thanks for suggestion

Yes, show the risk profile, that would be helpful!

Savvy Desi Yes, that's correct.

And is that a safe bet because I understand some stop limit orders or not activated.

thx! we have some more complex ones on the channel in the options playlist

David Kamnitzer I would imagine that you would do the same thing except you'd do it with call options instead of with puts.

@@hermanambriz no. Calls usually don't provide the same premium in stock indices

You could always backrest this on a paper account. That's what I would do as it puts the proof right in front of you. Good luck!

I like to sell cash covered puts and covered calls. Only risk is losing on actually owning stock, so don't do this on crappy stocks. With covered calls you only cap your potential gains. Otherwise, collect sweet sweet premiums all week every week.

Not sure, check our "Options Playlist" we may have some in there

This was great, thanks, I been tryin to find out about "option picking strategy" for a while now, and I think this has helped. You ever tried - Winoorfa Option Olegroson - (Have a quick look on google cant remember the place now ) ? Ive heard some super things about it and my neighbour got excellent results with it.

Simone Marrazzo I think it is closely equivalent to the maximum loss of the trade.

If it were a simple vertical spread of five points the margin would be $500 per contract. That’s five points times 100 shares equals $500. 10 contracts times $500 would be $5000 maintenance requirement. I don’t understandThe spread, however I imagine the broker does something like that to get $4700 of the maintenance requirement

It's all about probabilities - based on back testing you can get an idea of your returns at the end of the year factoring in losses. A solid options strategy should result in nice returns if you stick to it especially through the losing months

Yeah I think any time you are above the 20 MA, selling at the 10 delta will be hard to get 6%. You'd need to do this on a down day where the butterfly gives you a bigger credit. Weird.

@@InfiniteQuest86 FYI, I was able to put this trade on today with a 6% potential. But at a delta of -14% for the short strike. Overall position delta is 6.68 so not bad. July 5 expiration.

@@robertnoonan Yeah, I messed around with strikes today to see what was going on during the actual trading session, and I found the same thing.

@@InfiniteQuest86 I put the position on and sold a bear call spread to reduce the downside risk. The overall position is delta neutral and potential return increases to 10.1% for the week. We'll see what happens.

@@robertnoonan Yeah, I really like your variant. The risk/reward for moving it closer to ATM feels a bit crazy to me. But I guess that's why they also say to cap the loss before it gets out of hand.

If you're this good then grow a pair, use your real name, and start your own KZfaq channel. PS - Your returns are Risk of Ruin piss poor for that kind of trade. Any long single strike strategy should return at least 50% when you win, or you don't know what you are doing. So maybe you should stay behind an anonymous alias!

Worst case, you could lose $4710. That is why, after he explained the trade, he said the broker would "require you to set aside about $4700 for this trade."

They will never do it. They never want to expose risk side of trade. :-) They want you starry-eyed.

You are supposed to roll down out of the trade. This is what good option traders do. You must react to the market still with this trade.

@@brennanmanion2905 Hi , do you know the time of that particular segment? Cant seem to find it. I only found the only where it's mentioned the price closes near the sold strikes near expiration ie strike 2825.

@@brennanmanion2905 Hi, Brennan. I'm a little fuzzy, okay okay, I'm a lot fuzzy, on what you mean by roll down out of the trade. Could you give an example or two of what it means to roll down out of the trade? Thanks, Brennan.

you5711 I meant to write “roll out”. Basically you liquidate, not at a full loss; at a small loss. You sell to close the current option while selling to open an option at a later date.

at ten percent stop, you back the fuck out. bail soon enough and you lose 470. that's 2 trades

The thing is, he didn't buy a butterfly, he bought a broken wing butterfly. In a butterfly, the distance between the middle strike and the upper strike is equal to the distance between the middle strike and the lower strike. In a broken wing butterfly, the distances are not equal. In his trade, the upper strike was 10 points above the middle strike, and the lower strike was 20 points below the middle strike, which is how he was able to put on the trade with a credit. You can see the difference in strike prices in the options table if you pause the video at 5:12. He goes over the credit calculation at 5:58.

Thank you@@you5711. Make sense

@@nickpatel1965 You're welcome, Nick.

stop the warren buffet references..

Fools gold looks valuable to the ignorant, I think you be ignorant; otherwise you would be less than impressed with this presentation. 15% returns on large chunks of capital, LOLLLLLLLLLLLLLLLL

You obviously live off table scraps, so I see your point from your point of view. Must be hard living your life satisfied by so little. Former Franciscan monk?