Small Account Options Income Strategy (Easy)

#optionsstrategy #smallaccountdaytrading #optionstrading

[MamieEvans-dpsc]

Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside holding. I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time

[DonaldMark-nese]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[alphabeta]

3:00 Put credit spread
8:30 Selling calls
11:50 Options income
16:10 No need for large account

[alexsteven.m]

I'm an aspiring trader who would rather learn from other traders' experience than investing in the market myself, in anticipation of the next bull run. What are your thoughts on copy trading as well? Do individuals actually earn a living? Just trying to get some reassurance. I want to have a healthy portfolio worth at least $850, 000. Reliable inputs please.

[mattbuchanan]

I've noticed that these SMB videos tend to minimize the downside risk of options trading. It's possible to lose most of your money very quickly if things go the wrong way. Also, spreads that include a sold put or call can (due to a quick spike or drop outside of normal trading hours) end up with only one leg executed and leave you on the hook for thousands.

[rogersmj]

Your explanations of these strategies are excellent, far more professional and quantitative than many other channels. Thank you.

[OmarHaddad-egjk]

I'm really proud every of your episode of crypto analysis here on YouTube, despite the fluctuations in price I keep earning 37k dollars every single week thanks for knowledge and recommendations

[johnmeyer]

I really like your explanations. I have paid some big bucks for programs that were not nearly as good as what you are providing on YouTube for free. Thanks for making these available in such a good, precise, detailed fashion.

[melvinbarnes]

At 9:14, why do you go to the call options side of the chain? Why not just stay with the Put side? Yes, you lost money but tomorrow is another day. Did you switch to calls because you assumed the market turned bearish?

[Joelgarcia]

Great video. I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you katrina susan

[ianLord]

25 point spread is extremely risky given how close the short side of the spread is to the current price of the underlying.

[richhands]

My three favorite channels: SMB Capital, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

[markschellhammer]

I'm confused. If the initial credit spread had a max loss potential of 24, 470 (25, 000 strike spread, less 530 of income) then how did you arrive at closing near the end of the losing trade at only a $470 loss? If the price of QQQ drops below the Short Strike and continues down towards the long strike then the losses will become huge compared to the income received. Surely you have some sort of stop loss set so that the loss doesn't reach 24, 470, a 46x loss?!!! Did I miss that in the video? Just holding and waiting until market close on Friday to buy-to-close the credit spread could be disasterous.

[cbpuzzle]

The short strike selection hovers around 2.5% OTM. But jumps to 3.6% some weeks. So must be using some volatility indication to sell further OTM like VWAP bands or Bollinger. Switching to call side with a 6 month calendar spread when things turn bearish is interesting. Psychologically, it's kinda degenerate gambling with inflation on your side because the capital requirement balloons so high. It creates a business model that's bent on not taking a loss.

[geoffmelnick]

You fail to mention the worst case scenario, where the underlying reaches the long put. The trade is barely hedged by the long put since you want to make money each week and in practice what you would need to do would be to get out of the trade early if the market even approached these levels. In practice, all the long put is doing is limiting the margin you have to put up.

[the_DOS]

You need to explain the risk involved in this which is plenty. If there is a huge slide in the QQQ, you would have lost a ton of money on selling the puts. So you sold 10 contracts then end the next week, with high gamma and delta which carries huge risk. 10 contracts at a 25 point spread can equate to loss of 25k on the put side (less than that but i'm not counting premiums). When you reversed and bought your 24k 10x contracts on the call side, you can also lose that theoretically. So you are close to 50k loss (yes, i'm not counting premiums and letting the calls expire worthless)

[halbouma]

Thanks for the video! I like how this is basically a synthetic wheel strategy where you switch to a PMCC instead of taking actual assignment in order to keep your capital requirements low.

[repeastside]

Good idea! You can also use the micro futures option chain to reduce cost, and another idea would be to switch between puts and calls when 50 day SMA changes direction

[wiseguyst]

Always ask the question- What is the loss exposure? In this case of QQQ If the price goes below 346 say to 334, you will have a huge problem. Protection is set at 321.
When it comes to investing there are no sure things..

[handdle-ho]

For whatever reason always get uncomfortable selling call spreads or even call calendar spreads unless i own the qqq's so normally i just sell puts every three to 5 days and adjust accordingly. Also own a put leap as a hedge. Doing 10 sales is beyond the scope of my tiny brain and the width of the spreads is also scary (to me). if you get assigned the q's and you're just selling one put spread turn around and sell the atm call. I like to think of the q's as an apartment I own and the option sales as rental income...my campaigns will last until I go to my heavenly reward. Chances are the q's will also apprciate in value over time so there is that too