Alex, I keep telling you: trading is not for you, and I recommend you stop following this channel - since we are talking about trading. The markets already fell 22%, and I had a FANTASTIC quarter with this strategy. But I understand that you are scared, so please do yourself a favor and stay away from the markets. It's not for you!
One thing to look at too when deciding to buy back or not is to look at how tight the spread is between bid and ask on the option. Lets say the ask is the 0.12 and the bid is 0.11. Well if you buy back one contract at $12 and then decide a few minutes later to sell to open for $11 you only have lost $1.
That's why I go for 90% of the premium that I receive. So if I get 1.00 in premium, I'll buy back for 0.10. If I sold the put for 0.12, I would try to buy back for 0.01. Making sense? :-)
And thank you, Jake! :) Great question! Usually, if I am closing out a position early, I am not likely to re-enter that position at a higher or lower strike price (unless it looks GREAT in the Power X Optimizer of course). Not to say I haven't to grab some extra premium, though! Was this helpful?
@@rockwelltradingservices that does make sense, just hard to not fill those last few days with extra premium. Sidebar, I was in Sedona AZ a few days ago….went into a pretty upscale restaurant and ordered a “Markus burger”….not on the menu, waitperson had no idea what I was asking for. So, I did what most upstanding fans would do….I left.
Hello Markus! Would you consider taking 50% in the earlier part of your trading career rather than 90%? 90% seems a little high, especially in a very volatile and downward trending market.
Great question, and YES: I have been thinking about it in the past. But 80% - 90% seems to be the sweet spot, otherwise you're leaving too much money on the table for the risk that you're taking. Making sense?
Hi Riggies, yes: if you SOLD a put to collect premium, then you need to BUY TO CLOSE if you want to close the trade early. Otherwise, you just let it expire. Making sense?
Great question! When you're selling a Cash Secured Put, you have the capital to back up the put in case you get assigned to purchase the underlying asset (the shares). However, a naked short position does NOT have the capital set aside to purchase the underlying asset if you get assigned. You can get into trouble if you sell a lot of naked puts, get assigned, and don't have the capital to cover them. Does this help?
@@rockwelltradingservices this is a great help. I wasn't expecting you'd reply to comments so this is greatly appreciated. I knew I subscribed to the right channel!
Thank you Solirario76. I'm excited for that day as well :) In the meantime, feel free to check out our free course www.rockwelltrading.com/thank-you/trading-webinar/
Alex, you asked this question 38 times in various ways, and my answer is the same every single time: I am trading the markets according to my plan and I’m making good money doing so. If you prefer, you can keep your money under your mattress. That’s fine. Everybody is different: some like to take risks and some like to live in fear. You need to do what helps YOU sleep at night 👍
How do you decide when to exit your trades? Comment below and let me know! :)
When market falling strong..snd expected huge down...then may where strategy may not work...
If nuclear bomb exploded....rrmrmbet...Putin is lunatic and mentally sick..then wecwill loose 100% of invested money.if trading wherl
Alex, I keep telling you: trading is not for you, and I recommend you stop following this channel - since we are talking about trading.
The markets already fell 22%, and I had a FANTASTIC quarter with this strategy.
But I understand that you are scared, so please do yourself a favor and stay away from the markets. It's not for you!
Thank you for your reply
Just wanted to know if you fully trading now, of half power now. It is so interrsting...I still hope..
FULL
Great video mate, crisp and clear as usual.
Thank you! Did you like anything in particular about today's episode?
Good example, with AMD, I think the pros of closing early outweigh the cons. But i like the 90% strategy. Happy Easter Markus.
Happy Easter! :)
Thanks Markus, hope you have a nice Easter, stay away from the Ice Cream (even though you just got that great new scoop!).
Lol! Thank you! Happy Easter!
Thank you for explaining. That is what I thought the reason would be except I’ve never considered daily price.
You are welcome! I am glad that this helps. ;)
Good stuff, Markus. Thanks for posting the nuts and bolts side of your strategies.
You are welcome! Does this video help?
@@rockwelltradingservices Absolutely. It helps put a mechanical approach to the exit strategy.
Thank you for letting me know! ;)
Thanks SO Much..!!
You are welcome! Does this helps?
One thing to look at too when deciding to buy back or not is to look at how tight the spread is between bid and ask on the option. Lets say the ask is the 0.12 and the bid is 0.11. Well if you buy back one contract at $12 and then decide a few minutes later to sell to open for $11 you only have lost $1.
That's why I go for 90% of the premium that I receive. So if I get 1.00 in premium, I'll buy back for 0.10. If I sold the put for 0.12, I would try to buy back for 0.01. Making sense? :-)
Hi Markus, Let us know how your keto journey is coming along. (From the email newsletter that you sent out that brought me here.)
Thank you for reading/watching! Will share an update on this soon! ;)
Love the gems Markus, thanks! What about rolling up or down (not out) for the balance of the week, for poops and giggles, and grab some more premium?
And thank you, Jake! :) Great question! Usually, if I am closing out a position early, I am not likely to re-enter that position at a higher or lower strike price (unless it looks GREAT in the Power X Optimizer of course). Not to say I haven't to grab some extra premium, though! Was this helpful?
@@rockwelltradingservices that does make sense, just hard to not fill those last few days with extra premium. Sidebar, I was in Sedona AZ a few days ago….went into a pretty upscale restaurant and ordered a “Markus burger”….not on the menu, waitperson had no idea what I was asking for. So, I did what most upstanding fans would do….I left.
LOL - That's awesome! Thanks for that. It made me laugh. You rock :-)
Hello Markus! Would you consider taking 50% in the earlier part of your trading career rather than 90%? 90% seems a little high, especially in a very volatile and downward trending market.
Great question, and YES: I have been thinking about it in the past. But 80% - 90% seems to be the sweet spot, otherwise you're leaving too much money on the table for the risk that you're taking. Making sense?
Thank you for the video. to buy back meaning to "long a put option"? at the same price that was "short for initially?
Hi Riggies, yes: if you SOLD a put to collect premium, then you need to BUY TO CLOSE if you want to close the trade early. Otherwise, you just let it expire. Making sense?
How did you get 84% from .12/.75???
Hi
8apr-1apr=8 days because both 1st and 8th are included
Am i right?
What is the difference between selling a put and a naked short?
Great question! When you're selling a Cash Secured Put, you have the capital to back up the put in case you get assigned to purchase the underlying asset (the shares). However, a naked short position does NOT have the capital set aside to purchase the underlying asset if you get assigned. You can get into trouble if you sell a lot of naked puts, get assigned, and don't have the capital to cover them. Does this help?
@@rockwelltradingservices this is a great help. I wasn't expecting you'd reply to comments so this is greatly appreciated. I knew I subscribed to the right channel!
I am glad to be of help and interact with you here. ;) Thank you for your support here.
You are the very best Markus I am so excited to one day have the money to work and learn more closely w you
Thank you Solirario76. I'm excited for that day as well :) In the meantime, feel free to check out our free course www.rockwelltrading.com/thank-you/trading-webinar/
You do not want to exit from market while this war ???
Alex, you asked this question 38 times in various ways, and my answer is the same every single time:
I am trading the markets according to my plan and I’m making good money doing so.
If you prefer, you can keep your money under your mattress. That’s fine.
Everybody is different: some like to take risks and some like to live in fear.
You need to do what helps YOU sleep at night 👍
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