Software Engineer Creates 10x Returns with This Strategy

[@tastyliveshow]

Watch our full series on 0DTE options here! kzbin.info/www/bejne/Y6bHqXuFi7eUbKM&pp=gAQB

[@PEOdysseus]

thanks for the video. It would help if you could explain in more detail how this works. and make it more visual with a working example of the trades for the day.

[@AxeOptions]

Finding a strategy that works is half the battle. Market structure is always changing and it’s important to not necessarily change strategy with a high win rate, but to adapt while keeping your strategy in tact. In my opinion if you are rolling a 0DTE trade, that current 0DTE strategy is no longer valid and you are in the “hope” category. Take the Stop Loss and re-evaluate that Current day’s price action.

[@ancient_living]

are you the lady he talks about Great Mind think alike ?

[@Prymarch]

Staying flexible in this market is the key.

[@KC-nb3mm]

@@ancient_living I thoguht that before I saw her comment, I've been following her for ages.

[@Adam-ud9ui]

​@@familiasouza889Tammy is not a young woman.

[@williamklein6749]

@@Adam-ud9ui Depends on how old you are.

[@mAddyLovesGoodFood]

@tastylive it would be great if you could do an episode on the strategies Brad explained in this segment, so we can better understand how to put it into practice. Thanks

[@elroyblackbean]

Yes, yes, yes, yes and yes. I feel like I have to piece it all together on little clues here and there. I've been playing with 0DTE iron condors for the last couple weeks; would love to know the juice here.

[@JonMcDough]

Yes Please!

[@christopherrippel2958]

Yes yes yes 100%. What's the point of the rising stars segment if I'm left guessing what Brad did to succeed?

[@futtbucker1011]

This guy explained it credit spreads on 0DTE 10-15 point spread widths and adjustments if he has to rolling out in time

[@mAddyLovesGoodFood]

@@futtbucker1011 but how can that strategy 10x your initial capital? What's the scaling strategy?

[@kevinkr]

Tasty is the real winner encouraging more and more trading fee$

[@ddroz23]

They don't charge close fees. If you open on a credit, you pay the hair cut on the fee which you collect as profit and close on with profit. so yes, they make make money but some else paid for it.

[@ryansimpson5226]

Wish he would have went into more detailed how he scaled up. No way he is opening 1 or 2 trades a day trying to capture a $1 and go from $20K to $250K. Did he go from 1 or 2 lots to 10 or 20 lots? I actually do similar trades but an iron condor in the 0DTE far out of the money in the am. I will move the untested side up or down as the day goes on. The iron condor will be $10-$15 wide and usually I can capture around $3 by end of day. Has been working pretty well.

[@jcnash47]

I was doing the same and was quite successful. However, last week, I was badly whipsawed from over-hedging with put spreads on Fed day. It was going great till one of them had to open his mouth and send the market down sharply. I'm doing less 0 DTE and just striving for several trades on SPX, QQQ, and SPY ranging from a week to two weeks out that make things way less stressful and unpredictable. For SPX, I feel safer following Karen the Super-trader's pattern of 2 weeks out, and 10 or less delta. That's been doing better as well. I take profits and re-establish when I'm at .50 to 1.00 up on either side of an IC.

[@AnthonyGargini]

My strategy is same as this guy you just keep going for a consistent percentage of what your current balance is as it rises. Simple

[@mistletoe91]

Exactly I am doing 0dte IC but it's hard to manage

[@AnthonyGargini]

Correction: my strategy is not the same. I'm doing pretty wide and far out ICs. But the money mgmt aspect i think is probably similar

[@brybryBillions]

@@jcnash47 so when you hit .5 or $1 profit target on either side of IC, do you take both sides off or just the profitable side? Then re establish.

[@marcmini8137]

not enouh details. worst segment ever. how many lots does he trade? percent of capital does he use? he is always selling credit spreads AT the market to risk one and make one, so if he is wrong does he roll to the market or sell the other side? lots of questions no answers

[@ACR4008]

I’m no mathematician, but how does going for $100 per day make you $260,000 in a year? I wish he expanded on his strategy and especially his scalability.

[@brybryBillions]

Yea. You need to make about $1000 a day. Which you can scale up to with 10 positions at $100 or 5 positions at $200

[@ACR4008]

He said he would stop at a buck with 1 trade when Tom asked him how many he makes in a day. If what you say is true, why is he worried about scaling up then? He has already done it. Just rinse and repeat.

[@bacheapr-dc4ys]

FYI he is only selling 0DTE contracts. Even doing just 1 at the time requires large account as collateral, which pay absolutely nothing if it is not ITM contract. And even then it has extreme risk with small reward do to 0 DTE. There is, without a doubt, no selling 0dte strategy that can x10 an account in 1yr. Ive seen someone who tripled his account using this strategy by taking EXTREME risk. Literally risking %100 of his account everyday. This guy has no clue what he is talking about 🙄

[@ACR4008]

@@bacheapr-dc4ys well I disagree with you because he states he is selling at-the-money call spreads in SPX. The premium for this strategy would be about 8-$900. And the risk would be 20 wide which is $2,000-900 which is $1,100. So, this is not extreme risk or his entire account.

[@carminemg]

@@bacheapr-dc4ys The risk is the width of the spread minus credit received

[@bendorweiler]

Thinking back, this is one of the worst interviews TastyTrade has ever done. Tom: "Do you ever do any ratio spreads?" Guy: "No" Tom doesnt follow up with "well then what happens when your timing was wrong?" Tom is so smart I don't know why he gives these people the time of day other than he is one of the nicest guys in the world. This guys "strategies" will kill people, it's maddening.

[@Md-ht3cg]

Why? Tom invited him on the show - they didn't have to bring him on. Besides, nobody HAS to trade ratio spreads.

[@StocksIn60Seconds]

Ratio spreads? Way too complex. Options are already complex enough as it is. Just find one niche and go with it.

[@Punch1st]

I think hes doing 10 contracts at least getting .50-1.00 is like 500-1000 if you scale that in a year, then yes u can make 280k

[@clarencehurd1181]

Great story! Now I know exactly how to make a fortune. Why doesn't everybody do this?

[@donkndave7811]

LOVE the Rising Star videos! Please keep them coming!

[@Kokomadeta]

It would be nice if there was a segment for "here's exactly what I do and how you can replicate it." Or at least "here's an example of how I get my info, what my indicators are, and then I select my strategy."

[@futtbucker1011]

That’s just silly you basically want someone to give you all the answers while you do no work and reap all the rewards he already said he sells credit spreads 10-15 points wide on 0DTE and adjusts if he has to were you not paying attention?

[@ColGadarby]

@@futtbucker1011 How far out - at what Delta ?

[@futtbucker1011]

@@ColGadarby if you’re selling options time decay is your best friend so the more time out the more time you have on side for theta decay and for deltas depends on how much price fluctuations you can stand the higher the delta the more aggressive price movement is

[@Md-ht3cg]

He mentions his indicators towards the end of the video - DXY, VIX, bonds, etc. He said he's using the economic calendar to be aware of info that could affect the market, and he goes usually ATM. He explained his strategy - he uses credit spreads with the occasional condor or fly. If the guy is following Tasty methods as he says, he's not using any technical indicators. The tasty method is almost pure statistics, and they don't do technical analysis in the way it's usually thought of. Besides which, as they mention in the video, everyone is watching the same movie - the difference is risk management, position size management.

[@aamirali9800]

​@@Md-ht3cg m

[@kellysater3562]

I do pretty much the same thing as this guy. And I’ve had really good luck with it. My biggest mistake was changing lanes into a naked put on SPX the night before CPI. I got burned bad lol. Learned my lesson and now I just stick to a couple spreads, put on a stop loss and try to remember it’s a marathon, not a sprint. The main difference between us is he rolls and I let them expire (worthless)

[@fryloc77]

I sell put spreads on spx. Where do you place yours, what strikes? i just go far out try to collect 15-20$ per spread and do 5 wide. Then to make it worthwhile I sell 20 of them. After the fees I make around 260 a day.

[@jleoarsenault6107]

Kelly explain what he or you do ? Are you doing IC ? Or spreads one side ??

[@williamklein6749]

@@fryloc77 I'm similar to you except I wait for the first three 5 min candles to show a direction and I trade a vertical spread from there. I also trade @ a 20 delta with a $ 5.00 wing (about $1.00 per contract.) I take 6 contracts and get out at $300. I cap a loss at $900 but I seldom get to this large a loss. Over half my trades are done within a half hour. I do one trade a day. I'm 81% winner last year. Just a morning hobby before I walk my dog.

[@redquatt]

Thanks for the info, do you sell ATM cr. spread ?

[@rgasta7765]

​@@williamklein6749 William u wait for a 5min candle and then you trade in the SAME direction or opposite? Can u clarify also your stop loss?

[@DocStrange1322]

Works as long as he has direction right

[@VolatilityEdgeRunner]

I think he is good at prediction the direction. 0DTE 50: 50 vertical spreads have no edge.

[@user70331]

Spx have about 55% positive days, except 2022. That's edge

[@ricomajestic]

He said he has no clue what direction the market is going in!

[@Dan16673]

​@@user70331 100%

[@nevinyoung9147]

He starts with a bit of an edge because he is selling and the premium gives a bit of head start. Also, any decent day trader can gauge entry with at least 75% accuracy as to what the movement of the underlying is trending for at least the next few minutes, which puts him a little further ahead at the outset.

[@kiwihello2]

I think he is saying he is picking up or down on average 50 50. I don't think he does a 50 50 spread. His spreads are short option ATM and the other one $10 away. The spread width goes to $20 sometimes when he rolls, if that allows him to collect credit premium.

[@foglelc]

He understands the market so much that he can't explain himself. 10 people watch this video and come away w/ 10 different ideas of this guys 'trading plan.' Also, partly Tom's fault for leading the witness... I think young man was nervous and had one too many drinks to 'calm the nerves' .... Would explain the slurring and lack of clarity. Honest mistake. Been there....

[@ryansimpson5226]

LOL. I thought it was just me. I was like dang this guy is drunk. Glad it wasn't just me who thought he had a couple.

[@fareedfei6793]

lol honestly not everyone is comfortable with speaking in front of a camera. also he's a software engineer, he's been probably coding most of his life and not as social. i'm happy for him though. he looks happy lol

[@a6b9fu11]

Lmfao!

[@a6b9fu11]

The drunk trader on tastytrade, whisky tastes good

[@MrYoutruber]

The strategy works like the Martingale system. Double the size until you're out of business. Won't do this unless you have a gazillion to survive a long streak of losing days.

[@Dan16673]

Ah yes. Ive used this at roulette and with a small enough min bet and large enough max bet table, it worked well

[@ACR4008]

10:00 I think these two have a misunderstanding here. My impression of this discussion is that he is rolling his call spread up in strike price and out in time when the strike is breached in order to bring the spread back out of the money. I don’t think that is rolling the untested side but rather the tested side. I would love a clarification.

[@ponder2006]

Yes that what I thought too. He is rolling out and in time and widening the spread on the tested side so he can do the roll for credit. He also said he does the rolls once or twice. So this is a losing trade he is rolling hoping the market reverses. But if market keeps going against him then the losses are bigger

[@ricomajestic]

I know it is confusing! If he has a credit spread there is only a tested side! It is not an Iron Condor that he is doing!

[@brybryBillions]

I’m also confused on how he is deciding whether to open ATM put or call spreads each day and if he just adds either side depending on the days action. Is he counting on mean reversion or momentum direction? I initially misunderstood he was opening ICs.

[@aprofromuk]

@@brybryBillions he is using TA to decide on direction,

[@vladx3539]

Very impressed by how the interviewer does its job. Pretty not letting the guy go off track and start divagating to infinite... as most other channels like to blow up and hype such achievement.

[@northatlantic2723]

It would be nice if the interviewer let the guest talk a bit more, rather than trying to presume what he is going to say. The guy was going to explain his rolling strategy and the host ruined it by trying to outguess him. That's a pity. Great success story though! Good on him!

[@dhanagunda3863]

15-20 wide spread near the money roll out has a gap up risk and wiping out few days of profit (you said $100-$200 is target /day).I don't understand how can you carry overnight position??

[@tomhgriff1]

The usual advice is to roll a credit spread when your short strike gets tested, but if youre putting on an ATM credit spread you're being tested immediately (unless very lucky), really not sure how this would work in practice.

[@the_DOS]

It's working with him because spx has been in a range this whole time. Also, if he is wrong, he expands the width for the next day which gives him a credit but increases the maximum loss.

[@kiwihello2]

​@@the_DOSdo you think this looks a bit like Martingale-ing? If it does he really has been relying on his "bank", his equity being enough to cover doubling down (perhaps not exactly) in any losing (testing) streak he had.

[@pelefuentes1988]

That’s what it sounds like a martingale I guess he only limits to 2-3 losses and then repeats would take a lot of discipline to not chase the dragon

[@rgasta7765]

He said he waits until the end of the session to roll.

[@Md-ht3cg]

When you sell an ATM spread you have theta decay working in your favor, so you don't lose a large amount of the contract value in chop. This allows you to sit through chop during the morning without taking massive losses. Obviously, a strong intraday trend move against you will reduce your spread worth. And obviously as the day goes on theta decays exponentially so you have to be more clearly right on direction in the afternoon or roll/take the loss. But if his strategy is to make a morning trade and take it off in the morning for a profit, then it's not so bad.

[@ryansm3417]

This was kind of incoherently presented, they’re all over the place describing his trading plan in bits and pieces, we aren’t being told everything. And I don’t understand the piece about how he’d go farther OTM if he had greater account size? Why, he could do that now with several hundred thousand. My BS sensor is blinking a little, not saying he’s lying but this could have been explained in a much cleaner way

[@chris415-a]

great story, gives a lot encouragement, thank you for sharing.

[@adamborst7250]

Great interview, love it! Hearing others with similar path is inspiring. Thanks for doing interview!

[@VolatilityEdgeRunner]

Let's do some math. if I have 2800, I can only do 1 slot 10 wide spx spread every day. I win, I get 500 bucks. We have 250 trading days. If I win everyday, that is 125k. I have to win at least 3 years every day to get 250k

[@guyredares]

you will need more cash if you want to keep rolling losers into wider and wider spreads

[@goliathonscave9834]

I believe he stated that he only started with one 10 wide slot per day, but eventually scaled up. So he could have been leveraging over $10K per trade within a few days of his return. Also, I believe he restarted with about $17K.

[@aprofromuk]

he started with 20k.

[@_.Dave._]

Minus weekend you have 269 tradable days assuming all weekdays are tradable. He said he shoots for 1$ per day,.. even if he made 4$ per day, thats 107K. How do you get 260K. What am I missing here.

[@guyredares]

it's a story, fairy tale more likely

[@aprofromuk]

1 per option, 100 per lot X 220 days = 220k :)

[@_.Dave._]

@@aprofromuk 1$ per option = 100$ shares per lot = 100 $. 100$ x 220 days is... 22k. You were slightly off.

[@crackedrook629]

US markets are only open 252 days per year (at least this year), not all weekdays are tradable.

[@maxmatles2892]

Something seems a bit fishy, if all of this is true then it’s just a matter of time before he blows up his account

[@andrewjohnson5524]

He didn’t seem very able to verbalize his strategy - especially when pressed about rolling. Listened to the whole thing and didn’t gain really any insight other than “I trade 0DTE and it worked this year”

[@mighty_wolf]

Facts

[@ricomajestic]

Sounds like he is limiting his risk though since he roll more than 2 times.

[@ross-smithfamily6317]

Requesting a do-over for this video. I give Brad full credit for the courage to come on air to talk with Tom, but the interview is painful to watch. Vague, halting, confused, coy.

[@epeterson1970]

Great video. Brad, if you read comments could you explain your strategy a little more in detail. Thanks

[@ElBellacko1]

makes me happy to know that tasty is built on java😊.

[@blueobject]

Great Show! Keep up great work

[@johnnymomascaro]

0DTE small $1-$3 DEBIT FLY OTM 1-30W with a 1:9 R2R works over the long term best You can decide whether to go PUT or CALL. Or if unsure you can use both a PUT and CALL DEBIT FLY called a BATMAN

[@martw3240]

go at the money, 1 standard, deviation wings, risk set, add more standard deviations, add risk ,improve probability taking theta

[@multiscan8]

I gotta say I'm confused too. So to recap He sells $10 to $20 wide credit spreads in the calls OR puts, near or ATM. At around 9:46 Tom asks if he rolls out it time - "yes", "and rolling to the market" 10:00 Tom "So you're always rolling on the tested side...and closer to the ATM?" Answer "Correct, Im always rolling out and up, or out and down." At the 11 minute mark he is talking about waiting till the last minute (3:50pm) to "ROLL". So.. I must have this wrong, but it seems like he takes quick profits on the winners & doubles down on his losers, and extends the losers out 1 or 2 days? It only seems to be a 0DTE strategy on the winners. Also woulda been nice if he talked about his criteria for entering a trade.

[@BB0NES]

When he is trading 50/50, is he holding a winner till EOD to collect all the credit? Or is he always taking winners off when collecting $100?

[@Eqnotalent]

Rolling wider and out is just another martingale strategy. I’m curious what is his % per trade. The credit spread risk to account value

[@suziesmith5630]

I’ve been trading 0DTE on the SPX for years, before that it was weekly or bi-weekly RUT.

[@_.Dave._]

How do you go for 1$ a day in premium (36.5K) and take a 20k portfolio to 280?

[@martw3240]

per contract i think, you know compounding?

[@aprofromuk]

1 usd in the morning trade, then again the same in afternoon and then rolling out :)

[@nickb8006]

Inspiring. My takeaway is find what works for you personally and keep on doing that.... until it doesn't anymore. Gotta be careful you don't blow up when the market changes and you don't recognise it beforehand, like the popular short volatility trade that blew up an ETF or 2. Also selling super out the money options which works well until it doesn't. Sounds like he's found a niche which for whatever reason few other professional market participants have exploited and thus gotten rid of for whatever reason. It takes time though and a fair amount of learning to work out what works for you.

[@boutiquenaillounge6860]

50/50 shot unless you are right about the direction. Can we see your portfolio if you are truly making money this way??

[@vitaminboss]

I bet he uses the opening range breakout strategy that Lulu from Ax options uses. 85% win rate, targets $1 average using only credit spreads. She usually does 18 delta trades 5-10 wide spreads.

[@ancient_living]

Yes, I think LULU is the great minds think alike woman.

[@kanegs1]

0DTE (credit spreads) works until it doesn't, be cautious!

[@MetronomeTrading]

10X is awesome, thanks for sharing the story

[@mattd3535]

What's the value of buying a 20pt wide spread opposed to just undefined? It seems like a waste of commissions.

[@ricomajestic]

Say that when the stock drops by 50% and you are naked.

[@soundbydesignindia3730]

Just to compliment you, beautiful diction and pronunciation, coupled by subject knowledge. Just splendid

[@TonyTey]

Yo wassup,all the way from botswana africa,I think I like what you guys are doing.

[@jleoarsenault6107]

Have any heard of MEIC? Or TAT ?? It’s automated IC or spreads

[@ViperFutures]

Super Thumbs Up on this video. Thanks for doing these videos

[@NickElias]

I assumed he was algo trading as a software engineer. But when he talked about trading around information and calendar events it sounded more manual. Either he works from home or quit his job to trade. No way he’s doing all that and working a full time job in a secure government facility. I would be interested to know his routine and how much trading, if any, he has automated.

[@Md-ht3cg]

Aerospace companies aren't necessarily secure facilities. Boeing for example is headquartered in DC. Maybe he did quit his job with his success, but if you're at a computer all day as a programmer its a lot easier to monitor trades than if you're out on job sites or with clients lol

[@econogate]

Decent interview, interesting to see how he does options.

[@jakebentley8105]

Someone please help me understand why around 8:00 he starts to get into specific amounts and then says "sorry, sorry!" Are guests discouraged from getting specific?

[@califcamper]

Very encouraging finding these videos thanks to Tom for doing them, it gives those who either stopped trading, or lost trading some, a different positive view on things, albeit, not easy but still...its 2024 wonder how alot of these guys are doing now? My life personally took a very rollercoaster ride since 2020, still in the fight, but needed something that clearly shows how hard work, ingenuity, knowledge, helps people succeed moneywise anyway? Thank you....

[@tyman2007]

Great interview. Good job Brad

[@frankchoy-h7s]

He's not a spread trader, he's synthetically day trading SPX. It takes a lot of skill and balls. He's obviously trading daily setups, and just wish he talk about those more.

[@ricomajestic]

He definitely is a spread trader just not OTM like most people. Sounds like he puts the spreads on randomly unless he's lying.

[@elanaallan3979]

Would synthetic spread relate to put/call selling/buying at the same strike?... He is talking about width of the spread.. Synthetic spread could have width I suppose. I need to listen to the interview again..!!!:-)))

[@4nemtexas651]

Great conversation

[@Pey10sPage]

I don't understand, so he puts on an ATM credit call spread and rolls it everyday? Aiming to colled $0.50 to $1.00, how does this work daily and not net out to no p/l since the market moves up and down some days a win wr some days a loser?

[@dwayneseegars1086]

Don't believe the hype. His story does not add up.

[@jeffbederian]

This strategy works until you have 3 or so consecutive days of 200BPS directional moves

[@alleyway3215]

Please create a demo option for your system. I will not risk real money without practice, as no one should.

[@zmk666666]

How can you roll credit spreads? And can that be done on robinhood?

[@XiaoXiao_416]

sell credit spread is the same as buy debit spread. 10 wide is risk 500 make 500. delta is around 0.11, notional 11 shares of SPX worth about 44k. So this guy use 500 to get notional exposure of 44k, close to 100x leverage, and daily, bet on a direction 'randomly', but mostly 'downward in 2022'. And now he thinks this return can continue. This is chronic gambling, not trading.

[@jamesp5301]

So is this the Rose plan? Great job

[@abr2926]

13:36 Would love to know who the "young lady" is on youtube doing "0DTE Trades"...the exact trades he does. Anyone know who it might be?

[@bullshark3000]

Karen

[@ancient_living]

AX options

[@mikek.9980]

@@ancient_living axe options??

[@acelocksmith77]

Please show broker statement. Showing $306,000 dollar profit.

[@ricomajestic]

So how much credit does he get everytime he rolls and when exactly does he roll. Is it possible to get credit by rolling out and to the money 10 mins before the close if your initial opening position was ATM which is what he claims he does?

[@paulcampbell1596]

you need to go back to following that fraud REAL P &L , your no trader and you don't understand market direction you have no business playing the 0DTE.

[@eztravelandcruises]

Wouldn't it be easier to just trade S&P futures contracts with a stop loss at 1:1 risk to reward, since you are speculating on the direction (using ATM spreads with a 1:1 RR) in this strategy? Then you would just double your contract size after every losing trade until you win or reach your maximum loss.

[@Tom-ms5ot]

I do not think so because with your option position you do not have a physical stop-loss order in the market. The option position can be -1R shortly after entry then 30 minutes later it can be back to +1R and you take the profit. This won't happen with the futures trade since you get stopped out at -1R easily

[@eztravelandcruises]

@@Tom-ms5ot I agree that you have a chance that the options position could go back in your favor at some point, but either way it is still a 50-50 shot at being profitable and the strategy would then be to double the width of the strikes after a loss (doubling the reward and risk). The futures trade would just resolve itself faster, but either way you would have a 50-50 shot every time and would double your risk and reward after every loss in a Martingale fashion until you achieve profit or the max loss you could tolerate.

[@alphabeta8403]

4:00 $17k to $50k 8:30 Trading plan, vague 20:00 $20k to 280k, mostly trading 0DTEs? 🤔 Sounds FAKE.

[@jimbaker5110]

2022 was a down market year. He would get crushed first quarter of 2023 doing this selling call credit spreads.

[@mikek.9980]

He probably got creamed this year!...

[@astroganov]

As far as I could explore, tasty heavy uses Kotlin, not only java.

[@angelor4055]

I wish you would give us an example the setups!🤔

[@Rusty_Hill]

Like it. Good story.

[@deltatrader72]

No kidding.. make a killing selling call spreads in a bear market?

[@bruceb85]

how do you capture theta? is he talking about capturing fluctuations in premium and then getting out?

[@ricomajestic]

No!

[@DocStrange1322]

O dte in the right direction

[@brybryBillions]

@@DocStrange1322 I wonder if he’s playing mean reversion or following direction on the moves thru intraday.

[@matthewokeefe2286]

I have no idea what this guy's strategy is...what is he doing with 0dte? What was that about rolling?

[@jeffreysmith7555]

close @ 3:50.... I can set other platforms to close at anytime I require but not Tasty. Give me the option to get on with things and not babysit the screen!

[@AdrianWyrzykowski]

i dont understand y keep rolling? im a newb

[@martw3240]

iron condor ,at the money, max vol crush

[@bendorweiler]

I don't like any of this. It's far from 1:1 Risk reward. If he's selling 0dte 1 contract, on an SPX 20 wide that's 2K of risk (max loss) to pick up maybe $100. High EV trade but rolling is not a solution - its doubling or tripling down taking losses every time you roll all the while increasing your risk every time to break even. It's a terrible strategy as is being short gamma every day into power hour.

[@ricomajestic]

Well he did say his credit spreads are ATM so that would be 1:1

[@guyredares]

you are right but having such a high win rate makes these kind of strategies so appealing

[@bendorweiler]

​@ricomajestic how the hell would you put on a 0dte ATM credit spread and hold it until 3:50PM eastern with your only strategy to hedge against is to "roll". Please explain.

[@bendorweiler]

​@@ricomajestic it won't matter. You cannot sell credit spreads like this. Even high EV trades are 9/10 let's say winners but the 1 loser wipes out all the gains. This guy is clueless I'm sorry to burst the bubble.

[@ricomajestic]

@@bendorweiler Not sure what you are talking about. If your spreads are ATM your risk reward will always be around 1:1. The problem with his strategy is that he needs to get an 80% win rate to make 200k in one year. That is almost impossible. Although in a strong trending market that is possible if you happen to be on the right side of the trend and you are always able to roll for credit when you are wrong. It should also work in a ranging market that swings up/down over a few days

[@aprofromuk]

"love trading the beans", what is the BEANS ?

[@Capital_Trades]

Commodities I can only assume (oil corn cattle) etc ..

[@pazuzuxx]

Shame on Tasty for promoting unrealistic gains and false claims knowing that 99.99% of traders will NEVER achieve such gains.

[@silviohernandez9562]

Fr

[@theycallmecoop]

Dunno I got a strat that does a avg of 80% on 0dte specifically playing certain probabilities of a flip in intraday trend. Prone to occur at certain times. Won't give up more info then that besides the avg cb is .1 side. Only hard part is keeping the gain just like the guy says. Seems to work insanely well during this environment we have had all year.

[@pazuzuxx]

@@theycallmecoop sure you do another gambler...

[@theycallmecoop]

@A Hass not really gambling the success rate determines the outcome does it not? Mutiple people like me have found a way to exploit a mathematical probability but peeps like you rather throw shade then try and decipher what gives us our edge. Cynical traders don't last long in our industry and you sure seem to be a very cynical individual. But either way to each their own.

[@dagmeistr]

Statistics, and system based trading. Your welcome.

[@kdub1666]

Could there be another Karen Supertrader? Amazing!

[@wills8705]

This is all based on dishonesty. If he has a small oot and can always double it then what's the issue? Keep the account at 5k and double it weekly. Always transfer anything over 5k out, right? I'd be content with 5k gains per week trading for and by myself. Plus, since the pandemic.... Bad traders have looked like geniuses and good traders have been wiped out. What's up has been downn quite often.

[@mauriciobaez525]

One thing I don’t understand is how some folks can get around pdt rules trading spx, if you are in and out on the same day you can only do 1 trade a week. May be he was doing it spaced out at the beginning until he built above 25k$

[@ala.9768]

Get a cash account and do as many as you wish.

[@mauriciobaez525]

@@ala.9768 thanks for your answer, true, then he could rinse and repeat with 2k$ spreads. The only thing is to be aware of fund settlement no?

[@Eqnotalent]

U can avoid it easily with spx. Just KZbin. U need to sell a spread to collect to get over the rule.

[@jjjw28x]

@@ala.9768 Not if you can't put up the buying power. On a cash account, SPY, on a $1 wide vertial spread, you would need to put up $40k and SPX its $400k with just 1 contract as collateral. Whereas within a Margin account its only the max loss that needs to be put up. But as the poster pointed out, get above $25k in capital and the PDT rule won't apply.

[@ala.9768]

@@mauriciobaez525 Correct. You have to wait for a day for the funds to settle. that is pain sometimes but it is better than burning with margin

[@figh761]

I don't understand what he is talking about

[@billyahmed9503]

Guys make 1000% in 2022 when spx was down 20% , should beat Warren buffet soon .

[@robelyncooper4555]

Was that intro music Rainbow?

[@DocStrange1322]

He is Karen the supertrader except selling one call spread in a down market

[@brybryBillions]

I thought she was naked strangles

[@desisher5292]

No way can guy can sell credit spreads and get a 1000% return (not sure in how many years) - there is some information missing in this video. I suspect he added fresh capital and scaled up.

[@acp7328]

The guy did not answer Tom's question. Is he selling put spreads of Call spreads? his answer was 'correct'.WTF?

[@ACR4008]

2:26 so where is your $20M from 2022 doing that every month? :)

[@SuperNaishad]

Numbers dont make sense, a credit spread cannot return that much return. I hope the numbers were checked.

[@guyredares]

who is that other lady trader he mentioned he was watching on KZbin?

[@dretrades2]

Probably AXE Options, Arianne Gomez

[@guyredares]

@@dretrades2 ok, i don't recall she was rolling

[@dretrades2]

@@guyredares she don't, she just takes the loss. I never like rolling myself. Rolling just means realizing the loss and trying again.

[@jonesr227]

I bet he's referring to Tammy Chambless. She has a YT channel. She has also written a document which details how she trades 0DTE options. (All for free).

[@guyredares]

@@jonesr227 could be

[@alfckchung]

It simply doesn’t make sense to make 10x for being an option seller

[@ricomajestic]

Lots of risk and lots of luck you can become a millionaire! Not likely but possible.

[@alexandernewton5853]

give that guy some coffee

[@tahntalus]

ok so wait all i have to do is get a 10x return on my brokerage account and that will earn me a spot on the show? Challenge Accepted! LoL

[@iafan3997]

Not sure how you can do a few trades per day selling a single contract each time and closing for a buck or two profit and make the ROI this guy is. Doesn't add up.

[@Md-ht3cg]

It wasn't too clear in the interview, but he doesn't only sell 1 contract every day. He almost certainly did when he started, but he sized up as he went along

[@caseyl3631]

Sounds like he's interviewing somebody with a gambling problem

[@yousajiveturkey1]

He def was trading more than one spread lol he was doing 10 at the min..

[@Amardia1]

They want to encourage you to 0DTE so you lose your money. The moves in the indices will remain strong. My opinion.

[@dwayneseegars1086]

There are too many holes in his story to me.