A Simple Options Strategy That Can Beat A Bearish Market

[@smbcapital]

Options Trading Workshop: bit.ly/3t9sXhc

[@algray8389]

This is an interesting strategy Seth. Thanks. Another great video.

[@NeoSoulCrew]

Every strategy is a great one in hindsight. If everyone knew it would sell off they would have loaded up on puts at the top.

[@modo203]

This is exactly what you don't want to do in a bear market. Selling insurance. Yes. 10% DELTA might seem far to reach, but in volatile markets, the probability of touching becomes much higher. Now if you're interested in the underlying itself and do not mind getting filled every other time then fine. But damn are those SPYs expensive!

[@himanshuvaishnav8510]

Some experts might recommend selling a put spread at 10-delta to reduce your margin requirement instead of selling just the puts at 10-delta. It will reduce your profit but also reduce your risk.

[@tpsu129]

Are these Puts cash-secured?

[@jasonho6175]

what if black swan appears? keep rolling positions?

[@couchpotato684]

Thanks.

[@marfav123]

Could you guys do a video on futures preferably /es or s and p futures ?

[@bhobba]

Indeed they are opportunities, not disasters. This is just one of many that work in the current market.

[@Wmy9jy]

A strategy that you say beat the S&P. Again, in hindsight only and for sure not a trade that you have executed at your trading desk located in midtown Manhattan. Imagine your P&L had you done this over e.g. five years of a bull market, as compared to the performance of the S&P during this 5 years period, tieing up your capital in margin. Experienced option traders know that selling cash covered OTM puts is a strategy that works until it doesn't as you run the risk that a black swan event wipes out your account. You should have mentioned this as the reason why your broker requires you to maintain this huge margin in excess of 100k. Will you or your colleague in his one black shirt ever dare posting a video not about theoretical paper trades that worked in hindsight but about a trade before or when you execute it and videos about how you manage this trade while it is active and a final one about its final performance? Taking your viewers along live so we may see your broker screens as you trade at your trading desk located in mid town Manhattan? Would you mind answering this question please as I think you perfectly get my point. Or are your traders just paper tigers?😀

[@RosstonSmith]

I love selling premium!

[@nickh2053]

The basics of options are to sell time decay and buy intrinsic value.

[@InspireNewGeneration]

I’m always scared of market crash.

[@drwolfik]

Why?

[@seraphin01]

I'm sorry but I kinda fail to see the point of this strat.. If you're gonna block 116k for a three month period to make a return of about 1% with a 90% chance of doing that (leaving 10% for a possible loss).. Well you just made a tiny big of taxable income out of a big chunk of your capital possibly.. I don't know about the US but here in Europe we have special account, tax free (very important) that gives you a 100% guaranteed 2% return yoy So yeah its not really a great deal but not only is it safe but it's also liquid, you can take that money out anytime of the week at any moment and use it how you see fit.. And it's all tax free So yeah I get the point of this strat but it's not gonna beat inflation, you still paying fees and tax etc and you still have a 10% chance for a loss.. Meh

[@TMacFPV]

10:13 Time mark. "Blocks off" $116K and makes $18K. 15.5% profit

[@seraphin01]

@@TMacFPV you got it wrong.. It's IF you bough the indices you'd be down 14% or something, so add the "gain" with this strat it makes a differential of 18 or whatever.. But say you km just keep you money in your bank account and not invested in stock then what? You made 14%?no you made 0, you just didn't lose money (aside from inflation)

[@FA-fo1gu]

Terrible instructions