dive into early assignment risk if you're interested...
ua-cam.com/video/CX9B-qPJmMM/v-deo.html
What I like of your videos is the live example,that is what it's make lern. Thanks Alex.
Hi Alex, quick question for Debit Spread strategy - Robinhood shows Risk and Reward in the chart clearly, the Asymmetric return concept you explained is very helpful; but how can I know the probability of success? If I want to calculate expected value of this trade before placing the trade. Thank you!
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A little bit of context. You can only make the max profit at the expiration date and holding through expiration causes assignment risk.
Do you need level 3 for this?
You explained debit spreads very well...TY
Alex, great content!!! Would it be possible for you to do a video on how you chose a stock and determine its direction for the debit spread strategy? If already have done so, please point us to it!! 😃
Another entertaining very well-presented trading video " Congratulations". But wish you would have included closing out the Debit Spread Option. What happens if you can't close out the Debit Spread Option and what to do if you're in this situation? Or if you thought the stock would go down instead of up, is it still a debit spread and is it the same procedure for buying, and selling a put and how do you close out the position? Thanx Pandrea
What do you think of funded trading accounts for options, and any advice on which prop firm you recommend. Thanks Alex
Alex, still watching your videos in 2024 and hope you will come back someday! You're a great teacher and I am learning a lot from your videos. 👍🏼
Thank you for the video.
Please, let me know which app you suggest to use for trading options for europe traders?
stfu with the spam scam comments, thx pandrea as a starting option trader, you are very helpful
Another awesome video... I love the way you explain option trading 🙌 Thank you!
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I have a question. If the stock price is 140 dollars and I buy a call at 145 because I am saying that it should reach that and I am also selling a call at 150 but the option expires at stock price 145. Why don’t I make some money off my selling call because when I sell a call I make a profit if it doesn’t reach the strike price and it didn’t this time??
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If the stock expires at $45, then you lost 100% of what you paid for the $145-strike option. So the losses on that option wiped out your profits on the short $150-strike option.
So excited to use this strategy. Thank you!
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Wow I thought it would’ve been difficult but you just explained it like it was really simple and it is I’ll be doing it like this from now on
This is pretty new to me, but by looking only at the max loss and max profit and saying it's 4:1 don't you ignore the probability of each of those outcomes? If the likelihood of the bad outcome is 80% and that of the good is 20% then the expected value is .8*-100 + .2*400=$0
Isn't the real skill/gamble here that one is a good guesser on the probabilities of these outcomes?
thank you for this amazing video and teaching.
Make a video about the strategy did you use in your daytrade
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but if you sell a call you have to own 100 shares or a collateral right?
With the debit spread, no.
You do not need to have collateral when using spreads - in this case you would not need 100 shares as the option you bought will offset the losses.
@@PandreaMoney then that's really a good strategy, I am just learning all of this before committing any money and your channel is of great help thank you.
Question: Why not just buy a call on AAPL, for instance, set your option to expire a month from today, and just hold for max profit? The max loss on buying a call is the same as the debit spread trade so I'm wondering why the debit spread is better. Is it the psychology of having a 5x profit target?
Wouldn’t the premium be higher without the second leg? Per the example it would be 236 bucks instead of 97.
To reduce your expense and limit the profit you can get from one trade. Sure, buying one $185 call and watching it skyrocketing is exciting, but what if it doesn't reach $185 by expiration day?
Thanks Thomas for the question. Chris and Xian are correct - when just buying calls/puts the price can be expensive for expensive stocks - by selling the option at the same time you are collecting a premium to offset the price paid for the option. So you can take smaller bets to get huge returns rather than investing a lot into one trade. Hope that helps!
@@PandreaMoney thank you. Rewatched it and you literally said that in the video. Sorry dude. You're too kind. Thanks for the reply.
Im not beeing able to select 2 type of options with the plus bottom on Robinhood
Hit me up👆✉️
Thanks for watching!!.....
Love your videos! Have been following you since your magic journey and was pleasantly surprised to see you make these! Thank you so much! Haven’t seen you post a lot anywhere, hope everything is good and we will see you soon!! 😊
debit spread in bull market is amazing but if stock price is under your sell call strike price you lose all and when its close to strike price at expiry robinhood just close your spread at a loss instead of getting max profit. its their risk management policy to prevent from you losing all.
Thanks for the video, you explained it very well, so thats much appreciated!
Thanks Alexis!
In this Debit Spread strategy, will the call that I sell be a "covered" call? (Do i need to own the shares?) Please clarify.
Hey Andrew - you do NOT need to own shares since this is a spread. Only when you are selling calls individually would you need the shares as collateral.
@@PandreaMoney 👍 thanks.
Amazing video.keep it up lil bro
Thanks for the great explanation! What happens is someone buys the call you are selling in this trade? Is this possible?
Hey Alex
I love your videos and I have watched most of them
My question is: can I sell one of the legs of this contract if the stock is going down? selling the call before expiration and let the one I sold run?
Thank you
I’m new to learning about options. With this method, am I required to have the money to buy and/or the shares to sell?
At the expiration date if I do end making profit, what happens then? Does the contracts just end by them selves or ?
Am I doing something wrong because when I click on the plus sign it just takes me to buy the call instead of highlighting it? Do I have to enable something in my settings?
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Great explanation and thank you for showing actual examples. I’m finding that to trade spreads on Robinhood (or any platform) you need to be approved as a level 3 options trader. People with little experience and a small fund are not allowed to trade spreads. Is there any tips on how to get a level 3 approval?
I watched a very informative video on UA-cam a while back, it was short and simple. I forgot what the video was called. maybe you could find it. It helped me reach level 3.
So in a call debit spread like the example you would close out each one before the expiration if it's in profit and not let it expire?
Always close one day before expiration, regardless of outcome
This video changed my life... best video I've seen
not sure how this is good or even feasible for small accounts. selling options requires collateral correct? which means that to trade Apple you'd need to have over 10 grand in liquid assets or already own 100 shares of apple just to do a single debit spread on top of the premium you pay when buying the option
Not all hero’s wear capes
excellent video!! thank you for explaining the debit spread so clearly
Thanks for watching Angie! :)
@@PandreaMoney Hope all is well ! How come no more videos ?
Hey man instead of talking about these strategies I would love to see you do a robinhood challenge with limited capital like $100-$1000.
When the strike price is met , does the option automatically, execute or we have to manually do it or set a , sell off
Your videos are awesome!
Educate me here. Are the sell-call price let’s say $195 based on “what you think”? Or is that based on looking at the charts for this stock and coming to valid technical analysis? I just tapped into learning about anything trading 3 weeks ago. And looking into forex, or potentially this type of trading as well.. any help appreciated.
great video but I dont think RH allows this anymore for cash accounts (you need level 3 margin acct)
Love this video. Thank you.
Hi, just wanted to ask when you sell a call option, do you want the price to stay below the break even price or go above? As in which direction will guarantee profits? As in if the break even price on selling a $10 call is $11, would you lose the premium credited if the price went to $9 on expiration?
@Pandrea Finance How do i unlock options level 3 on RH? It keeps telling me im not eligible yet.
Does this trade automatically close? And can you exit before the exp date?
x2
Do you have place the order exactly or doesn't it matter? Whats you TSLA spread?
Thanks, it`s a great strategy! Makes more videos on a similar topic. Very interesting)
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Hurry up, ends soon
Thank you!!
I feel like I owe you money ive learned so goddamn much from u
Do you have a standard deviation for this one?
Actually, if you 'sell a call' before 'buying a call' you can see the chance of profit column. If you 'buy a call' first then that column changes to 'To Break Even' so would it be better to sell a call before buying a call so that you can see the chance of profit column?
It wouldn't make too much a difference in my mind because the idea is that you WANT the call you sold to get hit as opposed to stay under that price (like you would when selling a call for example). So it would make sense that the further out you go out-of-the-money the less chance there is for profit. Hope that helps!
What will you do if the stock price increase more than the call strike you sold?
how to close
buy the covered call back?
Sell the call?prior to expiration?
Alex, I’ve been watching your videos and you truly inspire me. I have learned so much!! Debit spreads, leaps and iron condors.
I just came up with an issue when I tried to put these strategies in act.
I have a new “one month old” account in robinhood and another one in E*Trade. Both accounts under $5k. Neither of them allows me to do any of the options trading you recommend. I’ve searched so much on Google asking what are the best strategies for these kind of accounts and I found nothing.
So my question, how can you grow a small account when it’s new and not eligible yet for option trading and what can I do to get upgraded?
Thanks!!!
Pat
Do a day trade a day until you're able to unlock options
Great video fantastic live it when you upload makes my day and gives me options thanks a lot can you do a video on put credit spreads and what it’s like managing it threw the week ?
It makes my day when you comment :))) - you can of course manage it - roll it out, roll it up just like any other trade. I usually have a mental stop loss set and exit out if its hit to keep those losses as small as possible.
@@PandreaMoney oooo and thank you your awesome bud keep bringing this fine work of content :)
@@PandreaMoney Roll option is not available for spreads. I have put credit spread and I don't see the option to roll for the same.
Does this mean an Iron Condor would be a Call Debit Spread combined with a Put Debit Spread? (Maybe that's different.)
Thanks for the vids, Alex. I think this one will help me the most in growing my capital.
What’s the difference between this and zero cost collar?
Wouldn’t the max loss be $97 x the 100 shares or would 97 dollars be the only loss you will have ?
i don't get the max loss and max gain. If the max loss is equal to the price you had paid buying the call option, then it will always be deducted from the account even if you get the max profit right? if you gained max profit, you also have to subtract from the max loss because that is the cost of buying the call option. Is that right?
What do you think of ZIM? It has crazy fundamentals
I wanted to learn LEAPS from skill share. But i didn''t see any one available there. I didnt see a single video related to LEAPS. I would like to talk to some one regularly who have already done lot of real LEAPS trades. I wanted to learn in depth first before i put my money to trade LEAPS.
Very Nicely Explained. As a follow on video can I suggest a related topic of how these "spreads" can reduce your margin requirements - If one is doing this in a margin account. Thanks for your efforts. appreciate.
So this will not work with ITM options ?
buying an option for a call I didn't reach the break-even price but I made $104 how does that work
I’m confused. If you sell a call at 190 and it goes past 190 won’t you start to lose profit on the sell? And isn’t profit loss on sell calls unlimited? Help me out I’m missing something
So, in this example, your hundred shares of Apple are called off, but you bought a call so you get them back?
Can you remake this video using layman's terms? I don't know wtf thada decay is
Great breakdown
Thanks
So does the broker automatically use the short position to settle the long position?
So how do u find a good stock to trade?
If it hits the strike price of 55 before it expires how do you take profit or will it automatically trigger ?
Can you roll either of these positions as well?
Please do video about best brokers for you.
But how do you find quality stocks and get an idea of where they’re going to go? And then how do you exit these options?
👆 Thanks for watching
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Great work! But I do not see the link to join your Patreon. Thanks
Bro, How does it feel making so much money ? I'm a long haul truck driver, I wanna learn your skills and quit trucking, I will watch all of your videos. Well done 👏🏽
This strategy is looking promising.
Would you be forced to buy 100 shares?
Helps to see a white board or some other way to see the math
Not sure what I'm missing, but when I analyze prospective trades I get a 1:2 max ratio. Can you tell me what the factor in a scan determines increasing this return? TIA