If I Could Only Trade ONE Strategy, It Would Be This (Options Retirement Strategy For Beginners)

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Options with Davis

Options with Davis

Күн бұрын

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1) Generating Income With Credit Spreads: • Credit Spreads
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Пікірлер: 193
@optionswithdavis
@optionswithdavis Ай бұрын
Get Your Copy of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
@Willycheng590
@Willycheng590 Ай бұрын
Trading has been rather rewarding to me and I've learned that getting a good roi is very much attainable if you know your way around it.
@Sithembile499
@Sithembile499 Ай бұрын
How are you able to make profit? I’ve not been profitable the past 4 months since I started trading.
@Willycheng590
@Willycheng590 Ай бұрын
It’s not rocket science. Jonas Herman, a certified trade analyst is the brain behind my success. I've gotten into a plethora of assets with $5k spread across fx & stocks (options and futures) for the short term and, index funds, and ETFs. Now with over 21k, I sit back and just reinvest at intervals while I focus on my career and family.
@Pathston
@Pathston Ай бұрын
To me, trading is not worth it and I know that's the same mindset holding me back from taking a step forward in my finances. I guess I'm just scared since I'm green to it.
@Baptisizm
@Baptisizm Ай бұрын
I’m new to trading and haven't made any progress. At this point, I wouldn’t mind using experienced hands while I focus on other things. Can he help me?
@Willycheng590
@Willycheng590 Ай бұрын
Hermanw jonas that’s his gmail okay
@MasonAnderson-wx3xf
@MasonAnderson-wx3xf Ай бұрын
I really appreciate the dedication in each video you post. To be successful one has to have multiple income streams and so on, also investors should understand the crossover between asset classes & liquidity flow, Judith Layton focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch
@brandBull-wf5go
@brandBull-wf5go Ай бұрын
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
@EdwardZachary-lv6du
@EdwardZachary-lv6du Ай бұрын
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
@AnDungMason
@AnDungMason Ай бұрын
You trade with Judith M Layton too? Wow that woman has been a blessing to me and my family
@Philip-qs6gq
@Philip-qs6gq Ай бұрын
I'm new at this, please how can I reach her?
@ChanMingMason
@ChanMingMason Ай бұрын
I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much.
@horacioumfurer1194
@horacioumfurer1194 Ай бұрын
Please make a video about capital allocation. I believe the audience need to understand how much money they need to have in the account to trade certain strategies. For example, the strangle is not just entering the position, people need to know how much capital they need in the account when the position goes against them, and at what point they need to close for a loss or put more money in the account. When you open the position, the initial margin could be $5,000. When the underlying goes against you, the margin requirement could be $11,000 + the loses so in this case the capital requirement could be $15,000. This is important to understand so the trader can calculate the return on capital which in my opinion, a strategy should return between 2.5% to 4% monthly.
@chessychesster2107
@chessychesster2107 Ай бұрын
Yet another really good video Davis! As always, you're very detailed and thorough. The most detailed of any KZbinr teaching options for sure leaving no stones unturned. Thank you!!
@optionswithdavis
@optionswithdavis Ай бұрын
You're welcome ☺️
@KingBaldwin715
@KingBaldwin715 26 күн бұрын
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Flores.
@stevenrice500
@stevenrice500 26 күн бұрын
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
@Austin195
@Austin195 26 күн бұрын
Katherine Flores strategy has normalised winning trades for me also and it's a huge milestone for me looking back to how it all started
@dr.mohammed.erdogan
@dr.mohammed.erdogan 26 күн бұрын
Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading
@johnevans445
@johnevans445 26 күн бұрын
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
@leahroberts2
@leahroberts2 26 күн бұрын
The first time we had tried, we invested $1400 and after a week we received $5,230. That really helped us a lot to pay our bills.
@Tideo123
@Tideo123 Ай бұрын
The Put Ratio Spread strategy is the one that I was waiting for. Thanks Davis.
@optionswithdavis
@optionswithdavis Ай бұрын
You're welcome 👍
@swapnilmahankal
@swapnilmahankal Ай бұрын
What is price point of Long put and short put. How come u will receive $3 premium ( in e.g.) for more out of money put?
@kortyEdna825
@kortyEdna825 21 күн бұрын
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
@foden700
@foden700 21 күн бұрын
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
@brucemichelle5689.
@brucemichelle5689. 21 күн бұрын
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
@PatrickFitzgerald-cx6io
@PatrickFitzgerald-cx6io 21 күн бұрын
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
@brucemichelle5689.
@brucemichelle5689. 21 күн бұрын
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
@PatrickFitzgerald-cx6io
@PatrickFitzgerald-cx6io 21 күн бұрын
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
@abhijeetbanerji9735
@abhijeetbanerji9735 Ай бұрын
Very well explained Davis. I saw your video for the first time today and let me say this... you are incredible. The way you explained the strategy end to end along with adjustments... was awesome. I have downloaded the blueprint and have subscribed to your channel.
@optionswithdavis
@optionswithdavis Ай бұрын
Thanks ☺️
@rajeshgarg4622
@rajeshgarg4622 Ай бұрын
Instead of taking delivery of 100 stocks you should shift position to next month and sell same strike price and collect same premium or more and also sell one call and buy one call out of money so that if stock fall further then you should have benefit from sold call otherwise after taking delivery of 100 stocks then sell monthly calls and collect premium as rent .
@flyingtiger2212
@flyingtiger2212 Ай бұрын
davis - i watch a lot of good options and investing channels...but your content is a cut above!! i like the way you explain things and cover all the nuances and scenarios...thanks bro
@optionswithdavis
@optionswithdavis Ай бұрын
You're welcome ☺️
@dedysetiadi2851
@dedysetiadi2851 Ай бұрын
Amazing! I do a call ratio spread with a poor man’s covered call as the shares
@gardeningbeyond4832
@gardeningbeyond4832 Ай бұрын
Davis, you are a genius in option trading, I appreciate very much your time and effort, just wonder how I can ask questions? Where shall I post my question ? Thank you!
@mrcaorco
@mrcaorco 25 күн бұрын
Man, because you have mentioned GME I subscribed.
@michaelknudsen9128
@michaelknudsen9128 Ай бұрын
Brilliant strategy Davis. Optionstrat places the PRS in the "expert" category, but you make it very understandable.
@optionswithdavis
@optionswithdavis Ай бұрын
☺️
@mayssamj
@mayssamj 11 күн бұрын
Thanks! I've seen many videos throughout the years. This was well articulated and explained in simple terms that both novice and experts can benefit watching it. Kudos 🙏🍻🍕
@optionswithdavis
@optionswithdavis 11 күн бұрын
You're welcome and thanks for the support, appreciate it ☺️
@TradeSomeGameSome
@TradeSomeGameSome Ай бұрын
Great video. Loved the scenarios of how you would profit and the detailed explanation for how to set one up!
@AlfrediaWinley
@AlfrediaWinley 21 сағат бұрын
Thanks for the breakdown! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?
@rfp335
@rfp335 Ай бұрын
Great video Davis. Thank you for taking the time to explain all the nuance and details in this strategy. I've been searching for a strategy to buy some NVDA via short puts that would yield a great low stock price. This ratio spread will work perfectly, win-win to get a low price stock purchase and collect some premium in the process.
@optionswithdavis
@optionswithdavis Ай бұрын
You're welcome ☺️
@kumarmanjeet4679
@kumarmanjeet4679 Ай бұрын
Thanks for the video Davis. It would be lot easier to understand if you would use a mock Option chain with Strategy Builder, which shows Different strike price, the Greeks as well as the Payoff chart. Pls Consider it for your next video. Thanks again.
@optionswithdavis
@optionswithdavis 17 күн бұрын
Have already done that here: kzbin.info/www/bejne/bJOVXqR8f51rhLcsi=O4t_o-3hzWLFjFy8
@gnllr1
@gnllr1 Ай бұрын
Hey Davis, I’ve been trading your PBWB strategy on XSP with a small $6000 account. I’m up 30% in 35 trades, placing two trades a week, since Feb 6, 2024! Thanks again for sharing this profitable strategy. Since I have about 12 trades in at any one time, my concern is the rare, but possible chance, of the market just crashing down. How have you mitigated (if at all) this risk of having many trades on the same market? At least we have lots of edges-45DTE, put skew, positive drift, limited risk, omnidirectional, and no upside risk! These help! Glen
@rajalal1
@rajalal1 Ай бұрын
What is PBWB
@bsmurf12
@bsmurf12 Ай бұрын
@@rajalal1 pretty sure it is the “put broken-wing butterfly”
@gnllr1
@gnllr1 Ай бұрын
I can answer my own question-just trade smaller position size.
@gnllr1
@gnllr1 Ай бұрын
@@rajalal1 Put Broken Wing Butterly, the limited risk version of the Put Ratio Spread. Davis has several videos on it.
@zadokmotorfreight2423
@zadokmotorfreight2423 Ай бұрын
​@gnllr1 also, make sure you're risking well under 50% of total available capital.... especially now with such low market volatility (vix).
@SusanNancy1
@SusanNancy1 8 күн бұрын
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
@LindaPatricia02
@LindaPatricia02 8 күн бұрын
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
@ChristopherFrank3
@ChristopherFrank3 8 күн бұрын
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
@CarolinaJoseph01
@CarolinaJoseph01 8 күн бұрын
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
@ChristopherFrank3
@ChristopherFrank3 8 күн бұрын
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
@CarolinaJoseph01
@CarolinaJoseph01 8 күн бұрын
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
@rickcampos2165
@rickcampos2165 Ай бұрын
Nice video, approximately how much can you make using this strategy? Let's say for example with a $200,000 bankroll, what would the expected return be for the year? Thank you 👍
@kenrairyandindayal9246
@kenrairyandindayal9246 20 күн бұрын
Keep up the good work, Davis . You are one of the few people out there who's information is very accurate.
@optionswithdavis
@optionswithdavis 20 күн бұрын
Thanks 😊
@randalljohnson8293
@randalljohnson8293 26 күн бұрын
Thanks I just found you! I like the put strategy! Good video!
@optionswithdavis
@optionswithdavis 26 күн бұрын
You're welcome.
@PrestigeTradersClub
@PrestigeTradersClub Ай бұрын
Great Video ! Just have to go further away DTE and be carefull with T+0 😂other than that this is my bread and butter. Do this without a hedge abd BP alocation is dangerous !
@Yatra-kj3zq
@Yatra-kj3zq 10 күн бұрын
Thank you Davis for this options strategy.
@optionswithdavis
@optionswithdavis 10 күн бұрын
You're welcome!
@RogerWilco1
@RogerWilco1 Ай бұрын
I love your videos and have been watching every one I can on ratio spreads. One thing that I think doesn't get talked about enough is management. For example you covered it some, but I think there's probably a lot more things you can do, when you are using a DTE of 30-45 days. For instance, one thing I am experimenting with is a wheel strategy where I set up call and put ratio spreads that cover most of the expected move. I think with a long DTE setup, if the stock moves one way, the shorts in the opposite direction can be closed out... leaving "free" long contracts in case there is a reversal. OR they can be rolled up to capture some of the profits... at the cost of narrowing the spread. Now I'm not sure of all the tradeoffs of that idea, but it seems like this setup- both bullish and bearish ratio spreads, means whichever way it goes you can make adjustments to profit from the movement.
@jerometan1826
@jerometan1826 25 күн бұрын
Hi Davis, thanks for the videos, I learnt a lot from it. One question, would you recommend using leveraged ETFs (e.g. TQQQ, UPRO, etc), to trade PRS, Short Strangle? While I understand the risks, I don't think it applies to Option tradings, especially since I'm concern about Premiums, lower margins, and lower max loss, etc. Pls correct me! Thanks!
@optionswithdavis
@optionswithdavis 25 күн бұрын
I personally don't use leveraged ETFs, but if it works for you, why not. Just test out using the smallest contract size over a large number of trades and see if it works according to what you want. Preferably with demo then this way if it doesn't work out the way you expect then at least no money is lost. Thanks for the support, appreciate it!
@Bitsurf24
@Bitsurf24 16 күн бұрын
You are an outstanding teacher. Thank you for sharing these strategies 🙏
@optionswithdavis
@optionswithdavis 16 күн бұрын
You're welcome ☺️
@santosaaa-g1e
@santosaaa-g1e Ай бұрын
Great strategy.I will try it tomorrow.
@lonewasian
@lonewasian Ай бұрын
Great video Davis! Really excited to try this out one, especially with the market crash we just had.
@krishr2009
@krishr2009 2 күн бұрын
how does this compare to SHORT PUT VERTICAL? It has a downside protection as well....
@jasgap
@jasgap Ай бұрын
Why not only sell the Put, to get more credit? Also why not close the position when price goes down and before you start losing on the naked put?
@alark8903
@alark8903 Ай бұрын
Selling the put requires more capital.
@Phenn5589
@Phenn5589 Ай бұрын
Thanks Davis. Good explanation
@optionswithdavis
@optionswithdavis Ай бұрын
Your welcome ☺️
@petkuscinta9797
@petkuscinta9797 Ай бұрын
This particular video is very good . Risks are well understood and if my son would understand options and risk to this level I would be happy.
@optionswithdavis
@optionswithdavis Ай бұрын
Get your son to watch my videos 😉
@petkuscinta9797
@petkuscinta9797 Ай бұрын
@@optionswithdavis I will. He understands basics of the wheel trading but despite his demo account being in bad shape digging into forex and my real account making +34.6% last year and +21% so far this year he needs to arrive to correct place himself . He is only 19yo so I do not hold it against him:) But it is great to see young person like you to trade options so well. Options are not a boomer's investment strategies.
@aptembe
@aptembe Ай бұрын
Great video, subscribed. Just one question- isn’t this a bearish strategy where you close positions when the market falls and is between the 2 put prices (between the long & short strikes) ?
@optionswithdavis
@optionswithdavis Ай бұрын
Omnidirectional.
@LMF-ct4lt
@LMF-ct4lt Ай бұрын
Davis, If you trade 100 put ration spreads over 2 years and also trade 100 cash secured puts over 2 years, which trade will work best based on probability?
@optionswithdavis
@optionswithdavis Ай бұрын
If you compare using the same short put strike price, ratio spreads will have a higher probability of profit. But it's a tradeoff because if the market goes up the moment you put the trade on, the CSP will have a higher profit since there isn't the embedded put spread.
@whitefox8291
@whitefox8291 Ай бұрын
Hi Davis, thanks for your videos, just to confirm, this is not suitable for small accounts right?
@optionswithdavis
@optionswithdavis Ай бұрын
Depends on the price of the underlying you choose. Small accounts just have to go for lower priced underlying.
@vamshikarra4691
@vamshikarra4691 Ай бұрын
Excellent explanation Davis🎉
@optionswithdavis
@optionswithdavis Ай бұрын
☺️
@michaellucas7882
@michaellucas7882 Ай бұрын
Thanks Davis!
@optionswithdavis
@optionswithdavis Ай бұрын
👍
@dtitan1993
@dtitan1993 20 күн бұрын
Hello, Nice video, do you have a video opposite of this that the stock will go up ...call ratio spread? or if you can do a video for it if you dont have a call ratio spread Thanks
@cskman
@cskman Ай бұрын
It's the first time i see your channel. You must be good at option trading. For the collapsing market. How do we earn the most. I don't know when, but If I certain the market is having a great number of drop. Should I go far away from strike price and long term long put? Or deep in the money put?
@alphabeta01
@alphabeta01 Ай бұрын
Great video Davis. Thanks for sharing. Would it be possible to share the same using an example with strikes so it is better to connect with the Long Put Spread and the Short PUT where the strikes of the short PUTS are the same. Also, this strategy is for DTE 45 or slightly lesser.
@aknaama
@aknaama 24 күн бұрын
Sounds great but there is a lot to grasp in this video. Would appreciate if at the end of the video you do a live example so we can understand all concepts together.
@johnnyyeo9260
@johnnyyeo9260 Ай бұрын
Hi Davis,I have a put credit spread option on mu.and I'm just assigned the sell put(I owned the shares now),I still have buy put option now.what should I do now? 🙏
@optionswithdavis
@optionswithdavis Ай бұрын
Watch this: kzbin.info/www/bejne/noq8dWV8ZtyGrNEsi=TX3gkN1zHowBc9w-
@johnnyyeo9260
@johnnyyeo9260 Ай бұрын
Thank u Davis​@@optionswithdavis
@seangreen8262
@seangreen8262 Ай бұрын
Wonderful presentation. Thanks What's your opinion: if I was to trade just this one strategy .... using just one ETF, either spx or qqq .... at DTE 30 days as a campaign trades, by that I mean that I placed a trade every week, irrespective of the price?
@suthamm
@suthamm Ай бұрын
Thanks again, Davis. Are you referring to the fast or the slow Stochastics?
@vajatin
@vajatin Ай бұрын
Tao Trading- Original intention, Being Observer, Focus on process and measure success based on it.
@TonyChin-k5j
@TonyChin-k5j 10 күн бұрын
Hi Dave, is there any chance of losing if i close the entire trade whenever the underlying stock price fall in between the puts mentioned in scenario 2 regardless the DTE remaining days?
@benjaminmartin7702
@benjaminmartin7702 25 күн бұрын
So the two short options you buy them separately or together? Thanks in advance
@timreynolds2264
@timreynolds2264 10 күн бұрын
Davis I cannot find any of the trades with PLTR with any significant income under $1 wide. Even that is really low. //What are you finding?
@Willy_pbg
@Willy_pbg Ай бұрын
Which stocks are you using? I’m checking some of them but I have to pay a debit instead of receiving credit… other question is: in order to defend the strategy, do you open separately (spread + naked put) or all together?
@ampiciline
@ampiciline Ай бұрын
Davis , you are born to be a teacher! god given talent bro
@optionswithdavis
@optionswithdavis Ай бұрын
You're too kind ☺️
@bertlouis6082
@bertlouis6082 Ай бұрын
Great video, Davis ... do you avoid holding options during earnings releases?
@mandyll
@mandyll Ай бұрын
Thanks for sharing! Really great strategy:)
@zhichyuan
@zhichyuan Ай бұрын
a nice great video,scenario 3,when close the spread ,we need to close it in one by one leg?(close short put and then long put)or have any method to close long put spread once?thx
@lesliefoo838
@lesliefoo838 Ай бұрын
Hi Davis is this and any credit or debit spread strategies is there an ideal spread between the short and long put?
@ljyeang
@ljyeang Ай бұрын
Davis, what’s your take using this Put Ratio Spread on SOXL, TQQQ and UPRO which are leveraged ETFs?
@zadokmotorfreight2423
@zadokmotorfreight2423 Ай бұрын
I'm curious too!
@optionswithdavis
@optionswithdavis Ай бұрын
🥴😵‍💫🫨
@juandeltoro5189
@juandeltoro5189 Ай бұрын
Great explanation
@jaynen
@jaynen Ай бұрын
We know you love 45 DTE for edge so if this is a retirement strategy how often are you actually opening and trading these? Is this a once a week or one a month type of thing?
@viranima1
@viranima1 Ай бұрын
the commisions deducted is important, please suggest the broker whose commission charges are less
@4GWCNY
@4GWCNY Ай бұрын
Love your channel. I lost my mind on Friday and bought a crowdstrike call. Can I use a put ratio spread to protect the downside?
@optionswithdavis
@optionswithdavis Ай бұрын
Not exactly because this strategy is meant to get into long stock position. So if you don't intend to get long the shares, I wouldn't use it.
@4GWCNY
@4GWCNY Ай бұрын
Thank you! Does this strategy need to be cash-secured?
@optionswithdavis
@optionswithdavis Ай бұрын
If you don't want to get into trouble.
@jaynen
@jaynen Ай бұрын
Also another question I believe having any sort of naked put is only allowable at the highest level of options access for most accounts. How easy is it for most people to get that? Especially if this is meant to be beginner oriented?
@altair_204
@altair_204 17 күн бұрын
Hello, do you also use call ratio spreads? Obviously the data says the market spends a lot more time moving up than down, but sometimes it's overbought as well
@optionswithdavis
@optionswithdavis 17 күн бұрын
See this: kzbin.info/www/bejne/poLFlmN_j9emZpYsi=aQmoP4ztaHsB8hbO
@giuseppedeiudicibus1780
@giuseppedeiudicibus1780 Ай бұрын
hi Davis, could you show us a backtest of this trategy or a list of real trades ? . Just to be more confident before apply it. thanks a lot
@davidwjwong
@davidwjwong Ай бұрын
Hi Davis, is this a good time to apply this strategy on the tech stocks in Mag 7?
@cashmoney840
@cashmoney840 2 күн бұрын
Davis, why don't you trade this exclusively?
@jtsh1980
@jtsh1980 20 күн бұрын
If it's its a put debit spread, we should be paying to buy the put debit spread. Hence the example at 3:30 is not correct when it said short put is +$3 so each short put is $1.50 and long put is -$1. In this case, it's a credit spread and we receive $0.50 instead. How is this possible?
@optionswithdavis
@optionswithdavis 20 күн бұрын
See it as either: 1 Short Put = +$3 credit. 1 Long Put Spread = (-$4 + $3) = -$1 debit. Net Credit = +$2 Credit. OR: 2 Short Puts = +$6 Credit. 1 Long Put = -$4 Debit. Net Credit = +$2 Credit.
@bckjns
@bckjns Ай бұрын
great video!
@optionswithdavis
@optionswithdavis Ай бұрын
☺️
@AndresSanabriaMusic
@AndresSanabriaMusic Ай бұрын
wow this gives you an edge just wow !!!
@ChrisDavis-sx3nq
@ChrisDavis-sx3nq Ай бұрын
Good tactic. I think most people call this the 211 trade but is a great tactic and easily modifiable.
@kevinwalsh2068
@kevinwalsh2068 Ай бұрын
111
@ramy2745
@ramy2745 Ай бұрын
Does this strategy work on the Call side as well?
@Dan-xu8nt
@Dan-xu8nt 25 күн бұрын
With this strategy, if the stock goes well past my short Put, will I be forced to buy the stock at the strike price of the short Put? Will the debit Put spread offset that loss?
@PowerfulActionableBits-bz9gt
@PowerfulActionableBits-bz9gt 25 күн бұрын
It's a ratio spread (+1, - 2), so the 1 short put will be offset by the long put and you would have to pay for the assigned shares for the other short put
@Majki70
@Majki70 Ай бұрын
I don't agree on getting shares assigned...I'd just close the whole transaction on max profit which is strike price of short puts and rinse/repeat again. You never know how far below price of underlying can go which can make covered calls difficult to do (lower premiums as you need to keep those calls strike prices high to avoid being assigned below the underlying purchase price].
@zadokmotorfreight2423
@zadokmotorfreight2423 Ай бұрын
Good point
@optionswithdavis
@optionswithdavis Ай бұрын
You only get max profit when it's near/at expiration. If the underlying comes down to your short puts early on in the trade, the whole PRS will still be in a loss. Closing out then would mean you're taking a loss. Hence scenario 3 ( given your analysis on the underlying is correct).
@zadokmotorfreight2423
@zadokmotorfreight2423 Ай бұрын
@@optionswithdavis thanks for that!
@danielperkins9347
@danielperkins9347 Ай бұрын
Timing matters for sure. Could still be in a loss if move is fast.
@Majki70
@Majki70 Ай бұрын
​@@optionswithdavisis this less probable on 0DTE options?
@carlossteffens7659
@carlossteffens7659 28 күн бұрын
If you get assigned, Wheel it.
@user-ht7jt2gr5j
@user-ht7jt2gr5j 11 күн бұрын
Wheeling works. But in the case of a big crasher it wouldn't work. Recent examples are CRWD, SMCI etc.
@blackswanrising2024
@blackswanrising2024 Ай бұрын
are you saying the combined premium of the two shorts is $3, this is the part that confuses me?
@arnaldooliveira3672
@arnaldooliveira3672 Ай бұрын
It dependes... how much ATM your position is and how high the IV is at That moment.
@chulchue2619
@chulchue2619 Ай бұрын
Why a Put Ratio strategy vs a Call Ratio strategy?
@fallguy747
@fallguy747 Ай бұрын
what deltas are you using for the spread. ?
@SOLUCIONESODONTOLOGICAS
@SOLUCIONESODONTOLOGICAS Ай бұрын
Bro what You think about LAC stock?
@FMD023
@FMD023 Ай бұрын
If u close and still have a short put and it keeps going down u are losing money on the premium don’t you? Short Put means sell put. Selling puts is a bullish move. If you get assigned at lower strike that’s good but what about the premium u are losing from?
@glowgrow8063
@glowgrow8063 20 күн бұрын
Do you have a real life example of this ? I would understand it better then
@KeranSmith
@KeranSmith Ай бұрын
Thanks. You prefer this over the put credit spread?
@Majki70
@Majki70 Ай бұрын
This has more income potential (video headline).
@MD-zr8xi
@MD-zr8xi Ай бұрын
Hey Davis. If stock goes down then we make profit in the LONG PUT Spread is fine. But how do we ROLL Out and Roll down the SHORT PUT? Most probably we will not get a higher PREMIUM for the new Sell PUT i.e. the BUY PUT premium of the current leg will be higher than available SELL PUT premiums unless we go really FAR and those Stocks or even Index may not be liquid. So to adjust the SELL PUT do we sell 1 extra now? I.e. we now sell 2 PUTs only after rolling out and down ?
@optionswithdavis
@optionswithdavis Ай бұрын
See this: kzbin.info/www/bejne/pHO2XmBmmK-hlZYsi=Oi44J-JVWYmc6PTy
@MD-zr8xi
@MD-zr8xi Ай бұрын
@@optionswithdavis Thanks.. I have seen this long ago and thanks to you I am doing this comfortably. But naturally at times the mkt goes against you so much that best is to quit. But my question whether I can Adjust a 1 lot sell PUT position by sellng 2 lots in next expiry if I am not getting a higher Premium than the Sq off-BUY premium of position being adjusted (closed at loss). Will that work also?
@1stNoelJensen
@1stNoelJensen Ай бұрын
So, I understand the strategy. When do I put this on? When I'm bullish, neutral-bullish, or neutral?
@Majki70
@Majki70 Ай бұрын
All three will work and even slightly bearish.
@optionswithdavis
@optionswithdavis Ай бұрын
When you don't mind getting long the underlying shares.
@the_boss3421
@the_boss3421 Ай бұрын
I did an analysis where I compared weekly trade premiums with monthly premiums at the same delta, the premiums per week were the same for majority of the stocks. I keep hearing that monthly/45 day have higher premiums, stats are im your favor etc.. am I missing something?
@optionswithdavis
@optionswithdavis Ай бұрын
See this: kzbin.info/www/bejne/ZqfPf5yFgtRqaJIsi=mAyUSGHPJ6VgHSVa
@crisbrown7484
@crisbrown7484 Ай бұрын
So your selling 2 puts or calls and buying a put or call. So what is your margin? The 1 sell leg is naked correct? Or am i missing something? I sell credit spreads all day long and they are covered. But as soon as you sell a naked put or call your margin is huge? I ran this through Optionet back testing on the spx and the margin was huge.
@optionswithdavis
@optionswithdavis Ай бұрын
For this strategy, the additional short put is a cash secured put.
@traveloasis8389
@traveloasis8389 Ай бұрын
@@optionswithdavis Which makes it off limits for a lot of small account traders
@Livedaytradin
@Livedaytradin Ай бұрын
this strategy scenario 3 is wheel strategy, TELL MORE IN ADVANCE.
@kcirrred9923
@kcirrred9923 Ай бұрын
Hi Davis, how do you close only the put debit spread in ibkr in a single order?
@91mingseng
@91mingseng Ай бұрын
I have the same question. so far I am only able to close the debit spread in Trader Workstation, but not in IBKR mobile and IBKR desktop
@PeterRassias
@PeterRassias Ай бұрын
Hi Davis, Can you make a video on rolling positions? And give real life examples?
@optionswithdavis
@optionswithdavis Ай бұрын
Already created a few here: 1) kzbin.info/www/bejne/pHO2XmBmmK-hlZYsi=iedVyMdLMQy7_wfQ 2) kzbin.info/www/bejne/Y4fWhJilqcxgpLMsi=XVY-wHlB88yDJ7GJ 3) kzbin.info/www/bejne/npuQfaVrecp8fsksi=tVeHdLbJFz0k8_YN
@aussiecopy
@aussiecopy Ай бұрын
Can I trade options (US options) from Australia
@optionswithdavis
@optionswithdavis Ай бұрын
Yes
@rajeshgarg4622
@rajeshgarg4622 Ай бұрын
Instead of taking delivery of 100 stocks you should shift position to next month and sell same strike price and collect same premium or more and also sell one call and buy one call out of money so that if stock fall further then you should have benefit from sold call otherwise after taking delivery of 100 stocks then sell monthly calls and collect premium as rent .
@farhancfo
@farhancfo 26 күн бұрын
You should have a lot of money to get assigned the stock and to sell call options.
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