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