Get Your Copy of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Glad I’m seeing this theresa Options’s understanding and analysis of the markets projections is impressive. her knows exactly when to execute and exit trades to attain maximum returns.
Over the years, l've been a part of numerous trading programs, shifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of her insights.
been trading the wheel for years but love the idea of adding the out ratio spread to hedge and make more if the market goes against you. Also loved the idea of vertical diversification. Always wondered why no one else ever talks about this
How do you make vertical diversification work? The wheel only generates about 15-20% ROC, but if you split that into say, 5 tranches for vertical diversification with the market drifting up 80% of the time, you would only be making 4-5% ROC, about the same as T-bills. Now you could make more in a selloff but with a 2 year recession like in 2000 and 2008 you would still be out of money to wheel before the market bottoms out. At most you stand to make 8-10% ROC with this strategy, less than if you just hold SPY, QQQ, and IWM. 🤷
what is your opinion on managing the the Put Ratio spread by rolling the 2 short puts and letting the long put run if price were to trade below your short strikes and you still like the stock and don't mind owning it but it is still heading down? Seems like you could keep making money on the long put if the market keeps dropping but you still like the stock. Or what about just closing the long put as it gets to your short strikes and just getting assigned 200 shares on the short puts since you like the stock anyways and then you get to keep the entire profit that the long put made instead of spending some to buy back one of the short puts? Just wondering why we have to close the long and a short but let the other short put stay if it reaches our short strike. Thanks Davis I LOVE your channel and your content. You are definitely my favorite options teacher on TH-cam. Keep up the GREAT work! Thank you for sharing your knowledge.
Thanks Davis. For the CSP version, do you put it on as two separate strategies (Debit spread/short put) on the broker platform or do you just buy a put and sell two puts at the same strike and then sell the put spread but buying one option and selling the other?
The risk graphs for the put ratio spread looks very similar to the jade lizard. Instead of the put debit spread the jade lizard has the bear call credit spread
Great vidoe Davis!! One question: on the put ratio spread with cash settle index, and as per the P&L you want the price to go down towards your tent point. Does it mean that once you've entered the trade, and if you are closely monitoring the positions, if the market drops then you could actually close the trade earlier or? I must be missing something cause sounds like a no lose trade which cannot be the case...
I really appreciate your efforts! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
@@optionswithdavis Do you suggest anything? I found the traditional way with spreadsheets can be a bit hard when it comes to keeping track of rolled trades. Cheers
Thanks Davis. I have been trading SPX using PBWB. Been 100% win for 1yr not because im smart, its just because of luck of SPX uptrend. It never got into the tent. For last few months I’ve changed my closing strategy from leaving it expire to closing when ROI from holding remaining days is lowered by 50% from ROI at open. Reason is to recycle the capital for higher ROI on new PBWB. But that also means unlikely to hit the tent. Wanted to seek your view on this. Is it wise to do such close?
Thank you for the video. Based on your experience, which one do you prefer for going long on good stocks - PMCC or CSP(assigned)? PMCC is less capital required but misses out the CSP premium and dividends.
Thanks for the video Davis! So to summarize the strategy, you sold two short puts and bought one long put, and then close one short put, before expiration if it’s getting close the the strike price, so you can only get assigned on one short put, and profit on the rise of the underlying stock, or lower the cost of the stock with the long put if market continues to go down before expiration? Is this how this strategy works or is there anything missing from my understanding? Thanks to whoever clarifies it.
I think that you close the Debit Spread which is one of the 2 short puts and the long put (the main profit-driver). If the stock goes up you just close the whole thing at 50% before 21-DTE or you could just let it go all the way to expiration for the smallest premium at 100%
Hi Davis, I see that the volume for XSP option trade is very low and the bid/ask price is wide. Can use XSP for your option strategy? Please clear my doubt. Thanks.
For the sharing of one of your successful students using the PBWB. If he only had $6000 account, and placing 2 XSP trades per week, and all leave them to expiration, I am not sure if he had enough margin to cover all the trades, and it would be an easy margin call when the market turns around and go down .. ?
If a stock is currently at $50 share and you write a put at the 40 strike price level you only need to pay 4000 for the shares, 40 x 100 = 4000 if assigned.
You can use vertical spread in strategy builder. Also, one more thing I would like to say is that you can ask these questions to LLM engines like ChatGPT or perplexity and you can find the answers
Get Your Copy of My Strategy Blueprints For FREE:
1) The Options Income Blueprint: optionswithdavis.com/blueprint/
2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/
Great work 👍, You really do have great insights and ideas on trading thats why it's best and profitable when you have proper guidance like mines
Theresa service
I really do struggle to keep my earnings consistent I want that to stop. How to connect?
I understand the feeling she’s mostly on telegaram with the name written together
Glad I’m seeing this theresa Options’s understanding and analysis of the markets projections is impressive. her knows exactly when to execute and exit trades to attain maximum returns.
Over the years, l've been a part of numerous trading programs, shifting through a barrage of information.
Yet, nothing has come close to the sheer clarity, depth, and precision of her insights.
Hi Davis, great content. Many insights and applicable methods! 👏🏻👏🏻👏🏻
☺️
been trading the wheel for years but love the idea of adding the out ratio spread to hedge and make more if the market goes against you. Also loved the idea of vertical diversification. Always wondered why no one else ever talks about this
How do you make vertical diversification work? The wheel only generates about 15-20% ROC, but if you split that into say, 5 tranches for vertical diversification with the market drifting up 80% of the time, you would only be making 4-5% ROC, about the same as T-bills. Now you could make more in a selloff but with a 2 year recession like in 2000 and 2008 you would still be out of money to wheel before the market bottoms out. At most you stand to make 8-10% ROC with this strategy, less than if you just hold SPY, QQQ, and IWM. 🤷
@Davis...do you recommend market or limit execution if stop loss hit to close the spread? i need to prepare if japan carry trade unwind happen again.
you are a very talented teacher davis. Appreciate ur work alot.
☺️☺️
what is your opinion on managing the the Put Ratio spread by rolling the 2 short puts and letting the long put run if price were to trade below your short strikes and you still like the stock and don't mind owning it but it is still heading down? Seems like you could keep making money on the long put if the market keeps dropping but you still like the stock. Or what about just closing the long put as it gets to your short strikes and just getting assigned 200 shares on the short puts since you like the stock anyways and then you get to keep the entire profit that the long put made instead of spending some to buy back one of the short puts? Just wondering why we have to close the long and a short but let the other short put stay if it reaches our short strike. Thanks Davis I LOVE your channel and your content. You are definitely my favorite options teacher on TH-cam. Keep up the GREAT work! Thank you for sharing your knowledge.
Well constructed materials and good teaching: pace and clarity! Thank you.
You're welcome!
Davis, can you show us how you keep track of your trades. In a spreadsheet? Can you share your spreadsheet?
Hey Davis. Great clarification between the styles of this strategy. Thanks for posting and please keep up the good work.
You're welcome!
Thanks Davis. For the CSP version, do you put it on as two separate strategies (Debit spread/short put) on the broker platform or do you just buy a put and sell two puts at the same strike and then sell the put spread but buying one option and selling the other?
The risk graphs for the put ratio spread looks very similar to the jade lizard. Instead of the put debit spread the jade lizard has the bear call credit spread
What kind of minimum starting capital would be advisable for this strategy? Thx.
Great vidoe Davis!! One question: on the put ratio spread with cash settle index, and as per the P&L you want the price to go down towards your tent point. Does it mean that once you've entered the trade, and if you are closely monitoring the positions, if the market drops then you could actually close the trade earlier or? I must be missing something cause sounds like a no lose trade which cannot be the case...
Thanks! No such thing as a "no lose" trade. There's still risk with each strategy.
Hey Davis...do you recommend market or limit execution if stop loss hit to close the spread? be prepare if going against me...
Thanks Davis for another video
👍
I really appreciate your efforts! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Great, thanks Davis!
Do you use any platform like Tradersync to keep track/journal of trades?
Thanks a lot for the content 🙏
Nope. You're welcome!
@@optionswithdavis Do you suggest anything? I found the traditional way with spreadsheets can be a bit hard when it comes to keeping track of rolled trades. Cheers
Thanks Davis. I have been trading SPX using PBWB. Been 100% win for 1yr not because im smart, its just because of luck of SPX uptrend. It never got into the tent. For last few months I’ve changed my closing strategy from leaving it expire to closing when ROI from holding remaining days is lowered by 50% from ROI at open. Reason is to recycle the capital for higher ROI on new PBWB. But that also means unlikely to hit the tent. Wanted to seek your view on this. Is it wise to do such close?
Thank you for the video. Based on your experience, which one do you prefer for going long on good stocks - PMCC or CSP(assigned)? PMCC is less capital required but misses out the CSP premium and dividends.
A lot of stocks are overvalued. What if you don't want to get assigned?
just take profit on the premium :)
buy another put and make it a butterfly to cap the potential loss
@@allanaldair5767it's too late at that point
Thanks for the video Davis! So to summarize the strategy, you sold two short puts and bought one long put, and then close one short put, before expiration if it’s getting close the the strike price, so you can only get assigned on one short put, and profit on the rise of the underlying stock, or lower the cost of the stock with the long put if market continues to go down before expiration? Is this how this strategy works or is there anything missing from my understanding? Thanks to whoever clarifies it.
I think that you close the Debit Spread which is one of the 2 short puts and the long put (the main profit-driver). If the stock goes up you just close the whole thing at 50% before 21-DTE or you could just let it go all the way to expiration for the smallest premium at 100%
Hi Davis, I see that the volume for XSP option trade is very low and the bid/ask price is wide. Can use XSP for your option strategy? Please clear my doubt. Thanks.
No, most big traders use SPX and smaller traders SPY.
You’re better off trading /mes or /es
@@Rockingstars Not if you're looking to take control of the underlying. Even successful traders have been burned playing the options on futures game.
which broker do u use?
th-cam.com/video/AP2a81yPjrk/w-d-xo.htmlsi=Gv4coZ_VUhb2X5Ee
I thought put ratio spread was set it and forget it
when you said "cash-settled index options", do you mean SPY? and why it does protect me from early assignment?
th-cam.com/video/hHK8TdVnjTQ/w-d-xo.htmlsi=39Nck7Yv-zRxIKJV
@optionswithdavis thank you!!🙂
For the sharing of one of your successful students using the PBWB. If he only had $6000 account, and placing 2 XSP trades per week, and all leave them to expiration, I am not sure if he had enough margin to cover all the trades, and it would be an easy margin call when the market turns around and go down .. ?
If a stock is currently at $50 share and you write a put at the 40 strike price level you only need to pay 4000 for the shares, 40 x 100 = 4000 if assigned.
Anyone know how to do all these in IBKR... Gone thr TD broker
In IBKR, you need to construct the vertical trade by adding the strike to the buy and sell leg of the trade
You can use vertical spread in strategy builder. Also, one more thing I would like to say is that you can ask these questions to LLM engines like ChatGPT or perplexity and you can find the answers
What delta do you typically trade your CSP @?
See this: th-cam.com/video/M3pMZCU97KU/w-d-xo.htmlsi=ocZ1u4Pozvuhdd5i