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Most Options Traders Make at Least One of These 5
Most Options Traders Make at Least One of These 5 Mistakes | Options Crash Course
#Options #Traders
“tastylive”
Jim Schultz, in his latest Option Returns Crash Course, highlights a strategic shift in trading options from buying to selling.
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The 5-Year Trailing Return for SPY is 14.91%
With an estimated annual return of 10 to 18% on options trading, why would anyone want to invest time, effort, money, and yes, many sleepless nights, by getting into options trading?
Since the market is always trending higher (and by "always" I mean always), then selling longer term options is fraught with peril.
Instead, shoot for +3% returns selling short term options (1DTE or even 0DTE) and dodge that oncoming train. Put on 2 of those trades per week, sizing up as your account (and confidence) grows, and you will blow "10 to 18%" out of the water.
The best teacher. Period.
Best way I've ever seen this explained. Nice work!
Thanks Dr. Jim
Excellent video Jim! The way you explain is very easy to understand. Thank you!!!!
You can’t just simply sell an option. You must have collateral in the form of cash or stock or approval for a margin account from you broker. I should know because I can’t get approved by my broker.
Love you, Dr. Jim
Just because you’re selling premium doesn’t mean it’s always going to work in your favor.
37:57 you are selling put but earning with fall
Great overview of the Greeks. Also worth mentioning is Gamma. I hoping we would see more about the type of spreads that help to manage these factors in a small account portfolio. Also worth mentioning is the combining options spreads and naked options that then can benefit from these factors. Its great to see the basics though well explained!
it's always a pleasure watching your Crash courses Jim. Appreciated.
Is daily lick , liquidity? What does that have to do with theta? The more liquidity the lower theta?
thanks but keep to stick with dividends stocks ! still complicated for me to spend money on nothing ! thanks quite overwhelming !
Jim you are the best!
Thanks Dr Jim
I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.
You should make a "Trading options for dummies" HAHAHAHAH
Kidding, but that would be a success. I'm a dummy and you were a central piece in my learning curve. Couldn't have done without.