Ep 124: Trading Weekly Option Tips: (Earning 9%)

This was a super helpful video, Sasha, thank you!

TOOOOOOO verbose

Make 9% if you are right, and lose 91% if you are wrong. That is the risk of trading Iron Condors, esp once which are only 8 days to expiry. There are ways to adjust them, of course, but none are pain free.

I'd sell a TSLA call spread at 290 in this case…the put spread looks treacherous.

Earning 9% Great! But giving me a 10 percent chance to lose all my money?? After a while the risk will catch up and you will lose big after all those little gains and just scratch. Bad strategy.

Sasha can you explain how the greeks effect day trading weekly options? And how ITM ATM OTM would effect day trading weekly options.

Just a little bit of simple math associated with your first example. What is the expected or average return for the selling vertical credit spread strategy over time? Well we have a 90% chance of earning $500 and a 10% chance of losing $5000, thus the expected return is 500 * 0.9 – 5000 * 0.1 = -50 . Thus on average you lose $50 per trade! You will win a whole bunch of times and then one or two big losses destroy all your profits.

The only way to win doing this is by having a reliable scheme for managing losing positions and/or increasing your winning probability via external information, e.g. charts or a clear trending market, etc. etc. My point is, is that this is not free money, it takes work.

This strategy only works if you modify it. As shown here you will lose money over many events. Run the numbers for a theoretical 1000 trades if you don’t believe me.

Can you use a Trailing stop on Think or swim to manage risk???

i bet most people can't afford to sell uncovered TSLA /AAPL or any large cap stock options that are watching this video. You mentioned TSLA right off the bat. Don't think you explain that the 9% is only if you have over 25,000 in your account and cal sell naked options

Hello Sasha
What software and hardware are you using to make such an awesome video

care to respond to commenter who notes the negative expectancy of this strategy?

450 on 4500 risk.

This is so risky and stupid. Risking 4 grand for 400!!!.dumb.

what about gamma?

He speaks clear and calm. Like so much. I subbed.

Is this an acceptable level of risk?

the worst trading idea on the planet…trading at a 10:1 RR is literally financial suicide…

Lets do some actual math shall we. The expectancy of this trade is: (1+ (Gain/Loss)) * Prob – 1 = (1+41/459)*0.8753-1=-0.04651=-4.65% (without even taking into account commissions). In other words, this is the strategy where the odds are against you, and you are 100% guaranteed to lose everything with this trade the more times you repeat it, similar to a roulette. The strategy you are proposing is similar to flipping a coin where you gain $100 but lose $104.

My god 8:36 minutes in and the guy has already made options look like the most complex product on planet earth.

When teaching you should always stick to the spoon feeding strategy otherwise all the percentage this, percentage that babble falls on deaf ears, and it's horrendous to teach. Small tip coming at you for free, think layman's terms and you're on the right track.

There is a probability of otm column in TOS as well. Also probability of touching which depending on your stop would be more important if you trust the math. Which I don't.

Clear and Concise… Bravo!

Hi Sasha. Suppose i buy a 100 call, and sell a 110 call, and stock price is 115 upon expiration, do I have to have the capital to buy the shares then sell them back?

Love your vids BUT in a scenario like the one presented here you should click the "Exclude/Include" commissions button on the analysis page as you have commission costs on the way in and on the way out of the trade. For the smaller dollar trades (beginners) it will knock down the 9% gain to 6% or 7% or less.

I like Sasha. I trust Sasha. Except when he exaggerates. A rate of .111111… is not almost 11.5 or 12% it is closer to 11.10% or 11%. Be true to your numbers. Be honest. Be accurate, and we will reward you by being loyal and trusting to you. You have not lost my trust, but I am asking you to be on guard not to exaggerate.

What is considered a small versus high implied volatility?

Interesting video. My broker (Fidelity) will only allow me to write covered calls and buy puts for stock I already own 🙁

Too much risk, I don't see how it pays off. 12.5% expires OTM (or 1 of 8 times) while the risk:reward is 10:1. Time is in your favor in the short run, but like in casinos, it's easy to profit thousands of dollars before blowing it all in 20 minutes

If you have a $5,000 account – I suspect you would only risk say a max of $500 on such a trade…So if you make 11% on this it is only $55. That as a percentage of your entire account is 1.1% you have made in one week. How much could you lose in a worst case scenario ? What is the risk : reward ratio please ?

Great video Sasha!

Excellent presentation! Thank you for making something difficult to explain easier! Keep up the good work!

Sasha. One day I earn millions and give my half a million to you as a fee to you. Kudos man

TU ERES EL MEJOR!

Hi there. I cant see. What software are you using?

Sasha can you sell puts without a margin account?

Hi Sasha, When you place a vertical spread and convert that into an iron condor the margin requirement is almost the same why so?

So you have 90% possibilty og making 9%? The odds are against you. If you run the trade 10x you will loose at least one time. And most likely most of the money becase there is only a small interval between loosing the trade and winning it….

I'm currently holding a bunch of ETFs…. Do you recommend any specific ones?

Hey sasha, i wanted to check how often pop ups happened after downturns due to quartly earnings, but freestockcharts only goes back a year when you look at the dailies, how do i get old dailies?

I really need a interview for my ELA project for school and my topic is stock trading can i please have a inter view with you cause I know you know a lot about it

Hi….I am pretty much new to the treding…and I have a question about day trading…how many stocks do you "watch"/work with during your day trading? Is it the same list of stocks every day?

with options, the odds are 95 percent of the time against you.! i strongly urge all to stay away!

thanks again for great video!

Sasha, thank you very much.

Hello Sasha, just have a question i can't find answer for, its like how you can sell to someone a call or put on stocks, if you don't have those stocks? Or its covered somehow with a put/call you buying before you selling put/call??

good lesson. do you have a weekly letter etc?

Should I buy AMD or am I late to the party?

Sasha what do you mostly trade? Do you do more options, stocks, penny stocks, ETFs, etc..? just curious, I don't doubt that you have experience with pretty much everything

демку tos открыл и доволен собой)