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Ep 124: Trading Weekly Option Tips: (Earning 9%)

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Ep 124: Trading Weekly Option Tips: (Earning 9%) ★ SUMMARY ★ In this video we will discuss trading weekly options and option trading tips at how you can earn 9% per week. We will evaluate the risk profile picture and directly on screen examples of how to find a trade or look for these great opportunities, how to setup a spread, how to sell the vertical, and do it based on stocks that just recently had earnings or a bad drop. We will analyze the risks and probabilities so that you know your chance of success when you place these types of option trades. Posted at: http://tradersfly.com/2017/02/ep-124-weekly-option-tips/ ★ REGISTER FOR A FREE LIVE CLASS ★ http://bit.ly/marketevents ★ GETTING STARTED RESOURCE FOR TRADERS ★ http://bit.ly/startstocksnow * Please note: some of the items listed below could and may be affiliate links ** * Trading Software / Tools * Scottrade: http://bit.ly/getscott TC2000: http://bit.ly/gettc2000 TradeKing: http://bit.ly/gettradeking TradeStation: http://bit.ly/getstation ★ SHARE THIS VIDEO ★ https://youtu.be/QXmb_yR7--8 ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! FREE 15 DAY TRIAL TO THE CRITICAL CHARTS - http://bit.ly/charts15 GET THE NEWSLETTER - http://bit.ly/stocknewsletter STOCK TRADING COURSES: - http://tradersfly.com/courses/ STOCK TRADING BOOKS: - http://tradersfly.com/books/ WEBSITES: - http://rise2learn.com - http://criticalcharts.com - http://tradersfly.com - http://backstageincome.com - http://sashaevdakov.com SOCIAL MEDIA: - http://twitter.com/criticalcharts/ - http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: - TradersFly: http://bit.ly/tradersfly - BackstageIncome: http://bit.ly/backstageincome
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Text Comments (72)
Apollos Hill (2 days ago)
i bet most people can't afford to sell uncovered TSLA /AAPL or any large cap stock options that are watching this video. You mentioned TSLA right off the bat. Don't think you explain that the 9% is only if you have over 25,000 in your account and cal sell naked options
dawayne robinson (4 days ago)
Hello Sasha What software and hardware are you using to make such an awesome video
boom1111111111111111 (15 days ago)
care to respond to commenter who notes the negative expectancy of this strategy?
Incomeking (1 month ago)
450 on 4500 risk.
Incomeking (1 month ago)
What is the hedge in case thing go wrong?
Michael Johnston (1 month ago)
This is so risky and stupid. Risking 4 grand for 400!!!.dumb.
Michael Johnston (1 month ago)
+Sasha Evdakov: Tradersfly just tried the strayegy on icpt and got hammered
Thanks for sharing your opinion. Hope you're having a great week ahead
Tuk Dasdo (1 month ago)
what about gamma?
What would you like to know about gamma?
good morning Cristina (2 months ago)
He speaks clear and calm. Like so much. I subbed.
the Merc (2 months ago)
Is this an acceptable level of risk?
ScoopThePot (2 months ago)
the worst trading idea on the planet...trading at a 10:1 RR is literally financial suicide...
bob dole (1 month ago)
Well you have to know what your doing to make intelligent trades with weekly options. With whatever strategy you use. Numerous ways to sell or buy or write complex legged options to do many things with risk comes reward. Try and actually learn something before posting something this stupid.
serg472 (2 months ago)
Lets do some actual math shall we. The expectancy of this trade is: (1+ (Gain/Loss)) * Prob – 1 = (1+41/459)*0.8753-1=-0.04651=-4.65% (without even taking into account commissions). In other words, this is the strategy where the odds are against you, and you are 100% guaranteed to lose everything with this trade the more times you repeat it, similar to a roulette. The strategy you are proposing is similar to flipping a coin where you gain $100 but lose $104.
boom1111111111111111 (15 days ago)
brutal
Jeff Zivkovic (26 days ago)
Bob Dole. I'm inclined to believe you, but where is the flaw in his math?
bob dole (1 month ago)
Not even close, stupid comment. I been selling weekly options year after year and do just fine. Learn something before posting.
Scott Jaitly (1 month ago)
I was thinking the same thing. Simulate out 10 trades w/ 80% win probability ($450 profit per $4500 capital risked) where you win 8 of 10: Profit = $3,600 & Loss = $9,000. Poor strategy and a sure way to lose 100% of your account over time.
stevzor (4 months ago)
My god 8:36 minutes in and the guy has already made options look like the most complex product on planet earth. When teaching you should always stick to the spoon feeding strategy otherwise all the percentage this, percentage that babble falls on deaf ears, and it's horrendous to teach. Small tip coming at you for free, think layman's terms and you're on the right track.
Apollos Hill (2 days ago)
options are complex, should not be treated lightly. he is right , that you should check out a basic video because there are a lot of fundamentals in here he doesn't explain.
You may want to go ahead and take a look at our basic videos first.
G H (5 months ago)
There is a probability of otm column in TOS as well. Also probability of touching which depending on your stop would be more important if you trust the math. Which I don't.
panagranit pana (7 months ago)
Clear and Concise... Bravo!
richard hanes (7 months ago)
Hi Sasha. Suppose i buy a 100 call, and sell a 110 call, and stock price is 115 upon expiration, do I have to have the capital to buy the shares then sell them back?
Scott Logan (8 months ago)
Love your vids BUT in a scenario like the one presented here you should click the "Exclude/Include" commissions button on the analysis page as you have commission costs on the way in and on the way out of the trade. For the smaller dollar trades (beginners) it will knock down the 9% gain to 6% or 7% or less.
Mike Wilson (8 months ago)
I like Sasha. I trust Sasha. Except when he exaggerates. A rate of .111111... is not almost 11.5 or 12% it is closer to 11.10% or 11%. Be true to your numbers. Be honest. Be accurate, and we will reward you by being loyal and trusting to you. You have not lost my trust, but I am asking you to be on guard not to exaggerate.
Dr. M&M (1 month ago)
Maybe he was taught to round up in the tenths regardless haha.
Ali A (9 months ago)
What is considered a small versus high implied volatility?
Gwent Champ (1 year ago)
Interesting video. My broker (Fidelity) will only allow me to write covered calls and buy puts for stock I already own :-(
Malik Liddell (10 months ago)
Robinhood😁
Zachary Solomon (1 year ago)
Too much risk, I don't see how it pays off. 12.5% expires OTM (or 1 of 8 times) while the risk:reward is 10:1. Time is in your favor in the short run, but like in casinos, it's easy to profit thousands of dollars before blowing it all in 20 minutes
SamCroSOA2012 (5 months ago)
i agree with you on the numbers, you cant be placing bets with a negative expectation on return. i see it all over the place. but i am able to find options trades every day that have positive expectation. I specialize in $1 wide spreads, where my credit vs risk % is always higher than the ITM odds%. $.20 on 75% ITM in a $1.00 spread is even money, so always having theta and vega on your side is the edge you need in the long run.
Twelve Dozen (8 months ago)
Zachary Solomon What options are you trading? SPX/SPY?
Zachary Solomon (1 year ago)
I always recommend doing your own analysis of the charts before entering any options position. I trade naked calls and puts 2-3 times a week and my returns are amazing, I also keep my losses tight and I only day trade. I never sell to open, only buy to open. My goal is to see an increase in premium value then sell the contract back at a higher price. Basically I flip premium for anywhere from 15%-40%+ in a few hours and my losses are limited to 10%-12% while figuring in the bid ask spread. I have a 4:1 profit:loss ratio. Just hope I could keep this up when I'm 60-70 years old lol. I'm only 22 now. Been doing this as my main source of income since I was 17.
ColGadarby (1 year ago)
If you have a $5,000 account - I suspect you would only risk say a max of $500 on such a trade...So if you make 11% on this it is only $55. That as a percentage of your entire account is 1.1% you have made in one week. How much could you lose in a worst case scenario ? What is the risk : reward ratio please ?
SamCroSOA2012 (5 months ago)
with a 5k account i would suggest only using $1 spreads. that sets your risk at ($1 - the credit received) x 100. so if you had a $.15 credit on a $1.00 spread your risk is $85 and your reward is $15. or you stand to make 17.64% profit on the trade verses your risk factor. setting a total amount of 50% of your account or in this case $2500 as the max amount invested at a time, with an average risk of $80 per trade you could have up to 31 trades going at a time and would shoot for an 80% to 90% win rate.
Kelley Home Team (1 year ago)
Great video Sasha!
Brandon Bennett (1 year ago)
Excellent presentation! Thank you for making something difficult to explain easier! Keep up the good work!
cherukuri sai tharun (1 year ago)
Sasha. One day I earn millions and give my half a million to you as a fee to you. Kudos man
Locomotora Rusa (1 year ago)
TU ERES EL MEJOR!
Kosovo Report (1 year ago)
Ha estado una mayor influencia a mi progreso con aprender los conceptos del movimiento del precio.
TJ Marta (1 year ago)
Hi there. I cant see. What software are you using?
Brandon Cook (1 year ago)
thinkorswim
Magic11 (1 year ago)
Sasha can you sell puts without a margin account?
Taloot B (1 year ago)
Magic11 yes
Siddhesh Tulaskar (1 year ago)
Hi Sasha, When you place a vertical spread and convert that into an iron condor the margin requirement is almost the same why so?
Tuk Dasdo (1 month ago)
because just one side of the trade is on risk.
Siddhesh Tulaskar (1 year ago)
Suppose I am Trading OTM Strike Horizontal Sell This Week and Buy Next Week with a Capital of 10000 USD then how many lots of 100 I can trade on put and call side?
magnus hem (1 year ago)
So you have 90% possibilty og making 9%? The odds are against you. If you run the trade 10x you will loose at least one time. And most likely most of the money becase there is only a small interval between loosing the trade and winning it....
magnus hem (1 year ago)
Makes sense it was just to clarify that you should never takes such a bet without watching it, since you could end up loosing money in the long haul ;)
Positive Investing (1 year ago)
I'm currently holding a bunch of ETFs.... Do you recommend any specific ones?
WhisperingChocoTaco (1 year ago)
Hey sasha, i wanted to check how often pop ups happened after downturns due to quartly earnings, but freestockcharts only goes back a year when you look at the dailies, how do i get old dailies?
WhisperingChocoTaco (1 year ago)
Thank you.
kim peter (2 years ago)
I really need a interview for my ELA project for school and my topic is stock trading can i please have a inter view with you cause I know you know a lot about it
Tania G. (2 years ago)
Hi....I am pretty much new to the treding...and I have a question about day trading...how many stocks do you "watch"/work with during your day trading? Is it the same list of stocks every day?
elimar008 (2 years ago)
with options, the odds are 95 percent of the time against you.! i strongly urge all to stay away!
bob dole (1 month ago)
you obviously haven't a clue how options work or how to trade them so yes for you stay away.
G (1 year ago)
haha that was funny
horacechin1 (1 year ago)
elimar008 but just because you can sell doesn't mean you just blindly sell options at any strike price. you have to have a technical reason to sell options. for example selling a put when a stock dips because you think it won't go under the strike price you sell
horacechin1 (1 year ago)
elimar008 actually it is. when you flip the low odds of buyers winning 10% of the time who do you think wins when buyers lose? of course the seller does. also time is in your favor as a seller not against you. you get paid theta each day that goes by as the contract decays..
MIKE VARGO (2 years ago)
thanks again for great video!
cris555000 (2 years ago)
Sasha, thank you very much.
A N (2 years ago)
Hello Sasha, just have a question i can't find answer for, its like how you can sell to someone a call or put on stocks, if you don't have those stocks? Or its covered somehow with a put/call you buying before you selling put/call??
A N (2 years ago)
Sasha Evdakov thanks for answer, now its clear!
Glenn Potter (2 years ago)
good lesson. do you have a weekly letter etc?
Porkchop 17 (2 years ago)
Should I buy AMD or am I late to the party?
MoteQ (6 months ago)
you are very late to the party lol
Plat Crab (2 years ago)
Sasha what do you mostly trade? Do you do more options, stocks, penny stocks, ETFs, etc..? just curious, I don't doubt that you have experience with pretty much everything
демку tos открыл и доволен собой)

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