Don Kaufman at Theotrade recommends selling SPX options if you want to get rid of assignment risk because SPX is an optionable index and can't be assigned because there is nothing TO assign, it is an index not an equity instrument. Make SURE the new traders understand that Greg.
Greg, if you are going to be teaching these people more advanced options trading strategies you need to make SURE you tell them all the risks involved. If they got assigned and had to fork out $220,000 cash for a couple of options they got assigned on, that could wipe out most traders here. Therfore teach them THE RISKS also!
But to answer the original question.....yes, I WOULD definitely like to sell options, but I would do it ONLY using SPX options.
You can get free material here. The link is at the top of the page that says "Free Resources" but if you are seriously desiring to engage in more advanced options trading strategies you might want to pay $99 bucks a month. They have video series on pretty much every option trading strategy known to man.
I don't know all the details of what they offer these days because I decided to keep my trading simple for the time being until I get more capital to buy/sell vertical spreads. He also has a daily market synopsis video every day on YouTube, just search "Theotrade".
Would def be interested! If possible if you could do a video on selling options the same way you have videos on buying options on your Tradegame channel that would be great.
selling PUT options needs a lot of cash on the side. JPM 110 March PUT premium 13cts e.g SELL 10 contracts for total 130 USD. in case you get exercised pay 110k USD.
Agreed, you need to be well capitalized...I dont want to see anyone here selling naked puts. If you are not well capitalized Gregs book talks about credit/debit spreads I would start there first.
Greg my online Moniker is TraderDad. Been teaching my flock how to sell puts in this bullish tape for quite sometime. We still use your triggers and sell Put spreads to buy those calls you like so much. We call that the Mannarino Superbull Trade. Keep up the great work. Glad your are introducing selling puts to your flock.
A few in my flock actually are managing other folks money today using these strategy for great alpha returns in 2020. Hope to see you adopt these strategies with your new fund.
Greg, please post everything. I think I've mastered buying calls and almost buying puts. Selling is the next step. I'd love to dip my toes into it. Thanks for all you do!
I'll speak for Greg here: If you are not VERY familiar with options, NEVER trade them. Know how you make money, how you can lose money, & incredibly importantly-how to adjust them if needed. Having said that, options can be used in a very conservative & safe manner. We are not talking buying GME $400 calls here.
Generally, best to use them on stocks you would want to own at a lower price. If the stock doesn't drop much or goes up, you keep the premium recieved.
I don’t think it’s a good idea for 99 percent of people here. It’s a good strategy however you need to be very comfortable with potential loss, feel market timing, sell it at the bottom of the channel etc
Quick lesson here, when you sell options, look at it as the house dealer. When you buy options you are a player at the table. Where are the better odds here??? Think about it. P.S. you do need cash to back your sold puts.
I am not comfortable with options and that is why I am interested in the fund you are starting.
Not comfortable with selling option. Still learning
I would really like to understand options better. Also hedging your trade for insurance.
Don Kaufman at Theotrade recommends selling SPX options if you want to get rid of assignment risk because SPX is an optionable index and can't be assigned because there is nothing TO assign, it is an index not an equity instrument. Make SURE the new traders understand that Greg.
Greg, if you are going to be teaching these people more advanced options trading strategies you need to make SURE you tell them all the risks involved. If they got assigned and had to fork out $220,000 cash for a couple of options they got assigned on, that could wipe out most traders here. Therfore teach them THE RISKS also!
But to answer the original question.....yes, I WOULD definitely like to sell options, but I would do it ONLY using SPX options.
can you send a link to this...I've been doing this for a long time and this would be new knowledge to me... Thanks -Chris
You can get free material here. The link is at the top of the page that says "Free Resources" but if you are seriously desiring to engage in more advanced options trading strategies you might want to pay $99 bucks a month. They have video series on pretty much every option trading strategy known to man.
I don't know all the details of what they offer these days because I decided to keep my trading simple for the time being until I get more capital to buy/sell vertical spreads. He also has a daily market synopsis video every day on YouTube, just search "Theotrade".
https://theotrade.com/
Would def be interested! If possible if you could do a video on selling options the same way you have videos on buying options on your Tradegame channel that would be great.
Ditto! Thanks Greg
selling PUT options needs a lot of cash on the side. JPM 110 March PUT premium 13cts e.g SELL 10 contracts for total 130 USD. in case you get exercised pay 110k USD.
Agreed, you need to be well capitalized...I dont want to see anyone here selling naked puts. If you are not well capitalized Gregs book talks about credit/debit spreads I would start there first.
Yes, if you would talk about selling options it would be great. I focus so much on buying options that's selling has not been part of my repertoire.
I love writing puts and would appreciate seeing what you are doing!
Greg my online Moniker is TraderDad. Been teaching my flock how to sell puts in this bullish tape for quite sometime. We still use your triggers and sell Put spreads to buy those calls you like so much. We call that the Mannarino Superbull Trade. Keep up the great work. Glad your are introducing selling puts to your flock.
A few in my flock actually are managing other folks money today using these strategy for great alpha returns in 2020. Hope to see you adopt these strategies with your new fund.
Greg, please post everything. I think I've mastered buying calls and almost buying puts. Selling is the next step. I'd love to dip my toes into it. Thanks for all you do!
I love selling options can be very profitable. I normally end up selling a spread to reduce the capital requirements over selling naked
I'll speak for Greg here: If you are not VERY familiar with options, NEVER trade them. Know how you make money, how you can lose money, & incredibly importantly-how to adjust them if needed. Having said that, options can be used in a very conservative & safe manner. We are not talking buying GME $400 calls here.
Around how much do you normally to make a cash backed out?
what?
YES YES - I use naked puts, covered calls & put credit spreads all the time.
Aren't naked puts prohibited though?
NO - perfectly OK. I use them cash-backed (no margin) in an IRA.
Generally, best to use them on stocks you would want to own at a lower price. If the stock doesn't drop much or goes up, you keep the premium recieved.
I'm with you on this comment. it was the "naked" part that I wasn't clear on
Oh okay. If they are cash backed, then why do they call them "naked"? I thought cash backed meant it was "covered"
naked just means you dont own the underlying security.
Oh that makes sense now, thank you! Appreciate it.
it's technically called a "cash secured put"
correct
I don’t think it’s a good idea for 99 percent of people here. It’s a good strategy however you need to be very comfortable with potential loss, feel market timing, sell it at the bottom of the channel etc
Quick lesson here, when you sell options, look at it as the house dealer. When you buy options you are a player at the table. Where are the better odds here??? Think about it. P.S. you do need cash to back your sold puts.
Yes please