Top 3 Most Profitable Market-Neutral Option Trading Strategies

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Which Option strategy should you use when you're not sure where the market is headed?

Most people think that in order to make money in the markets, you have to pick a direction.

However, with Options, you don't need to pick a direction. All you need is for the market to trade in a certain range and you can be profitable.

That's where Market-Neutral Option Trading Strategies comes in because you can profit regardless if the market goes up or down.

In this video, I will share with you 3 of the most profitable Market-Neutral Option Trading Strategies to trade the market.

Timestamps:
00:00 - Start
00:33 - What are Market-Neutral Trading Strategies?
02:44 - How to identify the market's trading range
05:29 - Why does trading the Expected Move work?
10:46 - Market-Neutral Option Strategy #1
15:38 - Market-Neutral Option Strategy #2
21:02 - Market-Neutral Option Strategy #3

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[optionswithdavis]

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[chrisdickson]

Have to say your content is excellent. All about educating and not selling or creating clickbait. Thank you. I am learning a lot from your channel

[bullionjohn]

Just wanted to say that I find your videos to be some of the best, most accurate and realistic of the trading videos out there. I do appreciate your detailed explanations. If you're looking for ideas for videos. I really appreciate the real-life trade ones. I know those take more time to produce, but they really get the point across. Not just winners either, both winners and losers and cutting loses. Anyways, thanks for taking the time...i hope you make money off of the channel.

[BrianCaputo-unxw]

Hello davis, Just finished "The 3 Most Profitable Market-Neutral Option Trading Strategies" Your suggestions as to when and where to place the trade are informative. In order to find up and down-trending stocks, do you screen for them?

[jimgermack]

Always the best options info on YouTube

[usadaily]

New subscriber here, Mr. Davis. Also newbie in options. Glad to have found your channel. After surfing countless channels, I found your videos unbelievably clear even to newbies like me. LOOKING FORWARD TO VIEWING ALL YOUR OTHER VIDEOS. Thank you for all the time you are devoting to produce such a valuable content. God bless.

[juriklebanov]

Hi Davis, thank you very much for your very detailed strategy descriptions. Could you please share in a separate video how do you manage weekly covered calls and weekly cash secured puts, if you use them. How to select a strike, when to close or roll a position. Differences and similarities to managing 42 DTE options. Thank you!

[guysweenie]

Thank you Davis for an excellent video. Just an observation. The expected move is directly proportional to the IV given the other variables as constant. So if the IV doubles the expected move should also double. For the example shown for QQQ if you look at IVR 0-20, the expected move is $15.70, When the IV doubles so take IVR 40-75 the expected move shows to be $17.50, Not sure if that is a valid number. In fact the rangle IVR 20-40 shows a higher EM compared to IVR of 40-75! Can you please review that. Thanks

[mescoozie]

How often would you do these types of trades?

[pisces]

Hey Davis, thank you so much for all the detailed videos. It really helps a lot in my options trading. Any entry rules for example only enter during high IV or we can enter based on the expected move? I found the strangle article on your website but is there any video for strangle? Appreciate all the effort in making all the videos 🙏

[bennycohen]

Good video, but is expected move and realized move table valid for options indexes like spx or ndx rut ?
Best regards. 👍

[thebean]

Hi Davis I wanted to commend you on the excellent content you provide. I have definitely benefited from your teachings. I am curious have you ever used actively traded collars as part of your trading strategy. In some of my registered accounts I am very limited to only selling covered calls and the collar seems like a way to leverage options. Thanks

[kcirrred]

To increase the propability of profit do you then place such trade every other day on the same security/etf, to clock a signifcant number of trade for the stats to work in your favour ?

[kcirrred]

Is it okie to perform this market netural option in particular the strangle on TQQQ and maybe letting it get assigned ? if i have say 100 tqqq stock ? and dont mind getting allocated or call away ? also must it be 45 DTE for entry or can it be 30-40 range and exit at 21 DTE ?

[gtimf]

Great video Davis !

I trade strangles regularly for stocks I own. So basically I sell a put and a covered call.

In this video, however, you didn't mention having to own stock to write the strangle.

Did I miss something?

What if your short call in the strangle gets breached and you don't own the stock?

Can you please explain?

Thank you in advance.

[robertficek]

Good strategy but IV these days seems to be much higher then what the reading is, VIX 18 and SPY making $5-8 daily swings? SPY is behaving more like IV 30 not IV 18