This Bull Put Spread Strategy Will Finally Make You Profitable

[@optionswithdavis]

Get Your 😅 of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/

[@jimgeyer3475]

Outstanding Commentary!!! Priceless!!! Thank You!!!!

[@optionswithdavis]

You're welcome!

[@benjaminl807]

Just wanted to say thank you for teaching about risk management in so many of your videos. I could have theoretically lost about $400 on a trade this week if I had done nothing but pray the stock price falls again after rallying for two days. But I instead decided to cut my losses and accept a smaller loss of about $230. I'm up on some other trades so I'm still profitable and by next week this loss will be just a blip. Cannot stress risk management enough... thank you for your quality content.

[@optionswithdavis]

You're welcome!

[@ThetaViajero]

Great videos, sir. When looking for specific info on options, I always check yours first. Well done!

[@optionswithdavis]

☺️

[@tonyc2227]

When you roll a put to the next month for a credit, do you count that as a win or as a loss? Since you are paying more to close the original put

[@ddroz23]

This is a great example that fear is overpriced and that is your edge. It took me a long time to trust in larger numbers of trades to minimize loss and quitting. Now it is just part of the game.

[@claudiusdsouza8772]

Great points Davis and I personally have experienced the first 2 points you mentioned. I normally trade 45 DTE with a 30 Delta but usually go all the way until expiration. I will try exiting at 21 DTE going forward and see how that works.

[@optionswithdavis]

👍

[@Wikidpalm]

What's is your performance so far ??

[@SRO_4]

Great insight about increasing the spread rather than increasing the contract amount. The math makes sense.

[@sweeyanang1321]

1 thing to note on the spread width, if a 5 point wide spread has same roi (credit vs margin cost) as 10 point wide spread, its almost always better to have wider spread as scaling contracts with insufficient credit is v inefficient due to commission costs

[@stacyhallman4981]

As usual - GREAT video. My key takeaway was using 22 - 30 delta for short strike. I've been using a delta of -.20 or below for the short leg and rolling / closing when / if the short delta exceeds -.29 to limit losses. When using 22 -30 delta, and the underlying declines, at what delta level do you roll or close to limit losses?

[@ddroz23]

I don't think there is a correct answer for everyone. I usually manage the trade when I am at the point where rolling out and down for a credit still possible (or the tasty 21 day). Or else take your lick on the risk. Rather I mean manage early and often if you can make up the commissions and collect credit. Finally. I prefer to trade more into Volatilely as there is almost always a rebound that will get you out of the trade. Mostly in falling prices. Hope that is usefully to you. The only thing Mean reverting in this world is Vol. HEHE

[@philos212]

I am new to options and a bit confused. My understanding is that a Bull Put Spread consists of Selling a Put at a higher strike price and buying a put at a lower strike price. I am confused as to how this can result in thousands of loss. I have been watching a lot of videos including yours. As I understand if I am assigned the sold put I could always exercise the put that I purchased and fulfill the obligation. There could be a net credit or debit at the end of the transaction, but as I understand it will not be in the thousands unless you are dealing with so many contracts. Am I missing something or understanding this totally incorrectly? TIA

[@nieugen]

Thanks for your videos. I have learned a lot from you. Can’t wait for your next video.

[@optionswithdavis]

You're welcome!

[@keithlimST]

Whats the stochastic you're using on TV? Can share?

[@optionswithdavis]

kzbin.info/www/bejne/rabFhKenqddlbdEsi=SvF--yCzRBkzOhkc

[@happycampers6592]

Hi Davis. I just found your channel and subscribed after seeing the huge value in your content. I have not had much success with vertical put spreads and, after hearing your explanations on key points, I now understand why. Are you seeking a particular risk/reward ratio and how much emphasis are you placing on your return?

[@optionswithdavis]

Welcome! See this: kzbin.info/www/bejne/h2fCf3dse75ogKssi=ANgEdYleFNRNd-lY

[@happycampers6592]

@@optionswithdavis Thanks!

[@TheMondalmithun]

Hi Davis, thanks for this knowledge! The issue I faced always that I dont get 1/3 of the 5 or 10 dollar spread for SPY or QQQ doing BPS rinse and repeat for 45 DTE … That’s why I am wondering if the BPS for indices ( SPY or QQQ) for 45DTE works considering that our target to get 1/3 premium from the spread and we will rinse and repeat every 21 days… Thanks 🙏, any advise on this is appreciated!

[@chrismovac5274]

Well done. excellent video with all important questions covered. You have a new sub and deserve many more views and thumbs up!!

[@optionswithdavis]

☺️

[@ArtSal-z5d]

Hi Davis, thanks for the video. A lot to learn from your videos. BTW, I am curious. At 19.07m timestamp, you show nice thinkorswim screen with P&L chart with color. How do you do that?

[@optionswithdavis]

It's from the TOS web platform. You're welcome!

[@JesusLeee-i9r]

I know at some point a bull market ends and a bear begins, it goes on and on....I have a 7 figure ballpark goal and I intend spreading across maybe 50k - 150k on plummeting stocks, my question is how can I know when a market bottom has been reached?

[@HoskinsShanellNicole]

investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.

[@morgansofia]

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.

[@JacobsErick-u8r]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@morgansofia]

When Melissa Terri Swayne’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@LUCIASMITH-d1z]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@philsummers9931]

Nice one Davis. Merry Christmas!

[@AdaLovelace1102]

Another banger from Davis.

[@optionswithdavis]

☺️

[@adamj4819]

Davis, do you set automatic stop loss and take profits?

[@thebuddingmusician]

Clear and concise, thank you.

[@optionswithdavis]

You're welcome!

[@Lhbm01]

Thanks Davis, great content as always! It would be great if you consider making a video on how I could keep a record of the trades in Excel, by strategies, entries, exits, setup, P/L, RR, etc, which is the most important thing.

[@zshn]

What's the average VIX for your winners and losers? At the time of entry, during the trade and at exit?

[@jibarodejuanadiaz7768]

Great video! Thank you very much.

[@optionswithdavis]

You're welcome!

[@DioLanPTY]

Excelente video...😁👍👍👍👌👌🙌🙌

[@optionswithdavis]

Thanks ☺️

[@MasakoKimura-x4s]

Many many thanks!!! that what I needed to know !! you nailed it.. :)

[@optionswithdavis]

You're welcome!

[@jonlawedu]

nice!

[@optionswithdavis]

☺️

[@peterholmes2089]

Good video as always. One question though, why 2 contracts with a 10 point spread rather than one contract with a 20 point spread?

[@mdmerideth7639]

Diversity of choice…can make two exit, take profit decisions

[@optionswithdavis]

Both are possible. One favors risk and the other return.

[@peterholmes2089]

@@optionswithdavis OK, thanks.

[@panda007]

Thanks for the educational video. I see the losses are extremely large. Are stop-losses not used here?

[@optionswithdavis]

See this: kzbin.info/www/bejne/nobOc6OlarVsjpIsi=k9obaMkQOj9cGc3c

[@panda007]

@@optionswithdavis Thanks, this helped a lot to explain why my short dated Iron Condors got their asses handed to them today while the far dated (51DTE) ICs were relatively flat despite the IV rise. The stop losses on those short dated ICs were not triggered at all -- ROFL, prices were skipped as VIX flew thru the roof. Now I know why it's best to close at 21 DTE... paid for the lesson!

[@tonyc2227]

What was the spread width of that $7000 loss and which ticker was it ?

[@philos212]

Wondering the same thing.

[@flipyeah696]

Do you recommend certain videos for SPX trading? New to the channel.

[@tonyc2227]

Thank you Davis

[@optionswithdavis]

You're welcome!

[@MispelledOnPurpose]

Thank you!

[@optionswithdavis]

You're welcome!

[@sweeyanang1321]

my fav option strategy in bull markets, only scenario where u will lose money is when market dives.

[@jibarodejuanadiaz7768]

Can you do it on the QQQ and IWM?

[@desiexpat7]

Good points buddy. I decided to leave the US and come back home partly due to my disgust at the healthcare system. A relatively underdeveloped country like India is so much more affordable with fantastic doctors and facilities in the major cities.

[@pdykesdykes]

super info

[@optionswithdavis]

☺️

[@blockaderunner]

I only deal in tickers I want assignment on; I therefore the protective put is for black swans or fabricated news stories only.

[@alonhersch]

THANKS AGAIN FOR AN AMAZING VIDEO ❤ IVE HEARD THAT A GOOD RULE TO MAKE SURE YOUR REWARD TO RISK IS SATISFACTORY, YOU CAN USE A FORMULA OF (PROB OF ITM x SPREAD WIDTH) AND THIS SHOULD BE THE MINIMUM CREDIT YOU SHOULD SETTLE FOR... WOULD LOVE YOUR OPINION! ESPECIALLY IN SUCH A LOW VIX MARLET AT THE MOMENT WHERE PREMIUMS ARE SUPER SMALL AND CREDIT SPREADS DONT SEEM FAVOURABLE THANKS MATE LOVE FROM AUSTRALIA

[@optionswithdavis]

If it works for you why not. You're welcome!

[@masterkool1]

🎉

[@UkpeneEmma]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️

[@larryhenry2070]

I'm 37 and have been looking for ways to be successful, please how??

[@UkpeneEmma]

Sure, the investment-advisor that guides me is..

[@UkpeneEmma]

Elizabeth stark

[@UkpeneJoseph]

Same, I met Elizabeth stark last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Elizabeth stark

[@AndrewMikel-js7qb]

Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!