Credit Spread Examples on $TSLA and $JPM

[@JakeBroe]

Give this video a LIKE to support my channel! Also check out my entire playlist on Trading Options here! kzbin.info/aero/PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU

[@mrwsilva1]

GREAT example video. Really appreciate all these vertical spreads video. I’m still learning about these spreads, so these videos are of IMMENSE value. Thanks Jake, keep ‘em coming!

[@JakeBroe]

Thanks Silva! More tutorials coming soon that I think will be helpful!

[@mrwsilva1]

Appreciate it Jake, for real! 👍

[@temimegraham1904]

My head exploded during the presentation, I need to watch this video 5 to 10 times in order to understand. Great learning channel for new and savvy investors. Thank you

[@JakeBroe]

Thanks Temime! I've got more example videos coming out on spreads. Just stick with it!

[@deviambati3805]

Thanks Jake for the credit spread strategy. When you want to

[@JakeBroe]

You are welcome Devi!

[@edgarfletes8196]

Always great to see these strategies in practice, that’s how the real learning occurs.

[@JakeBroe]

I agree Edgar! Cheers!

[@62orbetter4]

Vertical call spread

[@ATLJB86]

You are crushing it Jake!

[@JakeBroe]

Thanks JB! Vertical Spreads are pretty fun!

[@behrensf84]

I sold some covered calls on Tesla right before the earnings. the Volatility was crazy. The APY on the premium was over 50% for a Delta less than 0.2!

[@JakeBroe]

Nice! Congrats Felipe!

[@tommypham4742]

Thanks so much ! Very good explanation! Keep it up 👍 Jake !

[@JakeBroe]

Thanks Tommy! I appreciate you!

[@GilbertFleming]

On Chase, you chose by the open at 1:40 $140. Why don’t you go way below? Sell it for $110? Then you have some protection against the stock stock going down to zero, but you get more premium. I don’t see Chase as a stock that would go down to zero?

[@JakeBroe]

It's all a sliding scale of probability and risk. People can select higher and lower strikes based on the premium and probability. I just personally prefer at the money strikes or strikes with strong levels of price support.

[@kevinkinsella7815]

Sweet! I love your flags man!

[@JakeBroe]

Thanks Kevin! I love flags as well!

[@craigchambers4183]

The tulip flag is foreboding...a reminder of the tulip 'bubble' hundreds of years ago. Got to watch one's investment! :z)

[@kevinkinsella7815]

@@craigchambers4183 its amazing that you could get a kings ransom for a flower.

[@brileyjf]

Jake, just a thought, but if you think TSLA is just going to stay flat, you might as well do a credit spread on the Put side as well. You make a second premium and if your put strikes are also $10 apart, your max loss remains the same. The stock can't move up and down simultaneously.

[@JakeBroe]

Yes, that is the Iron Condor. I’ll explain it in a future video with examples.

[@jasonnysacleomedes5084]

I was told that you should provide three closing conditions with credit spreads so that you do not lose money along with going around with a 45 day contract. 1) Close out whenever you obtain 50% of the contract, 2) close out when the value equals the credit so that it nets $0 and 3) close out when the contract has 21 days until expiration. What are your thoughts on this?

[@JakeBroe]

If the contract has less than 21 days remaining, that is when theta decay is greatest. As for the other conditions, they seem good. The first 50% you capture in premium is the easiest 50%, so it makes sense to close out the spread and move on to another one. Lots of factors to consider! Cheers Jason!

[@62orbetter4]

Put… Sell to open at 148… Buy to close at 1:40 The cell to open number? Sell to open. He puts that at a 30 Delta.

[@GS-xs3we]

Could you do an origin story video on how you ended up getting into investing and how you learned? Apologies if you have done this already!

[@JakeBroe]

Hey G S! No, I haven't don't this video yet. Great suggestion! I can totally do this.

[@k.i.1700]

I enjoyed this video! Can you do a video on how to manage a spread when your strike has been breached? What happens if the share price ends up between your strikes at expiration?

[@JakeBroe]

Hey KI! If the share prices ends up between the strikes, then if it is below your break even (the credit received), you still make a little bit. If it is above it, then you start losing money up to your max.

[@aeriosmgt9064]

Great video Jake, thanks! Question --- take the credit put spread --- Does the strategy only works if you initially and simultaneously set up the sell and the buy trades? I'm wondering if I can use this strategy as risk mitigation for TSLA -- 3 weeks ago I bought 2 put contracts for 12/30/2022 @125, and today TSLA is trading ~112 .... So I have now deep into the money contracts that will expire this week, so could I buy to open 2 put contracts at 115 with expiration date 12/30/2022 - this will at least mitigate the $ exposure I currently have but wondering if putting the trade at different times will help me here - thanks in advance!

[@JimNichols]

I love the videos. They are informative and concise, I find I am not a trader after all as I just cannot find it in myself to do this...lol Question of the day? I don't know the terminology for what is happening other than manipulation/modulation I have watched Tesla "cycle" between 600 and 650 for months now and I wish to say I am a sissy and just couldn't command myself to do buy Tesla during this but I wrote the price I would have bought it at and the price I would have sold it at in real time (not going back and could have, should haved it) and with just 10 shares I would have made 2-500 dollars a week on the "modulation". I do live on the other side of the world so I can not do real time trades. Is this manipulation or just a modulation in the "natural feels good at this price" thing?

[@JakeBroe]

Hey Jim! No, I don't think so. When real money is on the line, emotion takes over and if you aren't ready to lose money, then ironically you will lose money when in real time the share prices does the opposite of what you were expecting. But you'll never know if active trading is for you if you don't give it a try. Just star small if you do!

[@rawmnywildcat]

TSLA @ $680 in the video, meanwhile chart says TSLA was @ $230 on July 30th 2021. Not sure why that is, but other than that, useful video!

[@mahaalmubarak6399]

Tesla went through stock split

[@utubedaveg]

Whats your opinion on whether QQQ, IWM, SPY will always return to the current level of value if there would be a significant pull back. I have traded a few but credit spreads make me nervous. Thanks for the video.

[@JakeBroe]

"will always return to the current level of value"

[@godsvengeancedm]

Jake can you please do a video on the bullet proof strategy? Where you buy and hold a stock then sell a put on it.

[@JakeBroe]

I am not familiar with this, but I can check it out!

[@nightelf7921]

It would be really nice that you show us some tool to calculate profit price based. I mean I have a call contract in JPM right now the stock is in 153€. How much I am going to make if goes up to 165$. As far as I know in Charles swap I cannot put limit for a call option based in the stock price.

[@MP-sb9uh]

Can the expiration be less than 5 days or does it have to be longer? or do you rely on the deltas to make a decision like you did in the video? Btw your videos are amazing and very very helpful, because of you I have started trading options to generate income. Thanks Jake!

[@johnsnow9232]

Outstanding results

[@secret222]

Huge head & shoulders on JPM daily

[@JakeBroe]

Maybe! I think treasury yields moving is what temporarily drove it up.

[@juancarlosmontes]

Well you wanted a comment? Very enjoyable video, but that stuff's not for me! LOL

[@JakeBroe]

Thanks JuanCarlos! I appreciate the support!

[@juancarlosmontes]

@@JakeBroe Always, man😀 I watch every new vid the day it drops. I like your talks because they are true, meat-and-potatoes substantive! They're at a higher or a deeper level than most and a lot of the subject matter is concepts I'm not ready for yet, but I feel like I'm clipping right along, putting down roots.

[@62orbetter4]

Vertical spreads

[@62orbetter4]

This is a vertical credit spread.

[@firestick1490]

Tesla is at 714 this morning...

[@JakeBroe]

Yep… lol. Im a genius aren’t I? 😂

[@firestick1490]

@@JakeBroe Haha happens to the best of us... Still early though, you might be fine.

[@62orbetter4]

Put… You sell to open

[@62orbetter4]

Call… Delta open… $14.20…… Call by the open for $11.60