I hope you found this video helpful. In the meantime, check out some of these other videos, and if you have any questions let me know in the comments. Recommended Links & Videos: How To Fly Rescue Missions: th-cam.com/video/OlTD9h_ZNd8/w-d-xo.html My Trading Routine: go.rockwelltrading.com/my-trading-routine Wheel Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq.html PowerX Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB.html
Remember, options are like an insurance company. The profit bias is with the insurer, i.e. selling options. Buying out of the money options is not the higher probability trade. Always buy ATM or, even better, ITM options. If out of the money delta is less than .5, you are not gaining as much appreciation as the share moves. Even better are ITM at delta .8 or better LEAPS (look them up if you don't know what they are). You can sell covered calls against them if you wish. It's a long term play, but if you want only, say a covered call for a week or two 3 months at .8 delta is fine. People usually do not associate options with long term strategies, but they can certainly be used that way. Just a note to Markus, he might like to add using his strategy on weekly or even monthly charts. Just an idea.
Probabilities of delta is based on Implied volatility, which is based at nearest history volatility, because market cannot see the future. But, as we know, market never repeats twice and always unpredictable, all this means that Delta is just a math. statistic measure. Real market probability for puts with 4% Delta might be 10-50%
VERY GOOD. PLEASE ADDRESS THE VARIABLES THAT IMPACT DELTA AND HOW TO HEDGE OR CALCULATE BASED ON POTENTIAL PRICE MOVEMENTS. I INQUIRE MARKUS AS MANY OF MY FAR OTM PUTS DISTURBINGLY BECAME DEEP ITM WITH THE RECENT MARKET DOWNTURN. THANK YOU.
This is very helpful. I never knew this as a new options trader. Thanks Markus, Can you also help me to know when to close my put & call traders? Do I leave it until expiration or do I sell earlier? And if so when do I sell earlier?
Great question: You can set yourself some profit targets. Many traders use a profit target of 50% or 100% to sell an option, i.e. if you buy an option for $1, you might consider selling it for $1.50 or $2. I use the PowerX Optimizer to calculate my stop loss and profit target for options. Does this help?
Thank you@@rockwelltradingservices it does help me , but I still don't understand the option chain price movement to see quickly when I am in profit or not. Maybe I must get your software. So if I sell options do I only make money from the premium or can the trade also give me profits? If so where can I see what my profits are at any given time on tastyworks?
When you are BULLISH on a stock, you can buy a CALL OPTION. It will increase in price as the stock moves higher. Have you had a chance to watch my Options 101 tutorial? th-cam.com/video/XMD5kJ62D5U/w-d-xo.html Take a look. I think it will make it easier to understand what's happening.
I hope you found this video helpful. In the meantime, check out some of these other videos, and if you have any questions let me know in the comments.
Recommended Links & Videos:
How To Fly Rescue Missions: th-cam.com/video/OlTD9h_ZNd8/w-d-xo.html
My Trading Routine: go.rockwelltrading.com/my-trading-routine
Wheel Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq.html
PowerX Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB.html
Selling a naked Call? ouch. Rather go to Vegas.
Remember, options are like an insurance company. The profit bias is with the insurer, i.e. selling options. Buying out of the money options is not the higher probability trade. Always buy ATM or, even better, ITM options. If out of the money delta is less than .5, you are not gaining as much appreciation as the share moves. Even better are ITM at delta .8 or better LEAPS (look them up if you don't know what they are). You can sell covered calls against them if you wish. It's a long term play, but if you want only, say a covered call for a week or two 3 months at .8 delta is fine. People usually do not associate options with long term strategies, but they can certainly be used that way. Just a note to Markus, he might like to add using his strategy on weekly or even monthly charts. Just an idea.
Poor man's covered calls. Great alternative using a lot of leverage. Thanks for bringing up this topic.
It seems that (1-delta)*price would be interesting
It is! How are you trading so far?
You trading wheel right now as before? Everybody rumoring about big market crash? Do you changing your strategy??? Are you buying FB now? Please reply
YES! Trading it the same as before. No changes just yet. And no, I decided NOT to buy FB.
@@rockwelltradingservices When would you consider adding FB?
But. If stocks crash...whwel surely will make huge loses...
People will always rumor a big market crash. You’ll hear about it every day.
Der Rekordmeister!
Probabilities of delta is based on Implied volatility, which is based at nearest history volatility, because market cannot see the future. But, as we know, market never repeats twice and always unpredictable, all this means that Delta is just a math. statistic measure. Real market probability for puts with 4% Delta might be 10-50%
Mr. Markus can you give stratergy for option that will fit in low budget and work.
This might help a lot as my platform seems to show every trade I pull up in the profit calculator as very very low percentage
Awesome!
VERY GOOD. PLEASE ADDRESS THE VARIABLES THAT IMPACT DELTA AND HOW TO HEDGE OR CALCULATE BASED ON POTENTIAL PRICE MOVEMENTS. I INQUIRE MARKUS AS MANY OF MY FAR OTM PUTS DISTURBINGLY BECAME DEEP ITM WITH THE RECENT MARKET DOWNTURN. THANK YOU.
Hi Gladys, you can hedge by buying VIX Calls or SPX / SPY Puts. I'll so a video on that topic soon.
Great video Markus, I really like this kind of videos on how you trade calls and puts in your portfolio, I watch your videos religiously 👍👍👍👍🙏🙏🙏
😊 You are welcome! I am glad that this helps!
Thanks Markus for the Delta information, well explained.
Go take advantage of it.
Greetings from Rudolf from Rotterdam
You are welcome! I am glad that this helps. 😉
Thankus Markus, really informative as usual best regards.
Awesome! Thank you for watching. 😉
This is very helpful. I never knew this as a new options trader. Thanks Markus, Can you also help me to know when to close my put & call traders? Do I leave it until expiration or do I sell earlier? And if so when do I sell earlier?
Great question: You can set yourself some profit targets. Many traders use a profit target of 50% or 100% to sell an option, i.e. if you buy an option for $1, you might consider selling it for $1.50 or $2.
I use the PowerX Optimizer to calculate my stop loss and profit target for options.
Does this help?
Thank you@@rockwelltradingservices it does help me , but I still don't understand the option chain price movement to see quickly when I am in profit or not. Maybe I must get your software. So if I sell options do I only make money from the premium or can the trade also give me profits? If so where can I see what my profits are at any given time on tastyworks?
When you are BULLISH on a stock, you can buy a CALL OPTION. It will increase in price as the stock moves higher. Have you had a chance to watch my Options 101 tutorial?
th-cam.com/video/XMD5kJ62D5U/w-d-xo.html
Take a look. I think it will make it easier to understand what's happening.
Hi, I am sorry. I wish I had finish the video, you answered my question. Thank you.
I am glad that I answered your question in this video. 😉
@@rockwelltradingservices
Thank you
Brilliant. New sub. Thanks
Awesome! Thank you! ;)
Great video
thank you for watching!
Thank you Markus.
You are welcome! ;)
good good good 😊 👍
Awesome! Thank you for watching! :)
Thanks
You are welcome! ;) What did you like from the video?
@@rockwelltradingservices The clarity and the specific examples :)
Awesome! ;) Thank you for your kind feedback!
Isn't weird, all the cool youtubers are from Austin, TX. Joe Rogan, Markus, etc.
Thank you! 😎