2:40 Entry into options 7:30 Background/Timeline 8:30 Blowing through initial $5k account 12:30 Next account $90k (how?); being mechanical 15:00 Index trading 19:00 No hard stops 20:00 45 DTE, close around 21 days 22:30 Managing other people's money 26:55 *Sell volatility, collect theta* 28:00 Adjusting (15-20) positions
Mrs Katherine Flores was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course mrs Katherine Flores ...
Woah for real? I'm so excited. Katherine Flores strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
Tom, you should let your guests speak. You often interrupt them to talk about yourself, or put words into your guest’s mouth. I enjoy hearing your thoughts in the day-to-day Tasty Live content, but for Rising Star episodes, I want to hear more from your guest.
Yeah I wish it was a little more structured rather than a causal quick conversation. I had fun tho and loved the opportunity. More than happy to answer any questions
I Love these Rising Star episodes because they are like minded traders like myself that started with a lot of mistakes and learned from them like I’m doing right now. Good Stuff!
Khalid - If you don't mind, please expand on your hedging strategy, buy the credit spread, sell a far OTM put. How far out are you going on the credit spread? Same on the put? How many delta's on each? Nice interview, ignore the haters. I too initially thought the arms on the sides of the couch was interesting, but I chalked it up to nerves. Good luck in your future trading and career.
Hey I hate to sound vague but I honestly switch it up depending on market conditions (price and vol levels) and my overall portfolio delta. If I have long delta exposure I will buy a wide debit spread and sell a really far OTM put with about half the deltas to cut the cost of the debit spread. Right now I have on the 4450/4250/3500 spread in /ES all the way December. I consider this a hedge against near term vol even tho it does not work in a crash scenario. Sometimes I will do the trade for a credit and be long delta as well.
Thanks for the reply. Are you buying the spread at the same expiration date as the put you are selling, or are you adding time between expirations? And if you are, roughly how far out are you going?@@khalidheba2095
Upon entry all 3 legs are in the same cycle, however most of the time these trades are in that 21-45 day range. The longer duration ones like the example I provided allows me to sell the naked put extremely far OTM and still collect a decent credit while hedging against near term market decline. I get short deltas for relatively cheap and have a relatively high probability of making money on both the put spread and the naked put. Keep in mind if the market crashes in the near term the naked put will be a big loser so size accordingly. Hope this helps.@@hamilton7012
Selling spreads is the best, do you have an events coming up. I want to be around more traders. I’m from NY. I want to make an algo that finds the conditions I want to trade off of
My story started 6 years ago when I heard the first time about trading a friend of mine told about it. So I started to watch on UA-cam videos no stopping for this 6 years I have been watching videos and learning as much as possible I am 49 now no marriage or kids . I am about to start trading i have been saving money for the last 2 years bcz I have no qualifications and low income and I have to say thank you to guys for the help and content you provide to me and everyone else I keep learning how to trade with confidence and trust on decisions.
Tell them my brother. I dunno how they're making these returns by trading small, trading often. Anyone following Tastytrade without a 25k+ portfolio should try something else.
It's tough for a small account for sure. I'm now running a 100k account and it's much for fun, and profitable! There's just more flex and variations open to you
@@davidfisaacTrading a small account is very challenging. Once I deposited 90k and had access to more products and strategies I was able to be a lot more successful
isn't selling uncapped variance or picking up pennies in front of the convexity steamroller a recipe for disaster? selling those tails is easy and works until.. well.. it doesn't. sharpe is high and no need to pick direction sure but whats your game plan when all the 0dte strangle selling causes next volmageddon? sitting it out? :) also why not selling naked vix calls or uvxy? being short vol and having vol drag and beta slippage work in your favor?
If you have a decent size portfolio and mostly sell strangles, you can force your wins quite a bit. For example when your calls get challenged you just sell more calls with a higher strike price and roll up the puts a little. As long as you stay small enough at the beginning, you can abuse the martingale strategy quite a bit. No rule against it in option selling ;) . At he end, if you are good, its more like picking up 100$ bills in front of a steamroller and with experience you can dodge the stream roller or at least survive it and have enough money collected to pay a world-class surgeon that patches you back together, so you can continue... Another real edge with naked options are calls on meme / pump trash like DJT or RDDT recently. Because of the garbage fundamentals and high volatility nature of such IPOs you can (after the initial 2-3 day pump, when it starts selling off) sell far out of the money calls that decay extremely fast for a decently high premium.
Caveat emptor: guest blows up first $5k, then saves up another $5k … something something saves something something, tada $90k appears. Trades the $90k up to $130-140k. But totz $5k to $140k is a much better headline 🙄
Hey this is me. The interview kinda flies by didn’t get to chat as much specific strategies as I wanted to but lmk if you have questions more than happy to share
@@khalidheba2095 if you could please. Did you mostly trade strangles? How did you determine when to enter a trade? Would love to understand your overall strategy specifics.
@@khalidheba2095hey man, I’d love to hear about your favorite strats. I’ve been having success selling put spreads on higher IV stocks and blue chips, but want to get deeper.
No idea if my comment is too late to get an answer, but can you point me to where i can learn about what it means to “keep my deltas in line”? I have the basics of the greeks down, and am only just learning what it means to practically implement them when entering a trade. I know i need to know what this is all about!! Thanks in advance.
This title is very misleading because it’s actually 90k to 140k which is a massive difference. Deceptive to the reality of the type of success you can have
Tom love the content, definitely let the guests elaborate a bit more before you jump back in. Often it seems like they want to say something and you interject just as theyre getting going. Other than that love the content
The reality is to make significant consistent returns you still need to know the direction of the market... and be right more often than not. You can have a hedge... but it you sell your hedge and the market keeps going lower you are screwed.
I don't know about going undefined at a 30 or 40 delta unless you want to put on stop losses at 60% or 80% of position value. Going defined at a 30 or 35 delta would allow you to scale up as less margin is required. Also I don't know about seeking for vol/premium across the global markets. If its something you aren't familiar in what drives the underlying the more likely the trade will not go in your favor.
Undefined/naked at 30 or 40 delta will eventually destroy you. One trade goes way against you and you are in big trouble. Yes you can defend, to some extent, but when massive moves happen you will still get destroyed
Always good to hear stories of successful traders with different ideas and strategies . Also bailout in china hopefully had small positions, learn the lessons not to trade anything that most of the time underperformed SPY
How do we know these people aren’t outliers? Given a liege pool to chose from, of course, you’re going to have people that statistically do better. I’d like to know the average performance of the average Tastytrade account. I’d also like to know the actual performance of the experts, that tasty trade, who trades we get to see. They should certainly perform very well given that so many people jump in after they do their trades pushing price in their favor.
They are certainly in the top percentage of traders. That's what makes them 'rising stars'. Turns out some people study and work harder than others. You probably find a similar success rate regardless of the platform they use.
Tom also believes the markets are RANDOM BUT IF YOU LOKK AT A DAILY CHART GUESS WHAT YOUCAN SEE THE PATTERNS OF MONEY MOVING IN AND OUT. Any time frame reflects that but the bigger the picture the easier it is to make money
This was helpful. It would be cool to have someone who's on the same page to talk to. I agree about the fundamentals and macro comments. What's the trade? I'm glad others are thinking similarly. I think the whole news media is a giant ChatGPT. 😂
@@khalidheba2095 Loved your response bro! All of us have been humbled every now and then. Would love to watch the options trading videos you mentioned in the beginning. Would you be able to share the link? I couldn't figure it out from the video.
I've been trading the Tasty method for about a year. I've got my ass kicked at times, but it's like "success by 1000 paper cuts". Some big losers wipe out a lot of small winners. But in the end, returns are positive. I'm in a $70k margin account and use up to 50% of my buying power. Mostly trade strangles, spreads, and diagonals. I'm up 50% return YTD. If you follow the rules and don't get too emotional, the returns are real.
@@vishwas419 This might come as a surprise to you dickwad419, but confidence is a good thing. It seems you might be lacking it, and I can promise that trying to tear others down won’t make you feel better about yourself. Have a lovely day!
No paper trading. I had a great year last year and sometimes def had too much risk on the table but I have been humbled several times and I remain very cautious and not overconfident
@@vishwas419No offense taken. It’s very difficult and I have lost money and suffered many times. My success has been short lived thus far in the grand scheme of the things. We’ll see where I am in a few years
@@khalidheba2095wow....I know its about options......but what exact trades????? They're still both talking...... Still talking.....I gotta go guys..... sorry. Role in financial markets??? Later.
@@JIMDIULIOSorry we didn’t dive deeper into details. Mostly ratio spreads and strangles in index futures. Just trying to primarily sell equity vol while maintaining relatively neutral deltas
@@khalidheba2095hi Khalid, you are doing great as i sense exactly what you are doing. As you mentioned in the interview people cant understand to bet non directional. Keen to know if yoy intend to create a trading fund as im with you.
2:40 Entry into options
7:30 Background/Timeline
8:30 Blowing through initial $5k account
12:30 Next account $90k (how?); being mechanical
15:00 Index trading
19:00 No hard stops
20:00 45 DTE, close around 21 days
22:30 Managing other people's money
26:55 *Sell volatility, collect theta*
28:00 Adjusting (15-20) positions
Somebody pay this guy!!
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024
Wow that's huge, how do you make that much monthly?
I'm 37 and have been looking for ways to be successful, please how??
Mrs Katherine Flores was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course mrs Katherine Flores ...
Woah for real? I'm so excited. Katherine Flores strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
I'm new at this, please how can I reach her?
At 10:20 Khalid says he blew through $5000 and Tom says "OK, that's fine". Priceless. Also true. You must learn.
"The biggest risk you could take is not taking any risk" very well said, Tom!
Tom, you should let your guests speak. You often interrupt them to talk about yourself, or put words into your guest’s mouth. I enjoy hearing your thoughts in the day-to-day Tasty Live content, but for Rising Star episodes, I want to hear more from your guest.
Tell this to Oprah
Sir I do not agree with your comment, Tom is the nices most respectful host, Do not insult a person who is helping us free
Yeah I wish it was a little more structured rather than a causal quick conversation. I had fun tho and loved the opportunity. More than happy to answer any questions
I agree. He interrupts too much.
When you become a millionaire trader and successful innovator in this space then you can have your own show and run it however you want lol
“Present fear of future uncertainty is fundamentally overpriced.”
(hence the reason insurance exists…)
I Love these Rising Star episodes because they are like minded traders like myself that started with a lot of mistakes and learned from them like I’m doing right now. Good Stuff!
Awesome video thank you.
This was a great episode. More traders who actually use tasty mechanics!
Very impressive kid that seems to have kept humble. I am ready to start exploring areas of options I have not done before. Great interview.
Khalid - If you don't mind, please expand on your hedging strategy, buy the credit spread, sell a far OTM put. How far out are you going on the credit spread? Same on the put? How many delta's on each? Nice interview, ignore the haters. I too initially thought the arms on the sides of the couch was interesting, but I chalked it up to nerves. Good luck in your future trading and career.
Hey I hate to sound vague but I honestly switch it up depending on market conditions (price and vol levels) and my overall portfolio delta. If I have long delta exposure I will buy a wide debit spread and sell a really far OTM put with about half the deltas to cut the cost of the debit spread. Right now I have on the 4450/4250/3500 spread in /ES all the way December. I consider this a hedge against near term vol even tho it does not work in a crash scenario. Sometimes I will do the trade for a credit and be long delta as well.
Thanks for the reply. Are you buying the spread at the same expiration date as the put you are selling, or are you adding time between expirations? And if you are, roughly how far out are you going?@@khalidheba2095
Upon entry all 3 legs are in the same cycle, however most of the time these trades are in that 21-45 day range. The longer duration ones like the example I provided allows me to sell the naked put extremely far OTM and still collect a decent credit while hedging against near term market decline. I get short deltas for relatively cheap and have a relatively high probability of making money on both the put spread and the naked put. Keep in mind if the market crashes in the near term the naked put will be a big loser so size accordingly. Hope this helps.@@hamilton7012
@@khalidheba2095 Is that spread a credit spread and long put or is it a debit spread and a long put.
Are all of your strikes in the same month ? Or are you selling the naked put further out in time ? Also do you add a naked call to that naked put ?
Selling spreads is the best, do you have an events coming up. I want to be around more traders. I’m from NY. I want to make an algo that finds the conditions I want to trade off of
My story started 6 years ago when I heard the first time about trading a friend of mine told about it. So I started to watch on UA-cam videos no stopping for this 6 years I have been watching videos and learning as much as possible I am 49 now no marriage or kids . I am about to start trading i have been saving money for the last 2 years bcz I have no qualifications and low income and I have to say thank you to guys for the help and content you provide to me and everyone else I keep learning how to trade with confidence and trust on decisions.
I have 5K and almost a year in I still have 5K. I've had a few good winners, but all the losers balance them out. Then the fees hit you!
Tell them my brother. I dunno how they're making these returns by trading small, trading often. Anyone following Tastytrade without a 25k+ portfolio should try something else.
It's tough for a small account for sure. I'm now running a 100k account and it's much for fun, and profitable! There's just more flex and variations open to you
@@davidfisaacTrading a small account is very challenging. Once I deposited 90k and had access to more products and strategies I was able to be a lot more successful
How can you do naked trades a lot even with $90k , two naked spy puts required almost 90k
@@michaelwelch103 futures options are much more capital efficient - /ES or /MES
isn't selling uncapped variance or picking up pennies in front of the convexity steamroller a recipe for disaster? selling those tails is easy and works until.. well.. it doesn't. sharpe is high and no need to pick direction sure but whats your game plan when all the 0dte strangle selling causes next volmageddon? sitting it out? :) also why not selling naked vix calls or uvxy? being short vol and having vol drag and beta slippage work in your favor?
If you have a decent size portfolio and mostly sell strangles, you can force your wins quite a bit. For example when your calls get challenged you just sell more calls with a higher strike price and roll up the puts a little. As long as you stay small enough at the beginning, you can abuse the martingale strategy quite a bit. No rule against it in option selling ;) .
At he end, if you are good, its more like picking up 100$ bills in front of a steamroller and with experience you can dodge the stream roller or at least survive it and have enough money collected to pay a world-class surgeon that patches you back together, so you can continue...
Another real edge with naked options are calls on meme / pump trash like DJT or RDDT recently. Because of the garbage fundamentals and high volatility nature of such IPOs you can (after the initial 2-3 day pump, when it starts selling off) sell far out of the money calls that decay extremely fast for a decently high premium.
Great talk! So back to the last question... how to survive March 2020 when you have a strangle on SPY ;)? Assuming that the account is not wiped out.
Is that a typical ratio spread discussed at 20:00?
Caveat emptor: guest blows up first $5k, then saves up another $5k … something something saves something something, tada $90k appears. Trades the $90k up to $130-140k.
But totz $5k to $140k is a much better headline 🙄
Hey this is me. The interview kinda flies by didn’t get to chat as much specific strategies as I wanted to but lmk if you have questions more than happy to share
@@khalidheba2095 if you could please. Did you mostly trade strangles? How did you determine when to enter a trade? Would love to understand your overall strategy specifics.
Sounds like he already has a good paying job.
@@khalidheba2095yes I’m def interested in talking a bit more. How to go about that?
@@khalidheba2095hey man, I’d love to hear about your favorite strats.
I’ve been having success selling put spreads on higher IV stocks and blue chips, but want to get deeper.
great episode but title is misleading; just to be clear, he had 90k starting investment not just the 5k
No idea if my comment is too late to get an answer, but can you point me to where i can learn about what it means to “keep my deltas in line”? I have the basics of the greeks down, and am only just learning what it means to practically implement them when entering a trade. I know i need to know what this is all about!! Thanks in advance.
This title is very misleading because it’s actually 90k to 140k which is a massive difference. Deceptive to the reality of the type of success you can have
The true title is actually 5K to ZERO
Even then, 90-140k is a 64% gain. Pretty good!
Love the show!!!
Tom love the content, definitely let the guests elaborate a bit more before you jump back in. Often it seems like they want to say something and you interject just as theyre getting going. Other than that love the content
The reality is to make significant consistent returns you still need to know the direction of the market... and be right more often than not. You can have a hedge... but it you sell your hedge and the market keeps going lower you are screwed.
I don't know about going undefined at a 30 or 40 delta unless you want to put on stop losses at 60% or 80% of position value. Going defined at a 30 or 35 delta would allow you to scale up as less margin is required. Also I don't know about seeking for vol/premium across the global markets. If its something you aren't familiar in what drives the underlying the more likely the trade will not go in your favor.
Undefined/naked at 30 or 40 delta will eventually destroy you. One trade goes way against you and you are in big trouble. Yes you can defend, to some extent, but when massive moves happen you will still get destroyed
This is fire!
I don’t understand how he could sell strangles with a $5 k account even with a margin account
Is that something possible?
For newbies, I recommend caution in selling naked options. Its too risky
have stop loss
Just saw Dylan's rant. Standing ovation.
I'm curious, how was he selling strangles with a 5,000 account? Isn't their capital requirements for such trades?
Yes you can sell naked options in a 5k account on low priced names. Much easier of course with a larger acct.
I like the 15-20 delta. Woth strangles.
Always good to hear stories of successful traders with different ideas and strategies . Also bailout in china hopefully had small positions, learn the lessons not to trade anything that most of the time underperformed SPY
Still long BABA and KWEB. Unfortunately!
This was good!
Two thumbs up 👍 👍
Great video. Reminds me about my same story 👍🏻
How do we know these people aren’t outliers? Given a liege pool to chose from, of course, you’re going to have people that statistically do better. I’d like to know the average performance of the average Tastytrade account. I’d also like to know the actual performance of the experts, that tasty trade, who trades we get to see. They should certainly perform very well given that so many people jump in after they do their trades pushing price in their favor.
Corect..
Yup
你的提議可以透過虛擬交易來驗證，研究需要投入全職的時間。 這麼說吧，我在台灣看見99％的民眾不知道Tastylive這個節目。
That’s why the segment is called rising stars, they are outliers…
They are certainly in the top percentage of traders. That's what makes them 'rising stars'. Turns out some people study and work harder than others. You probably find a similar success rate regardless of the platform they use.
How can I learn these details? Strategies?
There are tons of strategy videos in this channel. They get uploaded almost every day / every week
Trading Volatility by Colin Bennett is a good starting point. Enjoy
very cool
Great video 📹 Tom 😮
Selling naked strangles with a 5k account? How? You need level 3 option accessibility. The story ain't checking out.
I believe the naked strangles were with the 90K account.
@@jimmyblimmythey were with both actually. Tasty allows all account sizes to trade all products and strategies
CPI--------"I don't care!!!" yes,.....watch price.....Get down to the CTA's.......
“Sizing is the key to staying alive “
Tom also believes the markets are RANDOM BUT IF YOU LOKK AT A DAILY CHART GUESS WHAT YOUCAN SEE THE PATTERNS OF MONEY MOVING IN AND OUT. Any time frame reflects that but the bigger the picture the easier it is to make money
March 2029 was hard to trade thru july!
Let them talk
Who came up with the "splash of soapy water" on the wallpaper?
This was helpful. It would be cool to have someone who's on the same page to talk to. I agree about the fundamentals and macro comments. What's the trade? I'm glad others are thinking similarly. I think the whole news media is a giant ChatGPT. 😂
Look a the way he sits, way too confident and he's on the road to get humbled real soon
I get humbled regularly by markets trust me😂
Very small dick energy, Jason.
@@khalidheba2095 Loved your response bro! All of us have been humbled every now and then. Would love to watch the options trading videos you mentioned in the beginning. Would you be able to share the link? I couldn't figure it out from the video.
Look out Tom - there is soapy water behind you!
So in this economy you just casually saved up 90k ? How long did that take?
I lived at home and had a 6 figure salary and made some gambling money so took about 1.5 years
Selling strangles give you unlimited loss potential. Riskt strategy
Tell your brother Warren also trades options!! Lol
When he said he had long positions in China when he followed Tom into long China 😂. Another victim.
An honest title would be 95,000 to 130,000.
is he teaching other people how to do this?
If he claims he is a successful sports better then we know he full of bs
Color me unimpressed....This guy is gonna get his head handed to him.
He seems too overconfident
market will humble him@@vishwas419
Have had my ass handed to me several times.
I've been trading the Tasty method for about a year. I've got my ass kicked at times, but it's like "success by 1000 paper cuts". Some big losers wipe out a lot of small winners. But in the end, returns are positive. I'm in a $70k margin account and use up to 50% of my buying power. Mostly trade strangles, spreads, and diagonals. I'm up 50% return YTD. If you follow the rules and don't get too emotional, the returns are real.
@@vishwas419 This might come as a surprise to you dickwad419, but confidence is a good thing. It seems you might be lacking it, and I can promise that trying to tear others down won’t make you feel better about yourself. Have a lovely day!
Gosh let the talk speak I mean u only the one u talk and not the guest
I guess this guy is either trading paper money or is on the way to get humbled very soon.
No paper trading. I had a great year last year and sometimes def had too much risk on the table but I have been humbled several times and I remain very cautious and not overconfident
@@khalidheba2095 Didn't mean to insult you, sorry if it sounds like that. But just wanted the young commers to take note that it is not that easy. 🙂
@@vishwas419No offense taken. It’s very difficult and I have lost money and suffered many times. My success has been short lived thus far in the grand scheme of the things. We’ll see where I am in a few years
1. Can someone please share a link where I can find the Daily Val for SPX?
2. I am assuming Val is different each underlying? Am I correct?
Wish this kid was a bit more respectful of the way he has spread himself . May not mean nothing to new generation, Looks really arrogant,
Just nervous that’s all. I try to stay humble
@@khalidheba2095wow....I know its about options......but what exact trades????? They're still both talking...... Still talking.....I gotta go guys..... sorry. Role in financial markets???
Later.
@@JIMDIULIOSorry we didn’t dive deeper into details. Mostly ratio spreads and strangles in index futures. Just trying to primarily sell equity vol while maintaining relatively neutral deltas
@@khalidheba2095hi Khalid, you are doing great as i sense exactly what you are doing. As you mentioned in the interview people cant understand to bet non directional. Keen to know if yoy intend to create a trading fund as im with you.
This is a disaster waiting to happen
The title should say "Trading $90,000 and 0 Experience to $130,000 With One Simple Insight | Rising Star"