Put Credit Spread and Puts Explained by a PRO
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- เผยแพร่เมื่อ 28 ก.ย. 2024
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!
Made my first $100 deposit on Robinhood 04//06/20.
As of today 09/12/22 I have $5585.46 in my portfolio doing put credit spreads.
My weekly premiums started at a measily $6-$9 per week and are now up over $400 per week and climbing.
I tried this on only 90%+ chance of profit trades trying to make between $8-12 on wins and I am 18 wins and 6 losses and down $1k+. Evidently doing something wrong. I have the time and $$ but not the skill evidently but just down from 26k to 25k.
thanks for sharing. I just wonder, when you are doing spreads with a leg selling put, do you have to be secured with enough cash? Like trading Tesla or Nvida, I don't think small account do that strategy. Please correct if I miss sth. thanks.
@@brianciofani4698 what did you do wrong? it hard to lose
POV its 2024 and you're watching NVIDIA.
I liked the video. I would wanted to see more about how you manage the spread (tale profit) as it nears the expiration. Is there a video of yours that explains that?
Thanks Henry, appreciate the insight into position sizes. I usually keep my spreads per play to $5k max collateral. Can you talk a bit more on how else you diversify ur portfolio and even on technical indicators? And how you decide to play a stock? Thanks !
Best stock channel on TH-cam! Hands DOWN!!
Wow, thanks!
Agreed can't wait to see new vid you put out keeps me amped up and studying. Would like to practice soon.
You see it’s always best to have a pro like Henry do the explaining for you. Thanks for the vid Henry. ❤️
@Andrei Buy index funds if you wanna be safe, though you’d probably be better off just going to Vanguard or something for that or consult a licensed professional…
@Andrei …personally I had to reach out to a market analyst for guidance which was how I was able to grow my account close to a million. Nothing beats experience you should’ve known that by now.
@Andrei Her name is Loretta Wilkinson I found her at a conference where she was featured and I reached out to her afterwards. She has since provide entry and exits points in the securities I focus on. You can look her up for supervision. I basically follow her trade pattern and haven’t regretted doing so.
@Andrei Just look her up online with her name *Loretta Wilkinson* to get all the vital informations you need to know.
@@Mason-vz2kl Thanks for sharing… I was able to get her on telegram after looking her up online.
I guess I'm missing something here. If the stock price in the NVDA example drops to 128, you are assigned the stock and have to put up the $12880 (you now own the stock). But, the put you bought at 125 isn't reached and so the shares aren't assigned away from you. I get if the stock drops below 125 you're protected (the stocks will be assigned away from you), but you still have to have the cash available to buy the stock. Did he mention this or did I just miss it?
Pin risk. That’s why you should always close spreads before expiration if they have legs close to being in the money.
So you get assigned between the 2 strikes from the short put and you sell it at current market price (below the higher strike). This loss will be offset by the premium you receive from your short put whereas the long put will be worth nothing. It follows simply the payoff (PnL) function of your spread.
I've been doing ok, selling puts on sofi after you mentioned it. Also Joseph hoag I believe his name is on TH-cam is bullish on the stock as well. That's awesome the retired guy is collecting 5k a month on a 250k portfolio. That's awesome.
What stock(s) is he selling CSP’s on to average 5k a month
@@stanoneil8449 I don't think he said, if I had to guess something like Tesla. You need high IV stocks to collect alot of premium.
@@Keto_Mike thx . I figd it was TSLA. I do that now w/ TSLA . Working my way up slow n steady . Any other good high IV stocks you recommend?
@@stanoneil8449 oh great I don't have that big of an account so I've been doing it with smaller stocks, sofi, mro, f, aal, those have all been giving me decent premium.
Thank you Henry!
Hey Henry! What strategies for a small account would you do in the current market conditions? My account got clapped after Jerome Powell's speech 3/22/23. Any suggestions?
Are the "Put Credit Spread" usually cash settled European style options? What if my short put goes in the money and I get assigned while my long put is still out of money? How to handle this scenario since I won't have the collateral to buy those 100 shares?
What broker are you using and / or what option order software are you displaying thanks
Really helpful video! 1 year late but hoping you could indulge me. Just quick question, at 13:04, you said cut position. How do you cut your position? Do you simply buy to close the original short put? whereas the long put remains open?
your asking someone who claims to turn 7k into 1.7 million?! good luck
@@talalztube ok. Then can you answer please?
@@calphak7389 he is pretty vague about how he does it by looking at "some indicators" i personally dont leg out of vertical spreads and exit the entire position. i would see if the premium i received is now twice as much ie if i had .50 cr at entry and now its at .100 meaning i have to buy back twice as much, then this is where i cut my loss.
You determine the sell put by the delta. How do you determine the buy put strike price?
Say I have a pcs with 1 contract and a ccs with 50 contracts. If I roll both out 2 weeks and widen strikes by 5 would I pay the extra 500 collateral in both cases or would the 2nd case by 500x50 or 500 per contract for all 50 contracts ?
Cover making notes and managing the trade after it’s open
Selling covered calls on those AA shares.
Best way to obtain a stock you want in your portfolio with limited downside risk and easily adjusting to a collar trade imo
Uncle Henry with another banger!!!
thank you!
Great video!
What is the name of the Discord?
If you have 200k. Better return to do selling puts or spreads?
selling puts offer better protection, at worst case you just own the stock
Sell puts
Why don't you ever mention that cash is being held by the broker for all of your put spreads. 100x Stike price in cash must be available or you can't trade.
Shritke or strike price 😅
The first problem is getting them filled, The second problem is the greeks eat away at it. I love it when these guys make it sound so easy...IT'S NOT!
Roll your options
Anybody else, where Robinhood is forcing you to do 2 orders?
risking $400 to make $65? even if you win 5 trades in a row, just 1 lost on this play and you will be down..
Is that for selling covered put or selling puts?
@@citizenm9590 not sure what you mean by covered put but in his example.. the collateral was $500 to make $65 on the put credit spread.
@@josephsaeteurn9158 I'm trying to figure out if covered call or selling puts is better option?
@@citizenm9590 selling put is clearly better option as you get to buy the stock you love at a discount AND you get the free premium. i run the wheel with puts first.. currently up 35% ROI on my Roth IRA @ $6K
You risk 400 but bear in mind you have a high probability of profit as he explained (low delta)
Success depends on the actions or steps you take to achieve it. Show me a man without investment and I'll tell you how long it takes to go bankrupt. Investing creates a safe haven for the future. With the right investment choice that has at least a 2% minimum risk and with the advice of an expert, profits and interest are 100% guaranteed.
What you should do is; seek the help of a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit
Teresa Jensen White, That's whom i work with
No she's not!... TH-cam is a public place; i can't drop her information here but You can just put her name on google and you will be directed to her website and drop her your message.
I'm surprised you know her too. I've been making a lot of profits learning and investing with her for a few months now.
TERESA JENSEN WHITE is one of the best mentor/trader I have ever worked with in the past few years, she knows how best to deal with whatever market situation.
Thank you for showing how to make option trade positions with actual demonstrations. It really helps.
I tell everyone I know at work that ask me about options. If you want to learn option watch Invest with Henry! You helped me tons!!!!! Thanks!
Thank you! Really appreciate that!
Love your account Henry. But can you get early assigned on out credit spreads? Or would this ONLY really happen if it goes below your 2nd leg strike you bought at?
i need help!! do you have to close options to take your profits or you can just let it expire?
Too much talking about yourself, not enough teaching ....bye
I’ve made so much money selling puts and selling calls.
How do we join your discord?
thats 100% my game every time i sell calls i get the money to sell vertical above the strike i sell it add 30-35%
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading
what i think you need is a Financial Adviser, who can help you get in and out of any stock you buy at any time and you'd sure be in Profit
How do you get access to spreads on robinhood
did you ever roll out your put it it turned against you? or just close the position? 🍷🤙
Have you been selling puts this year?
NVDA checking in at 124 as of today :)
Do I really have to have a 1-1 on somebody I'm not interested in having a 1-1 with to join the discord? 😑
you turned $17K into $13K? that sounds awful. did you mean $7K into $13K?
Which are quickest to learn
isn't there is bigger risk of being assigned trading tesla PCS?
Selling puts 14:30
what broker you are using ?
how do u do spreads w/under 10k? to my knowledge (&fidelity &webull) u need over 10k to do spreads.&I'm missing something Henry? I've been ur "John-the -baptist' I let everyone know u r the man @options. thx for everything. ✌️
Margin
Use a narrow width between the spreads, so the collateral requirements are lower (just the difference in the strike prices).
Hey guys I sell vertical options ( put credit spread) couple of times they force liquidation my position any idea why usually I do have enough buying power and I usually play it safe I go at least 4-7 dollars away from the current price but I still get the liquidation warning
Set the strike according to Delta.
You can also do a synthetic call on this Henry. Sell a put combined with buying a call option.
Synthetic long, but the idea of a spread is to protect the side you are doing the spread on, call or put.
How to roll it if you lost for put sprad
👍👍
you entry csredit put 0.65 stop loss ????
stop los 2.3 ???
No thanks. Not interested.
Why ?
Any reason?
Your mom is interested