These 4 Lessons Allowed Me to Stop Trading Directionally

Рет қаралды 92,138

Күн бұрын

Пікірлер: 112

@ChadGPT-1.0 Ай бұрын

Hey Jim. Just came here to say thank you and let you know you’re awesome. You are like my options Duolingo. Appreciate it.

@jamesderosa8109 2 ай бұрын

Excellent presentation and packed with understandable examples, Thanks

@bryanleejh 2 ай бұрын

1. trade volatility not direction 2. volatility is mean reverting 3. IV vs IVR 4. how to trade volatility

@pokerchannel6991 2 ай бұрын

reversion to the mean?

@gn6905 2 ай бұрын

No need to know/predict/anticipate - it's called trend FOLLOWING, not trend PREDICTING. Flip the forecasting mindset into reactionary. Price action through non-time based optics.

@belpuprajwal Ай бұрын

To begin with small capital this mindset is good, but when you have enough capital and as you know markets are done to share risks not rewards, in this dog eat dog world of trading, you will need to include non-directional strategies in the long run. Anyways, what works for you should not be touched until it stops giving you the results. So go on, nothing is right nothing is wrong, only results and long term learning. Enjoy the process. being in the process fully is required.

@BillBaran 5 күн бұрын

Thank you! You finally explained to me why it's harder to be profitable with tighter legs, even though the ROI looks better and pit charts looks very similar. Tight legs kill your Vega exposure, exactly what you're relying on to generate profit!

@seangreen8262 2 ай бұрын

Hi Dr Jim. You are advocating trading with NO regards to direction, but then you mentioned when selecting the strategy that if you were bullish on the stock, then you'll do CSP or put credit spread. Wel, that's having a direction bias, isn't it? Also, the put credit spread that show has the short option ATM, and if stock sells off, that will drag SP ITM!

@camilosixtino Ай бұрын

What He is saying, even if you had a directional bias You can trade directional but first take consideration of volatility, it is rising or contracting? Actually even in those trades He was little long vegas that if a big price movement ocurred upward with higher iv the spreads still has time and some hedge due long vegas . And also what He is saying is that there is a bunch of tools and strategies in the tool box to draw from in case of volatility contraction.

@blakestratton4643 Ай бұрын

Is there anyway to get a copy of the slides you use? Just for my own use to study. I've watched a few of your videos and the slides are the best I've seen.

@Demiarioch Ай бұрын

Excellent presentation! Thank you.

@dfwjag Ай бұрын

Great content. There was a time this would have been too much too fast. After years of trading - it was just right. It will definitely improve selecting and managing my options trades. Thanks so much!🙂

@LC_1018 2 күн бұрын

Great info!

@mechannel7046 Ай бұрын

11:50 selling volitility 19:40 VIX 23:20 IVR

@jlyndre218 Ай бұрын

Great job. Great go-to. Easier to be 1/2 right than 100% Your work is great. So appreciate your effort! TY

@da5731. 2 ай бұрын

As the price of the underlying moves away from the strike price, IV will drop. Price direction matters.

@camilosixtino Ай бұрын

Lol, not always.

@TypeGrind Ай бұрын

incorrect. Not always. research volatility skew

@mshparber Ай бұрын

Awesome, I was looking for this, thanks!

@panasonicfighter 2 ай бұрын

so i have traded define risk options for years now and have just really started to paper trade strangles and undefined risk strategies to get my mechanics and the nuances figured out. ive found the efficiency of futures options and how far my capital goes to be rather appealin but i cant find anything to further educate myself on the differences in mechanics as far as deltas it seems kind of scarce or im just not looking up the right things. certain things like decent spread sizes to use that give you high probabilty or if there is things you you have learned(dos and dotns sort of thing). i have been figuring it out so far pretty well but curious if you could point me in the right direction or where you recommend.

@camilosixtino Ай бұрын

Please buy the Martin O'conell 'The business of options' it explain very well your Questions, it takes time to master and learn option trading but once You get it is like any other business, You need tonhave the skills and knowledge to run it.

@camilosixtino Ай бұрын

The book.

@josefjakowchuk8775 2 ай бұрын

Great insight and well explained. Great job Dr Jim!

@edwinbab3205 6 күн бұрын

For fb earning can I just use Delta and market maker move

@Riverplacedad1 Ай бұрын

Sounds like something that the Fractal Energy indicator would help with. Since it shows price expansion and contraction

@lizlemon9632 Ай бұрын

Another brilliant presentation. Thank you.

@DavidMMKing Ай бұрын

Thanks nice video! I am new in this, where is the candlesticks, I expected to see bullish engulfing and bearish engulfing candles during high volatility session!

@predatorxzn Ай бұрын

This is a dumb question, shows you know nothing about this industry

@DavidMMKing Ай бұрын

@@predatorxzn what business do you have dude.. mr smart ass ... middle finger U!!!

@DavidMMKing Ай бұрын

@@predatorxzn says mr smart ass .. middle finger to U!

@DavidMMKing Ай бұрын

@@predatorxzn smart ass unatombwa mkunduni wewe!! nyoko zako!!

@GiJoeVideo 2 ай бұрын

I have come to love trading volatility, measuring VIX against Vix futures to determine contango/backwardation along with charting this on multi-timeframe bollinger bands (my custom indi) using 2h, 4h, 8h, 1d bands. Seeing volatility on multiple timeframes measures the volatility of volatility to see it ramp up and decline across time. Using the bollinger bands also allows measuring vix against its mean to compliment info presented in this video.

@sciencelabvideosl7558 Ай бұрын

I am confused even more . I wish there was a link to the full video for this.

@a.e.9445 2 ай бұрын

Great content Dr Jim, keep it coming.

@AAmtb 2 ай бұрын

So do most of you consider 30-40 ivr high?

@sjaw100 2 ай бұрын

Any book recommendation? What are the two books behind you? Thanks but a bit complicated!

@LuisDelgado2016 28 күн бұрын

Let me check this video out sounds good

@rombusworkmoney22 26 күн бұрын

Have you? What do you think?

@paulojustinianookubo 2 ай бұрын

The problem when selling volatility is that if you are wrong on volatility and that was to spike like it did couple months ago when it hit 65… you are done !!! Now ur drowning like the titanic. And yes you could manage it by selling more premium or adding a long or any other strategy but gosh that feeling of being busted is worse than being wrong on a direction. I traded options for years and is ok when it works but when it does not u end up giving up gains plus more!!!

@alexbarrett9077 2 ай бұрын

There is a video of Jim in March of 2020 (the bottom of the market during the pandemic), where he experienced at least a 50 percent draw down. All of his non direction positions became directional. Do you think he had enough capital to take assignment of his short puts… no. He had to reset the portfolio.

@greenb6149 2 ай бұрын

So true

@AAmtb 2 ай бұрын

@alexbarrett9077 what kind of portfolio adjustments would you do if puts are getting assigned or you're realizing the losses?

@camilosixtino Ай бұрын

Did you read Natenbergs's book? He explain when is time to sell volatility and how to asses risks! He explain how to get risk ratios among different short volatility spreads, not all spreads lose more, as an example a short straddle is riskier than a long butterfly, also He explains how many IV points Your position can sustain before going to the street? Spreads sizes plus risk sensitivities among spreads matter a lot, You understand them with practice and by paying respect to Old option traders.

@Anthroplast Ай бұрын

@@alexbarrett9077 spot on

@frodob1802 2 ай бұрын

Thanks Doc! All the questions I had that no one else seems to answer.

@opoknock Ай бұрын

I could never understand all this mumbo jumbo but with this incredible explanation I get it.

@SkunkMonk 28 күн бұрын

it went right over my head... not quite... like i kinda understood stuff... but for me it feels like this stuff needs to rest in my head for a day or a week before i actually use it to start making trades. is this normal or is it just me? anyone?

@JxjzJxjx 2 ай бұрын

🎉 Thanks for the information, Professor

@caseyl3631 2 ай бұрын

Ive been trading volatility for years, but it's direction that always gets me! 😂

@jaydai3087 Ай бұрын

Trading volatility is to make profit from the difference of implied volatility and the actual volatility. It is very hard to beat the market. Some best experts only make 9% annual return of margin.

@stanchavik2358 2 ай бұрын

Great video

@shainhaggadone9943 2 ай бұрын

Great info

@loubob21 2 ай бұрын

I never trade my hunches because they are usually market manipulated.

@Motivation-y3w Ай бұрын

Basically, Long or short still depend on put money in direction. Without direction can not make money on market.

@dd-ow6pe 2 ай бұрын

so vol is independent .. thanks

@kexh 2 ай бұрын

How much did you make this year from trading profits? This is literally the only thing that matters prior to this entire discussion

@raywest3834 2 ай бұрын

@kexh You can't expect an answer to this question, and you couldn't possibly believe any answer you might receive.

@kexh 2 ай бұрын

@ agreed. A simple “this strategy of trading volatility made me x% this past year” would suffice from any tasty trader

@OptionsForSale 2 ай бұрын

@kexh On average 22 - 32% ROC annually. More if you are willing to take the risk.

@Float_Locker 2 ай бұрын

@@OptionsForSalethat is reasonable especially if willing to take assignment and get called away. And even more reasonable if using a cash account no margin

@braddistler5697 2 ай бұрын

22% is less than a simple long on sp500 will pedicure therefore your not better than a basic random long entry on sp it nq. lol. Taking good trades take so much work especially consistently and intraday.

@ellsworthcorumiii9674 Ай бұрын

WOW. I opened an account but never funded it. I didn't know how robust the platform was for options.

@vladx3539 2 ай бұрын

before even fully watching! I already see gold being shared

@desertdawg1 Ай бұрын

A skosh "machine gun delivery" overwhelming ...i need a class with exercises to actually process all that is said here..different people learn different waya but still interesting!

@benjaminpatel4187 2 ай бұрын

Short straddle has the highest vega. Combine it with 30dte

@tjkatz Ай бұрын

Ok but... it's still direction. You're banking on high volatility going down or low volatility going up. You're betting on price action or lack thereof. It's still binary betting just applied differently.

@CoIdestMoments Ай бұрын

directional trading makes way more money than those low risk strategies, refine better your systematic strategies is better imo

@roddizon2242 Ай бұрын

Then don't look at volatility when you trade direction. There is a point in the market when you need to trade direction, it will tell you, its out there, staring at you and you must take advantage of it . Try to search for it, it will be your other weapon.

@ssiowi Ай бұрын

Thanks Dr J; trading direction baffles me--like the Max Cohen character in Pi--and looking for sensible trading alternatives. Thanks again for diving deep into this great topic; appreciate you!

@pokerchannel6991 2 ай бұрын

intereesting moves

@colinm_pe 2 ай бұрын

Don’t know if this was groundbreaking but informative for sure. Maybe cut half out. Appreciate regardless

@The_Real_Infinite 17 күн бұрын

Get them likes up ppl🎉🎉

@bodhisoha 26 күн бұрын

This is just a fancy way of saying: buy the dip.

@РусланДрачук-х7о Ай бұрын

good

@buckrogers8672 Ай бұрын

This is a bless

@shipwreck6358 Ай бұрын

The man used the phrase "passage of time" kamal quote .. Red flag has been thrown. Lmao

@cars2drive298 Ай бұрын

Trading volatility is too complicated for mainly…99% of wanna be traders, I traded volatility in the pit in Singapore for BNP Paribas, 25 years later I still sell VIX but my main returns come from Nasdaq stocks long time holdings.., it s just way easier ✌️, the only thing really useful is to hedge a portfolio or your assets by buying VIX when times gets rough, diversification is bull…t 😜