Simple Options Strategy That Made 500% While The Market Lost 4%

#smbcapital #stockmarket #daytrading

[traderaj]

Also plz correct me if I'm wrong... Total profit=26*200=5200, Total loss = 15*300=4500, so net profit is 5200-4500=700... how is it 500%?

[Tim]

Nice video. Is there a longer backrest. How has this done over 5, 10, or 15 years

[mikedarpino]

I'm missing something, in the example we make 200 for 26 weeks and lose 300 15 weeks, isn't that 26x200= 5200(win), and 15x300=4500(lose) doesn't that leave a 700 profit? I don't see how it is 2000?

[multiscan]

I like how: 1- you guys are getting more interesting with your videos with more aggressive strategies. (the world doesn't need another video on an iron condor) 2- You are completely transparent with the risk entailed. There are people out there that DO NOT spell out the risk taken on with the strategies promoted, but only talk about how much money you're gonna make...you put it right out there. Make 200, lose 300 (approximately) then explained why the strategy has a positive expectancy. (at least until the next downturn...haha. Hey, nothing lasts forever!)

[stevepatterson]

Not sure your math is right your risk is not $3000 you could easily have 2 or even 5 losses in a row before you have even one winning week. -$15, 000 could easily happen

[gregdolley]

Hey Seth - but do you initiate this spread on the Monday of the expiration week (so basically 4 DTE), or the Friday _before_ expiration (6 DTE) for the following week's options chain??

[dannyvfilms]

Curious how you would define the strikes through Deltas? Trying to backtest this, and the platform I'd be trading with prefers deltas.

[peterp]

Wait, correct me if I'm wrong. You said that every time I win it will be around $200, but if I lose it will be $300. So if the strategy winning rate is 26 times, that's $5, 200.
I loose 15 times $300, that's $4, 500. So, total gain would be $700 ?

[stephenhobbs]

Seth states there were 41 weeks where SPX was above 200DMA. The slide at 9:55 says they won 26, lost 14. That equals 40 trades; one is missing. Was it a winner or a loser? Also, $200*26 winners-$300*14 losers = $1000, not $2000. How did you make the extra $1000?

[WellAlwaysHaveParis]

Right - but what if you get pinned between the strikes?

[TheArtOfTrading]

Great video as usual team, thanks for sharing. Really cool strategy idea here. And this analysis really emphasises the value of even just a slight edge combined with compounding. Which is a very important concept for new traders to understand.

Cool stuff, I love it! Thanks for giving so much value to the trading community for free, you guys are genuine legends!

[Lala-poho]

Seth, I would love to see more videos on how to manage trades gone wrong. Thank you!!

[MrCurtis]

do you sell this spread every Friday morning before the opening bell?

[PeterBoivin]

thank you this. Is there a day of the week that has the more expensive put options to sell? I guess what I am really asking is which day would be best for us to do this trade?

[pattyaap]

Thanks for sharing! It would be nice to see the strategy in the chart to make sure I can place it correctly. Based on what I read, the strike price will be in the middle, the sold put would be above it and the bought put below the strike price? This set up is different than other debit/credit spreads I have seen when both options go together above or below the strike price. Just confused here ;-(

[djb]

Unclear as to why above a 200 DMA is the benchmark for a safe trade. Would a 50 or 20 DMA be an even safer trade?

[amroz]

Excellent video, clear and to the point. Well done Seth!

[BryonLape]

Simple and SMB are not two words that go together.

[joyfullmom]

Thank you for such awesome information!! Stay at home mom of 6 using your help to become a profitable trader and make a better life for my family!!!

[clig]

would the reverse work with call? ie. sell calls when under 200 SMA?