How I Use Options to Win 90% of My Stock Trades

[@salsadancertradermuaythai81]

You are teaching something very very very dangerous here Adam. With a RR of 0.1, you need to have 10 winning trades just to make up for ONE losing trade. What if you had 2-3 losing trades? Cutting losses is not so simple as you put it out to be. What if there is a gap down? Both legs of your strikes would be instantly hit which will incur max loss And one more thing, with such a low RR, the account size for executing a BPSX would be extremely huge. Using just your CRM example, you will need a US$50,000 account just to earn US$4,600 which is not even guaranteed By the way, have you even factored in post-market risks on the day of expiry? Or you are not even aware of it at all? I respect you Adam but this video of yours is very dangerous and it’s extremely unethical of you to post up coz you DID NOT explain the full risks involved for taking such trades.

[@AdamKhoo]

Yes. This strategy is very risky if you do not know how to select the right underlying stocks (only fundamentally strong companies) and if you don’t know how to manage the trade under all market conditions. People should never trade any of my strategies until they are fully educated in my premium courses where all strict entry and exit rules are taught in detail . I share this video because this is my bread and butter strategy which I use to make consistent income every month. It is not intended for you or anyone to follow blindly without learning the full strategy in detail

[@chooyuanyee7315]

Definitely a strategy that requires management which Adam shares in his course and the community. One of the things he shared with us is to exit before earnings and never enter Pharma/Biotechnology due to higher chance of gapping. Another thing we did was to only trade great companies. I had the CRM BPSX position and exited 1 day before earnings, collecting my premium. Any trading strategies would bring with it its own risk. What's more important is to learn how to manage the risk. It is more than just looking at risk reward.

[@salsadancertradermuaythai81]

@@AdamKhoo thank you for your reply. However, it would have been better if you had clarified this in the video

[@salsadancertradermuaythai81]

@@chooyuanyee7315 unlike stocks, Options need constant monitoring and management coz you don’t know when it can suddenly go against you. If you exited before earnings...means you didn’t earn the full premium and maximize your profits. This also means that your ROI is even lower RR is also part of risk management as well

[@KayP1]

He is closing out before strike is reached, so that is the real percentage and not 90%.

[@joneskong1060]

The strategy started here. Thanks me later. 26:00

[@DystopicEdits]

Important thing to note: If you buy a Put option for a stock let's say Facebook for $250 @ Premium of $4, you have to multiply $4 by each share. 1 option contract is generally 100 shares, so it would be $400 to buy the Put option

[@jodisnyder460]

Successful people don't become that way overnight. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life

[@mrroy8202]

True

[@cawag98]

"trading is like a one night stand - focus on getting in and out" LOL

[@charlesflager1970]

🤣🤣👍🏾🤑

[@tyresewatchthis8025]

😂😂😂

[@tomwong532]

The men’s dream

[@top10amazing1.9]

Lol I like that anology

[@cluggyahoo]

😂😂😂😂😂

[@Jen-ur4ut]

Would have been nice to tell people you're selling naked puts. You would need millions of dollars in your live account to do this covered. Also, how are newbies getting level 4 options approval which you need in order to sell naked?

[@melzdesign]

You need a really big account to do this, don't fuckin fool yourself by making $30 a month. C'mon, Adam you have millions dude!!!! these ppl at a max of 5K DUUUUUH

[@ronifintech9434]

to make 500 with this strategy on FB 1 month to expiry, I need to have 20k-30k in my account... how to bypass this limitation?

[@goyummytrends]

Exchange labour for money

[@geoffreykeating8172]

Options don't move🚫like stocks only trade if very experienced, very risky ,you were warned 🔥🤑

[@tonychia2227]

It depend on if you are the buyer or the seller of the call or put option. What you are saying is that all knife are dangerous. It depends on how you use it. In the hands of a child, it is dangerous. But I the hands of a trained chef it’s can do wonderful thing

[@Asian_Connection]

Adam, You were the first one on KZbin to call the move up of the market in April.

[@kparvez16]

Profit from panic

[@elinversorsamaritano1612]

Yes that is right

[@elinversorsamaritano1612]

He is the true king

[@sunnymahe]

he freaking nailed it in his telegram group too..I was witness to it

[@jiniyong6976]

I saw that too, 😊

[@sr-fw7xk]

the problem with trend is that every time you wanna get in it changes the direction of the trend.

[@ksubscriberswithoutavide-ix8wn]

😂

[@BlackCulturalPreservation2023]

You have to hv good chart indicators to detect that change and i'd imagine 80% of investors/traders aren't great chart readers or don't use indicators at all to decide when to buy or sell.

[@jeremiahk92]

😂😂

[@xsirfr1958]

Key Point: Stop loss does not protect you very well if stock gaps down on the open. It becomes a market order at any price below the stop loss price.

[@tdiler12]

I agree ! the name should really be changed.

[@bhuba99]

Meh...lame risk to reward, just need to lose once to wipe out gains from multiple trades...

[@senghongteoh2932]

Relying on selling options only is a sure strategy to lose monies long term. In the short term like a few months, sure high win rate. After 10 years (or much sooner), likely the account will suffer massive drawdown eventually. I've personally seen HUNDREDS of students accounts over the years that have lost monies from selling options, and yet to see 1 student accounts that made monies by selling options only after 5 or 10 years. The odds are extremely poor long term. Cherry picking accounts that made money short term like a few months is meaningless. Having observed this business for decades, selling Options is not sustainable for 99.9% of students out there and should never be encouraged like this.

[@tobykidwell5998]

Hey Adam, I have approx $5000 usd to move into a trading account. Would bull call spreads coupled with rolling calls net the lowest risk to highest return?

[@alexpoon9048]

Adam, you mentioned delta 10% or delta 0.1 is the chance the stock price go below short put strike price is only 10%. But I thought delta. 0.1 means every dollar rise or decrease in stock, there will be 10cents rise or decrease in option, is it correct?

[@vincentdo4293]

It means both

[@umairarshad4212]

Yah Adams was not correct about this I thought

[@mikeylovespizza4012]

10% is not the probability but more like how it affects the option change in price

[@Anna-sj4ut]

LOL!!! I like how you compare trades/investing to marriage/one night stand.

[@samueltyler5544]

IF YOU WANT TO BE SUCCESSFUL HAVE THE MINDSET OF THE RICH, SPEND LESS AND INVEST MORE. DON'T GIVE UP YOUR DREAMS.

[@davidkw9]

Investing is like getting married....trading is like a one night stand....😂😂😂😂😂

[@catherineng1022]

😂🤣😂🤣😂🤣😂

[@CHIKIS479]

you right jajaja. my trades only takes 1 to 3 weeks and got 70 - 80 % ROI. i always got good profits more than 75 % of my max profits all the times of my investment jejeje. i dont like long term investment i am so impatience

[@cawag98]

Be careful of the statement that Delta is the chance of the option ending in the money. Delta explains the amount of movement (rate of change) that the option price has currently vs movement in the underlying. Gamma is the rate of change of Delta (the derivative of Delta, the acceleration of Delta) There is the Black-Scholes option pricing model which gives a better estimate of likelihood of the option ending in the money or not - also "Implied Volatility" is useful because it tell you options buyers/sellers current estimate of the future volatility. All else equal you would be selling options when the implied volatility based on these prices seems unusually high, and you'd be buying options when IV seems low.

[@Hanafimaslak-UK]

adam..how i can lear put option trading from you..thanks

[@timetopoint]

@ Adam Khoo - so, in this case $5 spread is a risk of $50K to make $4,600. Question: do you have to have $50K on your brokerage account in order to take this trade, if not -- how little can you have?

[@春天的花冬天的雪]

Can you put a stop loss for the puts sold - buy back sold puts if the stocks drop to break even level instead of buying puts?

[@cbro777]

Wait a minute! At 29:21 It looks like you actually bought the $215 and sold the $220. That's reverse of what you're saying. Which is it? I did a similar trade selling a higher put and buying a lower put. The result was a debit not a credit. Can you please clarify?

[@MarkBurchVideo]

It is NOT the reverse of what he is saying. The "higher" put as you called it is only a higher strike. For a put credit spread you DO sell the put with the higher strike. Think of it like this: as the price of a a stock drops it will hit the higher strike first: that is the one that was sold. The one that was bought will be hit later if the stock continues to drop. If you sell more than you buy on an option spread you receive a credit. If you buy more than you sell you are charged a debit.

[@samba380]

Sir I am a new I never start

[@jasvindersingh6809]

Excellent work Luv you Bbbboooossssss Unmatchable learning video like Ranor Teoooo

[@noppade]

Hi Adam Khoo, if we found such a stock that can go with BPSX where delta 0.10 but strike price is less than 10% current price. Is this still considered good setup or we must follow delta 0.10 and strike price 15-20% off only? Thanks in advance.

[@Redhulk-zw9hq]

That CRM spread didn't age well, hope you didn't actually buy it

[@KP-dd2ci]

No amount of night cream will save that spread.

[@KP-dd2ci]

Also...with that one trade, your whole portfolio is wiped out for the year. Even if you were right the other 90% of the time. That's the risk of selling spreads.

[@4677-l3g]

his CRM trade is closed before earnings, before earnings is 235 so he already secured 90% of his profits

[@EMo5ive]

I mean, it definitely turned against him, but CRM is currently sitting around $222 (and seems to have found support), which still makes his 215/210 spread $7 OTM. If he chose the monthly Dec expiration cycle, he has to make it 8 more days until 18 Dec 2020. EDIT: I now see at 39:30 he has a 220/215 spread for CRM expiring 24 Dec 2020. That one is definitely closer, at just $2 OTM. He could always roll the trade to January if it doesn’t work out for December.

[@Redhulk-zw9hq]

@@KP-dd2ci yep that spread is currently at 1.76 per contract so if he's still for some reason holding it he'd be at a 4500 dollar loss, just goes to show how you can never just rely on technicals alone

[@alphaomega5923]

This is too damn confusing!

[@harrybs5090]

Adam khoo, can you explain slowly to set bull put spread extreme, please . I just a beginner and how to join your group

[@anneparker4436]

Investing in the stock market isn’t an easy task, I bought some stocks based on KZbin recommendations and some which were really hyped. But most of these stocks has underperformed lately, I have been very concerned.

[@samsuzzaman9411]

Always buy hedge. Put the limit order. For dollar less.

[@henryyin2731]

on robinhood unless you have the money as collateral, you cant sell puts for these big companies tho

[@HOmar-xw0wx]

You can buy the lower put first, and sell a higher put, but robinhood will retain the difference. So for his example you only need $500 as a collateral.

[@nicmunro]

thats every broker

[@anthonypantaleoni2357]

Do you guys do these trades yourself or do you use some other broker ?

[@jianjian4453]

Seen the video and is great but there is one part I dont really understand. I do understand that you had calculate the spread and earn 46 dollar but in the video it did not mention that a loss of 5 dollar was taken into consideration. 5 dollar of a 100 share will be 500 dollar loss and how does it profit from there. In order words is an overall loss trade isn't it? Please kindly enlighten me with your advice and many thanks

[@teamriedel]

Thanks Adam, you're hilarious bro.

[@AdamKhoo]

Glad you enjoyed

[@egodrunk]

47:01 "he just likes to stare at it... i dont know why" LMAO

[@nttam1920]

Can you please explain how does one open the pair of bull spread put options at the same time exactly to make sure they are aligned. Can this strategy be used on Robinhood platform. Conversely, how does one close the pair of options simultaneously. OR does one leave the pair open till expiration if there is no breach, and then collect the full net premium. Will this strategy be profitable if one buys weekly contracts every week?

[@gneyman]

5-15% mthly ROI (return on margin) cap committed slice or the whole acct pie ROE? What's the cap allocation to credit spread strat?

[@sajithmaridi9471]

Adam can you make a short video on how we have to divide the capital between various stocks...!???

[@GodzillaBorland]

So you are making trades on a 1.5 million account ? What about smaller accounts?

[@mattwilliams8140]

"it's very rare for a "good" company to drop 17% in 30 days" Netflix: "Hold my beer"

[@terrancemcclendon456]

Right got to look at market sentiment

[@KillboyPowerhead]

Your problem was assuming Netflix was a fundamentally great business in the first place.

[@jesusramos778]

great analogy with INVESTING and TRADING 😂

[@arnisls1462]

the only statistical way of gaining with option is buying or selling volatility ! if you win 90% of time 1 usd but loose 10 % of time 10 usd, you are loosing bad...

[@jasonalquiza]

If you always take to expiration, but he said he is usually stopping before max loss. These aren't automatic foolproof winners. Trade management is still required to consistently profit.

[@russellsmejkal304]

You should add more ram memory to your computer and it won’t be delayed at much. You probably have 8 to 16 ram cards now and that may not be enough processing power for everything running in the background of your computer bump it up to 16 or better 32 the chips are around $30 depending on what you get but you will be grateful for doing so. You will see your computer react much faster wen you press a button

[@johnnywilliams2641]

This is my quant. Do you notice anything about him?

[@shubhampreetsingh8630]

My Quant my quantitative, my maths specialist.

[@AdamKhoo]

I actually came in first in that Math competition :-)

[@karimuadamu4284]

Hi, glad to understand the bull put credit spread but my question is how do you use this strategy on the Robinhood platform?

[@yochanangolan9600]

Hi adam thanks for sharing your knolage. I have selling vertical spreads for 2 month now and there were 2 times that the price after the options were expired were lower then sell put and higher than buy put therefore the platform bought the stocks .in this case the price was 100$ * 100 stocks so I had to pay 10,000$ for the stock. the risk than is high if you have small account. so it still very risky

[@sorinsorin6282]

I think this is also called a Short Put Spread

[@deemsj92]

Yep, I think it has multiple names... Bull credit spread, put credit spread, short put spread

[@jackdorsey1384]

Quick question, do you normally place your stops when you initiate the trade or do you place it as the equity pulls back into your support levels then place the stop?? Thanks! Y

[@GregHohman]

Didn’t discuss possible stock market crash, nor gap risk every night?

[@stevend5901]

“It usually doesn’t take that long, but he likes to stares. I don’t know why” ... 😂

[@TheBodrey]

I got thinking about that guy that Adam mentioned in the video that started with $2K in January, built it to $12K in February, and finally to $50K in only a year (or less). I'm sorry, but I have to call BS on this guy's claims. Using Adam's trading method, he'd have to use a Delta of 10 for each Option to achieve a 90% win rate, meaning the premiums collected would be low to start. Also, each Option would have to be held for the full 30-45 days in order to expire worthless, no? Even expensive stocks with one-week expiration periods wouldn't command high enough premiums using a Delta of 10 to achieve those kinds of results in such a short time frame starting with so little capital. Adam's method is sound, but in order to earn a meaningful amount of income multiples of Options would need to be purchased per trade in order to compensate for the low Delta. For example, his list of Options includes ADSK. He said when it expired he'd earn about $1,500. Well, in order to earn that much premium at $48 a pop he'd have to sell 30 Options. If the spread between the Strike price and the Stop Loss was the same as the CRM example in the video ($5) he'd have to risk $15K to earn the $1.5K premium. Food for thought...

[@sleepytoons1686]

what happens if only your short leg (put sold) gets exercised and you dont have the money to cover it ? Thank you for the help, im new to options

[@imkayzie]

So we're learning the best tricks for one night stand.

[@jiniyong6976]

Adam, excellent ! your teaching very helpful 👍👍

[@oliviaruths]

If you look back at CRM Dec, now in Sep 2022, it has dropped from 258 to 147! So the probability of 10% is just not accurate!

[@rodneycole8250]

What do ya do if none of your broker accts. won't approve ya for options then how can ya trade them.

[@richardzhou96]

With the bull put spread xtreme, are you executing 2 leg buy and sell puts? A bit confused on how you achieve 5-15% here.

[@sbn320]

I understand all the steps you take and have even found good potential options to sell and buy into, but I'm still confused as to how this makes a profit? Am I waiting for the options to expire?

[@MarkBurchVideo]

essentially yes. You can also close out the positon at any time to pull profits by "buying to close". I like to close out positions when i have gained a majority of the premium in a short time. Holding after that seems too risky for small gains.

[@rksharma10911]

mumbai......radheshyam

[@rickyguitierrez9871]

Once everyone starts talking about a specific stock and it's all over the news the best time to have already invested in that company has already passed. avoid hype- you don't want to be paying more for stock than what it's wort

[@Roy-vd3rr]

doesn't make sense.. put buyer wants the stock price to go down.. Lol do you buy insurance hoping you will lose a leg so you can collect the payout?

[@diannaspence6093]

Yes

[@MrCFreaks]

Hey Adam , how do you determine the spread width for the bull put spread ?

[@cheaserceaser]

You might be correct 90% of the time, but only one put spread trade that blows up will kill your P/L. The Ali baba put spread (if expires

[@KayP1]

His short put had a 90% due to the 0.1 delta but the way he is dealing with the strategy we are talking of a percentage way lower. He's one of the best option-teacher but this important point he unfortunately left out. Writing the put with a 0.1 Delta results in 90% probability BUT he is closing out the trade in case price action drops too fast way before the strike price is reached. So assuming his strike was 200 and current price is 250 then due to his delta of 0.1 the probability is 90% that shares reach the strike of his short put (200). But he is closing out (let's say) at 210 or 215 then the probability is way less then 90%. I'm not calculating the percentage but then we may be talking about 70-80% probability of shares to reach the price when he is closing out the trade. THAT percentage is of relevance not the 90% of the 0.1 put.

[@armanaliali6413]

If you open ac with interactive broker, their is minimum fund requirement of 25k, how and which brokers allowed to trade in 2k ?

[@romanlelekoes]

I started trading options in Interactivebrokers with $100 (yes, one hundred)

[@mark.nester]

Isn't closing a position whenever the stock price moves against you means you will fix losses way too often without allowing the price to recover?

[@shibberahmed9901]

Which platform shall I use it for this trade? Recommendations please.

[@OkImJustCommenting]

"Itchy Backside" @10:33 LOL!!!

[@tehKettyBear]

Sell their grandmother lol

[@rodwat1]

"trading is like a one night stand - focus on getting in and out'. That's the focus alright, one singular thought, I think I should try this market trading, might be good at it.

[@manipuribankniftytrader]

pliz tell how to calculate Risk percentage (R)

[@kmdj713]

Thank you very much for the eye and mind opening.

[@julian32000]

Should I put a call option into Tesla?

[@ogcoolguy8944]

How do you know to get out to avoid getting to the strike price?

[@MikSane]

I dont understand...how can you just "sell" a put? dont you have to buy the put first?

[@AdamKhoo]

A Put Option is a contract, Yes, you can sell a Put to open a position.

[@MikSane]

@@AdamKhoo looked into this more and did not realize you can basically short a put. Thanks Adam!!

[@nsan48]

Did you just watch The Truman Show? ;D

[@ronniethigpen8621]

Adam all positions will not be filled. Especially with that position

[@95884644]

I want this,, how do i do it,, please help me... i want to be involved..

[@Andrezzzzz]

Is that the same lesson from the black market?! Loved it, just saved on my preferred videos :) thanks for sharing!

[@benhandali5812]

Thanks Adam, the way your explain the BPS was very clear, I just started to do this trading system,

[@cryptosully2357]

How can the wife and I talk to you one on one. ???

[@marianaandersson7252]

Great teacher, funny too. Love your enthusiasm while explaining complicated things in an easy way.

[@hanochyang1639]

but.. 60%*2R-40%*1R=0.8R, 90%*0.1R-10*0.2R=0.7R, it's not better than traditional trade, and spend too much buying power

[@dokubodokubo1237]

Adams Koo, you are a wonderful guy; I stumble on your u-tube channel and learned forex/stock trading. But my problem is, I am a complete nubbie (novice). How do I start to learn forex/stock trading from you and trade like you?

[@raymanvictor4637]

Follow the Yellow Brick road…

[@keokeo2]

the next time if anyone asks me about protection ima tell them its because adam khoo taught me about stop losses

[@luisitosway3695]

I was going to buy your course but it’s too damn expensive give the people a chance who can’t afford like selling a way cheaper version you already making a lot of money from KZbin

[@VSmPharmacy]

How much is it?

[@smfp4life]

what is your strategy for a bear market like we are in now?

[@franksantagate5285]

what indicators do you use RSI MCAD ADX BOLLINGER Bands .to find underlying stocks .I'm selling vertical spreads started with 500 in Jan. up to 3600 .I

[@paradiserelaxation6081]

Sorry, but Delta is not % of chance of winning.: if Delta is 0.10 or -0.10 that if the underlying stock increases ( you take a call ) or decrease ( yout take aput ) in price by $1 per share, the option on it will rise by $0.10 or decrease by 0.10$ per share, all else being equal. IT'S NOTHING ABOUT 10% CHANCE OF NOT WINNING! More, this 0.1 or -0.1 will change over the time ( time decay ) and it's associate with theta. It makes no sense Adam.

[@rK-yn3ev]

11:40 , looks like something is getting lonely

[@deformitychan]

although it is 10% chance , it still happened CRM dropped to $215

[@KP-dd2ci]

Yep...classic picking up pennies in front of the steamroller. Trade mgmt is important in selling spreads as well.

[@jsant7486]

Great info thank you!

[@sunnysgadgetreviews5886]

$2k to $40k. Nice. I did the opposite. $180k to $1800. :( Most important thing is never put big amount if you don't know what you are doing.

[@TheBodrey]

Hi Adam. I just looked up SE (which is on your list in the video) and EMAs are set up PERFECTLY such as what you specify. It's trending up nicely and has been for a long time. However, there is no defined support level. Do you still make the trade or does the stock also have to have a defined support level in order to make the trade? Also, do all of the EMAs have to be in parallel with each other consistently (for an extended period of time) to be considered a viable trade candidate? For example, I just looked up CRM and in December the 20 EMA pierced DOWN through both the 50 and 100 EMAs but on Feb 8 the 20 EMA retraced back above both the 100 and 50 EMAs. Good video. Interesting strategy. I plan to test it once I find a viable candidate that meets the criteria.

[@juayhiangtan3517]

SHould refrain from foul language

[@finacial]

Hi, im newbie and I Like youre Video. Can you Tell me, when you buy The otm Put Option? Is it only in Case when The Stock Price goes under the Supportlevel or you buy The Put at The Same day you sell The Put? Thank you for understanding:)

[@samherb1]

Imagine thinking 60% return per year is "not bad"...

[@josephglover4546]

Index Futures have extremely low margins (the micros are just $50/contract) which makes it possible to reach a 10% daily gain on just a single contract. Are you comfortable trading an outright position when the gates of hell could literally swing wide open any minute now? that's another story.

[@jaguarbenz9632]

ONE NIGHTSTAND!!!!!!!!!!!🤣🤣🤣🤣🤣

[@Hugo-xj2mj]

Got to use protection 😂

[@gilbertmartinez6538]

I am not understanding the difference between Bull put spread and Bull put spread extreme ..they look just the same to me other than you have specific stock indicators such as higher highs and lows. Another site recommends the stock be above 200 day Moving average. This makes no sense to me ...a stock above the MA is more likely to turn downward.