An Options Strategy With A Lottery Ticket

[@smbcapital]

Options Trading Workshop (free signup) bit.ly/3NM2OwK

[@rokie-s4m]

do you support traders thats have skills ?

[@rokie-s4m]

i need permanent workplace or trying to be part a team

[@brucea550]

I like how he glosses over the risk (10:58). If the stock falls to 65 at any point, you need to immediately close or roll the entire position, because between the 2 lower options sits $75k of risk.

[@J123G]

Not true. The two long wings will gain value as the price drops. The analysis graph wasn't shown in this presentation but I'd guess there would be pleantly of profit in the 60-65 price range with no possibility of loss above that range.

[@brucea550]

@@J123G Loss and risk are not the same. I dint calculate where breakeven lies but there is still $75k of risk between the 2 lower options, offset by whatever credit you collected plus appreciation of the upper long option. (Appreciation of the lower otm option will be Vega only, offset by theta decay) Otherwise you wouldn’t need any margin to trade this. The short option will have a lower delta than the upper long option, thus increase in value faster. Even without a graph you can easily look at any options chain to determine the various price points. As a simple example, if ABC stock is at $100 and you wonder how much a $100 put would increase if ABC goes to $99, just look at the $101 put price. It’s not precise due to IV fluctuations but it will be close. With 3 options just look up or down the chain in the opposite direction of the stock move (for puts). You can plot the price for all 3.

[@mustafaa4211]

Honestly Seth, your explanations are easy enough for a child to digest. Just want to say thanks again. 🙏🏽

[@r38755fz]

Seth, your option videos are excellent. You are very good at explaining things very clearly. Thanks so much.

[@smbapplicantross884]

Interesting trade here. I like the concept of increased reward just below the highest long put which adds some extra potential outside of just selling a call or put credit spread.

[@stevebuchanan4829]

Seth: Very informative information for someone like me who has been trading options for a little over a year now, but I see a discrepancy. The $50 put was worth only .06, not .17 which was the value of the $55 put. Thus under the best case scenario you point out, the total income from the trade would be 7650, not 8200. Am I wrong? Still a very nice profit on the trade.

[@fast4oward922]

I seen that too.

[@kamalkaga]

The presentation itself is excellent from a great expert, Seth, but it is build around historical data that is been used with many ifs and think about it...etc. But from now on, to future trade planning and placing I don't see good help. I wish for different approach for trades I can plan today for tomorrow and later , not looking for what if I would have done 6 month ago

[@couchpotato684]

Thanks.

[@darknessfierce4209]

Broken wing fly Buy 70 put Short two 65 Skip strikes Buy 50 put

[@nicholasixo7186]

I have watched a lot of your vids I wish you wouldn't recap the basics of calls and puts, I always skip it - If you need to explain that, there is no hope that somebody would understand the rest of the video in most cases, lol.

[@buy_da_dip8174]

Why do such complicated things. Just Buy a Call or Put