Tom, since running across your videos, you have totally changed my investing mindset. Were were you over the past several years. Great videos and education, you are truly changing some peoples futures with what you are teaching. Well done.
@TommKing13 Жыл бұрын
Awesome! Thanks!
@trooperdrew Жыл бұрын
Hey Tom, just a footnote- but on my tasty PM account putting on the 365 day .12 delta spy LEAP, it only uses $1000 in BP and I take in a $600+ credit. Great trade!
@Sawubona2007 Жыл бұрын
Just recently found your videos, fantastic content. I'm trying to run a 'split' portfolio: allocation to single stocks that I'm willing to hold and add to long-term, and options trading allocation for some $$ support. Your videos have been extremely useful for the latter. Will probably add SPY LEAPs to my core playbook, and sell LEAPs on single names opportunistically. Thank you.
@garleto Жыл бұрын
Awesome trade again! Explained extremely well and easy to understand. Thank you!
@shaunglendinning3 ай бұрын
Another excellent video Tom. Definitely a addition to the toolbox. Appreciated as always. Best
@abdullahsadeq14 ай бұрын
No other beginners guide videos? This is great! A created playlist would be helpful.. Enjoying your channel! 👍
@tradingmind4304 Жыл бұрын
You have opened my mind with this leap. Thanks, good one with low risk....
@fville2813 ай бұрын
Thank you for sharing with us. Very wise!
@gregoryvantieghem65777 ай бұрын
For smaller accounts, it might be an idea to buy a put at the same strike with a DTE of 41 days (which is the avg days in the trade) to reduce margin
@swiss-man7733 Жыл бұрын
Thanks for your videos, love them! Could you explain the stop rules again? Thanks
@Stock18910 ай бұрын
Tom, first of all, thanks for putting up such great content. I am trying to make sure I understand the Risk & Position sizing. The annualized return you shared in the backtest is pretty staggering but I am not sure the way I am calculating my numbers would even get me in the ballpark. Example: 100k Account Size Risk 2% per trade = maximum 2k per trade This would allow for 1 SPY Leaps at 12 Delta pays 600 premium Max Risk 3x Sop = $1800 (not entirely sure I have this correct) This would allow for 1 SPY contract to trade every Monday. Assuming you had 100% winners and closed them all out at 30%, it would result in $180 profit per trade. 52 weeks x $180 = $9,360, 9% annualized return What am I missing? Your results gave you closer to 40% annualized returns using these parameters. Thank you!
@Stock1899 ай бұрын
Can anyone clarify
@guygonen3809 ай бұрын
You bit misunderstood the first part, true - 2% risk for every trade. But the whole strategy can get up to 30% of your account. So you actually can add contract every Monday, based on the fact he was in the trade for approximately 40 days.
@Stock1899 ай бұрын
@@guygonen380 Sorry it still does not make sense. The example I gave accounted for adding a trade every Monday and winning every single time. Take a look at the math & call out where I am off.
@Stock1897 ай бұрын
@@igiveupfine 1. I just watched the last few minutes when Tom talks about the backtest. Every Monday, he put on a trade allocating 10% of a 100k portfolio. Over a two-year period he returned over 40% annually bringing his 100k account to 249k. So this backtest demo is not showing more than this single trading strategy. 2. He is apparently only allocating 10% and still getting these astronomical results which is confusing. 3. I am not sure my allocation is spot on but I think it is pretty close. Maybe you can break it down another way. You are talking about having 16 going at a time which would essentially put a 100k account at risk for a drawdown of well over 30%. Not a good idea. My example was each week put on the allowable risk (2% of the account). That would allow for 1 position each week, maybe two if you want to be generous. I even gave the benefit of putting on a new trade every single week with the assumption of 100% winners and still don't get anywhere near his returns. I'd love if someone could break down where I am wrong but at the moment I don't think I am..... this strategy is bogus.
@drumsmith215 Жыл бұрын
Very cool, thanks for sharing your strategy! 🙏
@DefWorlds3 ай бұрын
I would love to see this backtest run over 2020!
@alejandrobullonmessaje1384Ай бұрын
Tom you’re very King of trader you deserve it oh king name of trader 🙏✅👌✍️
@peterp4753 Жыл бұрын
Great stuff ! Give me some more!
@mr.nonederful33144 ай бұрын
Your content seems super solid and is presented really well. Some of us though are old enough to remember Wade Cook. That dude's name would never pass my lips. Straight up scam artist.
@snc4278 Жыл бұрын
Tom, I enjoyed your video but do have a question. I looked over the weekly RSI for SPY, and it appears that it hasn't been under 30 in quite some time. How is it you're buying LEAPS on SPY every Monday if your strategy is for SPY to be 30 or below on RSI for the weekly? Is that when you trade apple or another asset or by that time are you holding so many SPY LEAPS you don't want to hold anymore?
@albo84 Жыл бұрын
with my smaller account I'm doing this same strategy with TQQQ, and UPRO, great video!
@Sawubona2007 Жыл бұрын
Be careful with these 3x leveraged products. Hope it works out for you bro.
@christianpark96713 ай бұрын
Keep up the great videos
@huguex-xx Жыл бұрын
would be great to get an free trial for the income navigator , tks for sharing
@Sparky.07 Жыл бұрын
Thank you again Tom.
@Megrogs26412 ай бұрын
I like the concept! Could you just use a put credit spread if you don’t have the collateral for the full leaps? Same rules?
@christiandiehl93668 ай бұрын
Thank you for that video and the strategy! I trade options for some years now and i also dont like shares! I usually sell OTM Bull Put Spreads on SPX. Your leap strategy is fantastic. I added it to my trades. Once again thank you! A fan from germany.
@xporkrind8 ай бұрын
Loved the video. Can you please explain how you chose 30% as opposed to some other percentage. That is always something I have struggled with to see what is optimal.
@ryanowen11182 ай бұрын
I really appreciate the video. Love the organized no hype delivery. Im still learning but isn't this a lot like picking up pennies ($300) in front of a freight train? Isn't there unlimited loss exposure? Couldn't one severe drop wipe out years of gains? The appeal in options to me is the loss limiting nature of many strategies. I watched specifically because I am naked adverse and wanted to learn more about what I could be doing to protect such a position.
@SUN168993 ай бұрын
Excellent LEAPs Video. Thank you. Questions: 1 If you "Add 1 SPY LEAP every Monday", it would be difficut to decide if it is Oversold from the Weekly Chart? 2. Could you explain why you use 12-14Delta, Instead of commonly using 20-30% Delta considering SPY is conservative? Thank you.
@KristoferKrause Жыл бұрын
Thanks Tom.
@marcmini8137Ай бұрын
you can sell LONG LEAPS like this and hedge it with a put as well. so pretty much sell a LONG WIDE PUTSPREAD. sell the 15 delta and buy the 5 delta. give up some premium but check to see if ur capital costs are less. more effecient and u have downside protection if it tanks.
@shankerchennapareddy5629Ай бұрын
Tom, I am new to leaps, I am into Wheel since 2years it working for me. I didn't get your acronynm TA sir
@user-uc5qz7qn9s8 күн бұрын
Technical analysis
@ItalianPropertyTours8 ай бұрын
Great video Tom, watched it several times now to absorb the lesson. Easy to understand and follow. The LEAP strategy is definitely one I’m going to implement for income. What other stocks would you suggest to implement this strategy on I could research please? 365 DTE, deal OTM options that pay good premiums? The strategy of closing at around 30% profit is sustainable as well. Thanks mate.
@AdolfMitler-ch8ns3 ай бұрын
Sustainable my Tiddies...
@joeldepaolis383212 күн бұрын
Tom, curious how this strategy would work on futures options. Index, commodities, currency etc. Do you have experience with this? if so how were the results, thanks in advance.
@jas-bj3oc8 ай бұрын
Hi sir, very interesting. I do leaps in companies A. I read it 10 years ago and I loved trading leaps in 1 year. But I do not close in 30 days, I usually try 3-6 months. THanks
@_Jelly_Bean6 ай бұрын
Tom, Thank you for a very informative video. I tried this in my RH account and it’s actually requiring me to have 40+K in collateral. How do you do it with such a small buying power? Thank you
@vikasgupta18283 ай бұрын
Thanks
@katun1883 Жыл бұрын
Hi Tom, if your putting on your SPY leap's every Monday why would you do any TA at all. Being that the market is back near it's all time high, are you still putting them on every Monday? Love the video.
@TommKing13 Жыл бұрын
Good question! At this time no, but I would adapt with the market.
@myfiller269 Жыл бұрын
Hi Tom, Just came across your video, subscribed after watching the first run, and have rewatched it a 3rd time so far. Question: I would need roughly $288K to sell and close one $SPY PUT each week? I currently have $100K to start (Without using Margin) I been day trading Options for 3 months and I need something more consistent. Looking forward to the next in this series.
@serophiatn22 күн бұрын
A bit late to the party, but wondering...why not employ rolling when needed and why not use the QQQ's?
@Nininabeel Жыл бұрын
Have you ever done back testing on IWM for similar leap puts trade
@swillmerchant98862 ай бұрын
i wonder what a backtest of this trade strategy looks like on a bad year or a bad spell of years? 2023 was quite a good year for major indexes and all the blue chips..
@craigvanderborgh43242 ай бұрын
Tom: it seems like you prefer using SPY for this strategy and not your usual /ES. Is this true, and if so why?
@trendytate65404 ай бұрын
Great strategy!
@orkayen7 ай бұрын
If you are using TA to enter the trade, why not sell ATM (50 delta) puts to get more premium? If it goes south, you can very well wait for 1 more month as 25-30% of the premium will be much higher than 13 delta premium.
@freemvn7 ай бұрын
Also, with his example it's just hitting 18% with higher delta. His idea is great but it would only work when the volatility is high
@joeldepaolis383214 күн бұрын
Buying power would be significantly higher selling a 50 delta ATM put option compared to the 14 delta
@hst1001 Жыл бұрын
Hi Tom, I appreciate the combined simplicity/return of this approach. Question...Week1 you try to find an acceptable 12 delta ~365DTE put. As I write this, there are 323/330/414 DTE options available on SPY. Say I select the 330. Next week that 330 changes to 323 DTE. If I select that date (414 is still at 407), then the 12 delta put might be the same one as I placed last week. Do you double up on the same strike? Thanks.
@Trading7797 ай бұрын
I would assume it would be the strike wherever the 12 delta, so in your case then yeah
@fabianmuller17366 ай бұрын
Another person who explains the same strategy never makes a trade with the same DTE. So he always pays attention that he doesn't have two options with the same DTE.
@hst10016 ай бұрын
Thanks @@fabianmuller1736 , that makes sense. Do you have a link to that video?
@varunsayalauthor Жыл бұрын
One question. Why is buying power only 10% of collateral needed?
@fabianmuller17366 ай бұрын
Because of the long time until assignment or expiry. The broker doesn't calculate the full collateral at the beginning. But it rises the nearer it gets to the assignment or expiry.
@MrConjugate Жыл бұрын
How did you end up only risking $3737 for a return of $633 on a naked put? If you sell a $375 strike put, it asks $37,500 in your account as collateral. Did you buy also buy a put option at a lower strike to limit that (basically converting this into a debit put spread)? I didn't get that part in your video.
@pdlue11 ай бұрын
I observed the same discrepancy. The BP need is in the tens of thousands even for LEAPS.
@timothythompson738810 ай бұрын
@@pdlue I believe he is referring to actual BP reserved in a margin account. It would be far different in a cash secured account. He also pointed out that he is using a “red key” (RK) margin account which gives very good returns, but you can get unbelievable returns on this strategy in a “portfolio margin” account (PM)
@pasha9049 ай бұрын
Margin
@ssing71137 ай бұрын
That’s I think absurd and miscalculated margin.. margin should be a few thousand to sell naked, one option Maybe you’re meaning if assigned. Which he said he really doesn’t do along with closing out at a 2-3x loss so he really is never assigned Yea that is 37,500 in cash or margin he needs to front if assigned..
@melzdesign7 ай бұрын
When a valuable comment like this gets around, the KZfaqr always disappears 😅😅😅! You’re right I noticed the same. The other thing he didn’t tell us. If you sell 30 days later You won’t cash 💰 the full premium, you will only take a percentage of it and you will have to buy to close. So really ex. $37000 collateral $600 premium at expiration And probably $23 gains when he close the option 30 days later. If done successfully 4 times a month. That’s a 100 bucks 😅😅😅😅😅😅😅😅 Jesus Christ!
@fabs7214Ай бұрын
Will you do LEAPS with options on future instead of ETF?
@robbybee702 ай бұрын
when you sell a stock for what you bought it for the tax on that is zero right? (just the premium is taxed I mean)
@tomlewis6322 ай бұрын
The only problem with selling Leaps is the Vega. A big move down will move the IV up, and put it to you. Just like selling ATM puts that are expiring in 1 week. The Gamma is too large. 45 to 60 DTE seems to balance out between the two. I don/t know how to hedge for Vega, except by buying another option in the same series.
@lasvegasadventures87292 ай бұрын
If the delta is where you want them to be, I dont care about my unrealized losses. Ever trade NDX? Talk about unrealized losses....but as long as the options are far out enough, who cares about the unrealized losses?
@tomlewis6322 ай бұрын
@@lasvegasadventures8729 Not sure what you are saying. I care about the loses. If the leap is in the money(50+) delta. Yes NDX you don’t get assigned until expiration, But if time is running out and it is down, you will loose, unless you are hedged. Which no one talks about. All they want to do is rolling. Or sell more to average down. Which is hard to do if you have a small account.
@mathineedavis3802 Жыл бұрын
Would you rather do an /ES futures if it was available at your broker? Would you use the same Deltas? Would you consider a Strangle instead? Thanks!!
@TommKing1311 ай бұрын
If it was available, maybe. I dont want to overweight my ES trading with too much span margin risk though.
@JDJay1Ай бұрын
But aren’t we supposed to clear out at 50% of max profit or if there’s certain criteria hit for exit that doesn’t give you that full 30% you’re looking for
@javamochafrap2 ай бұрын
what has been your average success rate vs times you had losses and were stopped out? sounds interesting.
@skepticalinvestor951 Жыл бұрын
Add the Call side (turning it into a strangle instead) and you will find out the true power of this strategy with no addition BP used by the way.
@moiseslopez54437 ай бұрын
remarkable winning rate, I love your strategy, but I don't have that BP.
@robertw.7 ай бұрын
Do you have a video which is really for beginners? This video uses so many terms I don't understand at all!
@JeffJonesJr6 ай бұрын
Have you ever looked at trying IWM?
@lasvegasadventures87292 ай бұрын
@Tom King - You had 41% max drawdown on AAPL with this strategy??? Did I read that right?
@quiztopics7395 Жыл бұрын
I am unclear how you place these trades on margin. Is there a particular way to do it? All my puts are cash secured, so just trying to understand how you do this before trying it myself.
@timothythompson738810 ай бұрын
You need a margin account, this doesn’t work well in a cash secured account
@SouthMountainErock5 ай бұрын
How does Option Omega register a draw down if there were no losing trades?
@lasvegasadventures87292 ай бұрын
Whats the reason for closing out the winner at 30%? I understand not wasting time tryign to squeeze out last 10% or whatever but why leave 70% on the table?
@Miguel_161 Жыл бұрын
What options level do you need? I’m at lvl3 on TOS and my BP required is exactly the price of 100 shares at X strike. Or is it capital dependent?
@Trading7797 ай бұрын
He's probably level 4
@davidgibson81659 ай бұрын
Tom - Your Spy leap put write in the example of 6.33 credit = 1.69 % return on capital required if assigned at 375. I don't understand how you average 3% per month return. Your buying power is 3,737 Does that mean that you are willing to use margin if assigned ?
@AmazingProspectingLetters3 ай бұрын
I assume you're buying leaps when spy is sideways or down, not when it's up like it is now?
@jtrades7118 Жыл бұрын
are you using margin to get those returns? i see a little over 2% return on cash secured put LEAP
@TommKing13 Жыл бұрын
Yep
@babycutezz5665 Жыл бұрын
@@TommKing13 if you are using margin, with 100k account, you can't own all 10 SPY when getting an assignment, correct? What's your risk mitigation if the volatility spikes and drop fast closer to all your strikes? Thanks
@user-iv5eh1nb7q11 ай бұрын
How do you have 10 contracts rolling at once? each contract is 100 k in buying power used?
@TommKing1311 ай бұрын
A SPY contract is $3.3K. 10 of them is $33k in BP
@antwerks18 ай бұрын
WHAT IS YOUR MARGIN COST SLIPPAGE?
@wayallen8313 ай бұрын
Can you elaborate on the 2x Max Loss piece? On the example at 20:38 the screen shows max loss at - 36,867. I'm assuming this isn't what you're referring to right?
@israelmarois64703 ай бұрын
2x the credit received. If you receive 100 your max loss is 200. And you get out at 30% so you risk 200$ to make 30$. Very bad ratio but he said he has a 97% win rate.
@redeyes5568 Жыл бұрын
great stuff, where did you perform the backtest?
@TommKing13 Жыл бұрын
Option Omega
@redeyes5568 Жыл бұрын
@@TommKing13 thanks. I know that TastyTrade has some kind of backtesting capabilities but haven't tried it yet. Have you researched the TT offering?
@cu-wn7nl Жыл бұрын
I guess the sec part of the leap put series is about 365 dte risk reversal ?
@Zues647 ай бұрын
Hi Tom, just came across your channel. I like what I'm seeing, thank you. WRT to this LEAP strategy, if i'm trading in an IRA account, I need to buy a deep OTM wing to safe buying power. Would a bull put spread make sense on SPY to achieve a similiar win rate as your results? If so, I'm thinking 25 wide spread. Thoughts? And thank you.
@rocketshoot30277 ай бұрын
12 to 14 delta does not give 30% return. It gives 10%. Check it out.
@fabianmuller17366 ай бұрын
What do you mean exactly? Your TakeProfit is at 30 %. Additionally your premium depends on the actual IV
@Jamesjonessofy Жыл бұрын
Thank you for sharing. Question: you say that your stop loss is 2x the max loss but on the example you showed us this max loss is $ 36 K . Is it right ? I didn’t get that . I appreciate your explanation on that if it’s possible.
@TommKing1311 ай бұрын
You are looking at max loss if this goes to 0. I will close at a 2X loss.
@mcop18 ай бұрын
@@TommKing13 So 2X Loss is? For example if Max Profit is 600, Max Loss is -37,400 and BP is 3800 what is 2X Loss?
@fabianmuller17366 ай бұрын
@@mcop1The loss normally relates to the premium you get. So in this example your premium is 600, so the loss is 1200
@phalanxtrader8 ай бұрын
Tom, how long do you trade this strategie in SPY?
@Elena-fg7er9 ай бұрын
Tom, love your content. I have a question: Is selling LEAPs Puts on /ES is a thing? I understand that it is possible, I am just curious what are the downsides/risks vs. SPY. Unless my TOS is lying to me BP usage to credit is awesome. But I am sure it is not as great as it looks. Thank you .
@TommKing139 ай бұрын
It is a good leverage opportunity. My main 2 reasons for NOT doing it are 1. TT does not offer LEAPs on ES like TOS and 2. I do not want to overextend my reliance on ES and the leverage I am already using on 112 and Strangle trades.
@Elena-fg7er9 ай бұрын
Thank you
@Zues647 ай бұрын
SPY Leap controls 100 shares; /ES represents 500 shares so an /ES LEAP would be like selling 5 contracts vs. 1 SPY LEAP. Risky but juicy!
@gramos197511 ай бұрын
Hi Tom. Whats the difference btw these leaps or strangles in ES?
@ACR40086 ай бұрын
25:20 I love this strategy, but I’m having trouble understanding this back test because it seems too good to be true. I see 110 total trades and average winner of $303. This is roughly $33,000 so how could you possibly have a profit of $149,000 on $100,000 of capital?
@fabianmuller17366 ай бұрын
That's a good point. Even if you calculate with the max winner you will end up less than it shows. 110 trades x 480 USD = 52,800 USD
@joeldepaolis383212 күн бұрын
I came to the same conundrum. I did some work in excel to figure this out. The key is the 10% allocation is not total portfolio but per position. Every monday the backtest is opening a position worth of 10k based on buying power requirements. They would be holding 6, 7 or possibly 8 weeks worth of these LEAPS. Which equates to 60k,70k or 80k worth of buying power. Too much risk. Stick with 2-3% of buying power per week or 10-15% allocation of your portfolio in total. Should yield about 1% per month net based on Tom's rules
@ACR400812 күн бұрын
I think the only fair way to describe ROI is using the entire account balance. As we saw, a volatility spike can drastically increase buying power requirements. Therefore, even if the current BP requirement is low, there is a reason to keep extra cash on hand. Therefore, I think that opportunity cost should be factored in to return.
@ytj2053Ай бұрын
I trade Options but I'll just say this isn't a beginner video at all! Could be good but nothing BEGINNER about it! Don't get wrecked out there!
@livegoodwitherik4 ай бұрын
Great video! I think TSLA is going to tank in the next 6 moths. Can I do naked put leap options on TSLA like a spread? Like TSLA 80 put for august, 70 put for September, 60 put for october and so forth?
@TommKing134 ай бұрын
Why would you sell naked puts on a stock you think is "going in the tank"?
@livegoodwitherik4 ай бұрын
@@TommKing13 Dont you buy puts when you think the market is going down, and calls when you think market is going up?
@TommKing134 ай бұрын
@@livegoodwitherik you said naked put LEAPs which is selling puts.
@livegoodwitherik4 ай бұрын
@@TommKing13 sorry im new to options. I want to buy puts against TSLA next 6 months.
@TommKing134 ай бұрын
All good. I think selling LEAPs here is a better strategy, but TSLA is getting very enticing.
@nw60919 ай бұрын
Warren Buffet has been known for selling puts. I wonder how far out he sells them, and at what delta.
@ItalianPropertyTours8 ай бұрын
Sorry Tom, could you please explain more what you mean with 3 x max loss? I understand it’s a stop loss but I use interactive brokers and I’m trying to work out what figure this should be. I’m learning heaps from you and I want to start implementing the short strangle on futures but holding off until I get the stop loss right. The responsible way to trade options. Any help would be great.
@ssing71137 ай бұрын
Simple example. You took in $100 A “1x loss” is -$100 so option is sitting at $200 to buy back A “2x loss” is -$200 so option is sitting at $300 to buy back A “3x loss” is -$300 so option to buy back is $400 You have to discount what you took in as that’s like house money sitting there in the pool either to decay and it’s yours or goes back to house and you have to give money back and then some
@Zues647 ай бұрын
@@ssing7113 I think what Tom is doing is setting a 3X (his initial credit) stop limit order GTC upon initial trade setup; so stop out @ $300 for a -$200 loss (or 2X max loss).
@gr8vocl Жыл бұрын
Do you alert your trades on mondays so I can see what exactly you do?
@TommKing13 Жыл бұрын
I alert members of a Discord on every trade in and and out.
@futurebankroll2 ай бұрын
WOW!...
@mcop18 ай бұрын
@TommKing13 When you put on every Monday, do you always just go out to the next expiration date (from the previous week)?
@TommKing138 ай бұрын
No, I just stay closest to 365
@mcop18 ай бұрын
@@TommKing13 So then you'll just add another contract to the original short put?
@gramos1975 Жыл бұрын
Nice video! Why don't you use futures Es instead of spy ? (Less bp)
@TommKing13 Жыл бұрын
Tastytrade does not offer ES futures that far out. TOS does.
@dennisw8026 Жыл бұрын
futures have span margin
@Marcius78LT Жыл бұрын
Would it work on /es?
@TommKing13 Жыл бұрын
It would if Tastytrade would offer LEAPs on Es. But they don’t. I keep writing them.
@Marcius78LT Жыл бұрын
@@TommKing13 IBKR offers those LEAPS.
@gfut2098 Жыл бұрын
@@TommKing13 , just chatted with Tasty, supposed to be adding some more ES contracts soon, getting them closer to the 365 Days.
@LMF-ct4lt10 ай бұрын
Tom, what trading platform do you use?
@mcop18 ай бұрын
Its Tastytrade. I use it too , great for options.
@seangreen826211 ай бұрын
I would ask a question, but it appears that you have only answered a couple from all the comments left here?
@TommKing1311 ай бұрын
Ask away, I am busy and cannot always get to everyone on every video. There are hundreds of videos.
@mirono4 ай бұрын
I didn't understood the 30% profit close. If I sell 1 SPY PUT ~ 350DTE ~12 Delta, I get let's say 750$ and the margin required is about 4500$. So the 30% is from the 4500$ no? That is more than the entire premium. When do I close this position?
@wheidrich3 ай бұрын
It's 30% of your premium. So you would buy it back at $525, making $225 profit.
@mirono3 ай бұрын
@@wheidrich I think this is a wrong calculation. It should be calculated vs. the margin locked for this trade, i.e. 225/4500 which is 5% profit.
@wheidrich2 ай бұрын
@@mirono No when they talk about closing at X% profit it is based on the premium collected. If you hold it to expiration and it is a winner then you would get 100% profit. There is no way you can make 30% of the margin based on the example.
@staffan_ofwerman8 ай бұрын
With a smaller account (I have a little more than $10,000 now). Is it possible to trade the /ES instead this way? Or still do the SPY and just set the stop loss at 2X? I'm on Tastytrade as well.
@Zues647 ай бұрын
I'm new to TT w/a smaller account as well). As of now (market is closed), selling 1 /ES Sep 24 PUT (longest dated i could see) would bring a $2625 credit (52 x 50 x 1 ct) and take $4600 BP in my margin account. Following Tom's 2% of Net Liq position size limit, you'd be well over that. Assuming Tom's 50% max BPC rule, you're then working with $5K BP, leaving very little room for any span margin increases. Maybe look at /MES...very doable then.
@staffan_ofwerman7 ай бұрын
@@Zues64 yes, that's what I'm actually doing now.
@youyou-dv8fr9 ай бұрын
Your numbers don’t add up. Specifically buying power; you would need at least $35K in your account to sell leap PUT if your underlined stock is $350 per share. Your brokerage firm requires you to have that much $$$ for selling 1 SPY LEAP CONTRACT. Nonetheless thank you for the video, I learnt something new today. Do your homework people. There’s no easy money!
@christiandiehl93668 ай бұрын
Thats nonsense. The answer is: Portfolio Margin Account. I do this trades in my account, it needs only about 1.000 $ margin per Spy Leap sold.
@fabianmuller17366 ай бұрын
The broker doesn't calculate the full collateral/margin at the beginning. The reason is that there is a long time until assignement or expiry
@d3ath1ygaming55 Жыл бұрын
good stuff, careful with apple, 3 bad earnings in a row.
@randy41187 ай бұрын
Hi Tom like your concept and the way you explained the LEAP TRADING strategy but cud you provide a couple examples of SPY like what option u sold and when you bought it back and made money! are u holding 30 days or so to let Theta chip away at the premium price? im a little confused pleas hell me understand
@fabianmuller17366 ай бұрын
You look at options with a DTE from 300 to 365. You don't focus on the strike price but on the delta of 12. So you get the strike price "automatically" And the TakeProfit is at 30 %. If you sell an option with 1.00 premium, your takeprofit is at 0.70
@mrbee3377 Жыл бұрын
Just to much $$ needed to wheel SPY?
@denisbondin96868 күн бұрын
I'm pretty sure this strategy would wipe off your account in 2008.
@Stock1899 ай бұрын
Scam? I am not sure if the objective is to sell a service or what but I have a previous comment about risk & sizing. I’d love if someone would clear that up for me because the numbers I calculate make this a terrible strategy. Seem my other comment for details. I hope I’m wrong and I will eat my words and delete this comment if I am.
@freemvn7 ай бұрын
I agree with you, to get the 30% would have to be a very risk stock or a way higher delta
@swlryan7 ай бұрын
Yep, me too. It's unfortunate that he does not reply much to comments
@juansuarez33846 ай бұрын
LEAPS NOT LEAP even if just one contract. The S is part of the acronym. Longterm Equity AnticiPation Securities Also Own stocks too lol
@jaybailey9903 ай бұрын
Tom How about getting to your point a little quicker. We like you but all your expounding is exhausting. Thank you
@dennisw8026 Жыл бұрын
2 MES futures equates to 1 SPY with much less BP requirement but I don't see TOS offers MES futures contracts that far out.