The Easy Way to Grow a Small Account With Options

Рет қаралды 32,472

Күн бұрын

Learn the top 3 trade setups we are using on the desk here: tinyurl.com/3sezfak6
#smallaccountdaytrading #optionsstrategy #optionstrading
SMB Disclosures www.smbtraining.com/blog/smb-...

Пікірлер: 90

@Juanbyby-oi8om Ай бұрын

I make huge profits from my trades now as I follow your instructions sir God bless you Ronal’with more knowledge you are the greatest trading guru sir 💯

@Juanbyby-oi8om Ай бұрын

he’s mostly on Telegrams, using the user.

@Juanbyby-oi8om Ай бұрын

@R o n a l f x 2.

@Juanbyby-oi8om Ай бұрын

@R o n a l f x 2’.

@kolayuni1955 Ай бұрын

His technical analysis is excellent and his interpretation/projections of the market are so accurate’ The point is Ronal’ is the perfect trader to follow for advice and guidance

@lordkrishna6793 Ай бұрын

Ronal’ strategy has normalized winning trades for me and it's a huge milestone for me looking back to how it all started.

@markl431 Ай бұрын

Thanks @Seth. At that time (and even now) SPY could have easilly moved 10 points in either direction in a day or two. We can see 10 points wide bars even on the daily chart that you showed. Without risk management, any one of these trades could have wiped out that 5k account in a single trade. It would be good for you to warn your followers that this is a real possibility and is not even unlikely. Further, even if you are right 5 times in a row and wrong on the 6th losing entire 5k spread, the account would be left with 1-2k losing 80% or so in a single trade.

@beLIEve77 Ай бұрын

I've been watching and learned a lot from SMB's videos. I could imagine the scenario where the price closes in between the spread and banker takes all. Anything other than Covered Call and Cash Put should be executed by experienced traders only.

@insurancecasino5790 Ай бұрын

Seth knows what he's doing, but just 1 5k loss, and I would never trade those again. LOL. But, it is up to the traders, and how good they are at the markets. Their seasoned trader prolly make money in all scenarios.

@markl431 Ай бұрын

@@insurancecasino5790, I have no doubt that Seth knows what he's doing. I will also bet that Seth would never bet entire account on a single trade. It's the novice traders who have no clue about risk management who could get in big trouble quickly following this strategy.

@marksoberay2318 Ай бұрын

@@beLIEve77well said, plan on owning the shares to go long but im ok w poor mans covered calls too. Your thoughts? Or poor mans covered put

@beLIEve77 Ай бұрын

@@marksoberay2318 For Poor Man's Covered Put, i'd prefer using the Wheel strategy instead. Covered Call and Cash Put all the way until i'm very familiar with risk management for Options

@AbsoluteFamily123 Ай бұрын

Thanks again. I have been watching your posts for a few years now. Primarily the options. I feel all your input is excellent. Also I feel it would be beneficial to offer another delivery device. Hence, someone other than Seth offering the options strategies. I understand Seth is your premier options guru but sometimes it’s great to hear it in a different way. Sometimes hearing from another source or perspective just helps some people. With all due respect after two years of watching your videos I now often have trouble comprehending because he sounds like a broken record. Sorry Seth! Give this guy a nice office and give us a new options face! Thanks again.

@nd-kay Ай бұрын

Thank you😊

@richhands5269 Ай бұрын

My three favorite channels: SMB Capital, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

@mikederyder3885 Ай бұрын

Smb is definitely my favorite also. But I also really like trader talk (Schwab) and trader tv.

@mcevensbien-aime4558 Ай бұрын

I can't see the video about learning options that they mentioned would popup on the screen

@me4901 Ай бұрын

If you sell a put at 370 and buy a put at 320, that's a 50 point spread. You have a max loss of $5000. If you only have a $5000 account, you are risking your entire account on just one trade. That's a REALLY bad idea. Something can easily go wrong and then you are out that money. You should never risk more than 5% of your account on any one trade.

@shailusingh Ай бұрын

thank you

@1994g0 Ай бұрын

Good video with one omission.You should have mentioned the section 1256 60/40 tax advantage on $spx put spread gains.

@optired5550 Ай бұрын

In the other similar video with weekly puts on QQQ, it was switched to PMCC after the first loss, can it be done here too?

@kukuJack Ай бұрын

Curious in this too! Watched the previous weekly qqq's

@samirehabdillahi34 Ай бұрын

can we use this method on stocks?

@beLIEve77 Ай бұрын

Sure you can. But if you need to ask this question, Options is not for you yet.

@samirehabdillahi34 Ай бұрын

@@beLIEve77 hhhhh 😃I only trade selling put with stocks I like to own but I never try credit spread and iron butterfly and the others

@czapskibusinessgroup Ай бұрын

So if the trade wasn't going your way you could buy back the PUT close to your breakeven to avoid excess loss? If the market was a BEAR market you would do the opposite and sell CALL credit spreads?

@gustavogeraldo584 Ай бұрын

nice....

@alexpoon9048 Ай бұрын

May I know what delta you select when selling short put?

@decepti0n Ай бұрын

In this strategy delta is not looked at, only that it's 10 pts below the current price

@jesuscastillo4033 Ай бұрын

Looks like 30 delta

@alexpoon9048 Ай бұрын

@@jesuscastillo4033 thanks

@edmedina2588 Ай бұрын

How is the amount required by the broker for this trade calculated?

@beLIEve77 Ай бұрын

Maximum possible loss, i.e. SPY closes at or below your Long Put

@AussieOptions Ай бұрын

Far too risky for a $5000 account. Way too close to the money. Should place the legs at least 15 to 20 delta. Selective year to do a PCS. I really like this channel but any newbie’s watching this will definitely blow their account up, guaranteed.

@Dori_1111 Ай бұрын

Agree 100%. Well, at least he covered a scenario in which the trade didn’t work instead of going over a trade that works perfectly which rarely happens.

@Jose_Lima Ай бұрын

Also, I prefer to use real standard deviation analysis of past price behavior instead of the delta which is totally based on "air" only (speculative).

@javigil7024 Ай бұрын

@smbcapital how do you roll over in case it goes 60 points down to max loss within the 30 days?

@RT-mn2pb Ай бұрын

Good introduction - but incomplete. Seth, I think you present an unbalanced view of the rewards of the credit spread. You really need to show and highlight the risks, especially the risk / reward tradeoff. Success for the credit spread trade is, of course, not a guarantee, and losses for credit spreads can be much larger than their wins. Also, timing matters for when you try to buy stuff back. If the trade is going against you, and you wait too long you may not be able to close it when you wish.

@TheOriginalPickleRick Ай бұрын

Yup, I've noticed that I often can't close a position when I'm losing, even at a loss, to get out of it before close. I adjust the price but it makes no difference. Sometimes I get assigned when I didn't want to.

@TheOriginalPickleRick Ай бұрын

Why expire 1st Friday of the month. Don't the institutions trade on the 3rd Fridy of each month. Thank you.

@JSBVETTE Ай бұрын

Would love to see a video on how to manage these types of trades as the risk to reward ratio in this example is upside down. If I understand correctly, you have $50 or 5K at risk. (difference in strikes). You pick up on average $350 and in one month you lose 2.5x your average gain in October. You have to be really right consistently for this strategy to work. Another 1 or 2 more like October and you are in the red.

@Rirome61 Ай бұрын

Thank you. How do you do this when the spy is in a sell off and be profitable?

@beLIEve77 Ай бұрын

As long as the selloff doesn't reach your Short Put, you win.

@blackbeltdad100 Ай бұрын

In hindsight

@DougSmileyVirgo Ай бұрын

I also preach on the behalf of SMB for retail traders. Go now in peace. 🙏

@josephailport9787 Ай бұрын

I would love to look into there course but it's a bit out of price range

@smbcapital Ай бұрын

We just launched Inside Access which is much more affordable for most which is a really good alternative. You'll get access to every meeting we've done and we hold +100 of them a month bit.ly/smbinsideaccess

@SuperInsuranceman Ай бұрын

You will not blow away the market but this one will blow away your account if you follow blindly this strategy. You have to roll your options if your sold put strike is breached otherwise in a bear market or in a choppy market you will blow away your account.

@devinkrike5968 Ай бұрын

Too bad you need a margin account for option spreads, eh? at least on webull which is what I use. Otherwise I would be interested in this strategy.

@Jose_Lima Ай бұрын

Another good alternative to look at for small accounts is the poor man's covered put.

@marjanmkd777 Ай бұрын

How about if you are wrong? If it was that simple everything would become millionaire.

@markl431 Ай бұрын

It's NOT that simple and that's WHY not everyone is doing it. Anyone doing these types of trades, risking entire account value on trades like that will wipe out their account sooner rather than later.

@skunkape5918 Ай бұрын

☦🕊💛❤☦

@nguyenfang6976 Ай бұрын

Every time my trading account gets close to a certain number I start taking losses back to back. Trying so hard to break out of this rhythm.

@CoolBuddy9847 Ай бұрын

look at your metrics it might be able to tell you something you cant see, maybe your doing something right but also something wrong, its hard to know how your wrong sometimes

@daayubigdarins334 Ай бұрын

Your vids are really amazing I learn alot , i appreciate you guys but why don't you talk on forex 😢?

@toby6180 Ай бұрын

All these videos promoting one strategy or another pick a time frame where it works great, without talking about the risks involved, which can be significant. At the start of the video, he says (paraphrased), "The market was down in 2022, so it was reasonable to expect an up year in 2023", and that is what happened. How about a companion video to this one, showing how this strategy would have worked in 2022? Probably not +55%, I would guess.

@paulkozar7454 Ай бұрын

My broker requires that in order to sell a put, it needs to be a cash option put, so I would need $37,000 in my account not $4,501.

@paulkozar7454 Ай бұрын

Level 0 actually. I would have to have a certain amount of assets and trading experience to go higher.

@insurancecasino5790 Ай бұрын

@@paulkozar7454 I might be missing something buy they really look scary risking 5k to make 500. LOL

@decepti0n Ай бұрын

@@paulkozar7454 You can always apply for level 1 or 2 and likely it would be approved. I suggest trying paper trading first though

@Eqnotalent Ай бұрын

This only works in 2023. If you back test this. A 2% downside credit spread most of the years you are at max loss. 2023 you had like 1 month greater than -2% return. Which was -5%.

@ramiroalvarezvaldes3498 Ай бұрын

But your gains are short term capital gains so you would pay taxes and not really have 50%

@edmandell3064 29 күн бұрын

The issue with this trade is your using 100% of your capital in only 1 position to make this trade happen.

@dllmohh6026 Ай бұрын

Is this strategy also know as the ''Wheel" strategy?

@derlijunior6402 Ай бұрын

@starprof Ай бұрын

No. In the "Wheel" strategy, the investor does not buy back the put spread SPY during the "down" month. He allows assignment of the underlying SPY shares and then sells calls against those shares.

@nickingrao5869 Ай бұрын

Unbelievable

@markl431 Ай бұрын

It's unbelievable because it is unbelievable. Do this often enough and you WILL have trades that wipe out your 5k completely.

@nickingrao5869 Ай бұрын

@@markl431 exactly - so irresponsible

@ivansam2207 Ай бұрын

your risk management is very crucial in this strategy. when Im wrong with the market direction, I exit the trade. don't wait to reach your maximum loss.

@markl431 Ай бұрын

@@ivansam2207, no doubt but there is no mention of any risk management in this video. On the contrary, it appears to advise traders to enter these short spreads and wait till expiration.