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Options Trading Strategies: Can You Make $1 Million by Trading Options? - YouTube
Channel: BestStockStrategy
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enter your email and receive around
$400 worth of free information I also
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exactly what happened to me and I
graduated from an Ivy League university
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inherent human greed to make more money
as quickly as possible
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and I can tell you that that really
sucks when you lose money so if you are
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not satisfied earning 50% a year then
you can still watch this video and you
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can disregard and think everything I'm
telling you is bullshit and you can try
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other strategies and I hope that you're
gonna make money but I know that you're
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not because I have a tremendous amount
of experience and I'm OCD and fanatical
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about making money and optimizing my
trading so once you try other strategies
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and you end up losing your money then
you're welcome to come back and I'm
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still going to be here and I'd be happy
to teach you and happy to help you so
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the most important thing that you need
to do is limit your information sources
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we live in a
where there's way too much information
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and there's not enough action you want
to turn yourself into a creator and not
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a consumer the second thing that you
want to do is you want to evaluate your
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account size if you have an account size
that's below $15,000 you want to have a
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watch list with five securities on it
and you want to have positions on with
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at one time with no more than one
position a maximum of two so you have a
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watch list of like five or six
securities and at any one time if your
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account sizes below 15,000 you're gonna
have a maximum of two trades on
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preferably one alright I have a
multi-million dollar account and at one
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also have positions on maybe like half
of these like RT n which is Raytheon
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Goldman Sachs at gaming stuff like a TVI
or ttwo and PayPal so maybe I have a I
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have you know six positions on at any
one time Facebook Amazon Boeing Lockheed
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and this is what I've been doing for
like the past five or six years and then
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I just get comfortable with the trading
range so for Facebook is trading right
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now with a hundred and seventy-five
dollars
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I know that it's trading ranges around
170 to around 182 dollars
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I simply wait for Facebook to fall to
the low end of that trading range around
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172 dollars and then I sell an out of
the money naked put option with the
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strike price of around 150 eight dollars
I know that a lot of people are thinking
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right now that selling naked options are
incredibly risky but the people that you
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heard that from are not successful and
profitable traders ask them for their
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trading statements and ask them for
screen recordings that show their entire
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a naked position as opposed to a
vertical credit spread and also when you
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sell a naked option it inherently
reduces your buying power by
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substantially more than a
credit spread as a result it protects
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you against your human desire to engage
in greedy activities I can't tell you
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that they sold that option on trades
below the naked option that they or
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rather it sells below the option that
they sold and above the option that they
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bought to turn it into a vertical credit
spread so they end up getting assigned
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those 20 contracts which is too large
for their account and their broker ends
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up forcing and closing them to close out
that trader the massive loss vertical
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credit spreads are dangerous because
inherently it reduces the amount of
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credit that you receive since you're
buying a throwaway option it's very hard
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for you to roll and manage that position
since you constantly have that drag of
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having to buy an overpriced option and
perhaps the most important thing is that
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it tells people and gives them a false
sense of security that they can trade
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way more contracts than they should be
able to trade all right so you sell the
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way to be profitable you sell naked
options then what you do is you sell a
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naked option with an expiration of
around six weeks out you can wait like
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two or three weeks to see how that
option is doing let's say you sold an
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option on facebook when was trading your
one hundred and seventy five dollars
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then let's say Facebook goes up to a
hundred and eighty five dollars two
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weeks from now there's no point for you
to wait in incremental four weeks when
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that option that you sold when Facebook
was trading at 175 is now is now trading
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for like 10 cents when Facebook was
trading at 175 and you sold that 158 put
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option you probably collected around $1
per share and premium now two weeks
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later if Facebook was traded up to 185
maybe that option is trading in fifteen
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cents so you have been able to receive
85% of the premium in like one third of
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the time that you've waited as a result
it is not capitally it's not it's not
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capital efficient and it's not an
efficient usage of your capital for
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you two wait there in incremental four
weeks to simply collect 15 cents a share
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close out that position and then scan
your watchlist for you know for Goldman
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Sachs or Boeing or Amazon or Lockheed
Martin or one of the gaming stocks or
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PayPal
see if there is an an opportunity for
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you to sell puts in one of those
positions if one of those positions are
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trading at the low end of its trading
range and then you sell an out of the
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money put and then you just simply wash
rinse and repeat and continue to hit
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and share this video if you have any
questions leave a comment below I'm
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