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Thank you for all your informative videos. In this clip, you stated that when rolling your TGT short put for a new credit, the additional credit (1.34) is added to the original credit (1.75) creating a higher potential max profit. But when we roll a trade, since we are buying to close the original short position, wouldn't our new max profit simply be the new credit amount? Truly appreciate your time and clarification.
Great video Thanks. Right, is right to keep the trades between 21 to 60 DTE. The important thing for a option that is deep ITM is that the extrinsic value is not less than .50 dollars, cause there will be the risk to be assigned . The problem is that you are assigned by the person who bought the option, so you have to be careful, roll 21 days before the expiry, even earlier if necessary. Great video and great teaching, I also think one should try to use extrinsic value to reduce the strike and try to break even. All the best regards
Appreciate the video since I'm new to rolling options. I guess my question is, if you keeping rolling for credit, how do you track it to know you're profitable when you close it (finally)?
Great video thanks. It would be a great video to how to manage iron condors or vertical spreads , it's much more difficult to roll a credit spread for the long option . Thanks a lot . Great
One fundamental thing that I was hoping that you would cover that you did not was whether there is any advantage to "rolling" an option versus simply selling it and buying another one. Are the commission fees lower for rolling? Any other benefit aside from convenience of single step execution?
Good point! At this point, it's really just about convenience. Being able to see the overall credit received, rather than doing the math yourself is the big thing. Also, it could have a short term affect on your margin depending on the other positions in your account so you may need to roll rather than leg out then in. Other than that, no other real benefit. I dont think there are any brokers that charge a per trade fee for options anymore it doesn't save any money in that regard. Totally up to you what you're more comfortable with.
I recently rolled an short iron condor down. I was paid 1.09 to open it....i paid 83 to roll down. My remaining credit is .52....is my ROI .52 or. Is it 1.09- .83= .26? Im confused on that. *the assumption is my option will expure to zero in my favor . You have a video on calculation on sell options and rolling (debitto save?
Excellent tutorial! Although, if I may add, you still would control 200 shares of AMD by controlling 2 contracts of 100 shares each. Delta is how much up or down the price of an option moves per each dollar move in underlying stock price, If I’m correct.
Yes, but the option does not move like 100 shares of the underlying stock. As your delta increases, your directional risk increases. If you have an option with a delta of .50, it’ll move like 50 shares of stock. If the stock moves in your favor and you now have a delta of .80, you’re essentially controlling 80 shares of stock. Totally up to you if you’re comfortable with this new position or if you want to roll and take off a bit of the profit and move back down to a lower delta.
what if you still in the money but the stock has tanked so the stock worth less you should still get that stock right just have to weight to it go back up ???
Thank you so very much for this, I never knew we can roll options, that is so cool. Thank you! Is there any way we can make entry's in options- for example if I see AMD and I see that it is bullish and I wanted to put out 3 entries each entry lower than the first entry, is that possible in options? I always wondered of that. Because in Crypto trading, I can easily put 3 entries orders into the future until price action goes and hits my entries and once it hits my entries I already have my stop loss set and my take profit set, but for trading options, I really don't have a clue of doing this, a video would really be life changing and help me a ton, thank you so much for everything and all the hard work you put into these videos, You're truly the best and so awesome, thank you
Glad you find them helpful! You can set options order with multiple profit target that are linked to stop or profit taking orders. Only thing you'd have to be careful of is if you start to near expiration. It doesn't make as much sense if this a potential long term trade, but you can do it
@@shortthestrike Thank you so much, that helps a lot. I will research about that. In Options, for example I want to get into a trade in Baba with a $100 strike price, but I only want to enter the trade when BABA price hits $125 before I do a put with $100 strike price but the only thing is the strike price goes for $1 per share at the moment but I want to put a order for the future in options so that when BABA goes to $125 to get me in at a strike price of $100 put but I find it very hard because I would have to keep playing with the strike price amount of $1 and subtracting it down to around .20 cents to do a limit order at $125 for a $100 strike. Sorry if I'm not making sense, it's just so confusing to me in options to make a order for the future if price hits to get me into a trade because the options strike prices are different than the actual stock price. Thank you for everything
@@aronomoamey9820 That would be a conditional order based on stock price. You can do it, its a little complicated but a made a separate video on it. You're not the only one to ask about it! I'll probably make a refresher to this, its kind of in reverse of what you're asking but same process. Here's the video th-cam.com/video/5G3eP3wosbw/w-d-xo.html
@@shortthestrike Oh my God, thank you so very much! This truly means the world to me, I truly appreciate you helping me and so many others. You're the best, May God Bless you! Thank you, I will watch it now, thank you so much! You're the best
@@shortthestrike I watched the video of the conditional order, it makes a lot of sense. But if I wanted to enter a put options trade, with a stop loss, a take profit and 2 other more entries above my 1st entry at different prices based on stock price but with the same stop loss and take profit on them all, would I have to do the same thing with conditional order because on the conditional order, I can't seem to find 3 other more slots to add all that information or should I add another advanced order along with my conditional order to do that? Again, thank you so much for all your help, it really does mean so much.
Technically, that's the exact same thing. The only real difference is that you're doing it all at once and can see the net credit/debit for placing the roll. Now that most brokers have nearly free commissions, it's not really a big deal to do it separately.
This is a very roundabout way of explaining selling your contract and repurchasing it at a different expiration date and/or strike price. That's all that rolling is. If you're rolling on an options trade you're down on, you're going to be taking a loss. Then you will be scraping enough additional money to afford the contract for the roll after your loss. It's not some magic way to get out of a bad trade.
Nice catch. I can't believe he didn't say, I just took a 3762 loss buying back my put, sold another and received a small credit. That's leaving out IMPORTANT INFO! I don't like the platform. Too complicated. He shouldn't have to apologize that it says something 'calender' that is not defined. Yuk 🤢 I use RH. But noticed that they also don't show the complete net of the roll leaving a person thinking I got a credit when they actually took it in the kiester😂.
🛠Just launched my trading journal! If you trade stocks, options, futures, or crypto, give it a try with a 7-day free trial and let me know what you think! traderlog.io/
Thank you for all your informative videos. In this clip, you stated that when rolling your TGT short put for a new credit, the additional credit (1.34) is added to the original credit (1.75) creating a higher potential max profit.
But when we roll a trade, since we are buying to close the original short position, wouldn't our new max profit simply be the new credit amount?
Truly appreciate your time and clarification.
Please consider hitting the LIKE button if you found this video helpful!
Great video Thanks.
Right, is right to keep the trades between 21 to 60 DTE.
The important thing for a option that is deep ITM is that the extrinsic value is not less than .50 dollars, cause there will be the risk to be assigned .
The problem is that you are assigned by the person who bought the option, so you have to be careful, roll 21 days before the expiry, even earlier if necessary.
Great video and great teaching, I also think one should try to use extrinsic value to reduce the strike and try to break even.
All the best regards
Great teaching. I will use this option idea
Thanks great , clear wonderfull explaination
You the man!! Thanks!
Appreciate the video since I'm new to rolling options. I guess my question is, if you keeping rolling for credit, how do you track it to know you're profitable when you close it (finally)?
Great video tons of information thank you please make more
Very well explained, thank you.
Great video thanks. It would be a great video to how to manage iron condors or vertical spreads , it's much more difficult to roll a credit spread for the long option .
Thanks a lot . Great
One fundamental thing that I was hoping that you would cover that you did not was whether there is any advantage to "rolling" an option versus simply selling it and buying another one. Are the commission fees lower for rolling? Any other benefit aside from convenience of single step execution?
Good point! At this point, it's really just about convenience. Being able to see the overall credit received, rather than doing the math yourself is the big thing. Also, it could have a short term affect on your margin depending on the other positions in your account so you may need to roll rather than leg out then in.
Other than that, no other real benefit. I dont think there are any brokers that charge a per trade fee for options anymore it doesn't save any money in that regard. Totally up to you what you're more comfortable with.
what's the advantages of rolling vs closing and creating new trade? are you saving anything on commissions and fees?
Have you ever rolled options on SPX (European Style) options? If yes, I would like to know your thoughts. Thank you!
I recently rolled an short iron condor down. I was paid 1.09 to open it....i paid 83 to roll down. My remaining credit is .52....is my ROI .52 or. Is it 1.09- .83= .26? Im confused on that. *the assumption is my option will expure to zero in my favor . You have a video on calculation on sell options and rolling (debitto save?
Excellent tutorial! Although, if I may add, you still would control 200 shares of AMD by controlling 2 contracts of 100 shares each. Delta is how much up or down the price of an option moves per each dollar move in underlying stock price, If I’m correct.
Yes, but the option does not move like 100 shares of the underlying stock. As your delta increases, your directional risk increases.
If you have an option with a delta of .50, it’ll move like 50 shares of stock. If the stock moves in your favor and you now have a delta of .80, you’re essentially controlling 80 shares of stock. Totally up to you if you’re comfortable with this new position or if you want to roll and take off a bit of the profit and move back down to a lower delta.
@@shortthestrike I see, good point, to look at it this way. Some people also look at it as a probability % basically of an assignment.
Completely agree! Delta has a lot of great uses
What is the latest time, on expiration day, that you can roll the put option?
Market close, but bear in mind the last 15 mins are on a "best effort" basis
what if you still in the money but the stock has tanked so the stock worth less you should still get that stock right just have to weight to it go back up ???
Thank you so very much for this, I never knew we can roll options, that is so cool. Thank you!
Is there any way we can make entry's in options- for example if I see AMD and I see that it is bullish and I wanted to put out 3 entries each entry lower than the first entry, is that possible in options? I always wondered of that. Because in Crypto trading, I can easily put 3 entries orders into the future until price action goes and hits my entries and once it hits my entries I already have my stop loss set and my take profit set, but for trading options, I really don't have a clue of doing this, a video would really be life changing and help me a ton, thank you so much for everything and all the hard work you put into these videos, You're truly the best and so awesome, thank you
Glad you find them helpful! You can set options order with multiple profit target that are linked to stop or profit taking orders. Only thing you'd have to be careful of is if you start to near expiration. It doesn't make as much sense if this a potential long term trade, but you can do it
@@shortthestrike Thank you so much, that helps a lot. I will research about that.
In Options, for example I want to get into a trade in Baba with a $100 strike price, but I only want to enter the trade when BABA price hits $125 before I do a put with $100 strike price but the only thing is the strike price goes for $1 per share at the moment but I want to put a order for the future in options so that when BABA goes to $125 to get me in at a strike price of $100 put but I find it very hard because I would have to keep playing with the strike price amount of $1 and subtracting it down to around .20 cents to do a limit order at $125 for a $100 strike.
Sorry if I'm not making sense, it's just so confusing to me in options to make a order for the future if price hits to get me into a trade because the options strike prices are different than the actual stock price. Thank you for everything
@@aronomoamey9820 That would be a conditional order based on stock price. You can do it, its a little complicated but a made a separate video on it. You're not the only one to ask about it! I'll probably make a refresher to this, its kind of in reverse of what you're asking but same process. Here's the video th-cam.com/video/5G3eP3wosbw/w-d-xo.html
@@shortthestrike Oh my God, thank you so very much! This truly means the world to me, I truly appreciate you helping me and so many others. You're the best, May God Bless you! Thank you, I will watch it now, thank you so much! You're the best
@@shortthestrike I watched the video of the conditional order, it makes a lot of sense. But if I wanted to enter a put options trade, with a stop loss, a take profit and 2 other more entries above my 1st entry at different prices based on stock price but with the same stop loss and take profit on them all, would I have to do the same thing with conditional order because on the conditional order, I can't seem to find 3 other more slots to add all that information or should I add another advanced order along with my conditional order to do that? Again, thank you so much for all your help, it really does mean so much.
What is the difference between rolling and if you just sell old one and buy new contract? You just saved little bit on commissions?
Technically, that's the exact same thing. The only real difference is that you're doing it all at once and can see the net credit/debit for placing the roll. Now that most brokers have nearly free commissions, it's not really a big deal to do it separately.
This is a very roundabout way of explaining selling your contract and repurchasing it at a different expiration date and/or strike price. That's all that rolling is. If you're rolling on an options trade you're down on, you're going to be taking a loss. Then you will be scraping enough additional money to afford the contract for the roll after your loss. It's not some magic way to get out of a bad trade.
Nice catch. I can't believe he didn't say, I just took a 3762 loss buying back my put, sold another and received a small credit. That's leaving out IMPORTANT INFO!
I don't like the platform. Too complicated. He shouldn't have to apologize that it says something 'calender' that is not defined. Yuk 🤢
I use RH. But noticed that they also don't show the complete net of the roll leaving a person thinking I got a credit when they actually took it in the kiester😂.