$90 EVERY DAY TRADING SPY? (S&P 500) - EP. 142
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- čas přidán 22. 08. 2024
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In today's video I want to talk about how to sell puts with a small account on SPY. Selling puts is a great way to generate some extra income every single week, but the problem with selling cash secured puts is that it can get very expensive. Trading options on Robinhood can be risky, so make sure you understand how buying options and selling options works.
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A share price is never low or high, it is what it is, what matters is whether it goes up or down from that point, I'm excited about the next bull run as I'm buying as much as I can now, still, words on the media says this crash has as many high-yielding possibilities as a bull run, sure the risks are greater now, but they can be managed..
Having the knowledge is one thing and applying the strategies successfully is another, that's why mostly pros carry such trades out.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.
My wife and I are retiring next year with over $6,000,000 in tax-deferred investments. up until 3 years ago, we were 100% in the S&P. During bear markets we had a perfect plan. We got an investment manager in our corner who didn’t look at our portfolio for nearly a year. Just kept buying at low prices.
@@bonifaciomazzanti1251 🙄really?? I've always wanted to invest in stocks but was always discouraged. I wanna start now.
How about changing the name of the video from selling puts to selling vertical or credit spreads.
I really appreciate your dedication in each video you post, despite the current market crash, I was able to build a big income stream investing with Mrs Jasmine Adele.
As a first time investor I started trading with her, with just a thousand bucks. my portfolio is worth much more that now within just weeks of trading with her.
With the consistent weekly profits I'm getting investing with Mrs Adele, there's no doubt she is the most reliable in the market. such a genius
@Patti bow She'z always active on T elegram
@Patti bow You can communicate with her by t elegram with the username
@Patti bow investwithjasmine,, is the username.
it's a put credit spread, which is very different from a sell put
You’re still selling puts in either play…
Videos like these are why people blow up their accounts.
I need an explanation please. Am new here, please how can I invest in crypto/stock without having much losses or even without loosing at all
at this point, I would say... you get an expert assigned by a registered Brokerage company to help you out, I currently trade with Mrs *Janet kay hedges*, she is good in her own way. only what I can say
at this point, I would say... you get an expert assigned by a registered Brokerage company to help you out, I currently trade with Mrs *Janet kay hedges*, she is good in her own way. only what I can say
@Freya Willow I have quite known and traded with the above expert you just mentioned.i must say Mrs *Janet Kay Hedges* is Really Amazing and the best so far. I will always recommend her to my family and friends out there.. . .
@@talhaahmed8864
how can i contact this woman.
Please direct me properly..
@@Bish8099-_- VIA WHAT'S APK
That seems like a big risk for very little return. One wrong trade could set you back the hole week. Better to have less returns and lower risk then risking a alot of money. You would need 3-4 good trades to cover from that one bad trade. The math is not with this one. Seems like a fair assumption that you would want as high a chance to win with as little in the pot to lose as possible. this is gamling after all. Even if you make 10 trades you would want mininum 6 trades to be winners and 4 or less to be losers and a lose to win rate over 30%. probability need to be higher then the your probability of lose by x times the money you put in. Its like playing roulette you can math out probability of the lose to win rate and then come up with a statically analysis that shifts odds in your favor.
While put credit spreads lower the margin requirement, they also dramatically change the risk profile. If SPY were to drop 2% the next day, a traditional cash-secured put loses less than 2%. This strategy would lose basically 100% of the margin risked if the same drop happened, basically blowing up the account unless less size is used... which in turn limits the profit. (Which is why near the money low DTE options are risky in the first place) Seems like a pretty risky strategy to grow a small account, especially given how frequent drops of this nature are occurring in today's market.
Finally some reality being written here! A lot of the biggest issues with Options, aka gambling, is the risk and probability that few people truly understand. Today, news and emotion rule, how to you quantify that?
I am also learning so I'll appreciate your response to my question too. From what I heard was that if you have a stop loss in place that is 2 times the premium then you don't risk a max loss.
@@Ash-ji7bqStop losses dont stop losses if the market gap opens down or up depending on the bet. They really should change that misleading name
Do you hold untill they expire or sell the day before?
You sell a SPY Put that close to the money is asking to be destroyed. You need to be way out of the money and even then, holding that overnight is huge risk.
When would you close this example if the market goes the wrong way? Thanks
Holy GAMMA risk batman!
in the crazy volatile market, where SPY swings 2-3% a day, credit spreads with 3 strikes away is like buying lotto. Who listens to this advice...
Caterpillar (CAT)s sales are about to jump up because of hurricane IAN. I used to work debris clean up from disasters, and Caterpillar equipment is used like CRAZY to clean up all the destruction left behind hurricanes.
So a put credit spread
A put credit spread on SPY.
just make sure you have the collateral for the put lol
Credit put spread short version. Or do a butterfly
What days should you enter the trades that will expire on Mon, Wed, Fri?
For example should I enter the Wed trade on Mon or Tue?
Question, if I join your Discord for $7, am I alerted when you make a recommendation or do I need to log in every day to find them?
If u have the notifications on u will be alerted each entry and exit play
@@mrme9517 Thank you.
What nobody tells you is that none of this is possible without level 3 robinhood options...
Getting level 3 options on Robinhood is a piece of cake. Literally is not even a factor
Can you please make a video about tax on Options? Most CZcamss say that they made hundreds and thousands of dollars using options but nobody talks about the year end tax they have to pay on it.
Thanks in advance.
Because most people aren't really profitable
Hi Guillermo. If it's obvious that your Spy trade is going to be profitable do you bother closing it or do you just let it expire? The reason I ask is that I don't use Robinhood - my broker charges commissions for opening and closing trades. If I'm able to just let the trade expire at least I won't be charged a commission for that.
Is there a window of time during the day when probability of success is higher?
What if the short put goes in the money and you get assigned while the long put is still out of money? How to handle this scenario since we do not have the collateral to buy those 100 shares?
Jump ship and exit the position early before expiration. As he said in the video, you can hold a position just over night and collect a lot of premium. Take your gain or loss and move on to the next spread that’s further away. When you lose you don’t have to lose the whole max loss. The goal is to minimize your losses when the stock price is near your strike price. Rarely should you lose your whole max lose if you manage the position properly. Hope that helped
@@noahchristian5814Makes sense thanks
You didn’t talk about how your choose your strikes. Are you using delta, TA, supply demand levels?
You need a margin account to do this.
How can I sell SPY options for Monday if my collateral is still tied up on Friday? Do I have to close the trade before the market closes or can I let it expire worthless but then that would mean the market is closed and I can't put a trade Friday for Monday.
im a beginner can i call and speak to you how do i get this broker what are my fees per trade
coulda called this selling credit spreads on SPY. calling it selling puts is misleading
You have made this crystal clear! Thanks for the explanation.
is this called a vertical spread?
So in this scenario do you just let it expire worthless?
Damn very solid video learned a lot 💪🏽
this video gets released when the dividend date is today 😭
Start Monday 🤷♀️
Your example short put also has a delta around 30 which is really high. SPX has options that expire 5 days per week.
Where can you trade spx?
@@thechosen3332 SPX does not trade but SPX options do. There are expirations every day of the week Monday thru Friday. Most brokers allow you to trade them if you can trade options.
@@robertsullivan6246 Oh I know. Im just asking what platform you use.
@@thechosen3332 TDA API. Wrote my own trading app.
Yep, just like the millions of other traders on youtube that don't explain this can't be done by 95% of people because they are not level 3. So convenient you leave that out.
I’ll stick to trading options on Amazon(for cheaper premiums) and meta(for higher risk/reward).
It doesnt let me trade 2 options in robinhood says i need to do seperate orders
Thanks
Great content!
Selling same day exp is my favorite strategy. It’s fairly high risk/reward if your buying OTM, but has a high probability of going worthless. If you have $1,500 or more you can typically sell SPX contracts and SPX has contracts that expire every single day. Also, SPX closes at 4pm (est) unlike SPY that actually goes until 4:15
Where do you trade spx? What platform?
@@thechosen3332 E trade
If you don’t mind me asking, what strategy do you use? Looking at E trade, there is a 55 dollar difference between a profitable sold put and a bought put meaning I would need $5500
I’m curious about how do you trade SPX covered call contracts on expiration day? Any OTM expiring the same day, will always be only a few cents, so I don’t get how u make money off that. Also, how do you trade a covered call on SPX and it is so much money and would you need over $300,000 in your account in order for your broker to allow you to trade this. I don’t think any broker would allow someone to trade this index without having the money in their account to cover this large transaction. Is there some spread or something?
@@deedeelife1032 I don’t trade covered calls. I trade credit spreads and do both calls and puts depending on what I feel the market will do. For covered calls, it’s the same as any covered call. If you own 100 shares of the index, you can sell a call. But yes, to sell a single put you would need enough money to cover 100 shares of the index. How I make money, the SPX 0DTE at the money strike is typically around 5.00 around 10am. Sometimes more, sometimes less. But I like to look for 1.50 credit and then depending on what the market looks like I sell around .70-.60 or try to hold till worthless. If I could attach a picture in the comments I would. But I can’t here on CZcams.
An example, the other day SPX was at 4087 at the moment of the trade. I sold the 4090C for 7.83 and bought the 4095C for 5.58. At 10:29am. I got a 2.25 credit. Per contract.
After a horrible experience with them having my CC I'm done. They charge thru different avenues, no response or accountability when taking my money. Even got charged for this month then had my account canceled. Big middle finger
In your example, the market assumption should be Bullish tomorrow morning, right? (a bull put credit spread)
How do you determinate the difference between the high leg and the low leg? Why is 385 for the low leg and not 384 or 383 ......? Thanks!
So at expiration both those options that was place expires And u get to keep your premium?
aight. so what's the negative?
If the stock drops below your short put, you’ll lose the money you put up. In this example, SPY actually dropped to 387.63 in AH today, so if it doesn't rise tomorrow, you’re kind of screwed.
Hey. Would you have any suggestions for swing trading stocks in times like these? Working from 8 to 5 with an hour break, how could one find and set up trades that could produce gains in a short time frame?
Not a pro, but I do this myself. Set limit orders to buy the options. Once it's bought, use limit/ stop loss orders to close your position so you don't have to watch it all day.
I’m a truck driver and definitely understand fam, I use the iron butterfly and buy my contracts Wednesday/Thursday. Depending on the gains I sell early or let them expire. Not going to make rich fast but when it comes to not having to check the option constantly, knowing how much you’ll lose if the play doesn’t pan out and teaching you how to be better at TA…Can’t beat it. Extra 50-250 a week goes along way.
@@Tony3x88 why would you have to check the option constantly? Robin Hood should update you if the option has made any significant movement in any direction
@@skddgsshootawahmyn8mewhtha865 I noticed a long time ago robinhood plays on the Fomo factor and peoples anxiety so they tend to send alot of notifications even the price action is barcoding. When you’re working and just want to pick your play then keep it moving without the added anxiety found this strategy works. Just my opinion to each there own
@@Tony3x88 I see what you're saying about that that's why I just put a trailing stop loss and trailing stop buy on any of my plays. Different ways to play it you right though
Hi I am a CZcams follower from Hong Kong. Thank you so much for the video, I learned a lot from your channel. I am interested in joining the discord, is put and call the trading strategies you guys often do in this group? Since US market opens at 2130 hours my evening time, lately will be 2230 hours winter time, I fear that I will miss the options open and close time. If this can be resolved, I am happy to subscribe the discord. Many thanks.
That time difference is real problem, unless you drink a lot of coffee and adjust your time. I'm just a youtuber as well, but I believe his dicord is well worth the money. Guillermo doesn't promote forex, however that might be worth looking into. Just saying...there are so many ways of trading at your convenience, or schedule. Best of luck $$$$
Can you compare the differences between opening a wider spread with more premium vs opening more, narrower spreads?
Are there other tickers that you can trade more than once a week like SPY?
QQQ
IWM
Is the desktop version different than mobile or wtf
Good Morning, Thank you for the videos and input. Very informative. I am a new investor and would like to get into trading options. I only have $500 in my Robinhood Acct and do not own any shares. I am also on Level 2 on Robinhood's option's so that limits me from several option strategies. I am not able to upgrade to Level 3 yet. With a smaller cash acct, no stocks and being a Level 2 what are a couple of good strategies I could use to trade options. I would appreciate any advice you you could provide. Thank you in advance for your time.
If you re a young guy you ll be better off just having time to do wealth building for you Invest a little all the time as soon as you have an extra few bucks into quality etfs . Let the dividends reinvest Have fun w options but dont expect it to build you retirement anytime soon its a difficult game.
Isn't this really a Bull Credit Spread?
Been using the iron condor after seeing it here. But there are times I’ll be up 75% and go to close, I’ll put in my price, it hits that price but doesn’t close. Anyone k ow what I’m doing wrong?
What is this strategy called? Would be greatly appreciated! Thank you for the great video.
Bull Put Spread
Lmao if you pick those strikes given the fed meeting soon your crazy clearly click hate you follow this your ranking your portfolio
Do you just let the options expire? Or do you try to get out of the put you buy?
depends on ur risk tolerance
Is there any way that I will get assigned using this strategy (with SPY)?
And, can I just let it expire, or is it better to close it?
You'll probably get assigned if stock closes at 386 or 387, inferesting to see what the correct scenario is if it does close at these points
You repeat yourself to much. It makes it too hard to listen to you.......
100 shares IN SPY????
what if stock gets close to strike before expiration, can you exit this position early and what will the results be?
Yes, at a cost.
Does this work the same way with calls? Meaning I dont have to buy 100 shares to sell a call?
Yes instead it would be a call credit spread
this is call selling credit put
Hey I’m getting charged every month, $7 for premium and I can’t get access to your discord. Click the link and just says expired link. I can’t benefit and I can’t cancel. Help please.
Great video. Interesting strategy,, would have loved to try it but just had my account changed from a margin account to cash account so I can't do anymore multi leg trades at this time
DO NOT DO THIS ON ROBINHOOD!! Bad advice for people with a small account. Big F for you
Why?
👍
What if you pick a week out and pick a higher strike price at sell put, and it didn’t reach the strike price you pick will you still be able to collect the premium??
@blackmanboating