Follow the Trend to Profits
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Real Traders Webinar hosts webinars with top experts in the Day Trading Industry that show you their Best Day Trading Strategies for… Futures, Options Trading, Stock Trading, Credit Spreads Trading, Forex Trading, Binary Trading and so much more!
Rank #1: RTW 001 – Best Options Trading Strategies Part 1.
Best Options Trading Strategies – Part 1In this first episode of the Real Traders Webinar Podcast we’ve chosen… “Part 1 of a 4 Part Series On… “Best Option Trading Strategies!”Watch as Marc Nicolas, Founder of Day Trading Zones & Kevin M from Merlin Capital Management share their absolute… “Best Option Trading Strategies!” In total, at the time Im writing this, there are 4 parts in this series… But it continues to be added to every month!Don’t forget to signup for these LIVE EVENTS for FREE by visiting http://www.RealTradersWebinar.com/hangouts! In this episode you’ll learn strategies such as… Best Options Trading Strategies & Specifically The Best “Weekly Options” Trading Strategies! http://www.RealTradersWebinar.com/hangoutsBest Options Trading Strategies | Best Weekly Options Strategy | You’ll Learn In This Podcast… Here Are Just A Few “Trading Strategies” You’ll Learn In This Episode… 3:37 A Trading Strategy On How to Make Money With Credit Spreads… By Picking The Correct Range! 6:45 3 Strategies That Allows You To Profit From Credit Spread & Options! 10:06 The 3 KEY Components To WINNING With Credit Spread Options! 10:38 Options Trading Strategies That Make Money BY SELLING! 13:03 What Is “Time Decay”… And How It Effects Your Options Trading! 13:52 The Power Of “Time Decay! 23:23 Credit Spread Option Trading Strategies… BREAKEVENS! 26:40 When To BUY Your Options… And When To SELL Your Options! 41:38 Credit Spread Option SELLER Trading Strategies For Making Money! 49:03 How to Find Buyers & Sellers Through “Support & Resistance!” 56:16 How to Overlay & Confirm Your Option Chain Using Delta Formula! 56:44 The Range Of “IV” (Implied Volatility) You Want To Look For! 1:15:09 Credit Spread Options Trading Strategies “CheckList!” 1:32:38 LIVE Q&A Learn this and so much more… http://www.RealTradersWebinar.com/hangouts The post RTW 001 – Best Options Trading Strategies Part 1 appeared first on Real Traders Webinar | Only The Best Trading Strategies.
Rank #2: RTW 005 – Master Technical Analysis.
In this episode you’ll discover…“How to Master Technical Analysis For Your Day Trading” The post RTW 005 – Master Technical Analysis appeared first on Real Traders Webinar | Only The Best Trading Strategies.
Safe Day Trading focuses on teaching our students how to trade the financial markets short term. The goal of our program is to make learning short term trading (or in other words day trading) easy, exciting, and fun while giving you the student the highest quality of education possible.For the everyday investor, the Financial Markets represent a fantastic way to manage your own money through trading various financial instruments. Although, day trading involves risk, it can be managed by learning and practicing the short term trading skills you’ll learn with Safe Day Trading.With an education on trading and the mentoring you’ll receive as a Safe Day Trading student, you too can become financially independent and take charge of your financial life. Think about it, you can either “invest” your hard earned money in a mutual fund for a very small return or trade in one of the markets that you will learn about at Safe Day Trading with controlled risk and potential of great return.Safe Day Trading utilizes a teaching philosophy where a controlled amount of material is released at one time, allowing you to thoroughly understand your lessons before moving on. Through our online teaching methods that takes full advantage of today’s technology, you’ll learn through written, audio and video education methods giving you an hand’s on approach to learning how to trade.Whether you are a “newbie” to trading or have years of experience, Safe Day Trading gives you the opportunity to sharpen your skills in becoming a successful and profitable trader.
Rank #1: Podcast Issue 21 - What No To Do When Starting Out.
Listen to a Safe Day Trading Instructor talk about his experience with a new trading student who wasn't interested in listen to suggestion and lost a lot of money. As tale of what not to do when learning to trade, when greed takes over.
Rank #2: Issue 3: Setting Stops.
The number one question a trader needs to ask if he wants to be profitable is: What if I’m wrong.If you are a trader and don't routinely set stops or haven't learned how to properly place stops on your trades; I can say without hesitation that you have lost much more money than you have made.Listen to this issue to learn all about setting stops!
ISE, the world's largest equity options exchange, teaches you all about trading options. Learn everything from the basics to volatility to advanced strategies and more.
Rank #1: Dan Sugar on "All About ETFs - Part II", Part 1.
Dan Sugar of Online Trading Academy will discuss everything you need to know about ETFs.
Rank #2: Dan Sugar on "All About ETFs - Part II", Part 3.
Dan Sugar of Online Trading Academy will discuss everything you need to know about ETFs.
The Options Industry Council was created to educate investors and their financial advisors about the benefits and risks of exchange-traded equity options. This podcast series will feature discussions with industry experts and exchange professionals about the latest topics that are impacting the options industry.
Rank #1: Supplementing Your Income with Options.
This podcast focuses on how options can be used to potentially increase income in an investor’s portfolio. Joe Harwood from the OIC Help Desk and OIC Instructor Barry Nobel share their perspectives with host Joe Burgoyne.
Rank #2: Q & A with Joe Burgoyne Pt. 13.
Host Joe Burgoyne will answer a question from an investor who wants to know how the terms "deep-in-the-money" and "in-the-money" differ from one another. Next, Joe will discuss the correlation between options and Japanese candlesticks.
The Options Industry Council (OIC) was created to educate individual investors, financial advisors and institutional investors about the benefits and risks of exchange-traded equity options. In these podcasts, OIC exchange instructors discuss a range of options topics beginning with the fundamentals through more complex trading strategies. Topics include call options, put options, options pricing, LEAPS or long-term options, ETF’s, and covered calls.
Rank #1: Understanding and Trading Options Spread Strategies: Pricing Behavior.
This podcast discusses how changing volatility can impact options pricing and how vertical spreads can provide traders with an alternative to long and short options positions.
Rank #2: Defining Options: How Options are Traded.
Bill Ryan of the OIC Help Desk begins to explore the specifics of how options are traded.
Welcome to Options Playbook Radio - the program where we break down cutting edge options strategies and explain how you can incorporate them into your own portfolio. Whether you’re looking to grow your capital with some offensive maneuvers or protect your investments with defensive plays, you can find them all in the Options Playbook. Options involve risk. Please refer to https://www.ally.com/invest/disclosures to review additional risks involved with trading options.
Rank #1: Options Playbook Radio 205: GOOGL Skip Strike Butterfly.
Welcome to Options Playbook Radio On this episode we discuss: A review of our earnings trade in NFLX A complete breakdown of our new earnings skip-strike butterfly in GOOGL.
Rank #2: Options Playbook Radio 106: Iron Condor around TSLA Earnings.
You can find information on iron condors in the Options Playbook on page 126. You can also always find all of this information on OptionsPlaybook.com. In this episode, Brian discusses The AMZN iron condor from last week General guidelines for earnings trades A review of the GOOG trade from a few weeks ago A deep look at TSLA What is the ATM straddle for the nearest expiration? Picking the strikes Determining the over/under so you can stay away from that What is the upside? Downside? Understanding the odds. Remember that you CAN lose. Rationale for the expiration date
Let's talk trading. Especially how to trade options for income. Buying Puts and Calls is great, but selling options is much better. Whether you want to trade for a living, have a side hustle, or make extra monthly income from stocks, this is the place.We are here to help individual investors learn to trade options in a way that is simple, fun and profitable. The goal is to help you achieve Freedom. Financial freedom so you have no more worries about making ends meet and so you have more than enough for safety and security. Time Freedom so you can do what you want when you want. And Choice Freedom so you can live your life on your terms with no restrictions. We call it living the Option Genius Lifestyle. Where you can earn consistent monthly income by selling options using safe, conservative strategies. We place high probability trades and earn market beating returns in a way that takes just a few minutes a day. Listen in to learn how you can do the same. Hear from professional traders that have beaten the game. Some of the strategies we discuss are covered calls, naked puts, credit spreads, vertical spreads, iron condors, butterfly spreads, calendar spreads, strangles, straddles, and more. This podcast is about how we trade options and how it lets us life a lifestyle other people can hardly imagine. Trade from anywhere in the world, for just a few minutes a day, in a way that is super safe and can still make more than the averages? Listen in to learn how and check us out at OptionGenius.com
Rank #1: The Ultimate Options Trading Strategy - 26.
Buenos dias genius nation, como estas. How you doing? This episode we're going to call it The Ultimate Options Trading Strategy. Really what I wanted to do is I want to talk about option strategies and which one is the best. I got the idea for this episode thanks to a couple guys on the Options Traders Alliance Group which is our free Facebook group. If you want information about that just search on Facebook for Option Traders Alliance or look in the show notes, we'll have a link to it there. Thanks to Dan Gibson and Ken Gilstrup for that. From what I could tell, these guys they were just, one of them asked a question, the other one responding, just a couple guys. They're on the lower end of the option continuum, a couple of lower traders just looking for some kind of direction. If you don't know what the option continuum is or where you are on the continuum, you can check out Episode 21 and hear all about it. It's a great question, which is the best option strategy, because when it comes to selling options there are well over a dozen strategies that you can use. You've heard all the names, all the crazy names, some of them; the iron condor, the credit spread, the calendar spread which is also the time spread, the butterfly, then there's the iron butterfly, and then there's the broken wing butterfly, there's the covered claw which can also be called the buy right. There are naked options so there's naked puts, naked calls, the straddle, the strangle, the ratio, the back spread, the box, the bag, the double diagonal, on and on and on, and that's just to name a few. Then, each of these strategies can be manipulated so that there are unlimited variations. You have, let's say the iron condor. You have the, some people call it the high probability iron condor and then there's the low probability iron condor. Then, there's the unbalanced condor, and then there's, some people have been calling it the weirdor which is like a mix of the iron condor and the butterfly together. There's so many different strategies out there. The question becomes which one is the best, which one do I trade because you can't do all of them, you'd be crazy. It would take you decades and decades to actually learn all of them and become good at any of them really. If you're a new trader and you just want to quickly get up to speed which is the easiest, the fastest, the most money making, that's what we need to know. Before I tell you the answer I want to talk about Simon. You see, Simon was a lot like you. He was trying to figure out all this trading stuff and he had tried all the different techniques, different types of trading, and he was pretty fed up. When you spend lots of money on courses, when you spend hours and hours learning about Greeks, and probabilities, and volatility, and all that stuff and you still cannot make it work you get pretty upset, am I right? You guys know what I'm talking about because you've probably done the same things; taking courses, watching videos, listening to podcasts like this one, I know there's a whole bunch of them out there because none of them give you the secret and then you get really, really upset about it. You just want the answer, why don't they just give you the answer. Boy, I wish it was that easy. For Simon, by the time our paths had crossed he had spent close to three years learning about options. In fact, he was much more knowledgeable about certain aspects of options than I was. To this day, honestly, maybe I shouldn't say this but to this day if you ask me to describe to you what Gamma is I don't think I could. I know it's important, I know it's one of the Greeks, and there's ... I know what it is, in my head I can, I just can't put it down on paper. I'd have to look it up and look for the ways to explain it, I'd have to show you on a screen. I couldn't just simply tell you what it is but Simon, he can do that. Simon knows all the differences, what is implied vs historical volatility and what the numbers should be, and how to set up the different probabilities. He knows all about that stuff because he spent all that time learning about it because that's what he though was the answer. The more he learned the more complicated he made his trading, the more complicated he made his trades, the more intricate. He added in different indicators, some that nobody's ever heard of before. He added in all these rules. He added all this other stuff to make his trading better, to give him a better edge. That makes sense, when you think about it. You take a strategy and you improve it, you put your own spin on it, you craft it so that it works better. Then when you come up with something that you think is awesome you back test it over and over and over again. If you can't do that then you do paper trading and you have to do it hundreds of times. If you can't do that, if you don't want to do that, then you have to use real money to test it and hopefully it works. Usually though it doesn't and then you end up back on the drawing board. I remember when I first got started I wanted one simple trade that I could do month after month after month like the holy grail. I found ... I really like butterflies so I tried to do a butterfly on McDonald's, and I came up with some rules and then I started back testing it. I think I back tested it for four years, month after month after month after money after month, say about 40, 50 trades, whatever that is, 4 x 12, 48 trades. It was profitable and I was ecstatic. "Oh man, this is awesome, this is going to be so awesome." Then I did it with real money and I ended up losing, I don't know how many, I think it was $8,000 really quickly. That's what Simon was doing as well and for him it wasn't working, and that's when he came to me. That was his main question. He's like, "Allen, I know so much but I still can't make it work. Am I doing something wrong or does this stuff just not work? Please Allen, tell me that all my hours and years of trying to learn this stuff has not been in vain because my brain is just going to explode, I can't take it anymore. My self-confidence is in the gutter but I know so much about options, I know more about the people who write these option books, I could probably teach a college course on options. Allen, please help me." Well I got to tell you, if this stuff didn't work, this job option stuff didn't work, I would be flat broke. I can say, for those of you who are still skeptical, that yes, yes it does, in fact, does work. I can point out to dozens, and hundreds, and even thousands of people who have made it work and who it's working for. The problem ... If it's not the trading then maybe the problem's with Simon. It's either the trading work or the person doesn't work. Well, the person was Simon and the problem was not Simon either. The problem was all the nonsense that we as traders and learning traders get bombarded with every single day. We get bombarded on the financial media, we get bombarded in our emails. We get bombarded on Facebook, and Twitter, and all over social media. The ads are all over the place and all the ads are people pretending that they are amazing traders making oodles and oodles of money, and the only way to get the same results is to pay them to teach us what they're doing, that's the only way to do it. It's the magic bullet, it's the new thing. There's this new trading system or this new indicator or there's this new chart pattern or this new whatever that we have to pay to learn how to use so that we can also become wonderfully rich and super successful. It's like everybody else out there is so smart, and rich, and successful but we are not. No matter what we try it doesn't work, am I right? Do you feel that frustration? Have you been through this or am I by myself? I don't think, I'm not by myself because we get emails every day from people. Ken and Dan were talking about this same exact thing in the group today so you know what I'm talking about. Here is what you need to do, here is how you overcome this. You stop listening to the noise, stop believing all the crap. Go back to the basics, back to the fundamentals. The truth is that every single strategy that I mentioned earlier works. There are people out there making money with each one so you can make money if you only trade covered calls. Yes you can, you can be profitable consistently if you only trade covered calls. You can do the same thing if you only do strangles. You can do the same thing if you only do ratio spreads, and on, and on, and on. You don't need to be a master in everything, you don't need to understand 14 different ways to adjust your trade, you only need one strategy and that's the answer, that is the ultimate strategy. That's the best strategy, it's the one that you choose, the one that makes the most sense to you. There are lots of different strategies out there because they have different uses, that's true. Once you become a very advanced trader, once you are on the upper end of the continuum if you're on level nine or level 10 and you are already consistently making money then yes, go into the other strategies. Until then, you stick to the one strategy that makes the most sense to you, that's the one you start with or for many of you that's the one you re-start with. That is the one you keep doing until you figure it out because that's what I had Simon do. We identified together out of all the different strategies he preferred to trade credit spreads so that is what he focused on. That's what his time on to figure out. He spent time on figuring out the best way to enter a credit spread, he tested dozens of ways to adjust, and then he tested exit strategies, a whole host of different exit strategies. Eventually, he discovered the best way to trade credit spreads that worked for him. Now, maybe his way won't work for you but that's okay with him because it works for him. That is all he does now, he only does credit spreads. He doesn't bother with iron condors or naked puts, he only does the spreads, the credit spreads his way. He has molded the strategy so that now he calls them layup spreads. A layup spread basically is a credit spread but with Simon's special magic, his method to enter, to manage, and to exit. If you want more information about the layup spread and why they work so amazingly well you can do so at simonsaysoptions.com. Now, I hope this makes sense to you. The best strategy is the one that makes the most sense to you and the best way to learn how to trade is to just focus on it until it works for you. Now, it might get boring, it might get repetitious, it might get monotonous, yes maybe but that's still what you need to do. I know we think that trading is all sexy and high flying and buy this, sell that, do this, do that. The reality is, if you trade well most of it is extremely boring and then there are certain pockets of craziness but most of your trading should be boring. If you are consistently making money then you know what I'm talking about. If you're flying by the seat of your pants, and if you're putting on dozens and dozens of trades, all different types, all different strategies on all different stocks that you never even heard of before because the chart looks good, then you are in for a very wild ride and so is your account balance. With our account balance what do we want? Do we want up and down roller coasters? No, we want slow and steady increase. In order to have that you have to be trading in a way that is actually boring because you know what you're doing, that's why it's boring. You've mastered it, because you've excelled at it. The alternative is to do what you're doing right now jumping around from strategy to strategy. I know what you thinking. Say, "Hey Allen, what about diversification, don't I need to diversify? If I have maybe some earnings trades over here or maybe I have some naked calls over here or maybe I have some box spreads over here." Yeah, you should diversify if you have an account that is well over six figures and you are already consistent and profitable. That's it right there. If you are over six figures, and I'm talking about mid-six figures; $400,000, $500,000, more than that, and you are already consistent and profitable then you can diversify as much as you want. If you're on the top end of the continuum, level's nine, level 10, then you are making money so you are going to stick with what you know automatically. You're going to go to the bread and butter and you're going to do those every month or every week or whatever your timeframe is. Then with a little bit of extra cash you're going to try other stuff. That's the smart way to do it. If you don't have over six figures, if you're not consistent, if you're not profitable already, then forget about diversification. Until you can make money with one strategy month after month, trade after trade. You have to be consistently profitable before you add another strategy to your arsenal, are you getting this? Is this sinking in? Yes? Hope so. Anybody that tells you otherwise is full of it and probably just wants to sell you something, that's the truth. Stop all the noise, stop listening, stop jumping around, because the noise is there, the offers will always be there. If it's not options it'll be Bitcoin. If it's not Bitcoin it's going to be marijuana stocks. If it's not marijuana stocks it's going to be sports betting, that's the newest thing that's going to come on, right? The Supreme Court just announced on Monday that states can now make it legal to bet on sports. Well, guess what? There's going to be stocks on sports betting and they might even have options on sports and betting and all this stuff. Who knows what they're going to come out with in future? That's going to be the new hottest thing. If you keep jumping from one to another, to the another, to the another, you're never going to get good at anything, you're never going to be profitable, you're never going to be consistent. Go back to the basics, back to the fundamentals. Choose one strategy and work on it until you know it inside out and you are profitable because that is the name of the game, that is the goal. That is the only thing that matters. I don't care what strategy you use, I don't care how you do it, I don't care when you do it. If you are profitable you are winning. That's the only way to know if you are winning, I don't care how much you know. I don't care if you know more than me, I don't know if you know more history than me, I don't care if you know more math than me, more about statistics, more about options, more about everything. If you are not profitable it doesn't matter so go back to the fundamentals, go back to the basics, one strategy. You focus on it, you work on it, you back test it, you paper trade it, you real money trade it until you are profitable. That's it, that's the answer. Now, if you can't figure it out, if you already tried, you tried your best and you can't do it, then reach out to me, maybe I can point you in the right direction. Maybe I can work with you like I did with Simon and we can identify what it was that works best for you or that makes the most sense for you, and then how to actually implement it. In the beginning you don't need complicated stuff, you don't need complicated indicators. You don't need complicated chart patterns, you need a strategy that you understand, that makes sense to you and you need to do it in a way where you can explain it to the third grader. Then if you can do that then you tweak it. Then you work on it. Then you look at, like Simon did, you look at the entrance of the trade, you look at the management of the trade, you look at the exit of the trade, and then you improve your percentages. That's how it works. Right now, Simon, like I said, he's only doing one strategy and, yes, he is well over six figures in his trading account. That's okay, it doesn't matter. He doesn't need to be doing anything else. I know people who only do one iron condor every single month. They do it on the same underlying, they do it on an index, and they trade literally over $100,000 worth of one iron condor every month. That's the entire trade, that's the whole strategy, one iron condor, six figures in that condor, every month. I hope this makes sense, I hope this is sinking in. I hope you got to this this. Then finally, no matter which strategy you choose, whether it's the condor, the credit spread, the ratio, the butterfly, I don't care what it is, whatever it is, no matter which one you choose make sure that the odds are in your favor. Peace. Resources mentioned in this episode: Option Traders Alliance Facebook Group SimonSaysOptions.com Podcast – Episode 021- The Option Continuum
Rank #2: Getting Started As An Options Trader With Craig Davis - 48.
In this episode we talk with a newer options trader who wants to make trading options his full time gig. So let's dive into his questions: For more information on the program discussed in this episode, The Iron Condor Mastery, Click HERE Craig Davis: So in terms of becoming options trader, being a specialist, what's the top three, top five things I should be looking to do, be, read, think about, think about, and words I'm supposed to have, things like that? Allen: Okay. The top five or three things that you need to know to be a full-time trader. Obviously, you need to learn. There are many different ways to learn, right? There are many different coaches out there, there are different books out there. You can go, I know in the US we have the public libraries, and you can get any introduction to trading book, and they'll have lots of different strategies in there, they'll teach you everything. But I think it comes down to, so let's say... Okay, so if I was going to be a trader, so I'm starting over, I'm working my job, I think in the beginning I would try to be more realistic and say, you know, "I need to set my goal, whatever my goal is." I need to, whatever my monthly expenses are, it's 5000 pound a month, or 10,000, whatever your expenses are. So, that's the central goal. And then I think you have to get into the psychology aspect of it first. Craig Davis: Yeah, okay. Allen: Where you have to figure out, okay, why? Why is this so important to me? What's going to happen if I don't achieve this goal? Craig Davis: Okay, yeah. Allen: Because I think you really need to dig down and make a list of all the negative things, and all of the horrible things that will happen. You know, I'm going to be working until I'm 70 years old, my kids are not going to be able to go to the right college and university, and all these different things, to make it like a mandatory thing in your life, that you have to achieve this goal no matter what happens. The reason I say that is because a lot of people, they have, "Yeah, yeah, I want to make more money, I want to make more money." But then, while they're on the road, the road has bumps. And so sometimes they go over a bump and say, "Oh, that was too bumpy. I'm going to get off of this road. I don't want to do this anymore." Or they pause, or they stop. They pull over to the side, and they say, "Oh, I'll get back to that after my kid graduates from school, or I'll get back to that after this happens. Let me do this project at work first." They lose track, and then they never come back. Craig Davis: Okay, okay. Allen: So, that's a big problem. So, the mental aspect is there. And then the second thing, I think once we have that, then really, you know, you need to look over your entire lifestyle and say, "Okay, I obviously... You need money to trade." There's no other ways about that. So, we need to have, and build up our account as much as possible, so that we have some money to trade. Craig Davis: Yeah. Allen: That way you're reducing your expenses as much as possible, paying down your debt, so you're not paying extra fees, and interest, and all that stuff. And then, putting that money away and saving it. Once you have that done, let's say you have the mental aspect done, you have some money to trade, then I think you do some research and you say, "Okay, there are all these different strategies, which one do I think gives me the best chance for success?" And for every single person, it's different. There are people who tell me that, "I think what you're doing, where you're selling options, that's way too boring for me. I want to be a day trader, and I want to get rich in three days." Then, you try that path, right? Craig Davis: Okay. Allen: There are people that are very aggressive, there are people that are very conservative, and they say, "Oh, I don't want to take very much risk." Well, okay, then put your money in the index fund, or put your money in a bond fund, and just buy bonds, and make, whatever, two, three percent the bond is paying you, and you live off of that. There are some people that, I know one guy in Canada, he has a company where he teaches people how to do dividend investing. Craig Davis: Oh, okay. Allen: By the right shares, and they'll give you four or five percent a year in dividends. Craig Davis: Okay, fair enough. Allen: So if that's your thing, that's your thing, that's all you do, and that's all you do. You don't need to worry about it. I found that, for me, I found something that I don't want to only make four or five percent. I want to make, per year, at least 20 percent. And then, I want to do it in a way that made sense to me. For me, I'm a bit of a lazy person, honestly. I don't want to put a lot of time [crosstalk 00:04:31]- Craig Davis: I think you're being over modest. Allen: No, really. If you talk to my wife, she would definitely agree with me. Craig Davis: Well, so you do some work somewhere, so there's some work there somewhere. Allen: We do a little bit of work here and there in the office. But in terms of the trading, it's not that much. In the beginning, I wanted to find out what I wanted to do, so I did a lot of trades in the beginning. I did a lot of what's called the virtual trading, where you get a free account, and you just do all the different strategies, all the different trades, see which one works for you. I did a lot of back testing. Craig Davis: Yeah. Allen: There's software out there that lets you basically go back in time, and you put on a strategy, and then you just go through day by day by day how the strategy worked. If you need to adjust the trade, you can, if you need to change your strategy, you can. So, that was very, very beneficial, because that took a lot of time... If you do virtual trading, like paper trading, or you use real money and you do... Let's say I want to do a butterfly spread. You come up with your own criteria and you say, "I want to try this new strategy that I've created. I'm going to do this, and this, and this, and this." To actually do it in real time would take you 30, 35 days, and you only get to do one of them. Craig Davis: Right. Allen: If you do the back testing, you go back to, let's say, 2000, January 1st, 2000, and you put on your trade. Within like three hours, you can do 10 hours, or 10 years worth of trades. Craig Davis: Right [crosstalk 00:06:07]. Allen: So it's a big, big chance where you don't spend that much time on it. And you get the learning much faster. Craig Davis: Right, I see. Yeah. Okay, yeah. Allen: In the beginning I would find, I would say, "Okay, I'm going to find..." I wanted to find one strategy. Just one trade I could just do it, I don't have to do anything else, I don't have to worry about anything else. This is the only thing I wanted. I just wanted to find one thing that would work. I tried different things. I tried butterflies on McDonald's, butterflies on Walmart, I tried iron condors on certain stocks, iron condors on indexes, credit spreads, double diagonals, cover calls. I tried several different strategies. They all have their benefits, and they all have their negatives. Craig Davis: Okay, yeah. Allen: I do think that you can take any one strategy and just work with it, and learn it, and do really, really well with it. So if you find one strategy speaks to you, then focus on that one. Do your virtual trading, and if you can afford a back testing software, get the software, and just within a weekend, you'll have done dozens of trades. You'll have a leg up on everybody else that's doing this. I think that's a secret that people don't really use as much. Craig Davis: Have you got like two or three back testing softwares that are for doing research? Allen: So, the one I use most is called Option Net Explorer. Craig Davis: Okay, Option Net Explorer, yeah. Allen: I think that one costs... I don't know how much it costs now. Let me see. They have a 30 day trial, so you can try it for 30 days. After that, I think it's... Actually, the 30 day trial is 10 pounds. Craig Davis: Okay. Allen: And then for a year, it's 500 pounds. Craig Davis: Wow. Allen: You're in the UK, right? Craig Davis: Yeah. Allen: So yeah, so it's 500 pounds. So it's a little pricey, you know, maybe you don't need it for a month, or you don't need it for the whole year, but [crosstalk 00:08:16]... Yeah, so it's 10 pounds for the month, so you try it out. And if you like and you want to keep doing it, you can do, they have a three month plan and then they have a 12 month plan. Craig Davis: Yeah, I'll look at that three month. Okay, three-month and 12 months, okay. Allen: I mean, you look at everything and you say, "Okay, these are the different things that I want to test. Before you open the account, or before you do the trial, come up with your rules. Like, "Okay, I'm going to do this strategy, and this is my rule, this is what I'm going to put the trade on, this is how I know I'm going to be in trouble." You know, so you have a basic whole trading plan. And then you go and you test that, and you try it. You say, "Okay, this didn't work. Okay, how can I fix it? What can I do differently?" Then you go back and you try it again, and try it again, and try it again until you come up with something that works for you. We have different trading plans that are [crosstalk 00:09:07]. Craig Davis: I'm looking to specialize in the Iron Condor one. Allen: Okay. Craig Davis: Because I've seen some things, and trades in the range, and all these adjustments and all that seems like it's a good plan. And then I seen on your program, you have the lazy day trading, or something like that. That incorporates some Iron Condor. So, maybe I am heading towards the iron Condor thing to focus on and try and specialize in. Allen: Yeah. So we do, we have that course. It teaches everything of a tizzy about the Condor, how it works, how do you do it. It gives the different trading plans that you can use based on if you want to be aggressive or more conservative, whatnot. So, if that's something that you want to focus on, then just go 100 percent and do that, and see how it goes. Do the trial, and test all the different trading plans, see if you can find some other trading plans online. Craig Davis: Okay. Allen: I know the ones that we've put into the course, we've tested them, we've done them with real money, so we know that they work. So the question is really, "Okay, so here's the plan. Allen says it works. Now let me go back in time and let me try it, and let me see how I do." Craig Davis: I like that bit, yeah. Allen: And let's see. You know, let's see if Allen is full of it, or let's see if he's really telling the truth. Craig Davis: Now, that's fair enough. I like it. Yeah. Allen: Because it also, like I said, it's different for everybody. So, the trading plan, we've gotten testimonials from people and said, "Hey, I tried this and it worked great," and then we've had other people that said, "I tried it and it failed, and I didn't work." So, what's the difference? The plan is the same, the market is the same. Craig Davis: People. Allen: It's the people that are, they're doing something different or whatnot. We had one student, he was in one of our other courses. It was, you know, you put on the trade and you wait until the trade, if it goes against you, you have to let it go to a certain Delta. Craig Davis: Yeah. Allen: So we do that with condors as well. You put the trade on at a certain Delta, and when it gets to a certain Delta, that's when you know that, okay, it's time to change or adjust the trade. Craig Davis: Yeah. Allen: Well, this fellow didn't want to wait until that Delta. He was looking at the money and he said, "Oh, I was down 200 dollars, so I got out of the trade, and it didn't work." Craig Davis: Yeah. Allen: I said, "But, that's not how it works. That's not the plan." Craig Davis: Yeah. Allen: You can go down four 500 dollars, and then eventually it will come back up, and then you'll win. So, you have to be able to ride the waves. For him, that particular plan, or maybe trading in general was not, it didn't fit for him, because of his style. If you cannot see yourself and say, "Okay, I'm going to put the trade on..." When we're selling options, especially with iron condors too, in the beginning of the trade you might be down 100 dollars, 200 dollars or something, before it turns around and then it starts making money again. Craig Davis: Yeah. Allen: But if you don't have the patience, or you don't have the ability to just sit and wait, then this is not the trade for you. Craig Davis: That's true, that's true. Yeah, from what I can see and from what you're saying, it seems like you have to have that confidence to stick to the plan, and just follow the rules according to the plan. So yeah, I think that's- Allen: You have to have confidence in the plan. So, that's why you do the back testing. You just do it as many times as you can, you track all your results, and you look at it and you say, "Okay, you know what? Over the last 10 years I made money eight of the years or six of the years, I lost money for of the years. In my head, am I behind? Is that acceptable to me? Craig Davis: Yeah, yeah. Allen: You know? I had a friend of mine, he found this strategy for the iron Condor, somebody showed it to him, that says, "This is how you put the trade on, and then you never touch it." Craig Davis: Oh, naughty. Yeah. Allen: That's it, you don't do anything else. You put the trade on, and then you just let it do its thing, and the numbers should work out, and you should make money. So, it's either you're going to win on that trade, or you're going to lose the maximum. Craig Davis: Yeah, that's not a good trade then. That's not a good plan. Allen: Right. I mean, before we make a judgment, we have to test it. So my friend, he's very smart, so he said, "Okay," and he got it. He got the same software, this option software. Now this guy, he's wealthy, he's already wealthy. He went and he found somebody, and told them, "Hey, I need you to learn how to use this software, and I'm going to pay you to run this test." Craig Davis: Nice one. A real life scientist, yeah. Allen: Yeah. So, he hired this person, and the guy did all the testing for like the past 20 years or something. The results were that if you had traded this way every single year for 20 years, you would've just about broken even. Craig Davis: Oh my gosh, that's not good. Allen: Yeah. There were some years where it did very, very well, and then there were some years where he lost a bunch of money. But overall, over 20 years you would've broken even. So he's like, "Yeah, this doesn't work," and I'm like, "Well, I'm glad you know before you wasted the next 20 years to try to bring it out." Craig Davis: [inaudible 00:14:35]. Allen: So for iron condors, I do believe you have to adjust it. That just gives you a better chance to win. Craig Davis: Yeah. Allen: But another thing you have to be aware of is, you don't always want to be in the market. Craig Davis: Okay. That's an interesting concept. Because you're always like, when you see on some of the things where they say, "Oh, yeah, you've always got to be [inaudible 00:14:59]." So it's interesting when you say be in the market and out the market. What do you mean by that? That's a good mindset, I suppose for someone that starting out? Allen: In the stocks, when you're investing in stocks, they have gone back in time and they've looked at this, and they've said that most of the games that are made in the stock market are made in a few days every year. Craig Davis: No way. Allen: Maybe like 20 days every year. That's when the majority of the gains happen. Craig Davis: No way, so what's happening for the rest of the time? Allen: 70 percent of the time, stocks go sideways. Craig Davis: Sideways, okay. Allen: Yeah, that's why iron condors work. They go up, and they go down, and they go up, and they go down. That's why they tell you that you always have to be in the market if you're a stockholder, because you don't know when those days are going to happen. Craig Davis: Yes, yes. Allen: It could be in the beginning of the year, it could be in the middle, could be the end. You might miss out on a rally... Like for example, this year, 2019, if you were in from January to now, you would be up whatever it is, 16, 18 percent. Craig Davis: Yeah. Allen: If you missed these first few months, and you get in right now, well it looks like the market's going down, so you might lose money the rest of the year. Craig Davis: Yeah, yeah. Allen: That's why if you're a stock trader, most of the time you have to have your money in the market, because you can't time it. You don't know when it's going to go up and when it's going to go down. Craig Davis: No, no. Allen: Most of us. Most of us cannot. Craig Davis: Most of us, yes. And unless you've got that magic crystal ball where you can say, "Oh, yeah..." Allen: Yeah. But when you trade the iron Condor, or other option strategies, you want to look at what's the VIX. The VIX is the volatility of the overall market. Craig Davis: Yeah. Allen: Now, the more volatile it is, the more volatility there is, the more the option prices are worth. You get more money when you sell them. But, that also means that the stocks are moving up and down much faster. Craig Davis: Right, okay. Allen: So you have to be on your toes. You have to be watching every day when it's very volatile, and you have to be ready to adjust, you have to be ready to play with it, and you have to be... To trade when it's very volatile, you have to be the best of the best. Craig Davis: Right, okay. Allen: When volatility is very low, the stocks aren't really doing anything, you can put on the trade and just wait, and then it expires, and you're done, right? Anybody can do that. And so in the beginning when you're starting out, I tell people like, "Hey, if it's too volatile for you, if you are getting nervous because there was a two percent move, or a three percent move in a day, then that's a signal that this is above your skill level, and you need to just get out." Craig Davis: Okay, yeah. Allen: Because if we are trading iron condors, we can make 10, 12, 15 percent per month. Craig Davis: Yeah. Allen: Do we need to do it every single month? No. Craig Davis: No, okay. Right. Allen: If you have two or three good months, and you're up, let's say... Let's say it's the end of March and you're up 30 percent for the year, that's a pretty good year. You could take the rest of the year off, and say, "Hey, I made 30 percent." Most people don't do that, because they're so greedy. They're like, "Yeah, I want to get more. Let's go for 70 percent. Let's go for 100 percent." Craig Davis: Okay. Allen: Eventually one of those months you're going to lose. And the thing is, you really cannot tell, in the beginning, you cannot tell which months are going to be simple and which months are going to be very volatile. But the thing is, when you're done with a trade, you can re-examine and say, "What's going on in the market right now? Do I want to get in right now, or do I want to wait? Is there some news event on the horizon, or something that would cause the market a lot of uncertainty and a lot of concern? Then I'll just wait until that thing is over with, and I'll see how the market is reacting to it, and then I'll put my trade up." So, that's what I mean by you don't have to be in it all the time. Craig Davis: Right. Allen: You can pick and choose. [crosstalk 00:19:05]... Sorry, go ahead. Craig Davis: Is there a way in your training, or is there some way to be able to help you make that decision? Because I might see the... The VIX might be something given this is in the market, but [inaudible 00:19:22] say with confidence to say that, oh, the market's a bit volatile at the moment, I might stay out of it? Allen: So, it takes a little bit of experience to be able to really pinpoint it. But I'll give you the short version. Craig Davis: Okay. Allen: What I do whenever I'm putting on a trade, especially my iron condors, and I do them every month on SPX, and I do them on Rut, those are the two big ones that I like... You can do them, if you have less money you can do them on SPY, and IWM, or any of these ETFs. Craig Davis: Okay. Allen: I like to do them on the big ones, because it takes less contracts, and it has different advantages. But, I look at, when I'm putting on the trade, I have an analysis sheet and I say, "Okay, what is the VIX trading at right now? Do I see any kind of support and resistance on the chart? How did I do last month, how did I do the month before?" And then I'll also look at the standard deviations. So, standard deviation is basically a percentage movement. It's a statistical number, statistics, so it will tell you that the SPX moved in a bigger amount than it normally does. Craig Davis: Okay. Allen: So even if the volatility is still the same, today they had a really big move for some reason. So normally, you know, 70, 80 percent of the time, the SPX will be within one standard deviation. Craig Davis: Okay. Allen: If it moves more than one standard deviation, then that's a cause of like, "Hmm, let me pay attention to this." Craig Davis: Okay. Allen: If it's moving more, if it's moving two standard deviations, then that's a flag. And say, "Okay, there are big moves happening here, I need to pay attention to this, or maybe I need to get out of the market, or maybe I need to stay out." Craig Davis: Right, yeah. Allen: If there is a day when there is more than a one standard deviation move, I don't get in, I don't put a trade on that day. Craig Davis: Right, okay. Allen: I want to get in when it's a calm day. So that is the shortcut there, that you need to monitor the standard deviations on a daily basis, and see how they are doing for whatever instrument you are trading. If it's not SPX, if it's a stock, [crosstalk 00:21:35] you can find the standard deviation for everything. Look at it and see, "Okay, I was trading it last month, and it wasn't really moving very much. But now, it's moving one standard deviation every day for the last three days. Okay, something is going on." Craig Davis: Okay. Allen: So that's like a flag, it's a bell. "Ding, ding, ding." [inaudible 00:21:58]. Craig Davis: Yes, okay. Allen: You need to research this more and decide, "Hey, what is the cost, and do I want to get in or not?" Craig Davis: Yeah. Allen: There's different ways. Sometimes I look at it and I'll say... When I'm putting the trade on I look at it, "Okay, over the past two weeks, how many times has it moved more than one standard deviation?" Craig Davis: Okay. Allen: If you get two or three, that's normal. You have to understand what is normal for whatever instrument you're trading. Craig Davis: Yeah. Allen: But for SPX, two or three times is normal. If you get seven or eight, that's very high, because it's only for two weeks. Over the last 10 days, it moved a lot more than one standard deviation seven times, that's very high. So that means that, without even looking at the news, you know that there is something happening in the market. Craig Davis: Right, okay. Yeah. No, I like the sound of that. That's a good... There's one thing to a trading plan, but this analysis sheets sounds like another good thing as well. And definitely looking at standard deviations, and the movements and the market's an instrument. That sounds like a good, what's it called, skill, or discipline to have. So thank you. Allen: It's something that can help you, you know? Just keeping an eye on it. It's not a hard and fast rule that you don't do it, or you have to... I don't initiate a trade when there's more than one standard deviation. Do you have to do it that way? No, that's just my personal preference. But, this is something that you can, it's like another tool that you can use. Craig Davis: Okay, yeah. Lots of tools in the toolbox sounds good to me, lots of skills, yeah. I like the sound of that. So that's something I need to have in my vocabulary more than the standard deviations, the percentage movements? Allen: Well I mean, if you don't do the standard deviation, you can look at the percentage movements, but then you'll have to remember. It's harder to remember. If you... I don't know what broker you're using. Craig Davis: I'll be using Interactive Brokers. Allen: Okay. So, I'm not familiar with their set up, but if you call them, or you find online that there must be a way that you can actually, on your chart you can see the standard deviations. Craig Davis: Yeah, let me write that down. [inaudible 00:24:26] brokers where on charts I find the standard deviation. Yeah, okay. Allen: You might have to write it down, or they might have it visually on your screen, however. But whatever works for you, it's a good measure to keep track of. Craig Davis: Yeah. Thank you. No, we'll do that. Standard deviations, [inaudible 00:24:55] analysis sheet. Is the first one on there now? [inaudible 00:25:02] I need to get a trading plan, makes me stick to the trading plan, my analysis sheet. So you've now got another sheet now that says analysis on it [inaudible 00:25:10], and check standard deviation. Allen: You also want to make sure that you're not trading during earnings, if it's a [inaudible 00:25:20]. Craig Davis: Okay. Allen: And, if you're doing iron condors, you want to know in advance, at least have an idea of what you are going to be doing as an adjustment if the trade goes against you. Craig Davis: Okay. That sounds like an interesting technique. How would I... Because you've got a couple of programs, is that mindset and that skill set within there, like that adjustment thing that you were just saying, like is that [crosstalk 00:25:51]? Allen: In the course, and the iron Condor course, that's covered in detail. Craig Davis: Oh, okay. So then- Allen: Yeah, so we actually have videos where I went through some, I think it was three really, really horrible iron condors, like the market just went crazy. I go through it on that software, that back testing software I told you about. Craig Davis: Right, okay. Allen: I go through it on there, and I go day by day and I'm saying, "Okay, market just dropped 50 points. Okay, this is what I'm thinking. Do I do this, or do I do this, or what happens if I do this? Okay, which one am I going to do? I'm going to do this, because of XYZ reason. Okay, now let's see if it worked. Let's go day number three, day number four, go forward, go forward." So basically I'm telling you what I'm thinking as I'm going through the trade. Craig Davis: Okay. I like it. That's a good, that's the best way I think. Allen: So now are you going to be, you're in the UK, are you going to be trading the US stuff, or English stuff? Craig Davis: US. I'll be looking to do US, yeah. Allen: Okay, so the market- Craig Davis: But I think my main focus is going to be the US stuff I think. Like the SPX, like I just said, SPX, or SPY and all that. I want to try and do something may be on the SLV possibly, if I can do something. Allen: Okay. Craig Davis: As I say, I've I've got to look at your program, look at the resources that I've got, and then just [inaudible 00:27:16]. But yeah, the ETF SPY might be the one that I start with as well. But yeah, that's where I'll be starting, on the American stocks, and the American instruments. Allen: Right now, gold is very steady, I think. I haven't checked it. I think it's been steady. I haven't checked SLV though. Let's see how that's doing. So yeah, these are ones that do not have earnings, so they are good to do that, they're good for iron condors. Craig Davis: Okay. Sounds like a good one to do some back testing and research on that. Okay, yeah. Allen: Definitely. Yes, definitely. Hold on a second. Hold on, I'm going to share my screen. Craig Davis: Oh, okay. Do I have to press anything? Oh, no, it's fine. Allen: I don't think so. You can see? Craig Davis: Yeah, yeah, yeah, yeah, yeah. Allen: All right, so here is SLV, and you know, it's pretty much up at 16, and died down at 13 something right now. Craig Davis: Yeah. Allen: So basically if we're doing an iron Condor... And you can use... In the course we normally go for about 45 days. But we can go 28 days. This one doesn't have a lot of volume, SLV though. Craig Davis: Right. Allen: So, might not be the best one. Craig Davis: Okay. Allen: Let's try it. Craig Davis: Do you have a minimum volume in the instrument that you go for? What's your guide range? Allen: I just want to see some action. Craig Davis: Oh, okay. Allen: If I'm doing five contracts, and like this one, this one has 200 contracts every day, 100 contracts. That's fine, because I'm a small part of that. Craig Davis: Right, okay. Allen: But the other one, SLV, this one was only showing, like right here, there's only 230. So, these are the only two options I have. So, I don't have a lot of choice in which to trade, so it was like, ", yeah, I don't want to do that one." You know, compared to SPY, you take a look at that one and you're going to say, "Oh, you have a lot of these to choose from." Craig Davis: Yeah. Allen: People are trading all of them. So, you have enough liquidity to get out if you need to as well. Craig Davis: Yeah, yeah. Liquidity, that's definitely a good keyword. Allen: So if you are doing this one today, depending on how much money you want to put into each trade, you can go to the 292 maybe. Let's say we do 200 each, so two points. This is what our trade would look like. Craig Davis: Yeah. Allen: This trade gives us a 66 percent probability of winning, it's right in here in the middle, and then I can put these on the chart. So basically, this redline and this redline are the top and the bottom of our trade. Craig Davis: Yeah. Allen: So it seems like it'll do all right. Craig Davis: Yeah. Allen: This is a yearly chart. In this trade, what can you make? You can make 55 cents, and it's 200, so let me see if I... You can make 100, you can lose 300. So you know, whatever that is. You have a 66 percent chance of doing that. So what is that, like 33 percent gain? One divided by three? Craig Davis: Yeah. Allen: You could make... I mean, so you can be more conservative than this if you wanted to. Craig Davis: Yeah, okay. Allen: You can bring these all the way out to here, and go maybe 75 or 80 percent probability. That way, your tent will be larger. Craig Davis: Right, okay. Allen: So, less of a percentage return, but more chance of being safe. Craig Davis: Okay. Allen: Now the thing is, like right now, I don't know if you've been following the news or not, but the US and China, they're having their little trade war. Craig Davis: Trade wars, yeah. Allen: So that has been sending the market up and down almost every day for the last week or so. Craig Davis: Right, I see. Allen: If there's a tweet from Trump, then it goes up, otherwise it goes down. So in this environment I would say, no "Well you know, VIX is up a little bit, let's look at standard deviation, and these are the standard deviations. So in the past two weeks, we have one, two, three, four, five, six, seven, eight, nine, 10, one, two, three, four days where it moved more than one standard deviation." So that's a little bit on the high side. Craig Davis: High side, okay. Yeah. Allen: I would love it if it's like this, where it's all just gray, and no, they may be have one, but that's about it. Craig Davis: Yeah. Allen: This is telling me things are getting heated up. Craig Davis: Right, okay. Allen: Just looking at it visually. You see this, you see a lot of gray, a couple bars, a couple bars, couple bars, then all of a sudden you start seeing more reds and yellow. Yellow for here is a danger, because it's more than two standard deviation. Craig Davis: Right. Allen: And then, you're see more color, it's getting a little heated, so you have to be careful. That's all that tells you. Craig Davis: Yeah, that's cool. Okay. So you say something about news, what kind of news are you following, or if there is one I should start looking at, one or two? Allen: I try not to. Craig Davis: Oh, okay. Allen: I try not to watch the news. [crosstalk 00:32:48]. Craig Davis: Okay, good. Allen: Yeah. I've done... When I do my back testing, you don't hear any news. You're just looking at the chart, you're looking at the trade and you're going day by day. You don't know what's going on in the world. Craig Davis: No. Allen: You will do better in your back testing than in real life, for sure. Craig Davis: Yeah, that's true. Allen: Just because the news has an effect on us. Craig Davis: Yeah, true. Allen: When you're in the trade for 30 days sometimes you get scared, sometimes you hear something. So, if you're only watching the trade, you're not watching the news, you'll actually do better. Craig Davis: Right, okay. No worries. Allen: But sometimes there's stuff like this, when it starts dropping all of a sudden, then you have to pay attention. "What's going on? Why is it always that it's going steady for so long, and then all of a sudden it starts dropping?" And then you have all, look at this, you see this? Red, red, no red, red, red, red, red, yellow. This is like, "Hello, wake up, we have something going on here." Craig Davis: Yeah. Allen: So that's when you watch the news and you see what's going on. Craig Davis: What's going on, right. When the red flags are there, then watch the news, okay. Allen: Yeah. So I mean, I watch some shows that tell you like technical analysis, what other people are thinking. They'll say, "Oh, this is the line of resistance, and this is the support level, and this is this," okay, I'll take a look at that. But on a day to day basis, the nude is total baloney. They have no clue why the market is moving. Really, on a day to day basis, they don't have any clue. They have to make up something. Craig Davis: Yeah. Yeah, just to keep the viewers happy, I suppose, yeah. Allen: Yeah, I mean, they have to have airtime, right? They're on 24 hours a day, they have to talk about something. Craig Davis: Okay. Yeah, yeah, no worries. No, that's really insightful there, thank you. Yeah, so red flags, warning, check the news, standard deviations. [inaudible 00:34:51] if it's yellow, yeah, stuff is happening. Allen: I mean, Interactive Brokers might not show it like this. Craig Davis: No, that's fine. If they've got it somewhere, I'll just have to just get my eyes used to the way that they present the data, but yeah, I'm happy to do that. Allen: So essentially you have about 2000 to trade with, is that what you wrote? Craig Davis: Yes. Allen: Okay. And your expenses, your goal is about 3500 a month, and you want to get there in about three years. Craig Davis: Yes. Or sooner, or sooner. Allen: Or sooner. Craig Davis: I put that down there because, like as I say, I just put the figures down there, in terms of like what's achievable and what's possible. Allen: So let's say, here, let's do some quick math. So, 3500 times 12, 42,000 pounds a year, and you have 2000 to work with. Craig Davis: Yeah. Allen: That's 42,000 divided by, let's say, 25 percent a year. If you're making a 25 percent yearly return, you would need an account of 168,000. Craig Davis: Nice one. Allen: And you're at two. Craig Davis: Yeah, so that's no chance. [crosstalk 00:36:04]. Allen: How long will it take you to go from 2 to 168? There's a small chance, but you'll have... I don't want you to take excess risk is what I'm saying. Craig Davis: No, no, no, no, I'm in it for the long term. I'm going to start small, grow small, learn. Allen: And right now you have two, but that's what we talked about earlier, you're saving whatever you can. [crosstalk 00:36:24]... Craig Davis: Yeah, you'll add into it, yeah. Allen: Yeah. One of the things I tell some people is that, when you're doing your back testing at your paper trading, even if you're not real money trading, keep a result of all the records. Craig Davis: Yes. Allen: Keep a track record of how you're doing. Because you never know when you're going to run into somebody who has money, or an uncle, or someone who's... Because you know, when you go to a party or you meet someone, you say, "Oh, hey, what are you doing now? What are you up to?" And you, "Oh, I'm trading options." "Oh really?" "Yes." "How are you doing?" "Oh, I'm doing fantastic." "Really? Oh, okay, I have some money that I need to invest. Can you do it for me?" You will be surprised at how many people there are that have money, that they don't know what to do with. So these people, they might come and tell you, "Okay, I have 20,000 pounds, please do something." And you do it for them if you want to, and then you keep, "Okay, I'll take half the profit." "Okay." Craig Davis: Yeah. Allen: But keep in mind though that that also brings another level of stress. Craig Davis: Yes. I could imagine, yeah. Allen: Losing your money is one thing, losing somebody else's money is a whole different thing. Craig Davis: That's true. Yeah, man, you have to be careful. Yeah, that's fine. Yeah, man. Just go and lose their money that easy. There's a UK term, they call it like a... I don't know how you'd say it in American slang, but in the UK it's like, "Don't pee it down the toilet," or something like that. Allen: Yeah. Craig Davis: Yeah, so I understand [inaudible 00:38:05]. Allen: Yeah, we call that, what do we say? We say we pissed it away. Craig Davis: Yeah, that same thing, yeah. So yeah, we say the same thing. Allen: Cool. Craig Davis: So yeah, definitely. That sounds like a way forward. That's excellent. Allen: So what else, what other questions? Craig Davis: So, with respect to... I'm just trying to think, I think I've gone through the sort of, like you definitely have the mindset [inaudible 00:38:36]. With respect to adjusting, so you've calculated how much to put on a trade for an iron Condor. I'm just going by the term, like the rollover adjusting, is there a way to calculate, or you can't tell how far it could go against you, is there a way to make it like a rough ballpark figure on how much to put aside if you needed to do an adjustment? Or is that all on your course on how to make the decision should you adjust, or should you do this, or take money off the table? Allen: In reality, you can adjust forever. You can adjust month after month. You can keep it rolling forward, "Okay, so I didn't do good this month, I'm just going to roll it into next month," and then roll it into next month, and you can just keep going. I don't think that's a good idea, because it never ends. Craig Davis: Yeah. Allen: If I lose money on a month, then I just want to end it, and then start over fresh. Craig Davis: Yes. Allen: I don't want that baggage of coming, "Okay, I'm down 300 dollars from last month, I got to make it up." No, I want to start fresh, and whatever I can make, and then get it back eventually. If I was to put... I usually keep about half of what I put in originally. Craig Davis: Oh, okay. Allen: So, if I put in 1000 on a trade, I might keep another 500 on the side. Craig Davis: Okay. Allen: Or maybe another thousand, and worst-case scenario, to adjust. Craig Davis: Okay. Why not, why not? Okay, I like that. Yeah. I like that. It makes sense. So 100 to 50 percent, why not? Why not? I like that. I like that. So trade, and that's what you [inaudible 00:40:22]. Okay, why not? Yeah, I like the sound that that's okay. Let's see, what other questions could I ask you? I sure have put some on my email, but- Allen: It says here that you took some courses already? Craig Davis: Yeah, so I took some courses. I know this might seem like a strange one. There's a guy called Robert Kiasaki. I went to one of his training things and I thought, "Right, I'm going to fly in..." So pretty much, he's the one that put me on the path to try and look into do these things. I've been trying to do real estate things, and business things, and the stocks and shares thing. So I've done a couple of things, but that was just like the theory. I never got into a paper trading account. So last year I went, because in my full-time job I work in healthcare, I work in a pharmacy. So I got this contract, I was at the hospital pharmacy, where you've got more some more and things. I worked with this guy, I worked with him before, and he says, "Oh, come and work with me on this iron, and it's paying me [inaudible 00:41:21] a bit more money." So I thought, "Oh, based on the hours that I've got, this is okay." But what I didn't factor in, and maybe it's a life lesson, is like the downside. If you can imagine, I experienced the most downsides where, this is my assumption, I never asked, so I suppose I wasn't wrong. So for example, the person contracted [inaudible 00:41:46] for his business, he was saying, "There's too many staff, we're not going to employ staff." So I go, "What do you mean by that?" I had to find out the hard way that if all the jobs don't get done, I have to stay behind. Allen: [crosstalk 00:41:57] Yeah. Craig Davis: So before I was supposed to do 45 hours a week [inaudible 00:42:02], I think I must've pushed about 75, 80 hours a week. I was there late nights on weekends, I was there on my days off. Allen: Right. Craig Davis: I was there trying to... So, my plan was to go there, get my paper trading account up and running, start doing some stuff, so that's where I had the idea to get onto the [inaudible 00:42:22]. But then it stopped. So let's say, so April, May, say June 2018, I stopped doing stuff. So in the process now, I have to send an email back to Interactive Brokers, because my account cleared [inaudible 00:42:37] on SLV. I was selling some put options, because I thought, "Oh, I've learned about put options, let me sell some put options, and if it goes up, I keep the premium, if it's slow I keep the premium, if it goes down, then I don't get the stock anyway, but I got it for discount." So I started doing all that and then, boom, the reality of that kicked in. Then, I says, "Oh, I need some annual leave." He goes, "Oh, I can't find cover for your annual leave." I go, "What are you talking about?" So before I just assumed, I never discussed it. Well, it's not that I didn't discuss it, but I thought like, well... So for now, I'm just working with teams now where if I can get an agreement where possible, I'll go for that. Because before, I just overlooked it. Allen: Mm-hmm (affirmative). Craig Davis: I overlooked, like with my other team, like they were saying, "Oh, you got to do this [inaudible 00:43:30]." "You guys are killjoys." He was telling me, "Sorry, we can't give you cover for your leave," so I says, "What are you talking about?" So, I didn't have the words and the vocabulary, because I never thought I'd have to present an argument to ask for... Or, [inaudible 00:43:47] present an argument to request for annual leave. Allen: Yeah. Craig Davis: Never. I thought, "Okay..." So with respect to the courses, I started off with Robert Kiasaki, did some real estate ones, and there's a guy called Andy [Tamura 00:44:04], he had some ones. Then recently, I went on to Udemy, and that's where my... Because on Andy Tamura, he did one of these things and then I stopped. [inaudible 00:44:16] the profile, and when I seen the profile, "Oh, someone on Udemy," and I seen this thing it says like, "How to make money on weekly options," and it was talking about iron condors. Allen: Mm-hmm (affirmative). Craig Davis: So I researched and said, "Oh my gosh, he was talking about that." And then they say, "Oh, you've got to get educated," so I went on some podcasts and then I came across yours. I was listening to the way that you were speaking for your people and I thought, "Yeah, yeah." Because they say sometimes if a person, you can listen to what they're saying, but you have to make the decision on what they're presenting and what they're saying. Allen: Right. Craig Davis: What gave me the confidence to say, "Oh, yeah, this guy seems okay..." Because when you where then talking to the student guy, you... Because there's some people, like I said, that can sugarcoat it. But you actually said to him, "No, you need to get someone that's going to make you accountable, like a trading partner, that's got a list of rules." [inaudible 00:45:09], "Okay, you didn't get the trade, what are you going to do about it?" Allen: Right. Craig Davis: And that kind of thing. I thought, "Yeah, I like that." Because that's what you need, is everyone, "Oh, yeah, it will be fine [crosstalk 00:45:19]." You want someone to know, really to... Yeah. So I thought, "Okay, yeah, you seem like a serious guy. You want people to benefit." Allen: I learned from experience. That was my wife. That was my wife standing there telling me, "What are you going to do to fix this?" Craig Davis: The best trading partner, yeah. Yeah, but that's a good incentive as well. Allen: Yeah, every day she would come up the stairs when I was at home. Every day she would come up the stairs and stand there until I talked to her. Craig Davis: Yeah, "What have you done? What are you doing?" So yeah, so there you go. Behind every strong man there's a strong woman, I could imagine. Allen: Oh, yes. Craig Davis: Like I said, so for me, that's what got me onto the parcels. And there's programs. I seen yours, I listened to that podcast, and I looked into some of your things and I thought, "Okay, I want to be an expert, so I'm going to have to put the money in. Because why not pay, say, 297 dollars if it's going to say..." I'm telling you before I was not an ambassador. I don't know why I wasn't listening before. It's like I just have the theoretical, I had to practically... [inaudible 00:46:41] like the insurance, if it can save you money, I don't mind spending 297 dollars going in the forum, and it's going to save me 3000 dollars or something like that down the road. I haven't got a problem with that anymore. Before I might've been, "Oh, I'm going to risk it." No sense. Because it could be worse. Because as I said, there is no... Allen: You mentioned a couple things. You said the weekly iron condors. I would not do that. Craig Davis: Well, so don't do the weekly ones, [inaudible 00:47:18]. Allen: Those are for experts, and those are for people who like to gamble. If you don't have the money to risk, I would not do that at all. I would stay with the monthly. Craig Davis: Yes. Allen: The weeklys, you cannot adjust them. I'm sorry. I don't care what other people say. They just move so fast, that you cannot adjust. Craig Davis: Right. Allen: And the money that you make is so little, that you're only trying to make five, six percent. But that thing could, you know, you sell it for 20 cents today, tomorrow it could be a dollar, what now? Craig Davis: Yeah. Allen: You can't do anything. I learned the hard way that those are very dangerous, and they... Craig Davis: Yeah. Allen: And the [crosstalk 00:48:01] Kiasaki, he gets paid a lot of money from that Andy Tamura guy, to just be the head. You know? Craig Davis: Yeah. Allen: He will just use your name, and your picture, and your video, and... I mean, I love his books, I love his books, and they make a lot of sense, but yeah, so be careful of those. [crosstalk 00:48:30]. Craig Davis: He doesn't recommend the weekly options [crosstalk 00:48:34] for him. He didn't recommend that. I did see it on the Udemy, where it says, "How to make money selling options doing this weekly..." Allen: Oh, I see, I see. Craig Davis: So for me, I was looking at it as a learning exercise, where what is the difference between doing this weekly iron Condor to the monthly? Because they do say do it for 45 days, and do this. Allen: Right. Craig Davis: So, I was just looking into the process, but yours seems like you've got the accelerated version, where you've got the whole package there, you're going from start to finish, and this and that. Allen: Yeah, I mean, and if you have any questions or anything, you just email me, I'll help you out. Craig Davis: Yeah, definitely, definitely. Allen: If you need anything, just let us know. Craig Davis: Yes, yes. Allen: But really, take the plan, do the back testing, if you can afford it. Craig Davis: I will. Allen: I haven't checked, there might be something out there that's cheaper. Craig Davis: I can have a look. So if I literally Google, is it called like back testing software? Is it like that, or is it- Allen: Yeah, so just option back testing software. Craig Davis: Okay. Allen: You might find something. I know this company that I use, on the screen, the Think or Swim, they have something for back testing. Craig Davis: Okay. Allen: It's included, it's free. It's not very good... I think it's right here, Think Back. So, it's not the best, but it's free. Craig Davis: Okay. Allen: You can go back in time, so let's say you want to go back a few years, go back to this day. So it'll tell you, "Okay, SPY on that day was 131." And I think this is a chart for it. Craig Davis: Yeah. Allen: It gives you all the prices. So, you can put on a trade and then just go through it and see. Just go day by day. Like, "Okay, this is the 7th, today's the 8th, today's the 9th, how's my trade doing?" It's not as good as the other one, but then again, it's free. Craig Davis: Okay. I can have a look at it. I have seen the Think and Swim. I don't think they're taking account for the UK anymore. Allen: Oh, I didn't know that. Craig Davis: [crosstalk 00:50:42] Interactive Brokers. Allen: I see, okay. That's horrible. Tasty Trade... Or, no, Tasty Works is another one. Craig Davis: Okay, let me try that, Tasty Works, yeah. Allen: They're a newer broker, and I know they opened for Australian accounts, so they might be probably open to you guys too. Craig Davis: UK, okay. Allen: And they are, you know, they focus on options. Craig Davis: Oh, excellent. Allen: They have a lot of educational stuff as well. Some of their stuff I agree with, some not. Craig Davis: No worries. Allen: Okay, so the guys who, they're the same guys who made Think or Swim. Craig Davis: Oh, okay. Oh, that's good. Allen: In the past, they were floor traders on the exchanges. Then they made Think or Swim, and you know, they started doing videos, and teaching people. They were the ones that told everybody to do the iron Condor without adjusting. Craig Davis: Really? Allen: That's how they got popular, yeah. And then they sold this company to Ameritrade for millions and millions of dollars. Craig Davis: Okay. Allen: And then after they have the buyout period, where they cannot do anything for a lockup, they cannot do anything for a certain amount of time. Then once that period expired, then they went and they opened another brokerage. Craig Davis: Oh, okay. Allen: They're still out there, making videos and whatnot. So, they have a lot of content that people like. But they might, let me see if they open accounts in the UK. I think they do. Craig Davis: Okay, I'll have a look. But like as I say, with this Andy Tamura guy, you mention weekly, but he says safety, so that's where I got the safety element. But yeah, he definitely was saying, "Grow small, take your time. [inaudible 00:52:43] paper trades." Allen: Right. Craig Davis: But no, I don't think he wouldn't have said anything about [inaudible 00:52:49] saying about, "How do you have a losing strategy?" And rather than taking the maximum offer, he was the one that [inaudible 00:52:58]. So that gave me the idea. That's what I was leaning to. Because he said, "How do you turn a losing trade, so you don't get the max loss, and you're sort of not [inaudible 00:53:07] after having the max loss?" Allen: Yeah, so that's basically talking about adjusting. Craig Davis: Yeah, yeah. So yeah, man, Think or Swim [inaudible 00:53:25] said to do that, wow, they would've believed it. Allen: Yeah. Craig Davis: Well, like as I say, if it were, it depends on what context. Yeah, if they break even after 10 years and that. Allen: I was shocked, I didn't know that. I hadn't done it, my friend did it, and I was like, "Wow, really?" Craig Davis: Wow. If something sounds too good to be true, it most probably is or something, they might say. But no, I'll look for that. I'll look for the Tasty Works. If I can start an account, then I can look at that. Allen: Yeah. The only reason I tell you that is because their software might be better than Interactive Brokers. Craig Davis: Ah, okay. Allen: It doesn't matter which one you use, but their software, because they are focusing on option traders, so their software might be better. And they're newer, so they'll respond to you. I know Interactive Brokers, they don't really respond very well. Their customer service is not the best. Craig Davis: Right, that's all I need to know. You've got a problem, you can't get a hold of anybody. Allen: Yeah, I opened an account with them, and I couldn't even figure out how to use it, seriously. And so I emailed them, and I didn't get any response. Then I canceled the account, and then they contacted me. They were like, "Why'd you cancel?" I was like, "Well now you contact me." Craig Davis: No, that's not the best way. Allen: I think they are the cheapest, but you know, you really have to know what you're doing. Craig Davis: Yeah. [inaudible 00:55:08]. Allen: Yeah. So you have your game plan? Craig Davis: Yes, I have definitely... Oh, man, Allen, you're a top man, you're a superstar. I've definitely got a game plan. You gave me so much food for thought, hints and tips. I've been writing down some things. I know you're said you're recording, but let me just write it down while the inspiration's there. Yeah, I'm definitely more [inaudible 00:55:30] focus on these and back testing of the plan, which I never thought about, which makes sense, just to get confidence. Not confidence, but at least I can, what's it called, develop the skill of putting on the trade, and making sure I'm doing it properly. So yeah, yeah, I like the sound of it. And plus, yeah, I can view like how many trades over how many years in like a few minutes, so I like that. That's good. Then I could just say, I just have to get used to the [inaudible 00:56:00] where I'm coming forward, the volatility in that. So yeah, man, definitely got a game plan to go forward with. Looking forward to be working with you, and being part of this [inaudible 00:56:14] team. It's going to take me a few days until I digest everything, and get into it. But, I'll definitely be staying in contact, and if there's anything else that [crosstalk 00:56:27]. Allen: It's interesting, it's fun, but when you're doing it, it's very boring. Craig Davis: I'm glad you're telling me that, that's okay. They say the good plans are the [inaudible 00:56:40] ones. So it sounds like I've got a bit of a... Allen: Yeah. Like, yesterday the market was down, so it was exciting. It was like, "Oh my God, what do I do? I got to do this, I got to do this." Today, market is flat, and I've got nothing to do today. Most days you don't do anything. You just sit there and wait. Craig Davis: Waiting for something. Allen: Yeah. Craig Davis: Man, I didn't do an adjustment or something, or I didn't do this, didn't do that. Allen: Yeah. Craig Davis: I like it, I like it. So, that's where the boring part comes. Allen: Yeah. That is also something that you're going to have to learn with experience. You might adjust sometimes too soon, sometimes too late. It's a fine line. Like, we'll give you rules that say, "Okay, if this happens, you adjust." Craig Davis: Yeah. Allen: But there's always the thing that, you know, "Oh, if I didn't adjust, it would've worked out great. If I had waited another day or two, it would've worked out great." So, that always is there. When you have a firm set rule, it doesn't always work out in the best way. That rule will work most of the time, not every time. And so as you get experience, you'll realize that, "Okay, I know my rule says to adjust, but I am going to wait one more day, because I see something something on the chart, or I think this is going to happen," or something. Craig Davis: Yeah. Allen: That's why we don't give Vista computers. This is why we do it ourselves. Otherwise, we could just make a computer program, and let it run, and hopefully it works. Craig Davis: Yeah. No, that's fine. No, I like it. Yeah, man. Allen, definitely [inaudible 00:58:28], it sounds like you've done a great journey. You're a great teacher, and you want to encourage people. I'm glad you've got your course, and the website, the podcasts. Yeah, man, I'm glad that you've even got this thing, where if you want to speak with you, to donate some money. So even that for me, that's a learning for me as well. But yeah, man, this is definitely much appreciated. Definitely. Plan everything for everything. Allen: Great. I hope I was helpful, and like I said, going forward, you need anything, just email us. We're here. Craig Davis: Yes, definitely, man. I'll email you guys. Yeah, man, definitely much appreciated for the help and support. Definitely much appreciated. Thank you.
The objective of the Market Trader Training program is to teach students to trade safely and profitably. The instructors are not brokers, will not conduct trades, recommend stocks or futures for you, hold your money and don’t receive commissions. Jim only wants to teach you how to trade successfully.
Rank #1: Peter's comments on Options | Video Podcast #6.
Comments from Peter after attending Jim Short's class.
Rank #2: Happy Student Podcast #4.
Listen to Judith talk about her amazing year of trading.
The Options Insider Radio Network is the premier audio destination for options traders. The network provides access to a vast array of popular programs including The Option Block, Options Boot Camp, The Advisors Option, The Long and Short of Futures Options, Volatility Views, Options Insider Radio and much more. Join the thousands around the globe who turn to The Options Insider Radio Network for options information, analysis and education.
Rank #1: Option Block 860: Baby Yoda vs. Gizmo.
Option Block 860: Baby Yoda vs. Gizmo HOST: MARK LONGO, THE OPTIONS INSIDER CO-HOST: ANDREW GIOVINAZZI/MARK SEBASTIAN, OPTION PIT CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT FIDELITY HOT SEAT: COLIN SONGER, ACTIVE TRADER STRATEGY DESK TRADING BLOCK IMPEACHMENT AND TRADE WAR STILL WEIGHING ON MARKET AN OUTSIZED MOVE IN VIX? TECHNICAL ANALYSIS AND OPTIONS ACTIVITY AT FIDELITY IN AUPH, ROKU, SAGE, AAPL, AMZN OCC NOVEMBER CLEARED VOLUME DOWN 9.6 PERCENT ODD BLOCK MAYBE LITS PUTS IN ETSY BCS PUT LOVE CBB LITS PUTS MAIL BLOCK QUESTION FROM @EURO2ZERO: IF YOU COULD ONLY TRADE 2-3 NON-CORRELATED OPTIONS STRATEGIES WHAT WOULD THEY BE? WHAT TIME FRAME WOULD THEY BE IN? IF YOU'RE NOT SURE AND NEED TO RESORT TO BACK TESTING FOR AN ACCURATE ANSWER PLEASE JUST GIVE US A GUESS. WE LOVE YOU NO MATTER WHAT. COMMENT FROM MARKBRANT15: THANK YOU OIR!!! AROUND THE BLOCK WHAT’S ON YOUR RADAR FOR THE REST OF THE WEEK? TRADE DEAL, EMPLOYMENT SITUATION ON FRIDAY, GOLD SEEMS TO BE HANGING AROUND THIS LEVEL, PREMIUM OF VX FUTURES TO SPOT VIX
Rank #2: Wide World of Options 71: Technical Analysis.
What is technical analysis and how can it be used to establish directional options strategies? Join host Ed Modla and Dan Gramza, President of Gramza Capital Management, as they discuss market structure, analysis of price movements and ways to put it together with an options strategy. Later, in Tools, Resources and Good Reads, Ed shares an OIC tool that may help you evaluate market moves.
The Option Block All-Star Panel breaks down the latest developments in the options market, analyzes unusual options activity, explains cutting-edge options strategies, answers listener questions and much more. Whether you're an active options trader or just getting started in the options market, The Option Block will keep you informed and entertained.
Rank #1: OB 853: Mysterious Puts and Infinite Covered Calls.
OB 853: Mysterious Puts and Infinite Covered Calls HOST: MARK LONGO, THE OPTIONS INSIDER CO-HOST: ANDREW GIOVINAZZI, OPTION PIT CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT FIDELITY HOT SEAT: Colin Songer, Active Trader Strategy Desk TRADING BLOCK SEGMENT TRADE WAR OPTIMISM CONTINUES TO BOOST MARKET VIX 12.4 - DOWN .5 VVIX: 89 - UP 1 FROM LAST SHOW VXX: 19 - UNCHD FROM LAST MOST ACTIVE INDICES MOST ACTIVE EQUITY OPTIONS OTHER TRADING BLOCK DISCUSSION TOPICS Monday - Uber, Shake Shack, Hertz, Marriott, Groupon Tuesday - Chesapeake Energy, Allergan, Tapestry, Weight Watchers, Match Wednesday - CVS Health, Roku, Qualcomm, fitbit, Wynn Thursday - Teva, Cardinal Health, AMC Entertainment, Walt Disney Company, Activision/Blizzard, Yelp Friday - Duke Energy ODD BLOCK SEGMENT MEGA SPRINT CALL LOVE TEVA PUT LOVE KOHL’S CORP PUT LOVE MAIL BLOCK QUESTION FROM deletethisaccount1: I have a quick question for you, if your option contract becomes in the money and worth something can you sell it on friday of expiration? The example is a paper trade i did with sirius xm and had bought 6.5 calls at .07 (x10) and on earnings it was worth .23 (er was on thursday). on paper i sold but it went up another ten cents on friday. Would i have been able to sell that as long as there was a bid? QUESTION FROM NATCH: You guys see the infinite money covered call “glitch” on RobinHood? AROUND THE BLOCK WHAT’S ON YOUR RADAR FOR THE REST OF THE WEEK? Trade deal, uber post lock up, spx at all time highs, silver and gold will be interesting to watch
Rank #2: Option Block 766: As the Worm Turns.
Trading Block: Another day, another selloff Most active today: SPY - 2.71M (ADV 3.44M) VIX - 299k (603K ADV) Earnings Highlights: Monday - Stitch Fix Tuesday - Dave & Busters, American Eagle Outfitters Wednesday - Vera Bradley, Peak Resorts Thursday - Costco, Adobe MVP of the Year: Now we've got quite the horse race to see who will be crowned the most valuable company by the end of the year. Amazon was briefly number one today, but closed in the second spot. Now we have: AAPL at 877.04 billion market cap. AMZN at 866.63 billion market cap. MSFT at 860.43 billion market cap. Odd Block: Tesla put summary; March put love in Tanger Factory Outlet Centers Inc. (SKT); puts lighting up in HD Supply Holdings Inc (HDS), and; call love in Hydrogenics Corporation (HYGS) Strategy Block: Uncle Mike Tosaw discusses cash as a position. Mail Block: Options question of the week. Everyone loves trading $AAPL #Options. So the #OpenInterest is always very high. But a few interesting #Options dominate the rest. What do you think is the largest open position in $AAPL right now? No cheating - try to use your #SpideySense. Jan 2020 200 Call Jan 250 Call Dec 180 Put Jan 100 Put Listener questions and comments: Comment by Austyn41 - You've been nuggeted! Question from RTS3 - Mark said he used to trade Activision a lot. Outside of trading it, do you also play their games? If so what's on your playlist these days? Also the Rock Lobster is a cool nickname. B52s? Around the Block/This Week in the Markets: Dec 11 - PPI Dec 12 - CPI, Treasury Budget Dec 13 - Jobless Claims Dec 14 - Retail Sales, Industrial Production
Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the show.
Rank #1: Options Boot Camp Episode 3: Buying Options.
BASIC TRAINING - BUYING OPTIONS Buying Options, with special guest Joe Burgoyne from the Options Industry Council. Benefits & Downsides of buying options. The Greeks most relevant to novice options buyers. Bullish Example: Buying a call Bearish/Defensive Example: Buying a put. Common options buying mistakes: Buying OTM options vs ATM/ITM options, Intrinsic vs. Extrinsic value, Loading up before earnings. ROLL CALL Mark and Dan sit down with this episode's guest Benny Joseph to discuss the Zecco mobile app. They cover a wide range of topics including: Can it execute options orders? Can you access the greeks of your position via the mobile app? Can you execute complex, multi-leg spreads via the mobile app? What features of the Zecco mobile app set it apart from the rest of the pack? What has the feedback been since launching this new app? MAIL CALL Mark and Dan answer questions from Zecco's Facebook community including: From Arsalan: If I buy a call option and when it is time to exercise it, will that be done automatically (from the strike price or by the cost basis price, which would be the premium+strike?) or will I need to do something, as well as if I don't have the buying power to exercise the option, what happens, can I just have it buy and sell the stock right then and there and just have the profit. From Mike: Is Delta a measure of how much the option moves in relation to the stock? Example. A delta of 0.7 would mean if the stock moves 10%, the option would move 7%?
Rank #2: Options Bootcamp 63: The Proper Way to Trade Covered Calls.
Options 101: Our topic today was inspired by a listener question. Question from Mark Davis: Hello, I am a new listener to options bootcamp and am currently on Ep. 4. There was a mention of using covered calls to generate a "dividend." I am having trouble tracking down more information on this. Being still new to all of this I am hoping to get a clearer picture of how it works. How far out on expiration should I look and how do I figure the strike price? Thanks! Mail Call: Even more listener questions and comments Question from Robert Kornacki: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks Question from Dmitry Shesterin: What happens to LEAPs for tickers that get delisted before expiration? Question from Fred: I read Natenberg options volatility and pricing twice now and I have also set up paper trading accounts. But I am stuck going forward in my options progression. I do not want to trade using the greeks formula. But I want to spec on crude futures intraday using options. What should I do? Should I make more SIM trades until I figure it out? Or am I just too ignorant to trade options? Question from Jack Rieger: Do you have any specific strategies near or on expiration to profit from theta decay? Question from Bobby: How long did it take you to become comfortable trading credit spreads? Also what is my max loss when trading a credit spread? Question from from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks. Question from Fred (#2): Is it my imagination or do options traders trade more markets than futures traders do? Is that a good practice? Is it good to look for multiple markets when trading options? Should I expand my horizons?
Hosted by Joe Burgoyne, Director of Retail Education for The Options Industry Council, OIC's Wide World of Options will feature a dynamic mix of current events, investor resources, strategy insights and interviews with a variety of options professionals from throughout the industry.
Rank #1: OIC's Wide World of Options 67: Selling Options as an Investment Strategy.
WWOO 67: Selling Options as an Investment Strategy Many investors focus on buying assets for their portfolios - but it takes buyers and sellers to make a market. And the truth is both sides have benefits, as well as risks. Join Cboe’s Jermal Chandler and Ed Modla on this rebroadcast from OIC’s webinar series for a discussion about the key aspects of the selling side of the trade.
Rank #2: OICs Wide World of Options 08: Things to Consider When Buying Options and The Elliot Wave Theory.
Shelly Brown of MIAX joins Joe for a discussion about his experience in the industry and some of the exchange's key milestones. Also, Brian Overby of TradeKing shares his perspective on what investors should considering when buying options, then Joe will introduce you to the Elliott Wave Theory.
Forex and Option trading - the tactics & discipline as well as many other subjects associated with the markets.
Rank #1: Live Training Presentation Part 1 of 6.
I am posting the audio from a live training presentation that I recently made. There are 6 parts to the presentation. This is a discussion of the simple forex trading system that is offered on my website. The presentation covers the 10 steps to successfully trend trade forex. www.donchiantrader.com
Rank #2: Part 4 of 6 of a Live Presentation.
From the live presentation, in Part 4, we are discussing how news may affect forex pairs. We looked at a EUR/USD trade. We compared commodity currencies and European currencies. We learned how to calculate the risk per trade, choosing the number of lots to trade, calculating the trade opening price, calculating targets and stop losses. Also discussed was how to evaluate the strength of a forex pair. www.donchiantrader.com
Welcome to FX Options University! Join the industry's top trading professionals as they provide investors with insight on navigating the currency markets using FX Options.
Rank #1: Steve Nison on "Using Candlesticks to Profit from Currency Moves", Part 7.
Join Steve Nison, best-selling author with over 20 years industry experience, as he shares his groundbreaking approach to candlesticks.
Rank #2: John Jagerson on "Profiting in any Market using FX Options", Part 8.
Join John Jagerson, founder and contributor to LearningMarkets.com as he explores the latest market developments.
Emini day trading videos from http://Emini-Watch.com
Rank #1: Emini Breaks Out of Congestion 5Sep19.
The Emini gapped up and broke out of congestion today. But we've got employment numbers out on Friday, so let's see if we keep going.
Rank #2: 9am_RAMBO_Setup.
Nice trade today based on Amateurs going short and getting wrong footed.