How to become an options trader 94

November expiration for us to make money on this trade overall. Delta for our portfolio to help balance out what we have on the bullish side and starting to build. We still have an opportunity. Try to be a little bit more aggressive. But look, Tesla has had a real tough time and has tried to rebound and just keeps falling. We continued to roll down that call side and take in profit. Just quickly, I remained pretty bearish on UUP, and I might enter another position here as we get closer to expiration this week. It looks like a butterfly up here and then pretty much a call spread on this side.

Alright, and then the last trade to round it out here is eBay. EWZ around 45 to 47. Qs because I think this is really important. Same thing with XLF, we want to get short financials heading into earnings. Monday and Tuesday as we wind out October expiration. Alright, EWZ is another one that we closed out of, so this one is a little bit different. AXP was just a long hedge. That helps widen out the breakeven point, taking in more credit here.

With eBay, instead of risking a lot of money to make a little money, we actually had more premium than we had money at risk which was great to start with. We went ahead and added an additional call side to the trade. Not to say that this is maybe the end of the drop. Financials might be one of the first things to continue to move lower and they had a real tough time this week gaining some ground. It happens with all markets, they get irrational to the topside and they get irrational to the bottom side. This is the period when you need to be more aggressive in how you approach things and definitely with your trades.

Our first adjustment in XOP, for those of you who are in it, is we went ahead and moved our call side closer. Russell and then also SPY. We did close out of our UUP debit put spread. Qs to land anywhere between 93 and about 102. XOP in profit loss of money. Alright, onto some of the adjustments. With the Qs, we originally had the call spread above the market, and as the market was rallying on Thursday last week, we decided to go ahead and enter the put side of this trade and create an iron condor, and this was nothing more than taking advantage of what the market gives us. But hopefully, you guys get the idea here of reducing that side of the trade and minimizing this loss of money now by taking in that additional credit. But this is our original position in the Qs. Friday, but about 93 which still gives us some range down below and 102.

September, and then as soon as we hit into October expiration month, the markets just continued to selloff, selloff, selloff. You can just expand this chart here just a little bit. If I go to the Analyze tab, here is our original position. MasterCard and Visa gaining some ground this month. The good news is that this is a great opportunity. Anyways, we were short the 67 put below the market right here originally and I believe short the 70 call. Remember that a vertical credit spread is nothing more than selling the front contract which is the 35 and buying the back contract or the back strike at 38. November for it to recover and fall back inside of this range. And IV rank is up at the 96th percentile, so if we can go ahead and roll this out to November, it just gives us more time to be right in the trade and more premium obviously with higher priced options in November. November, that we take in an additional credit to reduce our loss of money.

That helped buffer us for most of the month. As always, if you guys have any questions or comments, please email me. We got pretty clean signals for Tesla as it gapped lower that it was going to continue to move lower as we threw in some technical analysis studies. The other trade that we made was just another credit call spread in Tesla. EWZ trade out to November. You can see here some of the closing trades that we had are losers that we rolled off just to save some money on because they probably are not going to become winners in the next couple of days. We did exactly the same number of contracts. Hopefully, this is good, sound, calming words for you guys just to understand that this is the period that you need to invest. November, if eBay moves up to around 55, we still can make some money.

What that was is less than the dollar, so we saved some premium there. Alright, to kickoff the alerts, we did a lot of credit spreads opening on Thursday and Friday. We could obviously continue down even lower. We sold the 260 which is back above its original position, so it has to fully retrace that original position. But because implied volatility is so high and is so high for November, we just want to give ourselves more time. Let me go to the chart here of eBay, so you can see what our original position look like. Qs overall, not really too bearish or too bullish, we just wanted to stay in a defined range in implied volatility to drop. In this case, by moving up this side or the left side of our diagram, we also are forced to move down this side. But right now, implied volatility across the board is extremely high, and as options traders, this is a great opportunity.

We only had I think two or three trades on Thursday and then the bulk of these trades were on Friday, but generally, the market has been really crazy. EWZ is trading right here at 44. Is Your Options method Scalable? February of earlier this year. We originally entered an iron condor and we actually took in more premium than we risked. And this is exactly the time when most guys get out of the market. And what we did originally was roll these calls closer and we created a 67 straddle right over the market. We went ahead and locked in a profit again on our 38 calls, rolled them closer to 35. It was a great opportunity. But we might reload on this one and try again.

Alright, in XOP, we did virtually the same thing except we went inverted this time. Thinkorswim or your broker platform, you use a vertical credit spread to do that. Now, we were already short the 38 calls, so buying them back is closing out our 38 call position, banking that profit, it throws in the hopper to be used later on to offset any losses, and selling that 35 now becomes our new position. And as you can see, XOP is continuing to move lower which is fine, implied volatility is very high, again fine, and what we did now is we rolled our call spread even closer down to I think 61 or 62 is where we ended up rolling it. When we went ahead and added this trade in, our new profit loss of money diagram looks like this. We had bought a debit call spread in AXP, 87. Tesla here on the charts. This is the opportunity that we have during the year to add a lot of premium. Not that bad with AXP.

MACD and CCI not breaking above that zero barriers on either one of those. Another one that we closed out of is AXP. XOP is trading right here at 58. Try not to do that. Call buyers profit when prices go up, while put buyers profit when prices decline. When you sell a put, you will generally sell it at an exercise price that is below the current market price. ETF at a bargain. My track record now sits at an astonishing 136 for 140. Because they have an expiration date, on that date the option buyer will have either a profit or a loss of money and the trade is over either way.

Trading options could be a way to increase your income by hundreds or even thousands of dollars every month, but you need to study the market before making trades. Individual investors can not difficult profit from selling puts just like the professionals, but this method requires doing some homework. There are only two possible outcomes, and if the buyer wins, then the options seller must have a loss of money. Consider selling put options if you are looking for an income method that offers low risk. Whenever an option is bought, someone else must be selling, and one side of the trade will be a winner while the other party will face a loss of money. Remember that there is a winner for every losing options trade.

No matter how you define risk in specific terms, the concept of risk always involves losses. We can even tilt the odds in our favor slightly more by looking at whether call or put selling would be more profitable. Conversely, when the options buyer loses, the seller wins. Unless the price of the underlying stock or ETF falls below the exercise price, the put will expire worthless. This data shows that selling puts has a high probability of success. To minimize the risks of put selling, you should only sell put options on stocks or ETFs that you would like to own. By that definition, selling options could be one of the lowest risk strategies an investor can use. This is simply a result of the way options are designed. They know the fair value of the puts they are willing to sell and take trades only when the time is right.

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There are obviously many, many opportunities. My first option trade was a loss of money. If you have any experience in options, you have probably heard the term theta, beta, gamma, delta, kappa, etc. We kept track of every single option that met our minimum criteria according to the Option House method. Most of my experiences for the first 5 years left me disappointed. It is just logic and simple mathematics.

Without giving away all of my secrets, this is a tremendous trade and opportunity. This means you can pick and choose which trades you take if you are not able to take all of the signals. The information contained in this course is priceless. Despite this value, I am going to still provide a full money back guarantee. It is sheer logic and simple mathematics. We exit most of our trades long before expiration based on a simple mathematical calculation. Out of those losers, 10 of them came from either the metals or energies, which were extremely volatile during this time period. Sometimes there are 10 or 15 different strike prices in the same market on the same day that meet our criteria.

We tracked all of them. In order to understand how to give yourself the highest probability of success, and the greatest profit potential of any option trade, you only need to understand a few very simple, very basic mathematical calculations. This underscores the statement I made earlier stating that there are times and markets when you simply want to step aside. For example, I rarely sell stock market index puts. Each signal carries a high probability of success independent of all other trades. You have to take risk by the horns if you expect to be successful in the markets. So, we use the principles, but in a nuts and bolts kind of way. Trades With a 92. Options for Profits course talks about how to determine the warning signs of when to leave a market alone, or at least wait for extra tremendous opportunities.

This is exactly the opposite of the truth. There are other factors that made this a tremendous opportunity as well, but you can see the kind of high probability trades we take with the Option House signals. Many option traders think these are complicated mathematical formulas that only the most sophisticated mathematicians understand. This is the same service that generated the 55 trade winning streak, and 202 winners out of 215 trades. Most of that sideways action is based on a time period when metals and energies were making big runs, causing many of the options to become losers. If that particular market makes a run, then all 10 or 15 of those options were potentially losses. That is a whopping 97. Now let me tell you a little more about that track record.

As you will recall, I also made a statement that there is nothing magical about options. Sell Sept Coffee 235. We have a software the scans all options on futures that meet our minimum criteria for this method every day. Another time to stay away is during any season when weather can spike a market. You also need to understand that there are fundamental mathematical principles that heavily influence the success rate of any option trade being profitable. For example, most traders believe there are more risks in selling options than buying options.

Around June, I make sure I am out of grains as a general rule until usually sometime after July. There is nothing magical about them. There are times and market conditions that are not favorable to consistent success, whether you are selling or buying options. There is nothing magical about options. So, I began selling options. By the way, every fill reported in the Options House signal service are actual fills, not hypothetical. The Option House signals will give you the best opportunities available. You can begin going through the online course immediately by signing up now. Option House signal service.

So I tried selling options. Take a look at the Coffee chart with the option price also charted. Just to explain this track record a bit more. You have to embrace it, understand it, prepare for it and then manage it. There are some basic common sense filters you can use to decrease the overall risk of hitting a series of losing trades. But being a profitable option trader is more than just knowing how to analyze and trade options. Over the next 5 years, I had 3 different accounts I tried buying options in. Right now we are watching grains go parabolic due to the drought in the mid west.

We provide exact entry and exit rules for every trade. In fact, most traders who have taken my Options for Profits course, regardless of how much experience they have trading options, have found my approach for analyzing and trading options to be the most logical, simple and profitable approach of any options course by any trading guru. Option House is mainly focused on selling options. All 3 accounts ended up losing money. Much to my surprise, that account ended up losing money as well. They are dead wrong. Selling options has a far, far greater probability of success.

This is what the Options for Profits course and signals is all about. Too many traders spend entirely too much time pouring into analyzing all of these greek terms. But remember when I said my first option selling account lost money. This is where I lose a lot of traders. It is what creates the opportunity to profit in the first place. Ultimately, those traders will, in all probability, NEVER be successful no matter what they trade. When stocks crash, they can really crash.

It is impossible to properly manage risk without first embracing, understanding and preparing for it. Option House is a specific method I reveal in the Options for Profits course that is based on the logic you learn in the course. Now, before I go any further, you have to understand one thing about options. In reality, risk is our friend. However, the probability is so high that I am willing to put my money where my mouth is. Go through the course, watch the signals and pick one or two trades that you are comfortable with. That just underscores what I have said, there are times when you do not want to be in certain markets, but outside of those times, the probabilities kick right back in.