A One Day Options Trade (66% return)

[@user-vn7id3nt7b]

Thanks so much for putting up such a piece!Trading perpetual futures or options contracts may be exhilarating, but armed with knowledge and smart strategies, you can navigate the journey with confidence. Remember, a mix of education, discipline, risk management, and continuous learning is the recipe for minimizing losses and maximizing gains. Whether you’re a newbie or an experienced trader, these tips are your compass to steer through the complex world of perpetual futures trading. And for those looking to take it a step further, and to plan towards a good retirement that will benefit in the near future 🚀📈

[@Rooneyrobsin]

Now, here’s the real game-changer that can transform your trading journey it is a quick tip from my adviser JASON HERMAN PIERCE. Imagine being able to beat the difficult situation that surrounds investment or having good and laid out plans to strategically overcome the market challenges,No more worrying about losing trades or missing out on profitable opportunities. The laid plans,good foundation ,tools and other important techniques will allow you to identify good skills that will consistently lead to making profits and replicate the strategies effortlessly. It’s a time-saving, stress-reducing solution that empowers you to follow proven strategies without the guesswork and as such emphasis on good and better landing most especially when planning retirement which is paramount and must be properly followed by a well established mindset.

[@DomTeddy-eu6zt]

The trading landscape is ever-evolving, and your knowledge should evolve with it. Staying updated on market trends, technological advancements, and emerging trading strategies. Devote time to learning from successful traders, attending webinars, and reading reputable resources which will clearly explain the needed steps to attain a hood standard.

[@Maryford-rg2gf]

I think primary knowledge or a study to understand the basics of the portfolio is key to begin an investment journey. Education is the cornerstone of successful trading. Arm yourself with a solid understanding of the assets you’re dealing with, market trends, and the mechanics of perpetual futures contracts. Diving into financial news, analyze historical price data, and keeping a keen eye on the factors influencing your chosen assets has been the key things I learnt from JASON HERMAN PIERCE too, a suitable application of techniques led to a huge profit gain it is the case with a properly traded portfolio which I have actually benefited today.🎉

[@Tysonfletcher-kv7of]

Trading with Confidence is a booster that can kelp on cconcetrate and build a good trading environment Trading option,perpetual futures or other contracts may be exhilarating, but armed with knowledge and smart strategies, you can navigate the journey with confidence. Remember, a mix of education, discipline, risk management, and continuous learning is the recipe for minimizing losses and maximizing gains and play a key value to the easy understanding and applications of terms

[@Tysonfletcher-kv7of]

I have made more profit than i had before after coming to understand these simple values and logic.

[@Tetsu-p3g]

Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@Muller-o4d]

Find stocks with market-beating yields and shares that at least keep pace with the market for a long term. For a successful long-term strategy I recommend you seek the guidance a broker or financial advisor.

[@Aron-r3m]

Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.

[@Evelina-v3u]

Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@Aron-r3m]

‘’Jenienne Miniter Fagan’’ is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment

[@PMackenzie-vw3wb]

Thank you for this amazing tip. I just looked up Jenienne, wrote her explaining my financial market goals and scheduled a call

[@7aylashi]

And sometimes the market doesn’t move and u loss 100%

[@ericfarnsworth5325]

That’s why u do it on high volume

[@jacobo3551]

If that happens you loose the two trades, but if you are really good at getting volatility the RRR will be enough for you to cover the previous losses

[@Anon-tj2zk]

That’s why you trade not only Fundamentals but also technicals. I use straddles above and below support/resistance zones so that if the market moves. It can only move one way. Also don’t be greedy and take a lower RR for a higher strikerate. Goodluck

[@jacobo3551]

@@Anon-tj2zk that works tbh

[@Coco-sy3iu]

Good afternoon

[@jman4real871]

He said that incorrectly. If you buy a PUT and the market goes down....the value of the PUT goes up.

[@a.n.o.n.y.m.o.u.s...]

Listen to it again

[@OurNewestMember]

​@@a.n.o.n.y.m.o.u.s...lol

[@turkt4176]

@@a.n.o.n.y.m.o.u.s... 😂😂

[@jimrat4048]

Thank you so much. I was so confused and thought I was going to have to start studying again. Buy put, market goes down, option price goes up.

[@productcheck]

I noticed 😂

[@RichyHH]

this is how you F around and find out

[@tvrqsebeats5693]

🤣🤣🤣

[@AM-jx3zf]

😂😂

[@No-showJoe]

😅😅

[@leavemebe-r3u]

10k on black!

[@lnternetExpIorer]

Guys, if you’re holding a straddle, you sell your losing leg of the straddle, not hold it to $0. Like in his example, you would’ve sold your call & held onto your put. Please don’t hold a $2800 call down to $0.

[@ryanotoole7084]

what if you sell the loser and then it reverses though, you would lose like 80% of your position every time, not saying your idea is bad but there has to be a strategy behind it you cant just sell when you think its gonna keep going down or vice versa

[@AM-jx3zf]

Ye

[@datsva4ya]

Win big to cover loss, study the stock you're betting on

[@lnternetExpIorer]

@@ryanotoole7084 all I would say is that you have to learn how to trade. I understand the market reverses, but if it does reverse, it’s probably because you don’t know where the pivot points are at. There’s all types of strategies but if you’re blindly trading, then yes, you’ll probably lose no matter what position you take, because you’re just chasing. Taking a straddle at critical support/resistance is a safer bet than going long at resistance or short at support. you dig?

[@lnfiniti23]

It’s better to let the losing trade continue to go down (even to zero) until you lock in the gains on the winning option, because it’s still insurance protection until then. I have learned from experience that if the market reverses, you can quickly lose in the other direction. Now once you lock in the profits from the winning option, if there is anything left on the losing side, then sell that as well, then move on to the next trade.

[@hydigoldenretriever]

when it goes side wise.. both put and call option will be in lose

[@siddharthsinghyadav3582]

u have little knowledge of option. u only make staddle when big move come either it go down or up

[@RonakVachhani]

@@siddharthsinghyadav3582 you never can tell what if it opens flat! You are toasted

[@siddharthsinghyadav3582]

@@RonakVachhani this is a risk stupid if u r come to do a business different type of risk is involve

[@braddistler5697]

These are good for fomc days. High vol days. One day expiration too which I’ve found to be rip off. I see 2 week expirations for same price so why wouldn’t I buy or sell a 2week in case vol doesn’t spike that next day? Problem is there’s so much volume in the daily’s now that the premium is just crazy high. In unpredictable markets like we have right now pushing new highs waiting for huge pullback these are good to use. Days like today you can double down and sell one at bottom of day then wait for pullback like today back to open or above open making both side of straddle profitable. This is experience strategy because can really just keep going and exited winning position with looser still on. I like to take looser off before winning position too letting winner run to its target. This is when major support or resistance level breaks and market starts to run. Today had 100% pullback from moves so if took profit at bottom then back at top you’d be doing really good. I stick to micro S&P because raw seems to be more profitable

[@Kneedeepinstock]

@@braddistler5697would it be possible to speak about strategies like this with you? I’m looking to start trading and you seem to know what ur talking about. Thanks

[@rambunk]

Actually a smart move because fed talking about interest rates will make the spy very volatile so it will most likely swing in one direction heavily making either your put or call option with more then 100% gains

[@Coco-sy3iu]

Good afternoon. Take me on the money trail

[@ryanotoole7084]

whatever you do DONT do this method with 0 or 1 day options, time decay is a huge factor and its basically a gamble. If you want to do this method buy for like a month out at least

[@SandstoneCapitalLLC]

Very True! and good advice. That Theta decay will eat away at your profits very quickly.

[@Coco-sy3iu]

Good afternoon. Take me on the money trail

[@Rajesh_Singh301]

Time decay works in your favor for short straddles not long straddles as is the case in this video. Long straddles positions must be held for no more than a day or two.

[@chucktownvids]

Yup need big movement for this

[@RyanMitchell418]

Don’t have money for that. 0dte for me only.

[@philochristos]

I bought a call and a put on SPY one day, Spy barely moved at all, and both were eaten up by theta decay. I lost money

[@LyricsQuest]

You could've profited from an iron condor that particular day, but might be a pretty risky strategy for most SPY days.

[@DNin210]

Because there was no catalyst for a major move. This is key

[@CasperWest]

only but early upon opening market. volatile is the highest.

[@Sharkdog11b]

This is the most understandable explanation I’ve seen so far thanks for not adding a bunch of nonsense like everyone else

[@ConsensusX]

Instructions unclear, I just blew up a $200 million porfolio.

[@Coco-sy3iu]

Good afternoon. Take me on the money trail

[@billybeason350]

Bullshit

[@billybeason350]

Bullshit

[@ConsensusX]

@@billybeason350 Ever heard of Maricon Research, LLC?

[@OurNewestMember]

You're doing great!

[@ChristopherRobert-ic4ub]

great play to do when earnings are coming out (depending on how much IV inflates price) or any other event thats likely to move a stock/index a substantial amount.

[@yojimblab]

Dangerous advice w/o mentioning how often this trade ends at a loss.

[@DeviantFox]

1) don't long options day before. You're paying for theta. You can do this same strategy ETH if needed with /ES options prior to the announcement.

[@DeviantFox]

ETH is electronic trading hours. /ES is the S&P Emini Futures @@admin6228

[@pjdelucala]

If you buy a put and the market goes down, then the value of the put goes up. He said it goes down.

[@DeviantFox]

"tends to". Volatility could still kill the premium in your option.

[@Rahul2000g]

@@DeviantFoxexplain?

[@DeviantFox]

@@Rahul2000g an option is made up of intrinsic and extrinsic value. If spot decreases, typically you'd expect the put to increase. However, if volatility compresses substantially the value of the put option might not increase as much as the underlying decreased. TLDR, the intrinsic value gain didn't offset the extrinsic value loss to the overall position.

[@88888gerald]

he is into sales...not help

[@ninamatthews8747]

@@Rahul2000gright before a company announcement/earnings, or for spy/Spx government announcements, implied volatility increases so the price of the option will be higher because people are expecting a big move one way or both ways. Right after the announcement the implied volatility will return to normal and the value of the options will decrease. Unless the option you bought is deep in the money, more than likely you will lose on that trade.

[@mikehunnewell7412]

I think of the market as a 3 head coin . It can go up , down or trade flat . He is right there are ways that you can take 2 out of 3 scenarios . It all depends on the strategy you use.

[@wulfseig1864]

Got so much to learn to trade options. This sounds counterintuitive but after reading the comments I see how it could work.

[@joelvedamony]

Please guys... Trade long straddles ONLY when you are sure of high levels of volatility, especially that close to expiry...

[@Chukboss]

Can you explain plz?

[@joelvedamony]

@@Chukboss If the market is in a tight range and hasn't crossed your break evens on either side, you stand to lose most of the premium you paid to buy the puts and calls due to theta decay... Your break evens on both sides are relatively high... Call side break even will be strike price plus call price plus put price. Put side will be strike price minus (call price plus put price). Given that most markets are ranging between 70-80% of the time, achieving such high break evens, can be really tough, and most simulations show

[@Pluvio624]

Lol! You're joking right? The higher the volatility the more expensive the options. You would be smarter to sell the straddle when volatility is high.

[@Saavys]

@@Pluvio624wrong. Volatility and IV are not the same.

[@EGR370]

High impact news: PPI, CPI..

[@Insider-C137]

I just started being profitable after learning by loosing only a few hundred . Once I have 30k, I’ll be all over the straddle plus buy currently profitable strategy . I like the straddle it’s a Work smart not hard type of strategy. I like it.

[@egorkuleshov5103]

Yep, and if you don't have move and IV drops, you will have significant loss.

[@702Fonzie]

True! This probably works when there’s big news the next day for volatility

[@timmnicolaizik5515]

@@702Fonzie no it does not. The news is already priced in in the iv

[@702Fonzie]

@@timmnicolaizik5515 So his straddle strategy doesn’t work

[@timmnicolaizik5515]

@@702Fonzie Straddles make money, when the volatility is higher than the market thinks. If your trade before news, the straddle will be more expensive because everyone knows, that the vola will be high. So you need a situation where the volatility is higher than the expected volatility (the iv). This is not the case by just using news

[@702Fonzie]

@@timmnicolaizik5515 gotcha appreciate the reply

[@JimmyCarterAkaBrandon]

The implied volatility is so high the day before a fed event I’ve had very good luck starting my position a few days earlier. If you think about it if you buy a 14 day when iv is low the spread price will be the close to the same as a 7 day when the iv is high plus if you buy early you will benefit from iv rising.

[@tai9sen]

hindsight is 20/20 and the Fed money police is fully digested and without the element of surprise SPY will not move as much in both direction. Your straddle is 100% loss. Think about it market makers will always price in a straddle in their favor! Retail traders will pay the price if you want to play. You are better off doing a bull spread or a bear spread as the out come is 50/50 and the reward of the winning side could be 100% of risk capital or more.

[@alireza.t]

On the opposite side, if the stock goes sideways you would lose on both options so always have a risk management.

[@yiyi-py3ew]

“Your video on the importance of financial literacy is very satisfying. It is key for everyone to have a solid understanding of personal finance to make informed decisions and secure their financial future. What you have done in spreading awareness The contribution efforts are commendable!”

[@finanzasverde3405]

What they don’t tell you is that you need to have a certain percent to off set the call and make some profit , what if the market doesn’t move at all You lose all the money , very risky in my opinion

[@Froths]

Thats why he said "trade it intelligence"

[@OurNewestMember]

Yeah. This is crazy.

[@avnumusicproduction]

Thinking about doing this for earnings plays makes a lot of sense risky put if either side go crazy should be up big

[@chucktownvids]

Gotta have huge range for this to work.

[@raymondjoseph8040]

Seth, love the video. Hope all is well with you.

[@yersonavila1750]

That’s why everybody needs a percentage to get out the play, instead of sell them worthless

[@paulkennedy7210]

You mean the price of the put goes up. Huge error … you should probably fix it as a major market education center.

[@JoshBlazek]

Slight correction. Market goes down and the put options price goes up. I know you know that though. Straddles are neat. How do you feel about strangles?

[@scottydog9997]

Just had an annoying one on DIS.

[@OurNewestMember]

Strangles are even better -- you can adjust the straddle for IV skew and rates, etc

[@dassio45]

Buy put and market goes down … put value goes up 🆙

[@aspj12]

This is probably better done when the straddle is executed 5+ days before the news. That way, you don’t get decimated by IV crush

[@cds2718]

Nice in hindsight, also fun way to promote 1DTE options lol

[@IanHall-s6m]

I prefer to just be right on the direction

[@v.r7235]

When you buy a put option and the market goes down, the value of the put option goes up. Use your stops.

[@tdiler12]

Most times it seems the anticipated volatility is so baked in and thus the premiums so damn high that its takes a massive response to the anticipated event to clear the cost of both legs to clear break even. Just look at the put/call option table after a highly anticipated earnings event . Stock up 15 % and most options are in the red …both sides.. w the exception of the deep in the moneys of the winning side. .Wonder if NVDA will be that example soon.

[@mrd8597]

thats how you lose full capital by not understanding options math!

[@admin6228]

Volatility has to be larger than the breakeven point for the losing side of the straddle. Let's give this 30% chance and let's give 33 percent chance of not making any move. Then this strategy only works 30% of the time. That's very high risk

[@OurNewestMember]

Very well put

[@Maurice181]

I think you mean.. "When you buy a PUT option and the market goes DOWN, the price of the PUT option tends to go UP."

[@Mav0585]

Oh that’s awesome

[@ishanlohomi9680]

Straight forward and informative 👍👌

[@kevino4846]

Better off with strangles/Iron Condor.

[@achristianson4059]

One, teeny tidy piece to this … that your profits rely on the most with this trade. You need volatility to flood in and spike your extrinsic value. And definitely do not do this at less than 45 Dte

[@OurNewestMember]

He's on such a short timeframe that is about realized vol rather than IV. Still, this 1 DTE straddle concept is ridiculous

[@eamonhannon1103]

What he says appears to be contradictory . He says initially that when the price goes down then if you buy a put , the value of the put tends to go down . That surely is not correct . When the market goes down then the value of the PUT goes up surely !

[@jmiogo]

Most days you lose it all. And moves usually cone after iv is high. This is a surefire way to go broke.

[@OurNewestMember]

100%. This straddle example is rttrded

[@TamerRashdan]

Buying options is very risky, people get lucky sometimes but one loss can wipe out several months of gains Most options expire worthless and time is against option buyers

[@ajaeellis3755]

so what do u say to people being multimillionaires doing this?

[@ajaeellis3755]

u mad u can’t do it

[@ultimo4955]

​@@ajaeellis3755 once you have over 50k I'd recommend just selling options, you can still be directional but you'll make way more money by being the insurance company not by being the policy holder via options buyer

[@TamerRashdan]

@@ajaeellis3755 haha I wish you can go ahead and do it and then share your results with us

[@TamerRashdan]

@@ajaeellis3755 go be one of them Good luck to you

[@leonaking1865]

Love your wisdom. I am a full time sub teacher, and I want to trade options, but my available time to watch markets 4-7a or 9p-12a, sounds like forex? What's your opinion teacher, I like watching the charts? But I want to make money to stop teaching.

[@OurNewestMember]

Futures and futures options have longer hours, too

[@r1.454]

Old news secrets out. New news these options are being aggressively priced and unless SPX has a big move u risk being middled

[@piotrstefanski8831]

yeah but wasn’t IV priced in before a huge announcement like that?

[@nodnarbz_1327]

He started off by saying “if the market goes down: the value of the put option goes down” when he should’ve said “value of put goes up” Because 5 seconds later he shows the market dive down and the put option value rise.

[@aggerleejones200]

You do not want to do this with one day left or day of expiratioh. And if the Fed is going to speak that day your going to get high implied volatility and the and when t's over you'll expreience vol crush. As a general rule you want to sell high vol and buy low vol

[@ChiIeboy]

"When you buy a Put Option and the market goes down, the Put Option's price tends to go down"?? Makes no sense...

[@dianeulett3149]

He made an error is his video. I noticed it too.

[@ChiIeboy]

@@dianeulett3149 Indeed, that's why we buy Put options - in hopes that the underlying asset price will go down, and thus _increase the value_ (price) of that Put option.

[@josephfogle5073]

Yep it can be done but rarely snd how much do you lose ion other days. One day dies nit matter unless you only do this on your first day snd never trade again . What matters is what you make in a year five years snd ten. The average traders makes 5 to 10 percent a year. If traders consistently made more they would not tell you they would just get rich snd retire.

[@drpatel1]

Most of the times market doesn't move much and you lose 66 percent of your money, than go look for this guy for your 66 percent return. 😂 and yes. I am a financial advisor.

[@soulrisk1010]

Much more to it

[@Jaybandzz447]

Don’t trade this way you will lose your account

[@alannayin5284]

Why ‘when you buy a put option, and market goes down, the put option tends to go down’? Was that an error? Or I’m not understanding?

[@rubbaclaymo2822]

just buy high, sell low, dont ask questions

[@proudbhartiya1993]

But when the Market is sideways then you'll both the trades as both will get decayed.

[@TSCBroken]

Brilliant... so you guarantee one of your positions is worthless while assuming the move in the market will be of such significance to cover your loss and hopefully make you a small profiit. Statistically, this is a very bad idea as the market doesn't move enough to cover your loss.

[@consipicy]

why'd he say buy, you'd think he'd know what he's talking about... unless....

[@pianomanplanet]

My issues with this strategy are what if your outlook is wrong and the underlying makes a very little move? You could incur a loss. Also, risking 12k is fine if someone has a 1.2mil portfolio, as that is around 1% of their portfolio. For someone that has, say, a 25k portfolio or even 50k portfolio, this seems like a massive amount to take on.

[@ashtonjohnston6264]

Decay suffrage

[@OurNewestMember]

Yeah, as a purely speculative play, this is absurd

[@bimil8724]

Could have lost 100% if it didn't move. Plus Vol crush.

[@GenXBitch]

Also you need a margin account to get level 3 or above. I switched to a cash account because of the pdt rule and now can’t do any multi leg options. I’m stuck at level 2 now.

[@cseliman]

How about an Iron Condor ?

[@MrJoe8K]

This guy keeps post big money wins but no actual reality option trading! Don’t try this! If it barely moves like most would, you are done on both ends

[@DNin210]

This works well if there is built up anxiety and a pending catalyst. In this case, a fed decision. You wouldn't do this trade on a slow no pending catalyst day.

[@chill_medic]

If you buy a put option and the market goes down the value of the put goes up.

[@bernsteinzimmer5344]

wow....best and most in point explaination ever

[@swooopg]

This only works if it drops the price a lot, because if the market rallied higher the same amount that it actually dropped the value of the calls would NOT increase the same amount as the puts did because of volatility expansion and contraction…so at this point you might as well just buy far OTM puts and hope you get drops more often than rallies…the options market is priced to perfection so buying straddles or strangles for news events is overall a losing strategy, selling them is higher probability, especially in bull markets

[@OurNewestMember]

IV expansion/contraction on a 1 DTE???

[@pedrosanabria5823]

Your second premise is incorrect: when you buy a put option and the market price of the underlying asset goes down the put option's value goes up. I assume that whatever you said after that is incorrect... my brain stopped listening right after that inaccuracy.

[@javajoe4]

I was thinking the same thing when he said that, it made no sense. Great to see you caught that as well.

[@fweddyfwintsone4491]

I'm not the expert here, but I think he is incorrect. He said "when you buy a put option and the market goes down, the put option's price tends to go down. " - This is not true. If you buy a put option and the market goes down, the put option's price should go up. Hopefully this was just a misread and not in their training manual.

[@ninamatthews8747]

Yeah but you also need to think about the higher Iv right before announcements like that

[@Geraldorodriguez732]

If you bought a put option and price of stock goes down how would it go down ??? I thought you make gains from a put option if stock goes down

[@davidcardano963]

and how many times do you loose compared to this one win?

[@neth3an]

Good stuff sir!

[@LulianMillendez-hw2xb]

Biggest hack to options trading: time travel

[@beastiepinto]

Whwre can i het the best instructions on straddles and how to pick the entry-level as well as strike prices and length if time

[@inasimulationwelive]

He got confuse when he said - when the market go down the put option tendes to go down

[@kolhapurkarpatil]

What's was the price of straddle with hedge?

[@andrewmelia4199]

You’ll profit of more volitlity than what’s priced in*. Those premiums will rise with the expectation of higher volitlity

[@DominiAeternum]

He never specifically mentions the price of SPX, and why the value of the 2 Put options ended up being worth $20,xxx? And why the cost was what it was. For a beginner this video was only half as informative (or even less) than it could have been. It also doest explain the risk of what happens if the movement of the instrument or security want as great & volatile as it was for the day. Also how the hell can you sell a put for higher than a current price for the next day? Don't Put's have to be lower than the current price?

[@OurNewestMember]

You can buy a 1 DTE ATM put on SPX for about $1.5k (15 points). If SPX falls by more than 15 points, then it will be worth more than on the prior day (yes, the extrinsic will be decimated, but the intrinsic will be high). He's using the example where SPX falls by 100 points to demonstrate (but a 1-DTE ATM put would cost more than 15 points)

[@J123G]

Why trade long option positions 1 day before big fed announcements. You have less risk the rest of the month. The only reason to pay up for those big premiums is if you have an uncontrollable gambling (day trading) addiction and can't stay away from the action 1 day.

[@Myscentsei]

Doesnt matter the direction?

[@DavidDiazSanchez-z6h]

Please correct your mistake, when you buy a put option and the market goes down the value of the put goes up... NOT down. ..

[@torresnicolas7632]

When I buy call options the market goes down to me and vice versa ! 😂😅

[@dona286]

Intelligent stratedy but very risky because the trader has never out smarted the market. Risk management and one trade a day is the key.

[@danstrayer111]

I buy closed end funds which yield 9% + and I just walk away....until there's a dip, then I buy more.

[@OurNewestMember]

Wow! Where does the 9% come from?

[@torvic6529]

*When you buy a put option and the market goes down the price of the put goes down* lol

[@aicjhhthf]

When you buy a put option and the market goes down, the price of the put goes UP and not down.

[@consipicy]

you mean to say sell a put and a call....

[@smeshnoymatvey2054]

You can also lose on both when a black swan event comes. That's why you don't trade options with your whole account. May be max 10%. Personally If I can't use my whole account on a strategy then the strategy is inferior and not worth my time. That's why I will never trade options. They increase you leverage not risk reward ratio

[@OurNewestMember]

That's like saying you shouldn't consume hamburgers or alcohol because they can accelerate disease and death. No one forces you to get over leveraged with options (nor do they with stock on margin or futures or getting too big of a mortgage or student loan or credit card balance). The goal is to use what you need.

[@seek3n]

2% max loss would be a 1m account size. If it didn't go anywhere.

[@TKsolotravel]

And if it only tanked 30points, what would the be the outcome ?

[@Gary2379ify]

I do it with Leverage an inverse Etf, first I Buy cheap leverage and then inverse ones

[@admin6228]

To magnify the losses further? 😂😂😂

[@genosynk546]

He said a put options value goes down if the market goes down...that's wrong....right?

[@warriormanmaxx8991]

Correct! Wrong! Put option moves HIGHER, if stock moves ... lower. (brain fart, due to camera anxiety)

[@BlueDef811]

Dont listen to this guy; he’ll make you lose your shirt.

[@DLuzElAngelMusikal]

I thought the brokers didn’t like it when you do this, Isn’t it against the rules?

[@nobnoba]

He forgot to teach (or purposely exclude) about market Expected Return. Those call and put premium are within the market expected return.... short story, ur most likely lose money because he price will be within the expected return range

[@jake19077]

What about decay of premium....option buyer needs momentum