🚀 How to Sell Put Options With a Small Account

🚀 How to Sell Put Options With a Small Account - Even With Only $500!

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Rick Orford - Trading Stocks and Options For All

Күн бұрын

Пікірлер: 66

@RickOrford 5 ай бұрын

🔥 Join me on Discord: rickorford.com/discord

@childersc 5 ай бұрын

Thanks for letting us know about this, I have joined!!! Great little opportunity

@dvaud 2 ай бұрын

Watch out for scammer rickorford_ once you join the group - he/she almost got me... (only difference is _ after the name.)

@jamesmitchell6483 Күн бұрын

Might have missed this. Is the spread IN or OUT of the money at execution or IN & OUT ?

@zeliot6025 Күн бұрын

Hi Rick! Thanks a lot for this video. I'm new to your chennl. What will happen, if the market price move between the 2 strikes? We will get assigned in one leg ? In this case a small account will not have enough money to buy the underlying, for eg the Spx, we need $51300?

@kathrynferrell1045 6 ай бұрын

I really find this video helpful. I loved learning the bull put spread as a way to learn and practice. Thanks for explaining RSI and MacD and giving parameters. I also like the tip of closing the trade at 80% profit.

@RickOrford 6 ай бұрын

Glad it was helpful! Let me know how a future trade works out!!

@jeffeisert2371 6 ай бұрын

Thanks for making this video. IMO, the world needs to know more about credit spreads and how selling options is the safety way to trade options For you video, I would recommend that in the beginning, you state that the minimum account balance needed for a Level 3 options account is $2,000. You will need a $2K account just to start trading credit spreads. At least this is what I know, from the US, trading in a Webull account. Then I would mention that that the smallest credit spread you could trade is a $1 wide spread. This will cost you a maximum of $100 per trade. These are the two things I would add to your video. Just though I'd share. Keep up the good work. :)

@RickOrford 6 ай бұрын

Thanks for the kind words! As for minimums, these will be set by the brokerage. Webull has their rules, as do the others, and aren’t always the same. As a result, I try to stay clear of discussing individual brokerage accounts. On that note, what’s your favorite trade these days?

@alansonchurch3000 5 ай бұрын

Thank you! EXCELLENT presentation. Did not know about about Options Samurai!! Most helpful!

@RickOrford 5 ай бұрын

Happy to help! Let me know if you have any questions about it!

@confessahome6144 4 ай бұрын

Hello, Rick! Can selling put be exercised above the strike?

@RickOrford 4 ай бұрын

If someone exercises the put, you’ll buy at the strike.

@louisuhls9528 3 ай бұрын

Great video. But I'm trying to input an order and my order is giving me options of Price type: Net credit, Net debit and Even.....?? Which one should I choose?

@RickOrford 3 ай бұрын

Hurm- I’m afraid I don’t have enough info. Are you trying to sell a credit spread? What are the legs?

@louisuhls9528 3 ай бұрын

@@RickOrford I was trying to do exactly what you were showing on the video. I didn't have an option to do a limit order either, I ended up doing a market order.

@RickOrford 3 ай бұрын

Ah. Its possible your brokerage doesn’t offer a limit order on credit spreads. Have a look at interactive brokers!

@DigitalDJ21 6 ай бұрын

Great video with easy to understand explanations, Rick, thank you! Do you have a video that goes over pin risks and risks associated with one-leg early assignment?

@RickOrford 6 ай бұрын

Very kind of you to say. I might have something. Let me know if it’s what you’re looking for- otherwise, ill get you in the right direction. Video: 🔥 The Risks of Selling Put Options: Is It Safe & When Should You Do It? kzbin.info/www/bejne/rHfJYoeva955nqc

@DigitalDJ21 6 ай бұрын

@@RickOrford Thank you! I am adding this to my watch list.

@gregorymoyer3944 5 ай бұрын

Can I be assigned before expiration?

@RickOrford 5 ай бұрын

Yes!

@Bikki-ui4wv 2 ай бұрын

Thanks for the great explanation. May I ask What's the subscription price of options samurai? Is it worth for a small account?

@george00780 2 ай бұрын

Well to make a breakthrough in understanding the basics for a beginner is going to take time but it's going to be worth.

@RickOrford 2 ай бұрын

Absolutely!!!

@mlaposta 3 ай бұрын

Hi Rick, great video! Curious about something though ... when selling Bull Put spreads, what are the chances one of the orders goes through, but not the other. Ex: your Put buy goes through, but your put sell doesn't? Would you just adjust your ask lower until it goes through?

@RickOrford 3 ай бұрын

Ahhhh great question! If you’re using a non-options friendly broker, this could happen. If you’re using a company like Interactive Brokers, a spread would be entered as a single trade- so both options would be filled.

@mlaposta 3 ай бұрын

@@RickOrford That's who I was planning to use, so that's great to hear! Thanks Rick.

@RickOrford 3 ай бұрын

@mlaposta good choice! I’d also look at an options scanner like rickorford.com/samurai or rickorford.com/barchart - and of course join my discord! Hope to see you there!

@rogerward801 3 ай бұрын

Be careful as expiration nears. I've seen where 1 part gets closed early but the other side open. Also, option market closes 1 hour after regular market. Better to close out a winning position before regular market close than get burned after

@mlaposta 3 ай бұрын

@@rogerward801 Indeed. I was just watching a vid last week from projectfinance (kzbin.info/www/bejne/qKW5d51vo7eFetE) where he talks about exactly this. I feel like it's something a lot of youtubers don't talk about, and yet it's something that should be made super clear in any credit spread video!

@DennisYard 4 ай бұрын

Hi Rick, Thanks a lot for the video, extremely clear and informative. Should I be able to execute a bull put spread on Interactive Brokers on a cash account, though? I've tried placing a spread but I can get an error message that tells me that I don't have enough margin. Can you shed any light? Thanks a lot, Rob

@RickOrford 4 ай бұрын

Thanks for the kind words! You’ll likely need to convert your account to margin. Then you’ll be able to sell options (ie spreads!). Keep me posted :)

@DennisYard 4 ай бұрын

@@RickOrford Hi Rick, You were right! I switched to a margin account and I'm up and running with my bull put spreads! Keep up the good work!

@RickOrford 4 ай бұрын

@DennisYard excellent. By chance, are you using options samurai to search for the spreads? If not, check out rickorford.com/samurai

@PhanOT11 7 ай бұрын

Did you have exercise that SPY put spread?

@RickOrford 7 ай бұрын

As a seller, you wouldn’t assign… your goal is for the short option to expire worthless.

@kathleentonn-oliver8836 6 ай бұрын

I am bewildered. At 6min 9sec you said: "As long as the strike price stays above the break even point -- which is the premium less the short strike price -- you'll be profitable." I expected you to say: "As long as the MARKET price of the underlying (stock or what have you) remains above the break even point -- which is the premium received from the short put less the COST of the LONG PUT -- you'll be profitable." If it is apparent to you why I am confused, could you please tell me where I have gone wrong?

@WarriorMindset339 Ай бұрын

Hi Rick! I'm new to your channel. (I did subscribe) I am 63 years old and have no savings. I do plan to retire next April, and this seems like the best way to supplement my social security. Thanks for all you do. Sorry I keep trying to set the trolls straight. Seems like people with a couple of subscribers like to try to tell you how to improve your channel. They get on my nerves. Lol!

@RickOrford Ай бұрын

I appreciate the kind words :) folks love to point out what’s not important. Do let me know any topics you’d like me to cover!

@WarriorMindset339 Ай бұрын

@@RickOrford Hi Rick! It would be awesome if you could do a video on the basics of setting up your trading platform for options trading. I recently signed up for Webull because I heard you can paper trade there. But setting it up seems complicated.

@RickOrford Ай бұрын

@WarriorMindset339 thanks for the kind words as usual :) try Interactive brokers. Their mobile app platform is amazingly easy!

@blp9724 5 ай бұрын

Is there a successful strategy for ladderimg options to generate monthly income?

@RickOrford 5 ай бұрын

Sounds like a topic for a new video. The thing is though, once you start selling options on a regular basis, income will come in regularly- especially if you’re selling credit spreads.

@Engdaghriri 7 ай бұрын

👍thx

@RickOrford 7 ай бұрын

Thanks for watching!

@fredwsmith927 3 ай бұрын

How does one get approved by a brokerage to trade credit spreads? I opened an account months ago and they will not let me trade credit spreads and will not tell me what I have to do to get approved. Very frustrating. Can you recommend a brokerage that is rational and communicative? No one talks about this ...I can't be the only one getting this treatment.

@RickOrford 3 ай бұрын

Try interactive brokers! Also, you can try my discord server and see what others are using :)

@Hazel66781 2 ай бұрын

Why is the person buying the option called the "seller " and not the buyer?

@kevinnoel4647 Ай бұрын

If you sell a put contract and get assigned you end up buying the shares. If you buy a put contract and the stock goes under the strike price, you end up selling the stock. I hope this makes sense...?

@RickOrford Ай бұрын

@kevinnoel4647 if you sell a bull put, you’ve got a short position and a long position. If you’re assigned on the short put, that means you’ve bought 100 of the underlying. Now, you have three choices: 1) exercise YOUR long put (sell your 100 shares @ the strike), 2) sell your shares and long put at the market price, or 3) keep the shares.

@Hazel66781 2 ай бұрын

It's not guessing. It's called calculated risks.