Making An Extra +$500 PER DAY Trading Options

[@alaabes]

You need $12k capital to fill that order, not $500. Each contract will hold $480 in capital. $480 times 25 contracts is $12k. But I like the lesson. Keep up the good work

[@mrcarlincool]

yeah, build the account up.

[@benjiwong5276]

the best video I have seen teaching how to trade credit spread. you are amazing. Thanks for sharing.

[@carmine_rosato]

Wow, thank you!!!

[@giacomoantoniobuehrmann7327]

Hi Carmine, First I want to say you really do an excellent job explaining and going in great details on all your strategies on all of your videos, especially the supply and demand imbalances. I pretty much have seen all of your videos, which are really great. I have been investing and trading stock and stock options for over 28 years now and one of my favorite strategy of options trading is the credit spread, just like this video. But I do not do indices, I mainly do stocks with IBM, KO, & MU being my favorites. Anyway, I just want to point out one thing, this video as great and detailed that it is, you left out one very important thing. That is you really need a large account to do this on a regular basis. For a $1,000 per week, depending how big of a spread, you need to be risking $15,000 to $16,000 to make that $1,000. People who work on a risk to reward ratio would not do this. I would also guess to say that about 90% of people who are watching this do not have that kind of leverage like you and I do. And probably couldn't stomach it as well. I really enjoyed watching all of your videos, for some reason I felt like I had to comment on this one. Take care!

[@joeladelman2375]

man- no mention that you risked $15,000.00 or how you'd manage the trade if the SPX tanked ??

[@beachlover529]

Carmine, I’ve done well with your 2x week system, but every time I see that huge cost to do the trade( max loss) it freaks me out and sometimes scares me from hitting confirming the trade. Does that huge number concern you at all?

[@carmine_rosato]

I currently do not trade this system with the current market conditions. Risk reward is not good enough for me. Will wait for market to settle down and volatility to dry up, but will not be anytime soon

[@beachlover529]

Carmine Rosato makes sense... thanks for your response

[@brcleaningcompany2566]

Love your videos. But when you have downtime. Or bored, you should maybe adit old titles or maybe MAKE IT CLEAR YOU NO LONGER FEEL THIS STRATEGY IS GOOD, and maybe give a LINK TO WHAT YOU RECOMMEND AT PRESENT TIME. As a novice had i not ready the comments and seen the question above and your response i woulda maybe gone ahead and tried this out..... just suggestion from someone that like your vids

[@mikemalone007]

I like this strategy. Even if the trade goes against you, the easy solution would be just to manage it accordingly.

[@beachlover529]

Do you hold to expire or close prior (why)?

[@brandysoda8665]

Carmine great review. i have seen/watched lots of traders presenting this startegy selling 2 X a week and say INCOME as if there is no risk.If u do 8 to 10 of them a month ,1 or 2 will get in trouble.For your 30 contracts play that is potential $15,000 loss while collecting around $700 per trade.There goes your profit PLUS loss!.You have to be realistic and show HOW u manage it ;if it GAPS against u towards your strike.I have done 200 PLUS of this trade!!

[@LastingMotivator]

So what do you do if it goes against the plan?

[@brandysoda8665]

@@LastingMotivator Well thats what Carmine should go over since he is claiming income .He showed us winning trade but what is his stat over 100 trades and what did he do when in trouble?

[@princerocky4797]

@@brandysoda8665 what about do it on the same day of the expiration and choice far out OTM ?

[@brandysoda8665]

@@princerocky4797 That is possible I play that on days that SPX is not trending.You have to give it an hour after open and see.Don't work all the time there might not be premium.

[@juanitoboriqua]

Excellent explanation and lesson 👍

[@sunilnagindas9236]

Hi thank you for a very interesting strategy. Has this trade gone against you and if so by how many cents?

[@carmine_rosato]

Yes of course. Currently, market is too volatile to be risking this much and the reward being so low. r:r is not very good with this strat, but % of working out is very very high

[@atangbingana283]

Hi Carmine, why choose the SPX instead of the SPY?

[@atangbingana283]

American vs European is that the reason?

[@atangbingana283]

BTW you are the GOAT! Amazing content!

[@carmine_rosato]

premiums are worth more. Tax reasons. ETF, vs Index

[@baboonaiih]

You have great informative videos on here that make it easy to understand how you profit in these trades. It would be great if you showed more of the potential risk and what a loss would look like and how much you stand to lose on a given trade. Thanks for the vids keep it up 👌

[@Rockingstars]

If the contracts expire between the sold put and the bought put, he'd be down 15K$$$ or something

[@corinnet9822]

Carmine, How are you doing this on TOS? They don't have weekly SPY options. Unless my settings are off? Please advise.

[@joshireland1251]

How much for discord boss? Would love to be apart of what you’re doing. Love the page.

[@carmine_rosato]

Appreciate that! The discord is free with the purchase of the course. Visit investitrade.net

[@hardwaybets]

Carmine I love your vids. And here is the thing about this vid, the trade doesn't "cost" you $500.00. You get a credit of $500.00. This is why on the summary of the confirm and send panel it shows ($500) which is for a credit. At 25 contracts you are tying up $12,000 in buying power (the "Buying Power Effect" in the confirm and send panel) which means that the trader needs to have that amount in the account or otherwise the trade won't happen. I love the play. Just thought you could be a bit more explicit about the financial implications of it at 25 contracts. Great vid nonetheless.

[@ricardogr371]

How much capital is needed to start day trading options?

[@markschellhammer4663]

Thanks for your analysis. We live in a different market now, from when this video was made, but still good education on theory. A few questions. 1. What is the POTM that you are comfortable with? 2. Do you set any Stop Loss orders? Where do you become "uncomfortable" with a drop in price, getting closer to the short position, and showing a loss in your Position screen. Even though you're still above the short. You're betting that the price won't move below the short strike, but if the SPX starts getting close, and your "loss" amount is increasing, where do you manage your loss? Thanks.

[@aaronlee138]

I tried this on paper trading. My P/L is currently down 400 dollars, but I’m 50 points away from my spread? (2860/2065) actual 2910. Did I do something wrong?

[@carmine_rosato]

You may have done a debit spread.. make sure its a credit (sell first)

[@STAT303954]

not good market conditions to be doing this as well lol

[@carmine_rosato]

STAT303954 no can’t trade this strategy now. 60-90 point moves like it’s nothing lol

[@cpanss]

Hey Carmine, do you only trade the ES or S&P, sorry for the question first time viewer, I'm watching your whole playlist.

[@carmine_rosato]

No I trade other stocks, but for this strategy, only SPX options

[@cpanss]

Carmine Rosato does these credit spreads techniques work with other with volatile stocks with quality supply or demand levels that are fresh where it’s a high prob of prices to turn you can have the premiums or puts or call (idk what to call them) in a “safe zone” where it’s unlikely for prices to come back?

[@danielkim571]

This was such a great video! Very thorough and clear explanation! Question - now that SPX is back to moving 70-90 point, how has your strategy changed? Or are you incorporating a similar strategy to another index?

[@MonkeySpecs301]

premiums would increase with higher IV, so you could still target 500/day with further OTM strikes.

[@blackcurrantpop]

Wow! Gonna try this today on demand on TIS thanks Carmine! Love your videos. Your a great teacher. I get your explanations right away. Very straightforward❤️

[@MrCubansurfer]

I love your strategy and explanation. What would have happened if the stock does go against you? Do you open another position (like an Iron Condor) to help you or you take your loss?

[@venkatraghavan8069]

what's the max risk yoy are assuming if there is a flash crash event ?

[@johnnguyen1960]

carmine, how do you get the daily demand on your screen?

[@cashflowhunter1033]

There a risk to be assign with a credit spread. Correct me if I am wrong...

[@rahulthakkar5091]

nice video. Great explanation. to the point. How do i add a supply and demand zones like you have ton TOS. Also what are the strategies that are working in this market for you? Trying to learn...

[@lanreoshisami8934]

Hey C.R, how things going? I saw your trading this morning and I've watched, saved & subscribe to every video. Man, you are a good trader who knows how to teach and explain the easy way. Thx for these videos C.R. I'm watching more or all.

[@carmine_rosato]

I appreciate that!!

[@EarthBlueSky]

Hey C, why are you not trading the SPY which is more efficient? Thanks

[@DayTradersDaily]

Whats up Carmine, are you still selling options on the index? Looks like as of recent you have just been going long calls or puts

[@saulgonzalez6427]

Mannnnn. How do you set this rectangles with the name? Thanks for your patience and hard work

[@carmine_rosato]

I manually draw them with TOS tools

[@saulgonzalez6427]

@@carmine_rosato I got it. Thank you. Man, what a good content. I blew up my 1.2k account, now I'm trying to save and get back to the charts. I'm getting a course with TradeNet to get a found account.

[@saulgonzalez6427]

But man. How do you keep the link with the text above. I mean, the text keeps at the right... See?

[@carmine_rosato]

Saul Gonzalez you have to add a price level and you can change the name of it, and you have to make sure you select “show name”

[@saulgonzalez6427]

@@carmine_rosato You are totally right man. Thanks for having opened my eyes hahah

[@kellis773]

I've viewed a couple of your training videos and you do a nice job explaining and simplifying your trading strategies.

[@HS-iu7ld]

Appreciate you effort in explaining this. Can you please confirm what will me max loss incase price does drop in that range. That part was not explained in this video.

[@hamzah7411]

Hey I was wondering how much the spread costs because you said 500 but isn’t it 500 collaterall per contract?

[@AngryAsianVidz]

Yeah... risk to reward here is ridiculous... a $5 wide credit spread here is risking $500 per spread, so at 25 spreads, the max risk is 12.5k minus credit received. That is MAX loss should SPX drop BELOW the bought call strike at expiration. In short, you risking $12000 to make $500. Of course you should always manage your positions and risk by closing early, but with such short dated options, movement in wrong direction will affect position significantly. I been watching a couple of his videos, and his supply and demand strategies and way of thinking is definitely top notch, but recommending this type of risk to reward completely caught me off guard based on how he preaches risk to reward ratio. Now if he was recommending selling spreads based off his supply and demand zones (which is where I thought this video was headed), then yes, I agree, excellent strategy to work along side these zones, but this was almost 30-40 pts past the demand zone.

[@MsEducated]

Great explanation! Thank you for sharing. You have a new subscriber.

[@raulsoto6273]

how much buying power you need to have???

[@madushagimhana]

Hello Mr. Carmine, Thank you so much for the strategy. So I have a question for you, for example: if I have a like $1000 margins account, and should I do this strategy?

[@RobertoYCR1996]

@Carmine Rosato, what about if the price moves not in your favor? How do you hedge? Or manage risk?

[@christopherayoub2973]

Why are you looking at /ES if you are trading SPX? Im a bit confused in this part.

[@carmine_rosato]

They are both S&P500 related instruments

[@cg219]

What happens if you do lose the trade though?? Did that say a 12k lose !?

[@clayvanderbeek]

Awesome content man very concise thank you bro

[@tamulascado]

your videos are amazing!!! Great Job! Thank you for sharing your knowledge and I hope your make tons of cash!!!

[@stevek758]

Hi Carmine is this Strategy working in this current market?

[@carmine_rosato]

No, risk vs reward not there right now. Market too volatile, will focus on it when it settles down

[@Ivaan_924]

Hey carmine..when you want to sell your contracts can you sell with market order ?

[@chrisw5166]

How does TD handle an assignment where you don’t have the funds to cover. Do they automatically sell your shares to cover?

[@natyiaandkeithspencer128]

Great video just what I was looking for! Can use do credit spread with a cash account with a cheaper stock that has high liquidity? Like for instance .50 collateral and collecting a premium on the spread

[@tacousa87]

in this trade if we lost then it will be $12000 please could you make a video about loosing money too.

[@gregsg2351]

What percentage of trades do you get filled with these way out of money trades?

[@grandonlin7441]

Not sure if this strategy still works today😊, but thanks for the explanation for the details

[@Trollberg]

will this method work in todays volatility ?

[@carmine_rosato]

Yes, but much more risk since market moves 60-70 points like the norm

[@jasonallen2583]

Do you still do this often Carmine? Whats the reason for SPX over SPY? volume? Thanks!

[@InAudika]

Nice videos Carmine. Much appreciated.

[@janesd5335]

supply and demand full credit spread analysis soon ?

[@bid_wacker]

what would be max loss??

[@byronyip7838]

how do you limit your downside?

[@carmine_rosato]

Byron Yip you can sell other contracts that have more premium. By doing that you’re limiting your losses AND your increasing your profits. But the probabilities of receiving full premium become slimmer than playing far OTM

[@byronyip7838]

@@carmine_rosato hmm i see. what is the maximum downside for this play then? both premiums on both options?

[@carmine_rosato]

@@byronyip7838 Lets say you're trading SPX. You trade the 3000 and 2995 strikes in your credit spread, that is a $5 difference. Let's say your credit spread entry was at $1.50. The most down side you are going to lose is $5 - $1.50= $3.50. (difference in spreads MINUS premium on both)

[@MLLNRE]

Is this the same as a covered call?

[@GregHohman]

I LIKE it a lot, because it is what I trade. BUT, should a tweet or gap hit, what would your total loss be if it pierced your box, and you had 25 or 30 contracts? Also, why not trade M, W, F and get a better night’s sleep (no gap risk)?

[@mjlinhle]

Hi, What's your computer and monitors set up?

[@DossMalek]

Why can we only collect max profit on the expiration date? Also what's your profit as soon as you place the order? Shouldn't you be in profit right away? If so why not close right away? Awesome video tho

[@desousa00]

would this be a good strategy to grow a $5k account? Since youre only trading twice a week I wouldn't have to worry about the PDT rule

[@3Threelions]

Hello sir Can we pay $10.00 a month for joining discord instead of buying the course. You will come ahead.

[@beachlover529]

Love this.. Thanks!

[@Aaron-ve2de]

This strategy helped me alot while perfecting my scalping strategy. TY! I learned also that if you hold til expiration you can save on the fees and also if you buy earlier in the day you can get high paying premiums at a lower cost.

[@anthonyzapata3658]

where can i find a video on creating a daily demand zone ?

[@natyiaandkeithspencer128]

kzbin.info/www/bejne/haWnhHptnsaZoM0

[@airmaticv3]

good talk as usual clear concise

[@kanekong7751]

Your max loss was 12,000 on this trade??

[@lupusk9productions]

Love the video and the explanations of everything! I like doing credit spreads based on the probability of OTM on ToS but ever since this covid stuff i've been losing hard despite trying to be safe at high probability % otm. I am curious how you would manage risk on these example trades if the market moved against you? Risking $9,000 to make $500 seems scary on 20 contracts

[@MR1CR3ZY]

why not call when you know the price will go up?

[@johnnguyen1960]

Great video thanks for sharing

[@smx234]

Anyone using this strategy in 2022?

[@miguelsantiago7885]

Only used with decreasing volatility, because we are selling

[@leroychan8842]

Do teach spreads like this in your course?

[@fu2201]

Confusing

[@princerocky4797]

bro i like the way you explain things, Question boss, can we do this strategy on the day of the expiration?

[@carmine_rosato]

You can

[@princerocky4797]

@@carmine_rosato bro you the best, thanks for replying fast that means a lot. I can't wait for a new video

[@iforgeprofitnessnutrition4168]

How do you close out the trade early to keep profits? That part seemed unclear

[@alannaandliasworld2434]

On credit spreads, you buy to close the 2 options at the same time.

[@cg219]

Does this strategy still work?? It seems too easy lol

[@NotDimpsy]

Can you trade vertical spreads (credit) with level 2 options?

[@3Threelions]

Please please advice. Kindly.

[@44drifter4]

very confusing...

[@edzmuda6870]

So!

[@zonian98]

This is a good strategy until you lose which is when you lose big time.

[@byronyip7838]

why would you say that?

[@stevebuke9702]

He is right. This is known as picking up nickels in front of a steam roller. Not saying it doesn’t work because it does and your win rate will be high but if and when you lose the losses will be huge unless you monitor and cut the trade early. Expiration decay is on your side but be careful especially in today’s market(Dec 2021)