i learned this strategy months ago, it seems like one of the safest and fastest option selling strategies by far. the only caveat being it can take a lot of capital to get it going.
Man your videos are some of the best! I love seeing your account grow,keep up the great work! I’ve learned a lot from your channel and it’s helped me out
Another point is one COULD buy whichever option is a little in the money back, if that happens. So, say the stock ended up at $18.95. Instead of buying 100 shares at 19, you could buy back the put shortly before market close for perhaps 6 cents. Then you could sell another put for a week or two out, or whatever. I do a lot of this sort of thing and have for decades, and it works fine over time if you are persistent and stay diversified, not getting too big in any one stock, vs. your capital. Oh, and not getting too big in total puts vs. your account size, because market crashes DO happen, and you might not want to consume all your cash and then be way underwater owning a bunch of stock.
Hey G / When you say “WE” did this or that in the premium discord group do you mean the members OR are these your individual picks and plays? I ask because I’m thinking of joining to get picks and plays from YOU and not so much from random members.
I was thinking about playing chpt... but probably selling a put because i don't own any yet. I'd like to own 100 right out and then sell Calls or whatever... it's probably going to perform fairly well even without playing any options... although why not!? Always great information. Definitely one of the best channels I've found.
Can we get a video with understand the alert system, i seem to only ever see “very risky exits”, where are the alerts, been here for 3 months, been doing a wheel strategy on sos, but I can’t seem to catch the constant alerts you show on your videos, I always see how much was made
You forget to mention that you will need twice the capital for this to work. So basically it’s your covered call plus cash secured puts and both needs capital.
That’s exactly what I figured out, felt too good to be true, when I tried executing it, it ask to deposit funds for cash secured put, although I had 100 shares for covered calls. It’s basic math which he should have told. Thank you for your comment! Venkat
hey good afternoon . I want to say thank for all your teaching here on CZcams for a while . so my question can you please make a video only on , ( adjusting ) a strangle on the put side or call side to manage lost , thank you again for all you teaching
1). For this video example, if the stock price stays between your call and put price, the options will expire worthless and you keep both premiums. 2). If the stock goes above (and perhaps to) the call strike price, you either lose the stock, OR you can buy the call back. If the price is only a little above the call strike (like a nickel, for example), it might well make sense to do that, and then sell ANOTHER call at a higher strike, depending on your goals, risk position, cash position, etc. 3). If the stock goes below the put strike price, you can buy the put back instead of buying more stock. Again, if it only goes a little below the put price, it might be well worth doing that and then selling another put at a lower strike price.
Yes, so basically you are not making twice lol, you are basically taking the upper and down side risk for same stock/etf so you will more likely to lose money in one of the two scenarios.
@@dudelove8662exactly, so you aren’t actually making twice the money as my friend in this video said lol. I would not wang to run this strategy as it hurt one way or the other. Buying shares at higher than current price, or selling shares lower than market price, one or the other you will lose money… unless the spread is extremely wide and IV is extremely low.
Joseph Saeteurn: That can work. Just realize that the stock can move against you between the two orders, reducing the amount of premium you get. In this example, demanding a net credit of 44 cents and selling the call and put simultaneously, that risk goes away. And if you can't get 44 cents, you could take 43 cents if willing, for example. I ALWAYS use limit orders as flash crashes can happen, and markets can very suddenly move a lot. Over many trades, things will average out re what you get paid.
@@rogergeyer9851 hmm i still dont see any difference sell a put and call in 1 contract vs separate contract of a put and a call. if prices goes up, both of the calls will be ITM and if it drops, both puts will be ITM.. same thing.. market can only go in 1 direction not both so either they both expired worthless or 1 of the put or call will be assigned.
Hmm. Not sure about that. If you have 250k cash capital with 2x margin account $500k (1 : 2) you really want to diversify. So not selling covered calls and puts on same stock is less risky. What counts is PPD (Profit per Daym aximisation and risk minimasation). If the stock drops a lot and they do (-10...-30%) it is better to start rescue mission selling put on stock you own and owning 100 share on different stock in different sector. In other words it is better to earn same "double premium" over different sectors stocks rather than on same stock. And if you do not have margin account then it is even more important to diversify.
As a first time investor I started trading with Mr Ryan Matta, with just a thousand bucks. my portfolio is worth much more than that now within just weeks of trading with him
I have traded with a lot of individuals but I have never come across anyone as good as Mr Ryan Matta, just by applying his strategies, I now trade independently. he is the best I'd advise any novice in investing to trade with him
Covered Strangles aren't real. I don't know why I'm being inundated with people on CZcams that don't understand that the risk profile of a covered call is exactly the same as a short put depending on the strikes chosen. That's right folks, selling puts has damn near identical ROI and probability of profits as selling covered calls. Sometimes there is call skew, or immense put skew which can drastically change this, but 95% of the time, for all intents and purposes we're looking at identical risk profiles. So when you take a covered call and combine it with a short put, you're just doubling your trade. You're selling 2 puts or 2 covered calls. The actual risk to your account is the same. Anyone who does not understand this should not be taken seriously.
Mach: Weekly option prices move around a lot, both as the underlying stock moves and as the time goes away. (One day for an option expiring in a week is a full 20% of the time, for example. Assuming it's hours since he made the video by the time you see it, that's not at all surprising.
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i learned this strategy months ago, it seems like one of the safest and fastest option selling strategies by far. the only caveat being it can take a lot of capital to get it going.
Man your videos are some of the best! I love seeing your account grow,keep up the great work! I’ve learned a lot from your channel and it’s helped me out
I am so happy you are explaining to everyone! This is my bread and butter of way of entering positions! Bring down the cost! =) Cheers!!!
really like this ...keep doing videos like this
Another point is one COULD buy whichever option is a little in the money back, if that happens.
So, say the stock ended up at $18.95. Instead of buying 100 shares at 19, you could buy back the put shortly before market close for perhaps 6 cents. Then you could sell another put for a week or two out, or whatever.
I do a lot of this sort of thing and have for decades, and it works fine over time if you are persistent and stay diversified, not getting too big in any one stock, vs. your capital. Oh, and not getting too big in total puts vs. your account size, because market crashes DO happen, and you might not want to consume all your cash and then be way underwater owning a bunch of stock.
Thank you, that's really helpful
I joined the Discord and am in the chat room. Where on Discord do we get your commentary? This is my first time using this APP. Thanks
Hey G / When you say “WE” did this or that in the premium discord group do you mean the members OR are these your individual picks and plays? I ask because I’m thinking of joining to get picks and plays from YOU and not so much from random members.
If u add a protective put into the mix is it then called a ‘covered strangle straddle ‘?
I want to join the discord! Do you tell us which cover strangle to do?
do you have to place both order at the same time to have more premium? or separate order or different date to get more premium?
I was thinking about playing chpt... but probably selling a put because i don't own any yet. I'd like to own 100 right out and then sell Calls or whatever... it's probably going to perform fairly well even without playing any options... although why not!? Always great information. Definitely one of the best channels I've found.
Can we get a video with understand the alert system, i seem to only ever see “very risky exits”, where are the alerts, been here for 3 months, been doing a wheel strategy on sos, but I can’t seem to catch the constant alerts you show on your videos, I always see how much was made
You forget to mention that you will need twice the capital for this to work. So basically it’s your covered call plus cash secured puts and both needs capital.
That’s exactly what I figured out, felt too good to be true, when I tried executing it, it ask to deposit funds for cash secured put, although I had 100 shares for covered calls. It’s basic math which he should have told. Thank you for your comment! Venkat
So in order to use this strategy I need 100 shares?
hey good afternoon . I want to say thank for all your teaching here on CZcams for a while . so my question can you please make a video only on , ( adjusting ) a strangle on the put side or call side to manage lost , thank you again for all you teaching
Literally just posted a video on this topic...check it out below if you're interested!
czcams.com/video/PSgE_2MjuVk/video.html
I LOVE UR VIDEOS CAN YOU PLEASE EXPLAIN THE BREAKEVEN LIKE FOR THIS VIDEO IF IT STAYS BETWEEN DO WE HAVE TO SELL SHARES OR BUY MORE OR IS WORTHLESS
1). For this video example, if the stock price stays between your call and put price, the options will expire worthless and you keep both premiums.
2). If the stock goes above (and perhaps to) the call strike price, you either lose the stock, OR you can buy the call back. If the price is only a little above the call strike (like a nickel, for example), it might well make sense to do that, and then sell ANOTHER call at a higher strike, depending on your goals, risk position, cash position, etc.
3). If the stock goes below the put strike price, you can buy the put back instead of buying more stock. Again, if it only goes a little below the put price, it might be well worth doing that and then selling another put at a lower strike price.
So this is basically like doing both legs of the wheel strategy at once?
kind of genius right?
So you have to have 100 shares plus the ability to buy another 100 shares in order to do this trade?
Yes, so basically you are not making twice lol, you are basically taking the upper and down side risk for same stock/etf so you will more likely to lose money in one of the two scenarios.
Anyone that comes in here needs to hit that like when you come in!!! Your getting QUALITY INFO from this channel!!!
You could do these long strangles on earnings like Ulta Thursday!???🎉
Buy 100 shares
Sell a call
Sell a put
Synthetic covered strangle blew my mind
I would ask a question but I’ve been noticing that Guillermo never replies anymore? Hello……anyone home?. What happened?
You forgot to tell people that you have to put up $1900 collateral for those naked $19 puts that you sold!
When you sell the put, will funds be temporarily held to cover the possible purchase of 100 shares?
Yes.
For cash secured puts, yes.
And when you Sell a Call it's "Covered" by the underlying Stock which you already own. 100 shares.
So for the covered strangle you have to have the 100 shares collateral for the call aswell as another 100 shares worth of cash for the put
@@dudelove8662exactly, so you aren’t actually making twice the money as my friend in this video said lol. I would not wang to run this strategy as it hurt one way or the other. Buying shares at higher than current price, or selling shares lower than market price, one or the other you will lose money… unless the spread is extremely wide and IV is extremely low.
I rather just do the two separate. It’s easier for me to closed it that way.
Joseph Saeteurn: That can work. Just realize that the stock can move against you between the two orders, reducing the amount of premium you get. In this example, demanding a net credit of 44 cents and selling the call and put simultaneously, that risk goes away. And if you can't get 44 cents, you could take 43 cents if willing, for example. I ALWAYS use limit orders as flash crashes can happen, and markets can very suddenly move a lot. Over many trades, things will average out re what you get paid.
@@rogergeyer9851 hmm i still dont see any difference sell a put and call in 1 contract vs separate contract of a put and a call. if prices goes up, both of the calls will be ITM and if it drops, both puts will be ITM.. same thing.. market can only go in 1 direction not both so either they both expired worthless or 1 of the put or call will be assigned.
HAAH!! I thought I was being slick. I'm glad to know this strategy is common enough to have a name
Hmm. Not sure about that. If you have 250k cash capital with 2x margin account $500k (1 : 2) you really want to diversify. So not selling covered calls and puts on same stock is less risky. What counts is PPD (Profit per Daym aximisation and risk minimasation). If the stock drops a lot and they do (-10...-30%) it is better to start rescue mission selling put on stock you own and owning 100 share on different stock in different sector. In other words it is better to earn same "double premium" over different sectors stocks rather than on same stock. And if you do not have margin account then it is even more important to diversify.
what is the best way to make money from investing,how can I begin investing with $10,000?
I make huge profits on my investment since i started trading with Mr Ryan Matta, his trading strategies are top notch,,
wow! amazing to see others who trade with Ryan Matta, i'm currently on my 5th trade with him and my portfolio has grown tremendously
As a first time investor I started trading with Mr Ryan Matta, with just a thousand bucks. my portfolio is worth much more than that now
within just weeks of trading with him
with the consistent weekly profits I'm getting investing with Mr Ryan Matta, there's no doubt, he is the most reliable in the market. such a
genius
I have traded with a lot of individuals but I have never come across anyone as good as Mr Ryan Matta, just by applying his strategies, I now
trade independently. he is the best I'd advise any novice in investing to trade with him
Covered Strangles aren't real. I don't know why I'm being inundated with people on CZcams that don't understand that the risk profile of a covered call is exactly the same as a short put depending on the strikes chosen. That's right folks, selling puts has damn near identical ROI and probability of profits as selling covered calls. Sometimes there is call skew, or immense put skew which can drastically change this, but 95% of the time, for all intents and purposes we're looking at identical risk profiles. So when you take a covered call and combine it with a short put, you're just doubling your trade. You're selling 2 puts or 2 covered calls. The actual risk to your account is the same.
Anyone who does not understand this should not be taken seriously.
So far number you get in your videos are far away when I repeat it my own.
Mach: Weekly option prices move around a lot, both as the underlying stock moves and as the time goes away. (One day for an option expiring in a week is a full 20% of the time, for example. Assuming it's hours since he made the video by the time you see it, that's not at all surprising.
Unlimited losses!!! I’m good on this
Go to a casino instead you will have more fun perhaps even less risk
Terrible strategy...
You should use tastyworks for these type strategies