Should YOU Use Margin When Trading Options? [PROS vs CONS]

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🛑 David Jaffee & BestStockStrategy are NOT, in any capacity, a licensed financial advisor (adviser), registered investment advisor, registered broker-dealer or FINRA | SIPC | NFA-member firm. Examples presented in this video, or anywhere else, including video tutorials, strategies, articles, emails, newsletters, and all other content of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only. Such set-ups are not solicitations of any kind or order to buy or sell a financial security and should not be construed as investment advice under any circumstances. David Jaffee and BestStockStrategy will NOT be held liable for losses resulting from information or advice presented; the use of such information is entirely at the risk of the user. The sole and exclusive maximum liability to David Jaffee and BestStockStrategy for any damages or losses shall solely be dissatisfaction to the user. The risk of loss in trading securities, options, futures and forex can be substantial. Options involve risk and are not suitable for all investors. Consider all relevant risk factors, including their own personal financial situation, before trading. Past results of any individual or trading system published by Company are not indicative of future returns.

#stockmarket #optiontrading #personalfinance

[BestStockStrategy]

*Do you use margin? Do you think other traders should use it?*

[donkeyface]

“Humans are inherently greedy and self destructive.”

wow, that hit hard!!!!

Excellent video.

[taylor_o]

Good, balance overview. I think every serious trader needs to understand margin.

[dinosaurdude]

Interesting insight on cash covered sale of puts. Having heard this, I will be more aware of my greed when choosing strike price. Thanks for the video!

[johnmark]

Interesting. For some reason I was always under the impression that margin was used when selling puts. So essentially margin would only be used if we are assigned the stock? If you continue to roll it you avoid using margin?

[rickphillips]

Excellent discussion on this topic David 👊🏻

[mortenmortensen]

I use RegT margin, but I'm interested in knowing what portfolio margin can do, when selling naked puts or put credit spreads. I know it can be very powerful when selling far OTM puts. For instance, Amazon is trading at, lets say 3500, and I sell a 2500 put. RegT would demand 25k buying power. Do you know what the portfolio margin ballpark demand would be? (I know depends on entire portfolio setup, but still..)

[financeabcs]

Agree to using margin. You need to have all your resources on your side!! 😊

[bretfeeney]

I have never used margin before and I'm too scared too because I dont understand it completely. I always though margin was bad until I heard you talk about it. Thanks David

[rgtrader]

Using margin is ok but make sure you have the cash, I am glad I always do, for example I was assigned 200 shares of TWTR (Today Nov. 23) on a put I sold and I was 59 DTE still, never would of thought this would happen I am glad I had the cash.

[alexandervaltsev]

Why you don’t pay interest on margins when trading options?

[nikolaynikolay]

Hello! What do you think about the wheel on Dow 30 components? Thanks

[____Annu____]

It's hard to get approved for trading options on margin.

[patrick]

Will you make a trade review video for october?

[alexandervaltsev]

You should make a video where you tell the audience how you learned about options. You worked in IBD, but I don’t think you encountered options there

[udarpavarota]

Every time I go to the comment section on Webull I see someone worried about Margin Calls because they bought options and their contracts are about to expire, and they're way out of the money. Using Margin to trade options. Not a good idea. Using Margin to day trade or buy options, terrible idea.

[Gouthamsai]

trading spreads in an IRA is fine when trading options.

[sndnnejej]

I use margin when trading options but I think many people lack discipline and shouldn't use it.

[donkeyface]

Same day expiration SPY & QQQ options on margin allowed me to voluntarily ruin my life. Oh well. #dumb

[sauandoffgj]

No interest when trading options on margin? Nice. I pay a lot in margin interest when trading stocks.