A Very Effective Options Strategy Using the RSI Indicator

[@smbcapital]

Options Workshop HERE bit.ly/3w7vsj4

[@flaviorighetto5753]

Lately I’ve been thinking of buying cryptocurrency for retirement, I’ve set asides $350k to invest but along the line,I usually get cold feet, maybe because I have no idea what I’m doing, please I could really use some guidelines.

[@maryperry7909]

@@flaviorighetto5753 In situations like this,I always recommend to people on getting guidance at least from someone that understands price action and all that while you strive on improving yourself by watching videos and learning fundamental analysis.

[@andysyaputra1787]

Investment guidance sounds like a great idea,thought about it before but never knew how to go about it.

[@harrisvangeest5134]

@@andysyaputra1787 I started investing in cryptocurrency a little while ago and I’ve come to realize nothing beats first hand experience..Investing with Juan Antonio Landa has been the best experience ever.

[@jeanstrassl5465]

Wow…..Juan Antonio Landa?

[@dannytetreault]

This channel keeps getting better!

[@davidlee9570]

Thank you Seth for this video. The idea of the standard deviation gave me a eureka moment which immensely improved the timing and levels to place the credit spreads entries.

[@dc-wp8oc]

Seth, this was very informative. To a novice, this strategy contains what appears to be a high risk to small reward ratio. Wish you would expand each the various SMB strategies into a 3-4 video series: more details, managing trade, and worst-case scenarios.

[@mikeanis8554]

Great video Seth. Kind of hard to see in 720p format but still very informative. Do you have traders on the desk that implement this setup on a smaller time frame or even day trading? I'd really like to see a video like that if so. You guys always provide amazing insight and the quality of work is always top notch and much appreciated!

[@smbapplicantross884]

Great points made here. Technical overbought / oversold levels, coupled with significant supply / demand in price levels and during those setups writing options premium gives a huge edge. I used this sort of strategy many times during 2021. Was great hearing Seth refer to using RSI in this way.

[@stephonhenry-rerrie3997]

Is there a sense of expected value on all these trades. Noticing that the capital you put up is pretty big compared to the income you generate.

[@Mojo702]

At 7:46, you talk about CCS but your graphic shows PCS at the top

[@dfumusic4288]

Got it! But doesn’t RSI tend to be more accurate when the security is in an oscillating, range-bound pattern as opposed to trending?

[@thegormlesstwit849]

Seth, can you please backtest that strategy over ten years, then we can get a good idea of its long-term effectiveness. Thank you.

[@JasonRiley-o9p]

Question? Obviously looking at the rsi on a daily snapshot is much different than looking at the yearly, or even 120 days. What timeframe are you looking at for the rsi in this example?

[@markl431]

Without a doubt it's a great conservative money making strategy, but not for the volatile markets that we have today where the market can swing wildly in either direction. Or at least it's best to stick with less volatile stocks, big names such as Apple, Amazon, Google, etc...

[@jaredandrew9805]

When using the RSI indicator what time intervals should you have them set at? I noticed this makes a big difference if whether it is near 70 or near 30. For example if set at 1 minute daily chart the rsi is near 35 and if I change it to 4 hours monthly the rsi now shows it is near 70. So if I’m doing weekly or monthly spreads which rsi time line should I choose?

[@brianshepard2522]

Great video Seth! Thank you. What other factors would need to be taken into consideration when selling credit spreads that expire the same day? For example sell credit spread one hour after the open that expires the same day.

[@matthewmorse3397]

Thanks Seth for this strategy. Given the very large risk if the stock goes wrong and puts the spread into the money, do you reccomend a stop limit? I tried to put an OCO on another one of your high probability/high risk trades and was constantly stopped out (I use TOS).

[@badgerfishinski6857]

Im thinking the same.

[@badgerfishinski6857]

If you win 8 out of 9 trades....you are profiting....but i find that 8 out of 9 is an unrealistic win rate even if you are playing RSI. Unless I missing something here?

[@sebastiantevel898]

You can roll the spread at higher strike prices and to a new later expiration.

[@BrotherK-ex2co]

​​@@sebastiantevel898 rolling has saved me countless times.

[@jamesandrew6153]

Roll??

[@javamochafrap]

what if it the market goes against you. how can you adjust the trade by adding an option to not lose money ?

[@supercruchynoodle]

Could you cover an example where the stock price would rise past the strike price of the long? In other words if the market was rallying unexpectedly? What would the numbers be?

[@beLIEve77]

The number would be your broker's requirement to setup the trade

[@robinhannoun1249]

Thoughts... good video and this concept seems to work but not according to the math that he described... One standard deviation increase (not to be a stickler) actually is about 34% AND MOST IMPORTANTLY that assumes a normal distribution of returns. Asset returns are NOT normally distributed, as simply showed by the fact that increases are small, yet decreases are large (i.e., market crashes). In nerd talk, this is negative skew. Thus, the losses incurred when following this strategy are larger in magnitude when put credit spreads are initiated than call credit spreads. Yet, in terms of frequency, put credit spreads are more often profitable as the market has a larger amount of up days that down days.

[@Oct-jy4dz]

What is the default value of RSI you use?

[@vigneshprabakaran9477]

13-ohlc4

[@codypeterson8524]

Although< I have interests in global economics I don't watch the news anymore... I have enough FUD in the crypto markets lol. Thanks for sharing this news and offering your insight on how to navigate crypto during unfortunate times/events like this. You're right about keeping level headed when investing/trading so that's why I think it's important to limit the amount of FUD we consume. I don't watch the media but the news that you present gives me just enough to know what's going on without riding the emotional rollercoaster if I were to watch the news everyday. Now I buy and just trade long term more than ever, I have made over 23BTC from day trading with Alice Marcella Signal in few weeks, this is one of the best medium to backup your assets incase it goes bearish

[@jimgottom2330]

how can i reach her?.

[@jimgottom2330]

thank you for this important info, will reach out now.

[@balbircheema1813]

I once’s had doubt trading with alice vanesha but after seeing her POT (Proof of Trades) I had to give her a try . I made good profit last week I hope to make more. This is an opportunity for newbies to capitalize on, It's quite a shame people Can't see this, trading is everything right now

[@gilbertmyles9887]

For about a year now with smooth strategy, i've seen them deliver solutions above my expectations I would refer her in all forms

[@fum00A]

How do you know what the standard deviation is?

[@snc4278]

Another great video. Thank you for making them.

[@darsnez]

Very nice strategy. I'll give it a shot. Thank you!

[@anupgoyal7580]

Be careful . Seth has picked the timeframe where you will make money. Consider the time frame where your long position strike price is breached. Good luck .

[@JeffLeSueur]

In your example, the spread is $5 and the credit is $0.57. If the Index rallies past your spread, you could lose $4.43. You have to be right 8 of 9 times just to break even. What am I missing?

[@timmnicolaizik5515]

youre right

[@RamRam-cg3rq]

I believe all far out of the money has the same issue. Doesn't mean it's something bad btw

[@edwinbab3205]

Any videos on futures

[@malihakahanum9829]

I want to know why broker need those money in the worse situation, pls reply.

[@badgerfishinski6857]

Max gain $3,150. Max loss $21,850. Ouch. I prefer 1 to 3 ratio or better. You better be winning 8 trades out of 9 for your ratio....unless you are stopping out b4 you hit max loss

[@borisbaranov5085]

I'm feeling good about this binary options. Think everybody can make some money on it

[@AndreaBertini_official]

thx for your videos

[@daviddoten-d6b]

is smb capital still funding options traders?

[@DeEissa]

How can I do this with 5k small account ! is that even possible !

[@FabriceArbaudie]

they took 50 call or put. you take one or two instead and you can do it with your account

[@sc0or]

no. a divergence on rsi gives quite low vega which you sell. Then, even a significant movement to south, won't bring much profit cause vega will go up. and no one knows when this happens because a divergence can exist for months.

[@valeriyakonstantinova4796]

Always using this trading strategy. It works, at least for now

[@MrYouDougTube]

This strategy "eats like a bird, poops like an elephant." One losing trade would wipe out a year's worth of profits.

[@hipchecker2063]

Why two weeks?

[@D37trader]

One or two weeks...is when theta kicks in heavy!!!

[@jonnyfranco7]

I've been trying to apply but you gentlemen never respond.

[@romanzkv4]

this is bad trade - you are risking 22K to make 2K - this is very very bad

[@murataktas6724]

I don't like this strategy. Limited risk but also limited reward.

[@intanettrappin8367]

Professionals tell u that u can’t time the market 🙄

[@buddsidewinder7778]

Please i beg you SETH stop going over how options work. Just refer newbies to watch an instructional options 101 video on options...

[@MetaGuideMedia]

I found it helpful. As someone new to options it's nice to have someone you trust to put out these types of videos.

[@betsyfortenberry8964]

I disagree...this is good info for people who trade options and are always learning

[@sberrios77]

It’s easy enough to fast forward.

[@giG_apP_haCks_]

Margin of errrr…

[@ashanievans7757]

First

[@nrbtv6059]

Short Synthetic