Always Win Selling Options (Even When You Lose!)

Рет қаралды 8,625

Күн бұрын

In this video we are talking about how you can, as an option seller, always win while selling options, even when you think you are losing. With selling options we are talking about both covered calls and cash-secured puts, specifically selling covered calls and selling cash-secured puts. With selling options you have the ability to roll your options contract.
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#coveredcalls #cashsecuredputs #sellingoptions

Пікірлер: 37

@AverageJoeInvestor 2 ай бұрын

Happy Friday Everybody!! Make sure to leave your $0.02 in the comments! Have a great weekend! =)

@rdgale2000 2 ай бұрын

This is what I wish I knew when I sold a covered call on ABBV and had it assigned away from me. I really just wanted to see the option premium, not loose the shares. Thanks again.

@mrpremiumoftheoption116 2 ай бұрын

Rolling options/contracts is simply extending the contract(s) further out in time: it's the silver bullet to writing options;)

@dustinasche 2 ай бұрын

You don't have to extend the time of a contract to roll it. You can just roll up or down, but keep the same expiration. Technically, you can also roll a contract "in" to shorten the timeframe, though that has more limited usefulness than the other three directions.

@mrpremiumoftheoption116 2 ай бұрын

@@dustinasche What you are talking about happens about 10% of the time...the other 90 is not

@dustinasche 2 ай бұрын

@@mrpremiumoftheoption116 not really? Rolling up or down is a common way to manage positions once you get into more advanced options contract trading.

@syeag 11 күн бұрын

Thanks for the video. Agree with previous comment that key is to sell covered calls on underplaying securities you want to own long term. Dealing with a stock running up is frustrating in my experience, but at end day, still winning.

@larsvargas 2 ай бұрын

This was the most confusing thing when I started selling options, thanks for the video! I find that with weekly options I make more money to roll the options on Friday than to wait for them to expire and rewrite on Monday.

@ciaragail5865 2 ай бұрын

thanks for the video Joe..... this is what I've been doing with QQQ when it took a dive last week.... rolling down for a CR... creating more cashflow...then when QQQ starting going up again, rolling up and out a little to avoid assignment still for a CR.... still rolling on this one

@tims.9704 2 ай бұрын

Awesome video! Especially now that IWM is daily, rolling options is something I’ve been doing. Keep up the great content

@timb787 2 ай бұрын

I asked for a vid like this maybe a week ago. Thanks, man this really helps

@four5acp 2 ай бұрын

Great video Joe. Did a lot of rolling this past week!

@cedricparker4431 2 ай бұрын

Still learning, keep up the good work

@slammer6789 2 ай бұрын

Always useful information. Thanks

@Catmain1 2 ай бұрын

Thank you Joe for the video. Have a question do you buy to close at any time or the day of expiration. Or a day. Before expiration. Thank you.

@user-uw7se5jk1w 2 ай бұрын

Hi, thank you for your video. How do we characterize the optimal roll strategy ? I t is easy to take a path leading to default. When is the optimal roll time? At which strike and maturity ? Allowing basis risk I may also change underlying, if it has the optimal correlation with current underlying. Without an optimal strategy it is not uncommon to run out of strikes and of maturities. A contingent state plan is needed to never lose. Do you have a clean audit trail of repeated rolls brought to win after an initial drawdown ?

@justinstromski2435 Ай бұрын

Thanks man great info

@user-bk4zc3rh7x 2 ай бұрын

Great explanation.

@waterfoker8558 2 ай бұрын

Just rolled yesterday, made an ez 1k

@mattjohnson7448 2 ай бұрын

Hey Joe, thank you for this video! Rolling calls and puts is truly an art art rather than a science it seems. Could you talk about timing strategies with rolls? How many days or hours prior to assignment do you look to roll if you are in the money?

@jamesm.3967 2 ай бұрын

The key is to trade around positions that you want to own long term. When the market goes down against a stock that I am selling calls on, I don’t worry because I want to own the stock longer than just a week or two. I collect the premium and I wait if it gets called away from me I don’t freak out and then I simply sell cash covered puts …maybe close to the money. I’m concentrating on collecting premium short term with long term (1 yr +) capital appreciation. I’m sure not trying to trade the underlying stocks .

@jonboyfutch8081 Ай бұрын

On fidelity it doesn't seem to show the delta/percentage of getting assigned when rolling which is annoying

@frankcfv4643 2 ай бұрын

I tend to sell my Options weekly and target a Strike price that I don't mind assignment. I only roll if I end up below cost in a falling market.

@Yt-user65000 2 ай бұрын

How would rolling out an ITM contract by one day avoid assignment? If it’s ITM, it can be exercised ANY day (except European & cash-settled).

@24_Delta 2 ай бұрын

Depends on the underlying, really. I've had a couple of them fall faster and further than I could roll. I might have been able to sit on the shares for a few months and hope it rebounded, but stagnant capital = zero growth

@desiexpat7 2 ай бұрын

Rolling CC up on the strike and rolling Puts down when strike is falling is key to saving assignments. The cost is time lost. Not sure if assignments can happen befor the expiry date?

@Yt-user65000 2 ай бұрын

An ITM contract can be assigned ANY time. The exception is European-style contracts (can only be exercised on expiration date) or cash-settled equities, which are never assigned.

@raisingthebar2494 2 ай бұрын

Interested in higher IV stocks and etfs like TQQQ.

@docb77 2 ай бұрын

Can someone explain this from the other side of the contract? If I've got a contract to buy shares at a certain price and the value goes above that price, why would i agree to extend the contract?

@user-jp6lj5gv7o 2 ай бұрын

As an option buyer, you're not extending the contract. The obligation to sell you the shares at that price just changed hands. Someone else will fulfill the obligation and will be assigned.