How to profit from another bearish market move with options

[@nevinkuser9892]

I love the way you present options strategies Seth. It's very clear that it's your true calling because you present it so well. I think I speak for everyone when I say we're grateful to have you around.

[@markl431]

Thank you for posting this. This is definitely not for novice traders. In the "worst" case scenario (SPY below 260 or even below 230), the short $260 put would have significantly higher margin requirement than it did when the position was opened. So the trader using this strategy needs to have sufficient cash balance AND sufficient confidence to stay in the trade after it starts showing a very large unrealized loss. It is also interesting that the example used was for the year of 2018. Why wouldn't you guys recommend this in today's markets after this year's sell-off?

[@Agooo13431]

Awesome content as always. Two problems, though, a smaller problem and a bigger problem. The smaller one first: after you close your short leg in this example, your broker will require you to have enough cash on hand to be able to buy the 5 contracts should they exercise. This translates into almost 130 k that needs to be available. The bigger problem: the reason the market turned around in 2018 is because the Fed reversed course. This time around, we don't know when that would happen, and whether or not we are in for a secular bear market that may last years, as happened in Japan after their bubble burst.

[@imnokasparov]

Interesting play. The downside is that this trade requires a huge margin requirement to hold the naked puts.

[@smbapplicantross884]

I can see the utility of selling a calendar spread. If you're essentially looking for a bounce trade, you can capitalize on the decaying short option and hedge further downside risk at the same time, while leaving up the possibility of not nailing the bottom. I like it! Thanks for sharing.

[@jonathanklip44]

I have a question...... and you my option sensei...... here it is: I'm selling options, vertical spreads, with a stop loss of X3 of the received premium, but many times the stop loss gets filled even when the SPX price still 20-25 usd above/below the current price? im trading at a 0.08Delta and with a spread of 20 between the short and the long call/put. I'm doing something wrong?

[@MrMockingbird1313]

Hey Guys, I have two questions. First, what platform are you using? My eTrade platform is a little different. Second, I am practicing more advance strategies with paper trades. What single method deserves the most practice? Thx, Jeff.

[@couchpotato684]

Thanks.

[@cookinthekitchen]

Are options profitable? If I see a good set up, the spread seems to increase.

[@wayneaustin5533]

When these trades move against you, they could be big losses

[@seanrakidzich9900]

I'm done sitting tight for the award advance since i acquire$23,000 every 12 days of my investment