Live Option Trading. Option Trade Alerts [WATCH & LEARN!]

last time i started i think it was in  January and then I ended on February 9th.   i'm starting on February 9th this is for  options training this shows my real-time   trade alerts you can enroll in the seven-day  trial at beststockstrategy.com/memberships   it's only nineteen dollars for seven days and  starting for february ninth we sold the 265 put   in mastercard picked up 75  cents this was a b plus grade and um i sold another put  on mastercard for 50 cents   low b grade uh low b plus i wouldn't do as a  spread because there wouldn't be enough premium tesla picked up 435 dollars sold the march  12th 550. then i give the spread like so if i   sold the 550 and then i will buy the 500.  i sold an amazon call picked up 184 dollars

it didn't use up any additional buying  power because we had a short put closed out an amazon position  close it out for 45 cents   sold it for eight dollars and 10 cents so we  collected 810 and then we bought it back for 45.   a good trade then i give a summary  february 10th bought back facebook kept about 70 of the premium sold tesla  picked up 445 dollars give the spread leg sold a put in amazon picked up 725 dollars bought back the amazon call opened  it yesterday for a dollar 84   and then bought it back for  85 cents so made around 100 then i give my thoughts my  closing thoughts february 11th bought back mastercard bought back  amazon amazon closed for an 800 profit so is this 760 plus a dollar  42 for rolling it less 85 cents above is the mastercard position   sold it for 50 cents and bought it back for 25.  it looks like we only held it for a few days okay open up a new position in  amazon picked up 430 dollars picked up 510 on amazon february 12th sold the 580  put on tesla picked up 465 so the 600 put picked up  1470 almost 1500 a premium amazon picked up almost five hundred dollars then i rolled tesla from 650 to 620 and i  also sold 420 and picked up almost 500 dollars so also notice that for tesla i reduced the  strike from 650 to 620 but i also reduced   the number of contracts from three to two so i  cut my risk by closing out three contracts and   rolling it forward by a week to two contracts and  i also reduced my strike price from 650 to 620 so   i reduced the strike by thirty dollars and i also  reduced the number of contracts from three to two   and i also collect a premium of 22 cents okay of  22 dollars sold another tesla position 400 picked   up about 800 here you can see i also rolled tesla  because i wanted to reduce the number of contracts   that i had outstanding so i reduced the number  of contracts for february 26th from two and then   i rolled it forward by two weeks to the march 12th  and i reduced the strike price from 610 to 600 and   i picked up about 200 i think the big thing here  was i wanted to reduce the number of contracts   outstanding so i cut the number of contracts  in half and i closed it out from two to one amazon open up a new position i think right now  um during february and i know like right now it's   actually the end of april but i'm pretty sure  that at this moment i really only have positions   on um amazon and tesla i probably had i think i  had a position on paypal as well but i know that   during this time there was a time period when i  only had positions on amazon and tesla and i think   i even noted it in the alerts so um you'll  probably see that message as well later on   okay let me see what happened  here so i close out amazon i probably shouldn't do this trade review  two and a half months after because then   i forget some of the trades paypal yeah i  bought that back bought back the call option   then i sold so there's the  original fix is up seven percent sold an amazon call so put solar put in facebook sold another point in facebook so  here i roll tesla from the 550 to   the 520 and i reduced the number of  contracts outstanding from two to one i did this just to reduce the number of  units outstanding on tesla i wanted to reduce   the size of the position here's the original so i  picked up about 620 dollars total for the position   and now it's just one one solitary put contract  with a 520 strike that expires in two weeks open new positions on facebook  and amazon both are b plus grades a new position on tesla picked up 440 dollars february 22nd open up a new position in amazon tesla again apple brought back amazon and my thoughts   so paypal low a minus grade that's pretty good  i probably should have sold more contracts then   because um if there's if it's an a minus trade  then that's that's pretty rare here i roll tesla from march 5th to march 26th and i reduce the  strike price by 40 dollars picked up credit tesla apparently fell 10 on february 23rd yeah you have to make sure  that you bend but don't break if i didn't have any existing positions on then  tesla puts would be a high a minus grade so almost   an a grade if you wait and i think that's really  important why it's vital to be patient and not   rush trades because not only could you actually  trade too large and then get forced into a margin   call only to then see the stock rebound later  on but you also miss out on opportunities i   didn't trade as large as i would have liked  to because i had to make sure that i managed   and defended my existing positions yep and i said  here but once we have existing positions on we've   already committed selling puts in amazon would be  a low a minus grade as well you know look at that   tesla was down nine percent that's an i that's  an a minus grade i mean look you pick up uh 700 for selling a four to one  for green to buy tesla at 420   closing trade for unh that was the  original so kept about 60 sold for 110 and closed it for 43 cents our 620 was briefly in the morning i  actually think tesla intraday like a   week later so a few days later  fell to 520 from what i recall   yeah it did because i know that at one  point tesla was down around 40 off it's low bend but don't break february 24th so you notice that tesla was up but  then over the next few days it must   have gone down because i know the intraday i  remember it was down to around the 520 level a good entry into apple for a 95 strike i mean  that's pretty great i actually wish um i wish   i could buy apple it at 95 i should definitely  traded that larger b plus grade smp is up 44.   so here you would think with the s p up 44  vicks down seven percent vvix down three percent   um tesla up six percent you would  think that things have stabilized so the next day the market  opened up was about even   but volatility is up three percent  which is a little bit of a warning sign okay so then two hours later fixes up  eleven percent and s p is down forty so then after roll the position i um   i roll the two positions to one so um i close  out the march 5th the 520 and the 600 and then   i roll it forward to the 590 by one week and  then i pick up a credit of around 71 cents i cut my units in half i think it's always better to roll early because  you always want to make sure that you preserve   buying power and that you never want to feel  rushed you never want to feel stressed out so   i think in this situation where i  ask myself okay do i really need to   to make this trade i just felt more comfortable  by reducing the number of units and if i could   just roll it forward by one week in  time and reduce the number of units   and no problem i would do that any time and  i collected 71 cents of credit so no problem is this a necessary trade probably not tesla's  still very far away from testing our strikes but   even so with the vix up close to 30 percent and  the vvi x up 11 if i can reduce risk while also   increasing my buying power and collective credit  then it's a good trade yeah i said it very well   i agree with that completely i mean i'm a  little bit biased because i wrote it so um   but i i guess like in hindsight looking back on  it like over two months later it was a good trade right here it looks like i um  reduced the number of units from   three all the way to one and i picked up 721  dollars but in exchange for doing that i had to   roll forward the expiration by over two months so  i closed out the march 12 and i closed out the 550   this the 590 and the 600 and i rolled it three to  one so i closed out the three i rolled it forward   by over two months but i also picked up 721  dollars and my strike was pretty good 575   just filled this picked up 720 dollars and  i rolled it forward by two plus months while   reducing it from three contracts to one and also  reducing the strike of the highest contract from   600 to 575. i'm going to set a closing  order now for 450 for this trade so if   tesla stabilizes and automatically close out  the may 575 put contract for a nice profit   remember that it's possible to win  close to 100 of your trades when an   options trader loses money it's almost always  due to them being forced to close their trades   because they run out of buying power due to a  short-term large unexpected price movement so   managing your buying power is extremely important  actually it's probably one of the most important   things and to be honest i was right here because i  know tesla fell to about 520 and then it rebounded   so i was completely right it's just based  upon experience what i've seen all right   so here it looks like i rolled i rolled up  amazon to pick up an incremental 220 dollars   rolled up the existing position  i feel that amazon is oversold   picked up an extra 220 and if i'm wrong  then i can easily roll it down and forward a lot of carnage today smp down 96. fix up 36 vvix   up 17 amazon down 102 tesla down 60 decent  day for us we reduce risk by managing a few   positions at the moment we'll watch the  market we don't have to be too aggressive   during periods of rapid volatility expansion  the market tends to overreact so you'll need to   bend but not break so you can make significant  money once the market stabilizes february 26th all right so i roll tesla i um reduced the strike price from  600 to 590 and i rolled it forward by week i mean   generally if i'm gonna roll something for it i  definitely want to reduce the strike price by more   than ten dollars but um because i only picked up  twenty twenty cents or twenty dollars per contract   it's not really that much but i guess i just  wanted to give myself an incremental safety net smp down 18 so here it looks like it opened   it was up 14. um tesla and amazon were up  and then s p closed down 18. so you see  

like that shows that the market's weak where  there's a swing of about 32 points or about   one percent there was a one percent move in uh  in the s p over the last 10 minutes that's not good so amazon was up 35 tesla down seven okay  march 1st s p up 60 vix is down 14 percent   just to be clear after a very volatile  day or week it's best to wait until later   in the day to act once you believe things have  stabilized just to ensure that you're not wrong   this doesn't apply to closing trades  when closing trades it's usually better   to do it sooner rather than  later so closed out paypal um really didn't show a large profit on there but  close up paypal for 72 cents the original is below   we sold it for oh actually no i was wrong so you  see how the limit says dollar 10 but it filled   at a dollar 54 so i got it over 50 profit  there 55 green no stress just time decay okay sold another put now i should have i should  definitely have traded larger in amazon i mean   those are a lot of large premiums 600  per contract and especially when using   portfolio margin it barely uses up any  buying power because it's like more   than two standard deviations away from  the current market price b plus grade then i give the spread leg the s p was  up 90. so then notice how when there's a   lot of volatility i'm very patient i don't  really open up new trades early in the day then i remind people it's best to be cautious so i rolled forward amazon closing out  two contracts and rolling out by two   weeks reduces risk reduced the size from  two to one and i picked up 124 dollars bought back mastercard bought  back unh those are the originals profits we've been very disciplined in an ideal  scenario the market could fall later today   we would open a new trade while having taken  advantage of the opportunity to close out some   trades over the past few days sold another put  in tesla picked up 600 bucks or 580 high b plus then it looks like i rolled it because i wanted  to close out and reduce the number of contracts   so i reduced it from three to two where i closed  out the march 19th 520 and the march 26 580 and i   rolled it forward to april rolled three contracts  to two so basically i reduced my outstanding   contracts by one and picked up 271 dollars in  exchange for sending my duration by one week   more amazon that's a great trade ib plus s p down  31. so it looks like it was up 90 the day prior and then it was down 31. so  i'd probably be thinking that   all right let's take a wait and see approach so relatively flat and at the end of the day we'll see if there  are new positions to open so i'm not very active   and then um yeah so i sent a message at 9  34 and then at 2 that the sme was down 25.  

and then the s p fell 50. so yeah that would  so that was good to not to not make trades   fix up ten percent of vbi x 5  amazon down 90 tesla down 33. i know it's difficult for some people to be  patient but patients will earn you money we   still have significant safety nets for our  existing positions when comparing the strike   price versus the current market price so it's more  question of waiting for the market to stabilize   all right then i reduced the number of contracts  for amazon closed out two and rolled one you can   see that during this situation i have no idea  what's going to happen i just know that the   market is tanking so i want to reduce the number  of contracts that i have in my account as much as   possible without significantly extending duration  unless i absolutely have to so that's pretty much   what i'm doing i'm reducing contracts you know  picking off like one or two contracts here and   there but also picking up a credit as well like  here for amazon i picked up 17 cents which doesn't   seem like much but you know i reduced the number  of contracts outstanding in this position by half   so i closed out two and then i opened  up one and i picked and i got paid   to do it and i significantly increased  my buying power so it was a good trade the biggest goal of this trade is obviously  to cut my risk in half with the market being   so volatile i'm not concerned about the  strikes getting challenged by definitely   concerned with a major sell-off leading to  a short volatility expansion event which   will cause our existing positions to show  temporary losses during these times the   most important thing is having buying power this  will enable you to open up new trades that will   be immensely profitable as the difference between  making money and losing money during a sell-off all right so here the vix  is up 15 volatility is down   amazon and tesla are up but again we've  seen this before during pullbacks the   market sells off heading into the close  so we will be patient i said this at 9 37.

all right then at 11 i said it seems like  the market is uncertain what direction it   wants to go in then at 2 the s p is  down 90. bix is up almost 20 percent   things will be fine just need to wait  for things to save a lot to stabilize   earlier today i was thinking about making  this trade and i should have done it   yeah i definitely should have done that  because it looks like i uh i could have done it   um i don't know if i would have paid the credit  rather i don't know if i would have paid a debt   before because usually i always roll for  for credits but even if i paid like uh   one or two dollars for it now it's so  if i paid 100 or 200 dollars for it   um it's currently trading at like 2500  the mid price between the bid and the ask all right s p down 51. i mean it's a lot better than 90 so picks up almost 7 percent so if the intraday the  s b was down 90 and then it closed down 51 i would   have thought that um that would be a little  bit of a bullish sign so i'd be very careful   um tesla downloads 32 paypal down six percent  while it's possible that the market may continue   to have lower i think that things will stabilize  in the near future we have done a great job so   far of managing the selloff and i expect that  to continue okay so march 5th it looks like   the s p rebounded because it was down 90 and then  it closed down 51 and then it opened up around 30. so we'll wait and be patient so here i just  wanted to roll so i rolled from april to may   uh i just wanted to reduce the the strike price  by 55 and then here i rolled from april to july   in order to reduce the strike price by  80 but i mean look i got paid hundred   and three dollars per contract so six hundred  and six dollars here and i got paid 227 dollars   here and once it stabilizes i can always roll it  back which i which i have done and i'll show you   those trades as well meaning that just because i  roll to july right now to give myself additional   leeway and additional safety and it doesn't  mean that i have to wait until july for it to   expire i can always um roll that back to from  july to june to may et cetera so reduce the   strike significantly collected or credit and  extended duration volatility is down despite   the sell-off continuing it's usually a good  indicator that there isn't a significant amount   of fear or panic brought back facebook closing  trade close for a small profit original is here   the goal is to increase buying power as high as  possible and have a large safety net with all   our existing positions in the worst case if the  market continues to fall and we will buy back   the short put buy and in the money rather buy  in at the money put selling in the money put   and then sell short dated calls against it but we  weren't at that point yet yeah that makes sense   amazon just turned positive let's see how this  plays out the market is way off its lows tesla's   50 off it's low for the day which is significant  because fifty dollars represents almost a ten   percent interesting move so march 5th must  have must have been the day when it fell to um when it fell to about like 5 20. remember the real enemy is not necessarily the  strike price it's more the volatility expansion   that's why it's so vital to leave adequate  buying powers often times the difference   between making money and losing money even so  if the market continues to fall we will flip the   position like i mentioned earlier and selling in  the money put but right now the market is rallying just an fyi tesla is low today fell 40  in about six weeks that's pretty dramatic   and we did extremely well and we managed it my  point is that when trading you're going to have   to take into account large outlier moves  trading isn't just about making easy money   it's also about defending positions and guarding  against ally moves it's also another reason not to   trade too large traders who trade too large  may have been forced to close out positions   whereas others may end up making money from this  position it's always about them but don't break   and have a plan i was completely okay with tesla  falling more and then we would go long by selling   it in the money put s p up 73 picks down 14 below  25 after exceeding 30 earlier today vvi x down   amazon tesla down but way off its lows once  things stabilize we'll start bringing in   the expirations some of the positions we rolled  having expirations to 77 and 133 days is not ideal   and we'll easily work on that  once things are more stable   all right march 8th actually i'm going to end  it here and i'm going to do a follow-up video   because this video is already a half hour so  i'm going to start again at march 8th okay

2021-05-07 23:10

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