Check this video out. Link here: th-cam.com/video/IBFdh3oTaBw/w-d-xo.html It’s on how I like to trade iron condors and, runs through the basics on how iron condors work. Check it out and see if it’s what you’re looking for. This video/strategy is by far my favorite strategy to use and has been so critical in my being able to quit working a 9 to 5.
Most people always say try to get at least one third of the spread, Do you have a minimum amount of credit that you're willing to receive on your credit spreads?
I’ve been averaging around 15-20% (depending on how you calculate potential ROI, it might be higher). But depending on the underlying and its IV, the premium may be differ a lot. I tend to value stability in an underlying’s price action over premium chasing, cause then my stops are a lot cleaner when I have to take an L. my risk and reward will be consistently profitable if my setup is clean.
Every option I have seen shows that when selling the lower option it render less income than the cost of buying the option at the higher amount. In oter words selling an option for $595 at the strike price of $390 may be true but buying the option with a higher strike price will cost you more than the credit you received. Take a look for yourself.
Depends on the side, put or call. If you’re doing that on the put side, then it’ll be true since the higher strike will be worth more money. So you would sell the $390 put and then buy the $385 put option if you wanted to open a credit spread. If you did that on the call side though, the higher strike will be worth less money. So you would sell the $390 call option and then buy the $395 call option for a call credit spread.
Bro you are technically not even risking that much since a normal person would just sell the position if it close to your strike price you just have to keep an eye on it and you can make a decent 5-10% a month easily
You will win consistently. Your overall P&L should be trending upward. But you need to pick the right strike price and expiration date so you get the right probability of profit relative to the amount you risk. You check your progress over a series of many trades over time.
Max loss = margin requirement. Which means you could open tons of contracts with an account size of $3-10k. Also % of success is usually 85-90% on these
So you look at atr and then add one, to find your strike price, or did i miss that??
Is your current portfolio 535,426? Just wondering because that is fantastic from your previous credit spread videos.
paper money
Great presentation. Do you have a video on Iron Condors?
Check this video out. Link here:
th-cam.com/video/IBFdh3oTaBw/w-d-xo.html
It’s on how I like to trade iron condors and, runs through the basics on how iron condors work.
Check it out and see if it’s what you’re looking for.
This video/strategy is by far my favorite strategy to use and has been so critical in my being able to quit working a 9 to 5.
Considering Ask Prices for Bought are always higher than Bid Prices - do you have (or know of) any metrics to reallocate quantities?
Pretty good 👍🏻
Thanks for watching! 🔥🔥🔥
Are you entering a stop loss same time as you enter order?
yup :) always set that stop loss the moment you enter a trade
That is known as vertical bull put credit spread! I'm Duke.
Most people always say try to get at least one third of the spread, Do you have a minimum amount of credit that you're willing to receive on your credit spreads?
I’ve been averaging around 15-20% (depending on how you calculate potential ROI, it might be higher). But depending on the underlying and its IV, the premium may be differ a lot. I tend to value stability in an underlying’s price action over premium chasing, cause then my stops are a lot cleaner when I have to take an L. my risk and reward will be consistently profitable if my setup is clean.
Every option I have seen shows that when selling the lower option it render less income than the cost of buying the option at the higher amount. In oter words selling an option for $595 at the strike price of $390 may be true but buying the option with a higher strike price will cost you more than the credit you received. Take a look for yourself.
Depends on the side, put or call. If you’re doing that on the put side, then it’ll be true since the higher strike will be worth more money. So you would sell the $390 put and then buy the $385 put option if you wanted to open a credit spread. If you did that on the call side though, the higher strike will be worth less money. So you would sell the $390 call option and then buy the $395 call option for a call credit spread.
Who else is here cos they wanna risk 4k to make 1k on spx lol
Bro you are technically not even risking that much since a normal person would just sell the position if it close to your strike price you just have to keep an eye on it and you can make a decent 5-10% a month easily
So your max win is $150 vs max loss of $350. This is not a good R:R. Why is this strategy so popular? I'm missing something.
Because they trade has a high probability of profit. Particularly if you close the trade before expiration.
Because the chance of max loss is low. Let's assume the chance of max loss is 3%. Then the trade makes sense to try.
You will win consistently. Your overall P&L should be trending upward. But you need to pick the right strike price and expiration date so you get the right probability of profit relative to the amount you risk. You check your progress over a series of many trades over time.
Max loss = margin requirement. Which means you could open tons of contracts with an account size of $3-10k.
Also % of success is usually 85-90% on these
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