Tom Sosnoff's Complete Guide to Options (full talk)
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- เผยแพร่เมื่อ 18 พ.ย. 2020
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Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request.
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I just learned more in 26 minutes about options Portfolio management Then ever before . Thanks for the insight!
I swear this guy doesn’t age
Tom youre the GOAT. Your efforts are appreciated and you've changed my trading habits for the better.
Tom I watch over and over all your educational videos and daily podcasts .
Thank you very much for sharing all your crazy knowledge ! I blowup 2 accounts in Ameritrade
I opened a tastyworks account around 6 months and paying a lot of money in education but I found that you are the only person that explains all the metrics in depth.
I’m amazed how efficient and fast it’s and for the first time I’m profitable and able to help my family.
What better than learn from a MARKER!
Thank you again Tom ,for teaching people like me .. you help me and my family..
This is by far the most crucial synopsis on options trading portfolio by Tom, and how to manage your risk, delta and trade ideas within your portfolio! Kudos to the team..
This is better than a college 1 semester class in 23 minutes!
Absolutely. Learned more from options trading and courses than I did in my entire finance degree
Thank you so much Tom, Tony and your marvellous Team. Your consistent sharing of knowledge is precious.
I love heavy pieces like this!!!! Keep it coming!!!
Thanks Tom 4 teaching us 👍🏻👍🏻👍🏻👍🏻
Appreciate this type of free for all sate of the art content ❤️
Thanks Tom, it's financial enlightening session.
So helpful，thank you very much!
Thank you Tom. Appreciate it.
Amazing Content and delivery - Thanks Tom !! Grateful and Appreciate the insights 🙂
Excellent presentation Tom.
Thank you! Wonderful and informative presentation.
Excellent piece. Thanks a lot, Tom. :-)
Live to 100 Tom Sosnoff, you are a prophet of finance!
Thank you for this piece
just stumbled across this account, and i am impressed !!
Suggestion: on the slides add the current price of the underlying. Ex GDX ($56)
Amazing. More of this kind of content please!
This guy is brilliant. I would love to meet him in person.
Great video, shared with my father that had a stroke, active trading helps the brain a lot
Very Helpful videos, thanks alot
Great video Tom!
I will forever remember this name Tom Sosnoff. Thank you! Now imma go create a diversified portfolio to make me some money
amazing! thanks
Thank you so much...
Outstanding!
I was trying to click on the double thumbs up but didn’t find one. Great content as always. I am so grateful for all the free knowledge that tasty as been sharing .
fantastic vlog on options
I buy options in a practice account and have traded a £40k practice account to £292k balance this year which i made a vlog showing the balance etc i achieved this going long swing trading option calls etc and staying in these options for between 3 weeks ish and selling the options between 3 weeks and expiry and choosing to purposely not use stop loss but i made sure there was plenty of liquidity in account to absorb up to 3 successive gap downs should they have happened etc when my bakance was £292k i had £250k liquidity eg available to absorb overnight gap downs etc
My balance has decreased to £120k but i still have £100k liquidity and just bought december options a couple of days ago but even at £120k i am still profitable from my original £40k practice account starting balance thisyear etc
Very nicely done
This is gold
Amaizing lesson
Thanks Tom!
The godfather of options trading right here!
Thank you for sharing. It is amazing. Do you need to analyse chart of each stock to guess its direction before entering trades? Thank you
Hi Tom
Wonderful video. THANKS
How did you select the stocks to trade and how do you pair them with a particular strategy?
thank you.
Man I wish I was as smart as this guy!
Awesome stuff for free 👏 👍 👌
Big fan here! Just one question. Regarding the calculation of the correlation and beta figures being presented, what is the time frame and granularity of the data points used (i.e. daily, weekly, monthly...) for these calculations? Given we're generally looking at 30-45 DTE, I would assume you're looking at shorter-term time frames and more compact (daily?) data?
great job. thank you! looks like you are short on metals and long on crude for the next month
Options trade is the key .
Legend !
I don’t understand how he is only using 15k of capital to put on all of those trades? Don’t you need more collateral to sell those options in those scenarios?
Thank you for all the information. Can I ask you, or anyone else who may know your reasons why you don't leg into iron condors? Thank you
Tom. I studied every one of your You Tubes. I use Prob OTM 84 all the time. But I am seeing much higher deltas on this video. What caused you to change from the lower delta to the higher if the theme is better probability?
Tom, what do you think of this trade? 1/17/21
Long: CIICW warrants for 9.26 (11.50 exercise price)
Short CIIC Feb 30.00 call for 3.70 (CIIC now at 29.97)
The spread between the warrant price and the share price should narrow as the merger date approaches.
I LOVE when he says, "We have been in a bull market for 12 years. Some day this bukll market is gonna end." hahaha. Sosnoff... He's the BEST!
Are there any trade management plans?
How do you calculate or where do you get the S&P Correlation number ?
where is snp correlation shown on tasty works?
so this strategy will make you about 50 bucks a day profit, or 2k in 35 days assuming you buy/sell all the same strikes and expirations at about 20 minutes after the market opened on August 14 2020 and closed all the positions on September 18th the expiration day at about market close
Gold
When do we take profits on Strangles/Iron Condors? 25% or 50%?
Any summary for this video
I noticed all the options have around 30 delta. I was under the impression going for 16 delta strangles and other option strategies was ideal. With 30 delta do we get better theta / reward? Does extrinsic value decrease at the same rate for a 16 and 30 delta contract?
16 to 20 delta is recommended to start.. once you master managing positions, u can go higher deltas.
How to choose the underlyings?
IV and liquidity
looking back in hindsight, these would have been great trades lol
"Someday... The bullmarket is gonna end" haha the SP is saying Hi!!! 👋🏻👋🏻👋🏻👋🏻
I'm quiet new to options. Is 2% monthly return really realistic when you follow the tastytrade methodology?
I'm attempting it now, 2-5% return, you can check back in a few months if you wanna see how it goes. But from what I've studied and experienced, yes, but ONLY if doing it how tom does it (look up their top dogs segment), NOT how they talk on a daily basis (selling individual stock strangles) as the primary strategy.
The DTE are business days or calendar days?
Calendar
I feel like I understand how to make these trades, but I'm still trying to figure out how to know what trades to make and on what underlying stock
Depends on what your goals are and what strategy you want to use or how much money you want to make
That's the toughest part. Set up a good scanner and start looking at lots of stocks in you price range. Then it comes down to your risk tolerance
I am somewhat bothered by the final synopsis not saying anything about notional liquidity. By only referencing buying power I can't tell if the sample account is overleveraged or not.
First he said we could do these trades in our IRA, but many of the strategies he suggested involve trading uncovered options. Am I missing something? I don't think that's possible in an IRA.
Any chance you guys can do this same symposium for a tastybites-sized account? Like around ~$5,000
No. At some point you need capital and to grow your account
Nonsense. You can grow the Hell out of a $5000 account.
@@samuelrussell7876 Good strategy works no matter what you start with. I started with $5000 6 months ago and now over $10k
do you plan to hold these trades till expiry or close it before? and do you have any stoploss for the naked ones?
Hi Sagar,
Usually tastytraders will close a position 21 days before expiration to prevent gamma risk. Also, like said in the video, the plan is to close at 25% of max profit (though it is common practice to close at 50% of max profit - or hold until expiration - on a defined risk trade because the credit received is lower than on a naked position). If a naked option goes against you, reassess your assumption of the trade you're in: roll out in time if it's still the same or close the position at a loss if your view of it has changed. I hope it helped.
is the fist one a butterfly?
I don't get why he sold $3200 and $4700 BPR strangles in a $40000 account. That's more than 5% the size of his account. Any breach can influence his portfolio to a greater extent than other trades.
Same goes with a $20 wide iron condor. Don't you want your defined risk trades to be a max of $800 (2% of your account size)?
That being said, I still loved the talk. Appreciate how he took a contrarian and diversified approach in his trades
Is 5% bad? I thought that’s the max if you’re being aggressive imo
Not sure where he comes up with the BPR number. For the short put on XLE wouldn’t BPR be $3700 (37 strike x 100)???
You don't have to cash secure puts in a margin account (you would in an IRA) typically the BP requirement is 25% of the underlying's price.
You use margin and you can put up less money.
WHY 3 FAANG-Stocks AND the QQQ????
Does SPY considered a broad index for margin calculations on option portfolio?
you got rocked on the revrse jade lizard didnt you lol
when the market is getting pumped like this I have a hard time selling calls. But I understand the neutral delta mentality
Tom is the fucking man
Tom is awesome but every time I see him I remember Sam Kinnison. Lol
the hat. the hair. not the voice
Dumb question: What would the other 25% of the account be composed of? Tech stocks?
Hii
I’ve been selling naked puts recently, been working out well. After watching this, I’m considering a put credit spread so my buying power isn’t reduced so much...
Don't forget it is a different trade though, less credit received, less theta exposure, the long option is typically going to keep you in the trade longer. I do typically lean heavy on credit spreads myself only because I like to define my risk per trade as part of my core strategy which is the main reason to put one on.
naked puts recently have been a dream come true. I get a special satisfaction watching them expire worthless but I get the idea of managing winners early to develop good risk management when the Bear finally hits. This market has every trading with a false sense of security!
Stick to expiration in the 30-50 day range. Gives the underlying stock wiggle room and you the ability to make adjustments if needed
What about commission fees ??
2020 online stock market is just too difficult and unbelievable, I rather invest my money on crypto
Any option trader from India 🇮🇳
What is the significance of a 35 or 30 delta options? Why are these particular deltas / strikes being chosen?
Hi Pulkit,
Delta is a representation of the probability that the option in question will be In The Money at expiration. So when you sell (you are the casino) a 30 or 35 Delta, you have about 65% to 70% chances that the buyer (the gambler) will see it's option end up Out of The Money. Hope it helped.
What ?
Complexity for complexly sake. Diversifying and options is pretty senseless
21:00 "I don't think there is s single person listening today they wouldn't be comfortable with 34 shares of $SPY ($14,000) long or short" I don't think you understand how poor I am
I have a feeling that there are genuinely good intentions behind your initiative. The problem is that option trading, in a market that’s ultimately dominated and controlled by GIGANTIC MINEY, is a fundamentally flawed “investment” strategy for the average Jane and Joe, with puny 40K accounts. Yes, you might luck out here and there, and even manage some modest winnings, but play the game long enough with those feeble account sizes and you’ll eventually lose your shirt and then some. Even people who play Texas Hold’em professionally recognize the fact that the size of your stack not only increases your chances of winning, but also, and even more crucially, defines your all-important staying power when you inevitably hit those streaks of bad luck.
This is why he spent so long discussing position sizing genius.
Bitcoin is the future whether we agree or not It keeps prevailing against all odds.
2020 online stock market is just too difficult and unbelievable, I rather invest my money on crypto