Options Trading Blunders: I always win eventually if I keep rolling my short puts down, right? (#5)

[@smbcapital]

Learn more options strategy in our up coming webinar bit.ly/2tXqg7m

[@justicewatch4602]

Doesn't the covered call technically always win? As far as trades go, you keep the money you get as long as you stay till expiration, right? I understand the stock can still go down further that the premium paid, but the actual money made from the sale of the call is yours no matter what, right?

[@sethfreudberg4750]

@@justicewatch4602 Hi JJ, there is a difference between "receiving cash" and "making money". You are right, the covered call will ALWAYS provide you with cash that you keep forever. But the covered call trade loses money if the stock that you bought goes down more than the premium you received for the call. You can always spend the cash you get from selling the covered call, but what good does that do you if the stock you own goes down hugely in the process.....

[@justicewatch4602]

@@sethfreudberg4750 Yes, you are right. Thanks.

[@thomasd5488]

What is completely INSANE, (your word, 8:24 time stamp), is presenting the argument that people actually sell MORE puts, when rolling, to compensate for the loss of the in the money put. No one else, that I know of, teaches people to raise the number of puts sold to compensate for the loss of the original deep in the money put. The method you present, in this video (7:38 time stamp), resembles the Martingale betting strategy. WHO DOES THAT? I'll bet that you don't teach that in the trader education courses either. The way to roll down your strike, and STILL make a profit, WITHOUT increasing your capital at risk, is as follows: 1) buy to close, the one, ITM put contract, at a loss. 2) sell to open, ONE new ITM put contract, with a strike price that is ONE strike price lower, and with a farther away expiration, FAR ENOUGH AWAY, to earn a credit, that is LARGER than the cost of buying to close, the old put. This results in a NET CREDIT, a PROFIT. AND, you actually REDUCE the capital at risk, because you have the same number of puts, but at a lower strike price. Continuing to roll the ONE put contract, down one strike price at a time, at each new expiration, for a net credit, WILL eventually bring the strike price down to the current stock price, and the put can expire OTM. When that last put in the long campaign, expires worthless, all the accumulated net credits, become REALIZED profit. Knowledge IS power, ONLY if you apply that knowledge. A rolling put, gathers no loss.

[@bradleygibson9686]

Seth I want to thank you. I thought I had said just about every compliment I could about SMB capital, but I have a new one... I'm sitting here studying your videos as I have been for quite a while, and I realized yet another reason why you folks are my go to YT channel for everything on stock/options. The no bs, no fluff truth! You and the other hands at SMB make me want to be a better Trader! You can't buy that, it is never given freely. Thanks to the SMB team. May we meet someday on the playing field....

[@chevon1920]

This video is confusing, why would you sell more puts at a lower strike for the same expiration instead of selling the same number of puts for a different date? You can make the difference up with time and keep the same capital requirement.

[@roberttarrant7646]

In this example rolling out on the calendar brings you into LEAP category or beyond to infinity. If you have the capability on your trading platform, try it. Selling time premium has limit @chevon1920

[@peb3232]

I totally agree and do that regularly.

[@aldomale8163]

Exactly. He doesn't know what he's talking about

[@aldomale8163]

Has anyone figured out how to roll without a loss a Credit Spread? I have tried everything but can't see to find a way because one leg increases at faster rate then the other

[@WSD-xf8jd]

This is merely to stay cash flow positive. You need to increase the number of puts so that the gain on the trade at the lower strike price is greater than the loss incurred at the higher strike price. 11:10

[@kamran6336]

You need not roll down. Instead, roll out in time at the same strike price. You'll collect insane credit. I was in a TSLA trade for three months and it worked wonderfully.

[@beLIEve77]

Then it wouldn't be a Trading Blunder, would it?

[@rogergeyer9851]

Yes, that can work. But there are limits to that, and the market can keep going against you for a LONG time, especially in a single volatile stock. And you can roll down AND out, but there are limits to how long that works well. At SOME point, you either need to be willing to take a loss, or buy the stock, when the market makes an outsized move in a stock when you're selling volatility and not protecting yourself with a good hedge. That's why I trade SMALL, even with a very decent sized account, to prevent from getting into such a mess where it HURTS in the first place.

[@brianmarch4219]

@@rogergeyer9851 Why is there a limit to how long you can roll down and out?

[@sergiocay2k]

What if you don’t roll the price strike but roll down to father expiration date? You get more premium and more time to wait for stock to bounce. Keep the same amount of call options rolling down the calendar

[@peterobrien2537]

i did this today with SHOP and i had to close my position for a 3000$ loss as SHOP keeps on going down and my expirations exceed 3 months to compensate it, holds a lotta buying power till then

[@edh6062]

That’s what I’m wondering as well

[@JenMarco]

Roll down the strike price so if it does keep going down you’ll get assigned at less

[@rogergeyer9851]

@@JenMarco: Which is fine as long as you want to be assigned at some point. The problem is some people get greedy, trade too large, and don't want the stock when things really go against them. Then, if they didn't have a proper hedge (which is a HUGE no-no, IMO), at SOME point they likely need to take the loss if they don't have the capital to buy the underlying stock (and if they're trading too large, they may not, without taking too much risk re diversification, etc).

[@mazharh4186]

Start at 2:05 to skip the fluff. You're welcome :)

[@lockirocu]

OR you roll out one month, for no additional capital, lots of extra credit and its a winner.

[@ericslingerland5472]

yeah, not sure why you'd roll down instead of out. the idea is that the market will recover given enough time, so just roll it out, keep the same requirement but take in more capital to lower your break even price

[@darkspd31]

@@ericslingerland5472 or better yet, down and out, just did that today on SPY and clear

[@kishanpatel1119]

can you show me an example with a stock like BAC

[@johto]

Yeah, you could roll out in time for credit and not need to pump the size, but then you would have missed the valentine's day 😂

[@BenIsabella]

@@ericslingerland5472 would the wash rule apply to those initial losses you took on the first roll?

[@Atanatari165]

Who does this? You don't roll down and increase size, you roll out. 2040 strike was in big profit 2 months later. Either roll out a few months or buy some shares or futures at 2040, sell calls against them if you want, and then continue buying cheap calls as it dumps lower.

[@sethfreudberg4750]

That might work Atanatari. The point of the video was to show how ridiculous this particular approach is.

[@chevon1920]

@@sethfreudberg4750 it definitely will work unless the stock is delisted. I thought that’s what the video was about because I’m down on a short put and I’ll have to roll it over until I make my money back. I was looking for a reason not to do that and just take a loss and I thought a good reason might be in this video but it’s not.

[@BenIsabella]

would the wash rule apply to those initial losses you took on the first roll?

[@pauliusmatiusovas4102]

Remember you have Capital required 255k for what you thought is 12 days now you roll 4-5 times it becomes 12 months, with margin interest at 9% you lose 25k no matter what

[@scottjenkins6490]

Roll down and out for credit under almost all circumstances for cash secured short puts - it preserves your capital which is always rule # 1 in investing even at the cost of lower effective return rate. Rolling down also releases a proportionate amount of capital from the difference in strikes. This for example can be used to deploy for additional short puts to regain the loss is return rate. The perpetual roll down and out of a short put is a good means to preserve capital in a bear markets. Short put premium is typically high due and the increased downward volatility and can be captured in collected premiums with high implied volatility. This general strategy along with selling ATM covered calls for long equity positions and being long inverse funds with covered calls layered on top on them are three of the best capital preservation tools for bear and recession markets

[@lockirocu]

starts at 2:05

[@nestorflores2494]

SMB, first and foremost thank you for you continuous knowledge and education. I am a passionate student of the market who has a niche in Options trading, you guys have taught me so much and am currently perusing investment banking positions. You guys are awesome. Would love to connect with one of the people at your desk, knowledge is power. Cheers and blessing to all.

[@sethfreudberg4750]

Thanks Nestor. Reach out any time.

[@MathSolutionsForYou]

I usually find your videos balanced, informative and helpful for anyone who is trading or interested to learn more about trading. In this video, I did not understand why someone would increase the number of contracts while rolling down short puts --- perhaps I am missing something here but that strategy makes no sense. If one has to roll short puts for a trade that's turned unfavorable, rolling them down or even keeping the strike same but extending them further out in time should work just as well to give time for the trade to be profitable---it wont impact the capital requirement at all, or in fact even bring down the capital requirement esp if the strike price is lowered a bit.

[@chris52000]

You have to sell more contracts as the open positions are already going to be at a hefty loss when it comes time to roll. So you have to buy back those puts for a hefty loss and then sell more, cheaper puts to recoup the loss.

[@royalmontpark]

@@chris52000 in theory you're right. But who would use all the buying power to sell CSP? In reality any sane people won't run such a tight money management, this video is bad. For retail trader, nobody would do this bc it doesn't give you any Wiggle room.

[@bidmcms3]

@@royalmontpark I regularly use all my buying power to sell CSP. Doing it right now.

[@aldomale8163]

Has anyone figured out how to roll without a loss a Credit Spread? I have tried everything but can't see to find a way because one leg increases at faster rate then the other

[@rogergeyer9851]

Remember the context. It was presented as a BLUNDER, NOT as a good strategy. I've seen a number of comments claiming he's teaching rolling into more options like that and he's NOT. I think I saw one of these videos (re the title. I haven't watched them all yet) talks about why it's a blunder not to have HEDGES vs. just accept all the loss, despite the fact that the hedges cost real money. If that's the CASE, I SUSPECT the advice will be DON'T sell options with NO hedge, which prevents any such snowball in the first place (if you have the self discipline to take the occasional loss when selling short options. i.e. don't trade them naked, but as spreads to avoid potential catastrophe.) Blowing your account up is NOT an acceptable risk, to trade professionally / as a business.

[@pengekcs]

the problem w/ this method is while it certainly can work out 80% of the cases, those pesky 20%'s - which you'll never know when the'll happen - will just kill your account

[@sethfreudberg4750]

Azhat, that is my exact point in the video. This video explains a ridiculous trading concept that is doomed to fail.

[@lrbjr123]

That's why nobody does this in real life. Just roll out in time and down if you can for a credit. Wait for the bounce and cash out.

[@MandeepSingh-px6gk]

I would just roll, as long as I have cash to cover.

[@rogergeyer9851]

So you didn't watch the video? Or you don't understand numbers? Or you have a, say, $billion portfolio?

[@neuvocastezero1838]

This strategy works great at the casino. Just keep doubling down on red, it has to hit eventually. What could possibly go wrong?

[@calibansfury]

What a bizarre example. 1) if you had 255K of capital to write cash covered naked puts, why are you needing to write a put? 2) Ever heard of defining your risk? Think that might be a good idea when you're capital commitment is a quarter of a million dollars? 3) Roll forward, not down, or do both. At 10:03 the same 2040 Sept 4th put premium is $22.55, and the 2020 is at $16.50 which would pay off the August 28th premium at $16.25. So the lesson kids is a) define your risk, especially if your risk in the position is more than 5% of your portfolio, b) don't over-leverage, c) there's more than one way to roll your puts.

[@thehoopscoop]

In the scenario I would keep the short puts and sell calls and keep rolling them down with the market. Wouldn't touch the puts. Would keep the inverted strangle on until 21 dte and then roll out the whole trade to the next month. This reduces Delta risk and minimizes gamma risk.

[@darrengarey]

Tasty.

[@sethfreudberg4750]

The probbaly you'd get into there Hoop is that when the market bounces you'd be quite unhappy about those short calls.

[@ricomajestic]

Never go inverted!

[@thehoopscoop]

@@ricomajestic why? The risk is the same as a regular strangle.

[@intrinsicphoenix9868]

i only see 2 problems why trade spirals out of control 1. adjustment protocol to stay at 10 delta 2. left leg too busy defending while right leg practically doing nothing. right leg should be put to work to score goals. cannot blame the strategy if execution is done poorly.

[@aldomale8163]

Has anyone figured out how to roll without a loss a Credit Spread? I have tried everything but can't see to find a way because one leg increases at faster rate then the other

[@LBos17]

@@aldomale8163 increase the width of the spread and/or add a call spread to finance to roll, obviously both options influence the risk profile of the original trade

[@praveenhmmm]

Why roll for the same expiration date ? If we roll it to the next month we can sell exactly the same num of options for may be even a small credit there by not increasing the option requirement. By rolling to the next month we can also buy some time to be directionally correct.

[@calicorex8014]

I was just thinking the same thing. Not all trades can be rolled. But rolling can be profitable if you are able to roll for a credit while maintaining the same risk exposure. It's rare to roll to the same expiration and still be able to satisfy this requirement. I suppose he needed the money by valentine's day so extending the trade is not an option? lol

[@praveenhmmm]

@@calicorex8014 Yeah spreads are difficult to roll unless there's a huge upside move in the IV. Naked options can be rolled easily for credit.

[@JayeHK]

I'd love for Seth to comment on this strategy (of rolling out to a later expiry date). I see the point of buying more time and possibly taking in additional credit premium (although sometimes it's a debit). But basically you are entering a new trade that you would not otherwise do today, and doing so because of your stubborn commitment to probabilities (expressed in the delta of the original sold options) that are now out of date. It requires a religious commitment to random walk and the non-existence of trend and hence the expectation that price will revert.

[@sethfreudberg4750]

Praveen that could work although the devil would be in the details.

[@chunli949]

If you're this desperate to please your girl by Valentine's day and cant roll out your expiration then you need to let her go 🤣. Roll down and out! Holy smokes 🤯

[@GeminiOneFive]

It is similar to betting red/black in Roulette and doubling down each time (at an unlimited table)....eventually, you will win, but you will need a lot of chip to cover the extreme streaks against you

[@ranvierion]

why not close the existing put and sell new put options by rolling out to a later expiration date instead?

[@lrbjr123]

Because it wouldn't be as scary. Trying to sell bs classes to suckers.

[@rdefacendis]

Never roll down.... always roll out to the next month or week if you must roll - and don’t increase the number of contracts when you do. That increases your risk. always roll for a net credit with the same number of contracts. But here is another tidbit that perhaps Seth might have pointed out for a retail trader... never make unlimited risk index option trades... always use bull put spreads if you are bullish.... that define your risk and dramatically reduce margin requirements.

[@sethfreudberg4750]

Rick, all good points. these videos are done for the entire spectrum of options traders--newbies to advanced traders. So I can't bring up every wrinkle in every video. I try to focus on one point that can be clearly understand and let the viewer then apply the principles in broader ways.

[@Rikity]

I agree. I dont sell anything naked though. If my spread goes underwater I consider waiting if I have time, expanding the spread width by rolling my long side out one strike if I have time and I think its a short term move. If it looks like a longer term event, I might widen the spread and send it out a couple months and let itself work out on its own and re-evaluate.

[@johto]

Yeah, you could roll out in time for credit and not need to pump the size, but then you would have missed the valentine's day 😂

[@chunli949]

Just dump her before she dumps you for being a fool 🤣🤣

[@BenIsabella]

would the wash rule apply to those initial losses you took on the first roll?

[@briangemmet3567]

It’s kinda similar to the gambling method of start with a 1$ bet every time you lose you double the bet and add 1$ so when it finally hits you make it all back plus 1$ for every losing hand, and when the roulette wheel hits black 13 times in row your gonna be a little nervous putting 8000$ back on black

[@rogergeyer9851]

And one in a million-ish times it will go to 20 losses in a row, etc. Ignoring long tail risk will just KILL your account eventually.

[@aldomale8163]

Has anyone figured out how to roll without a loss a Credit Spread? I have tried everything but can't see to find a way because one leg increases at faster rate then the other

[@brentdreisbach6829]

Widen the spread

[@edenflores3728]

could you have also sold calls after the first roll instead of going further down on puts?

[@billestep6804]

Right or just get wait until assignment I’m not sure how long his exp date was I missed that part of he mentioned it

[@chilly2171]

took this guy forever to get to the point... and he does not know what's rolling further out in time.

[@blazemk]

he's running a prop firm , I'm pretty sure he knows what he is talking about..

[@chilly2171]

@@blazemk Yea, there's a lot of gurus selling courses too. Pretty sure they know what they're talking about.

[@RanEncounter]

@@chilly2171 So tell me how would you get the money on the valentine's day if you rolled further in time?

[@jackhudkins542]

Can you loan me 6.5 mil so i can try this?

[@sethfreudberg4750]

LOL Jack, I'd rather not.

[@fadeitluie9356]

Wouldn't you wait till the Theta kicks in then we roll our put Option?

[@alex5308]

What if you’re rolling put credit spreads down and out?

[@CapAnson12345]

It all sounds like a market version of the Martingale strategy.

[@justicewatch4602]

It is, but the Martingale strategy works in certain situations. This is where backtesting comes into play. Support and resistance is a real thing, because a majority of traders are not willing to buy or sell at certain prices of stocks they want or own. Same goes for housing prices. You are not going to pay 1 million for a 8k shack. Say you are watching Facebook stock, and notice breaking news that Russians have been hacking its servers and stole data. You acted fast and sold 2 out of the money call spreads with fat premiums as the stock plummeted. Bot one back to leave the other one to decay fully. The stock stops going down, goes sideways as uncertainty sets in, but then shoots up a little, but takes days to do this. The buyer get hurt, the sellers get hurt, but your call spread just keeps decaying and paying you everyday. Another example where Martingale can work: You bet that the 49ers are going win at least once next year. The odds are in your favor, but you would need a Martingale type system to guaranteed a profit. Understand? Options are so cool. `

[@sethfreudberg4750]

CapAnson, it is a Martingale style point being raised in this video. The problem is that people underestimate how bad it can get.

[@LG-tw5vm]

Excellent point!! Great video!! 👍

[@sistematico17]

By the end of your last roll, she had already divorced you 😂

[@georgeczeiszperger7682]

please add episode 5 to title

[@smbcapital]

added ;)

[@darkspd31]

...ever heard of down and out? I have seen people destroy their lives by doubling down. Lookup the default of Barrings bank in the 90s, a derivative trader kept doubling down, then imploded....hahah

[@daddyinthemoney2567]

Yes I too was wondering why tf he’s not just adding time 😂😂

[@cmukesh19]

This video is wrong on several fronts. Although the idea is correct, but it was extremely exaggerated. 1. What advantages you have to roll just because it went down delta 30. I could easily wait for the trade to work in my favour till the expiry date. 2. On expiration, if my trade is near the the strike (still a looser), I could just roll in time exactly the same quantity (no additional margin and at least some time value). If the assumption is that index will return at some point, this strategy will never loose. It might take time. Plus, if our strike is deep ITM, very little time value might be available. So the sold option work more like a future. 3. If for whatever reason, we decide to move the strike down, I will do it on last day and also carefully choose enough time so that we don’t need to do this again. This video have been much more realistic in case of calls. Technically there is no guarantee that index will ever return to a given point down, this rolling up is much more sensible (and risky and terribly bad idea).

[@BenIsabella]

does wash sale rule apply here?

[@ironman3134]

Is this guy trolling? Who the hell rolls a naked put straight down?

[@Boxer1250RT]

Oh my god, you really scared me! How much do I need to spend on your course to protect myself? I need to buy a Cartie Neckless for the Valentines day and I have to make some easy Cash soon. Very silly example! You should have seen what happenned in the Summer or 59 :)

[@supremevegetable9452]

Valentine's Day in August? must be a Manhattan thing. Good lesson though.

[@JonValtandtheEvilRobots]

Lol. They don’t make their clam chowder right, so you know you can’t trust them.

[@waltermercado9152]

Biggest mistake was that the options were sold WAY too close to the money to begin with.

[@wmstaceybutts4953]

True I start SPX at 75 points

[@MrChaitak]

But... why on earth would I sell a naked put? There is a word "Hedging".. There is a saying - market çlimbs up the stairs, but comes down by elevators.

[@一副無辜樣]

the most important thing: if you won`t buy it ,never sell it`s put.

[@jheadley635]

...so you're telling me there's a chance!

[@Bubs0271]

At a certain point it becomes not worth it to tie up that much capital for so long for such little return

[@leonardwalsch7128]

How much money can I make if I start with 100k$? Trading options.

[@RobertS122]

How much experience do you have trading?

[@leonardwalsch7128]

@@RobertS122 None

[@leonardwalsch7128]

@@RobertS122 Just wanna know how much I can make selling puts for example

[@RobertS122]

@@leonardwalsch7128 Your question is unanswerable. You could double your money or lose all of it. It all depends on your experience level and the risks you take.

[@junyoung458]

Yup there's no limit on how much you can make but a limit on how much you can lose which is All...

[@Vahj-Loveuar]

I read somewhere that Buffets strategy was to sell puts of undervalued stocks he wanted to own, and if he wasn't assigned he just kept the premium. That's a strategy you need plenty of free capital to be worth it.

[@diegraanmark]

Would this blunder still be valid if you traded SPY instead of SPX?

[@DJ369-Miami]

Of course

[@myatmm]

More contracts sold means you will need more and more collateral... not smart... instead keep number of contracts same (if strike stays same, collateral needed will stay same as well), and roll out further in time for more money... sell time instead of more contracts...

[@3X0SK3L3TON]

This strategy is totally plausible if you have a pocket deep enough to keep rerolling snowballing the capital exponentially everytime

[@jacquesferhaniarnaut3524]

The only insane thing in this video is to roll down for the SAME expiration date. I am a total noob on naked put selling but it took me the best part of an hour to understand that you need to roll OUT and down. If they did this for SMB promotional purposes, sorry to say but this reflects poorly on that shop. All the more so that dude has till Valentine Day Feb 14th next year to buy the necklace. This is August 17th. Can roll out a ton of times.

[@Aevykin]

This is essentially the stock market version of the martingale betting strategy fallacy.

[@BADDESTONTHEPLANET]

I wish he talked about rolling out.

[@JenMarco]

Why not just get assigned and start selling calls? Wheel strategy.

[@everythingworthviewing5018]

Hi just a question do you'll as company fund successful traders with a proven positive track record?

[@sethfreudberg4750]

Yes that is our business, but we are very careful about the onboarding process Scott.

[@everythingworthviewing5018]

Thank You Sir.

[@billestep6804]

You just allow yourself to get assigned. Sell calls and if the price keeps dropping your call will go down in value buy it back for a profit. Sell another call. Rinse and repeat until your cost basis is even or in the green. All u need if your selling calls weekly is a little bounce to get even. Should be only selling weekly puts for this reason. Traders see those big premiums for monthly expirations and forgot about the risk of holding a short position for a month. Lol

[@steve99912]

Great point

[@marksatterfield3100]

What are those guys doing in the background doing.? Are they getting paid? Are you hiring?

[@MRZEROTOINFINITY]

Interesting stuff on the options game. Never used them before. I like building wealth by buying shares of companies and holding for a nice profit. I have a long-term outlook which is fine by me 👍 We all multiply money 💵 in our own ways! On to Infinity!

[@toolegittoquit_001]

There is no such thing as infinity when it comes to stocks

[@MRZEROTOINFINITY]

@@toolegittoquit_001 tou·ché /to͞oˈSHā/

[@tommykopperud4638]

MICHAEL DERISO - 0 to Infinity You can sell a call at delta 25 on every 100 stocks you have. Every week or month. The ' risk' would be that your stock and the option would be gone at a nice profit If your stock rises much. So always minimum profit of the cost of the option. This is called covered call I think.

[@thehoopscoop]

Solid strategy. Options are simply nice because they are more capital efficient than stocks and when you sell them you can combine that efficiency with a higher probability of profits in both short and long term results. Basically use less money to increase profits and decrease risk in a properly managed portfolio. Tasty trade did a market measure research segment this past week which demonstrates you can make 50% more while reducing risk by 50%. Interesting stuff. 😊👍

[@JohnnyMachete]

thank you very much

[@smbcapital]

you got it

[@lawrence6075]

Great content Seth

[@MrMaguuuuuuuuu]

Margin call is a big risk

[@ken34258]

I always wonder what is that mouthwash in the left corner is for....

[@smbcapital]

Maybe he was sleeping in the office overnight?

[@optionsbbq]

Great video.

[@smbcapital]

Thanks Bob

[@hardware4200]

This is a horrible example of adjusting options

[@sethfreudberg4750]

It was intended to be horrible Hardware. This was a video about how crazy this idea is.

[@hardware4200]

@@sethfreudberg4750 I guess what I meant it no sane trader would adjust like you've outlined.

[@tubro007]

@@sethfreudberg4750 You should make it clearer that this strategy is entirely bad then, you make it sound like it is somewhat plausible and fail to mention what a better course of action is. Good to know what not to do, but I didn't have a clue why you were covering this until the comments section, then a viewer covered what the correct strategy would be in one sentence, should have been in the video with a link to a valid strategy.

[@justinthyme48]

It's called a tootsie roll.

[@RH-rg6il]

TLDR: you lost the bet, so now you have to double down. No shit, Sherlock. Only an idiot would do this.

[@Anna-lb4ux]

Poor guy was just trying to get his gf some necklace. Luckily he didn’t use “strangle” as that would have driven him nuts even faster.

[@jackhudkins542]

holy crap, batman. don't sound like fun.

[@sethfreudberg4750]

It's a ridiculous idea.

[@marktlog]

Just a month before the covid crash

[@stang6882]

Awesome lesson, thank you Seth!!

[@sethfreudberg4750]

Our pleasure

[@vistaphysicaltherapyandreh7629]

Wheel it fool... no one would do this

[@eerreet5649]

this guy is old i trust him

[@goldengoose4079]

This guy doesnt know what he’s talking about. He has no clue about using proper leverage. Why are you selling puts obviously in bearish trend? On top of that LEVERAGING!!! This is a bozo video and you need to do it over and put some real life situations and concepts in it so you give people actual value. Anybody who makes trades like these deserves to lose all there money!!! Factz!!!

[@grantgre]

Why would you risk 225k for 3k? unless you get a 100%probablity trade on this it does not make sense on any of these premises. The inital trade or adjustments?. This is some kind of introduction to trading? Totally riduclous? I would never trade with SMB..

[@sethfreudberg4750]

Panagranit, the whole point of the video is that this trade is ridiculous. No one on our desk would be permitted to trade like this. He would be terminated.

[@sethfreudberg4750]

kzbin.info/www/bejne/f5bHhXd6pb15edk

[@cheznikos]

This is all pretty useless as it all derives from a very basic fact which is there is no such thing as free money on wall street. It really doesn't matter what the strategy is, unless you have a real edge about something, you can start out with the very basic fact that you in fact will lose.

[@sethfreudberg4750]

Cheznikos we have a floor full of traders here at SMB that have real edge and earn very nice livings by trading with that edge.

[@cheznikos]

@@sethfreudberg4750 That's good to hear. So you can talk about that maybe instead. Focusing on avoiding mistakes is the wrong way to learn anything. You will never see the end of the list of those mistakes. Even if the list was finite, and say you learn how to avoid all of them, you will still not be making money anyway, not even mentioning you'd be completely paralyzed.

[@ricomajestic]

@@cheznikos YOu must be dreaming that people are going to give away their edge especially to a shady character.

[@cheznikos]

@@ricomajestic I never expected them to give out real edges. However this is the wrong way to learn by focusing on avoiding mistakes.

[@ricomajestic]

@@cheznikos Mistakes made by others do teach you a lot!

[@Pkresearchanalysis]

Tell me what to do. I think you are greedy while selling put इन increase in quantity. So not correct information. Totally wrong 100%

[@bithereum1425]

KZbin music celine dion

[@soheilsadqian2887]

take a small loss and get the fuck out!! this video was about this thats it lol

[@JW-rw8fq]

There’s something wrong with this picture. Old man, options guru with more than a dozen young boys. I’m picking up a Catholic Priest/alter boy kind of vibe.

[@boltman6359]

Did this with a stock during the financial crisis of 09. Not to this insane extreme but definitely had the blood pressure rising. BTW--- this dudes kinda funny

[@sethfreudberg4750]

so you know how it feels Bolt man