Should You Trade Futures or Options?
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- เผยแพร่เมื่อ 31 ก.ค. 2024
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0:00 Intro
0:52 Futures Leverage For Small Account
3:30 Organic Price Action
9:41 Trade Examples: Options Vs. Futures
16:02 Power Of Options
17:10 Should You Trade Options or Futures
18:53 Stop Struggling Trading Options
If you have any suggestions for future videos such as Day Trading, Investing, Stock Market, Option Trading, Real Estate, Robinhood, TD Ameritrade, ThinkorSwim, Crypto & bitcoin, Entrepreneurship, Forex, or fun daily vlogs. Please let me know.
Keywords: thinkorswim, options, options trading, td amertitrade, trading, carmine rosato, stock trading, options, supply and demand, live trading, day trading tricks, day trading tips, day trading options, day trading futures, trading futures, grow a small account futures trading, grow a small account options trading, should you trade options or futures, PDT rule, futures trading margin account, make money trading futures, stop struggling trading options
#optionstrading #futurestrading #carminerosato
I just purchased his course on Friday, the knowledge is unparelled. I was so close to giving up on trading entirely, I really feel with practice and now the proper education I can make my comeback and focus on the process above all. Cheers all
Amazing! Truly glad to hear that 🙏
never give up. you got this bro
@@carmine_rosato 9:56 so help me to understand if 3600-3380=220 points. 220×50=11,000?
@@oceanblue1017 I think he made a mistake in computation. Should be 3600-3385 = 215 points.
@@carmine_rosatoWhat broker do you use to trade emini/futures ?
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@AustinWalker67 I will give this a look, thanks a bunch for sharing.
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Do u smoke CRACK?
Word of caution to people trading at night, there isn't very much volume and night and you can get completely wrecked if you're not careful.
Especially that damn ASIA market
Yea that's the part I don't like about the after hours. Well i guess I'll trade options until I get enough money to trade the days 👍🏻😁
thanks for the heads up to us new folks
False information you guys need to invest in the right information maybe a mentor
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I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in-depth market knowledge.
@@nuraahmadumar8937 It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
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@@TammyLutz74 The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Alice Marie Coraggio‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
It's important to note that trading can be complex and involves substantial risk. It requires a good understanding of the underlying markets, analysis of supply and demand factors, and careful monitoring of price movements. Many traders seek education, develop trading plans, and utilize technical and fundamental analysis to make informed trading decisions. If you're interested in futures trading, it's advisable to use experience like an expert trader before committing real capital they don’t charge high commissions
Great, trading hasn't been a good ride for me and I don’t know any good experts I am trying to be better plus combining it with work doesn't give me enough time
@@frankcooker8012 I’ve been using one since the pandemic Sir Arlo Eric, with profit oriented tactics and minimizing risks against inevitable downtrends, in addition to access to insider knowledge and analysis making failure virtually impossible, made over €200 k the past year and half
@@finny_ can I have his mail please
Arloeric1 @
That’s his Gmail above okay
this was the most helpful and comprehensive video I've seen on the subject. thanks man!
Futures for the win! I finally put the options aside 3 months ago after doing both for a while. I’ll never go back to options. No Greeks is amazing
I trade options on the spy. Have done so for the last six months. I never consider the Greeks. I only trade closest to expiration and set up indicators to help spot a reversal. I have never even looked at futures but I might take a peek.
Hi quick question when you have a small account and you trade futures do you get your buy power back immediately after you close the position or do you have to wait until the next day like options?
@@jrgonzel4265 I think that has more to do with a margin account vs cash account than what you are trading.
Brad Finn if I’m not mistaken I recognize you from the TBM livestream chats
ive been in the rut of hesitating with options because I cant manage risk, even though im right a lot of the time. thank you a million for this video. seriously Carmine, this is huge. thank you a ton.
Thank you for taking the time to help us understand the differences very clearly .Much appreciated bro !
This is one of my favorite videos. Way to go carmine! 👍🏼😎
Really appreciate your breakdown between futures and options. It might be the best assessment I've come across on here in regards to the key differences between the two(especially the true nature of time decay when the market is running sidewas), as well as, your walk through with the charts. Many thanks bud
Having gone through many of your videos on trading SPY (or other underlying) options, I wondered why you hadn't addressed futures trading on the same underlying. It mitigates the unexpected way option premiums can fluctuate. Now that "micro futures" are available, it opens up trading to more traders with smaller accounts. I appreciate your trading education videos, and it's great to see you covering how to utilize futures along with your market analysis. Scaling into a trade at an entry "zone" is another benefit while still adhering to loss management (and scaling out into a profit target). Thanks for putting this out there! Enjoy your educational vids!
Micros are a scam. Save up till you can trade a mini.
@@Seba-iz6wcwhy are they a scam?
@@Entererofthethreshold it’s good for practice, but the fees add up on micros really fast. You cannot scale using micros
This is the most comprehensive video one could ask for. Loved it
Options require more experience, skill, planning and discipline. Your example at 15:50 is a good point to compare options vs futures. If you had chosen a 3610 strike on SPX 0dte, you would quickly get ITM, ramp up that gamma, and by the target support zone exit would have 400% ROI. You simply cannot beat the returns with options trading compared to futures. That being said though, only a handful of people can consistently and successfully trade options. Especially 0dte SPX contracts.
Long gamma works both ways - you could have also lost your premiums fast, too. Makes sense to use the right tool for the job -- whether you want the extra IV exposure or not, etc
who the would be trading 0 DTE contracts? Especially if you’re buying that seems like not a good idea at all. I would only be a net seller of premium and I’d be out of my trade weeks before that.
@@Andrew-cm5tc 0 DTE has its subscribers -- fast decay for sellers and big gamma for the buyers.
Not something I would want to open, but I could see good reason to carry net longs into expiration.
@@Andrew-cm5tc if you’re asking this question then you simply lack the skill, knowledge, and system to utilize the tool effectively. There are plenty of times to long options, especially 0dtes vs short premium rookie
This is why 90% fail
I totally agree with what you explain in this video, I switched from options to futures. Great video. thanks
Awesome as always. Thanks Carmine ! I have become a better Trader after taking your course.
one of the better videos on topic simple and to the point appreciate it!
Didn’t even watch it yet but thanks for blessing us with this. So interested in Futures.
Excellent job explaining! You nailed all the points
Great video. Thanks Carm!! Appreciate you!
This vid came just in time.. been struggling with options even tho my TA has been right. Def gonna try out futures based of my trading style
Great video explaining the advantages/disadvantages of futures vs. options. Thanks Carmine for consistently sharing your expertise/knowledge.
Thank you Carmine. I have been trading options and keeping steady buy not making any profit. I love how you are very direct, no bs. 🙏
any pics or thumbnails with no content is a scammer
Great info! Just got back into futures this month trading /MES. Definitely a time and place for both Options and Futures in my trading experience. All depends on market context, how you manage risk, and what setups/ tickers you plan to play. With Futures, I especially like the ability to play some of the overnight moves in the market during GLOBEX hours that you can't get into with options until market open. Both have their advantages and disadvantages, but learning to trade futures has made me a more informed options trader (slows the options market down for me a lot and gives me more "time" to think before taking a position) while trading options has made me a more informed futures trader (can take advantage of PA and volume analysis I see in market 22.5 hrs/ day without worrying about theta decay and other greeks eating at my premiums.
Great video and explanation of futures vs options.
I'm new to your channel & trading. I'll need to rewatch this dozens of times for comprehension. I've had very small success with flipping $10-$40 options for 1-2x profits, and clearly have much to learn. My job's just not cutting it, so I definitely need this to save my life and future. Literally. I cannot afford a course. I'm already risking my Uber to and from work money on small options contracts but thank you for sharing this gem. Hopefully, one day my small options will generate enough money to enable me to begin trading futures. Thank you for the knowledge.
My advice to you is to learn to make 20 dollars a day with no more than one contract at a time. Position size and risk management is by far the most important thing in trading. Learn a strategy that works for you to get an edge of the market. After many reps you will start building confidence and be able to start buying more contracts. Trading is a marathon not a sprint. To many traders want to make a lot of money instantly and unfortunately that's not how it works if you want to do this for the long-term. Wish you the best of luck.
Options is a slow bleed. If you can flip options, you can flip futures. Good luck
Great video! Appreciate your concise explanation.
Excellent breakdown on the the difference…I switched to futures since 2020 and the consistency is spot on when it comes to the timing.
Amazing !
Can you trade futures on webull? If yes.. in margin or cash account?
Great job. Would love to see more videos about trading futures.
Great content like usual so much admiration for you Carmine Rosato , keep it up 👍
This is by far the best video I've seen on this subject 👍🏻
Futures are more dangerous than options without a tight stop loss. If the /ES or /NQ, whatever you're trading goes against you, you'll lose more than you have unlike options the most you lose is the money you put in. Best traders do trade both, cause chart is a chart. But, beginners should be careful with futures.
This, Idk why he didn't mention this...but it's a big deal. Going long calls and puts have limited risk...futures, do not have limited risk it's technically unlimited.
Lost nearly 60% of my acct by not placing a stop loss.. learned the hard day
If you set a stoploss though like he is showing here, wouldn't that be the max you could lose?
That’s why you put a stop loss and do not trade news. You will not get out (THEY WONT LET YOU, regardless if stop or no stop) if the market goes ultra instinct
@@Seba-iz6wc so even without trading around the major news events, with something like ES it still can have some rogue candles. I only trade 1 contract of ES, Always have a stop loss within 4-6 ticks usually, but my worry is a massive candles prints out of nowhere and I'm not stopped out. Anyone have this happen, and how often?
Possible con of futures vs options: I think futures trading risk management relies on stop loss orders. Stop loss orders rarely fail, but they can, especially under conditions of sudden market stress. Brokers accept stop loss orders on a best efforts basis, with no guarantee of execution at the price you specify. On the other hand, risk defined option spreads are a contractual guarantee that the trade will lose no more than the amount risked at the time the position is opened.
Don't forget that one option leg can be assigned (leaving your delta massively unbalanced), some options quotes regularly disappear (making it impossible to trade or discover price), options prices are easier to fudge compared to underlyings (easier for you to get trapped), the OCC can set/adjust the closing prices/settlements, most options can't be traded early/late, etc.
I agree that options risk management is a "pro", but your defined risk trade has lots of undefined risk, as with any other instrument :-)
If you don’t understand options risk management but rely on “you can’t lose more than you paid”, options will just be a slow bleed on your acc.
Yea I use futures for day trading and options for leaps
Great content, however, typically a dollar move in the futures is called a Handle. Point and handle are interchangeable, yes, but when talking futures its generally accepted that each dollar move is called a 'handle'.
Very informative , thank you for another video full of good content
It’s a great point about the stop loss difference which is a huge factor for me. Great vodeo
Great explanation! Thanks!
I prefer to trade ES options. You can do spreads so even people with smaller accounts can trade.
I like this video because my challenge in equities period was picking the right one to trade. Futures was my gold mine. One instrument. Personally I trade the treasuries because they trend way better than ES. UB ZB ZN move lock and step with each other. They’re even more liquid $31.25 per tick per contract. Bonds and notes don’t really shoot up 5 ticks and then reverse 10 in a matter of seconds like the ES. Usually when the trend reverses it’ll trend in that same direction for 3 or 4 handles before it reverses. But this video is spot on. I usually recommend people that are new to trading to start with futures.
3 or 4 handles before it reverses: what defines a handle?
Only thing how are those commission fees bro? Heard futures a kill you there especially with the micro contracts. do you trade the micros as well?
Thank you for this comment. Ive been trading ES for years but i will check out the treasury products.
I think I'm gonna sign up to his mentorship this video did it for me
thank you so much sir for sharing and teaching... i m gratefull
Great video thanks for this amazing information!! Can you do a video explaining the (wash sell rules) please!!
Swing options and day trade futures
Great video.! Thanks for comparing these two. Hard to go back to options day trading once you touch futures. Thanks for helping us get better!
Yep! I agree, especially in current conditions
i would never day trade options. Just sell premium at 45 DTE and roll at 21 DTE.
@@carmine_rosato Which broker do you use to trade futures?
@@rse1973 Yes, I would like to know that too.
Awesome info! 👍🏻
You didn’t mention credit call and credit put spreads. Iron Condors also work perfectly for sideways markets. I definitely agree with some tickers lacking liquidity and having huge spreads though. Good video man.
i dont think carmine will ever mention any other option strategy than to buy put/calls.
You are right. This is when options become more favorable with creative strategies, especially selling sideways markets. But directionally trading is mainly what I was addressing in this video. Thanks
Great video!!! I seriously considering switching over to Futures 🤔🤔
DO IT !
Do proceeds from closing out a futures trade have to settle before trading again? Like a cash account for options
Wow, great info, thx buddy
Great video. I am interested in your stop loss/ take profit thought progress.
Would love to see if there is a video about it.
This is such a useful video, so much futures crap on TH-cam this is so well put together, people watch this video
@carmine I have the same question… which platform/broker you use to set up your margin account to trade futures with a small account… you mentioned in your video
Great video. Thank you
9:54 what is the support/resistance indicator you are using (target?)
Hey I may have missed it, but what platform do you use to trade futures?
Thanks man that was a great video! Im in New Zealand and I only get the end of the market so this sounds fricken awesome!
I am in Aus. Which broker do you use? Any recommendations?
Fantastic video Carmine, I had NO CLUE the PDT rule didnt apply and is why i never even bothered with futures. Appreciate this info man!
7:10 But that's if you Long Calls ans Puts by themselves. I always use Vertical Spreads so I know the Max Profit and Loss from the get.
Hey bro, been looking for this exact vid. Thank you! I dabbled a bit then went straight back to options. Question; I trade QQQ options and watch aapl msft amzn tsla etc as they make up the qqq. For options, they move before the stocks right so I don’t have anything to watch if that makes sense?
What brokerage do y’all use for Futures and what are the fees?
Really helpful video and very well explained. Thanks Carmine!
great content !
how do you change the volume bars that has both red and green on a single bar in TOS like in your video?
Very good tutorial！
Good video!
What is a good broker to trade the ES mini?
Great Content
So what broker is this?
Where and how do I start? Love the idea of no time decay. Saw a demo account. Would like to know how to do this
Hi Carmine, what broker do you use for futures??
Thank you, Carmine.
Can we trade futures on big companies or just indices ?
Thanks!
Ultimate !!
If you get caught in a flash crash and are trading leveraged products, you’re 100% done so. Account 100% wiped. Trading options can be a headache with theta and all, but I have my peace of mind, knowing that the absolute worst case is losing 10% of my account.
Great thank u
What future stock is best for beginner?
Is there stimulator for future?
Hi thanks for sharing a good video my question in futures have Options too ? how the Options in future pay good and time Delay also right and please compare the futures unit ( shsre trade ) and futures Options too I like to know should we trade options in futures please
Have been trading options for about a month now with my own money following what I've learned in the A-Z course and so far I have been profitable, but I have definitely experienced the frustration of minor pullbacks crushing my premium prices more than once. Going through the futures course got me really interested in trying futures.
Just started a Tradovate account and will be paper trading Micro E-mini soon to get a feel for it using the same S&D strategy. Excited to see how it compares. Love the idea of knowing my exact risk ahead of time and not having to worry about all the extra factors that come with options pricing, haha.
What is the broker you are using to trade futures.
In your examples, you're buying the break out. Obviously that can work but you have to accept more risk. Which just proves you can't trade the same way using options vs futures. So I don't think it's necessarily fair to to compare them using the same entry. I feel a better example would have been to show how theta makes the chart start to look completely different from the underlying.
Hi, confused about futures. As I know about options. Eg:- SPY options, etc. But what you mentioned about futures. Is it future options or something else.
Can you please clear this .
Thanks.
For futures, do institution players play the same tricks with SL etc?
Is trading future options different or the same as trading futures?
Options have absolutely destroyed my account. Everything you've said about them is true. I want to switch over to futures using the same strategy as I did with options. I would love to obtain the best resources to make this switch. Thank you.
I don’t understand can someone make this clear for me? On the margin we need to pay x amount depending on the broker plus each contract or lot we buy?
I'm still learning, but one thing about options that interests me that was not mentioned is that options I think are SIPC insured, where futures are not, correct?
what brokerage would you rec?
Hi, what Brokerage can you recommend for small accounts as a starter for Futures Trading? Thank you
I am looking for a comparison of trading stocks to trading futures from the point of view of risk and profits.
Good job Carmine
So could u go into debt then like below zero on ur account?
Hi their friend im 3 years in learning im finaly experiencing scalping do you have a video explaining this im with tiger but could not understand how to set up a trade including stoploss as a newby this is confusing im currently using a demo
Great information
Thanks bro
What is the maximum leverage available on futures ?
Thanks
What broker and platform do u use
Great video
What’s the best platform for trading futures? And how do you get a margin account?
What broker do you use? I use Vanguard but they don't let you trade futures.