📢 Thread: 20 of the Best Option Trading Strategies 📊💼
Options trading offers numerous strategies to suit different market conditions.
In this thread, we'll explore some of the top option trading strategies that can enhance your trading toolkit.
Let's dive in! 🧵🧵🧵
"The Richest Man in Babylon" by George S. Clason is one of the most underrated books on financial management
Its principles and story are simple, this makes the lessons easy to grasp
Here are 5 of the top pieces of advice the book gives its reader👇
7 Things Every Successful Trader Does:
1. Avoids Big Losses
2. Never Forgets Rule 1
3. Always Uses a Stop Loss
4. Always Has a Trading Plan
5. Has Realistic Expectations
6. Knows When To Reduce Risk
7. Reviews and Analyzes Trading Results
What others would you add to this list?
How to generate an easy 10% return in 12 months on $VZ stock.
Buy 100 shares: $3,585
Sell Jan 21, 2024 call at the 38 strike: $175
Anticipated Dividends: $261
Call income + dividends: $436
$436 / $3,585 = 12.16%
✅ I’m giving away 5 guides for FREE (24 hours only) ✅
➡️ Volatility Trading Domination
➡️ Iron Condor Mastery (4-part video series)
➡️ Iron Condor Pre-Trade Checklist
➡️ Iron Condor Adjustment Guide
➡️ Cash Secured Put Calculator
💥 Like and follow and I will DM you the link
Selling Options is one of the best income producers in trading
But where do you start?
Here's a list of 5 of my favorite income strategies with options 👇
Tesla doesn't pay a dividend which sucks for dividend investors.
However, using options you can create your own dividend.
Buy 100 shares: $25,160
Sell Jun 21, 2024 call at the 260 strike: $5,180
Yield: $5,180 / $25,160 = 20.59%
So, what's the risk?
Well, firstly you are
I've written over 2,300 articles about options based on 20 years of trading
Ready to discover the shortcut to mastering options trading?
Like and RT this post and I’ll DM you the 10 articles that will get you from beginner to expert in record time
(must be following as well)
$TSLA Option Strategies for Printing Money
Tesla is a great stock, but the opportunity to Buy and Hold for massive gains has passed.
Today, you will learn 4 different strategies that will beat Buy and Hold.
Guaranteed to blow your mind…
1) Poor Man’s Covered Call:
Buy a
I’ve been trading options since 2004 💵
I’ve been teaching other traders about options since 2010 👨🏫
I write daily option articles for Barchart and IBD 💸
I’ve traded thousands of options contracts 💰
Here're some biggest lessons I've learned on this journey👀
THREAD 🧵
Delta Dollars is one of the most important metrics I use when trading options.
But most people have not even heard of it.
Today, I will break it down for you in a thread:
🧵 Introduction to Options Trading: A Beginner's Guide 📚
1️⃣ Welcome to a comprehensive thread that will introduce you to the exciting world of options trading!
Let's get started!
How do you manage a Covered Call when the stock has had a big drop?
I get asked this question ALL THE TIME
So, let’s talk about how to handle this scenario
Remember to bookmark this tweet
Delta Dollars is one of the most important metrics I use when trading options.
But most people have not even heard of it.
Today, I will break it down for you in a thread:
Options trading is a millionaire maker.
If you want to change your life, put ALL your effort into learning how to trade in 2024.
Here's a roadmap to get you started:
Options Income Mastery is open for early enrollment.
Today, I'm giving 1 lucky person free access ($397 Value)
Like + Comment "Let me in" to be eligible.
I've written 2,213 articles about options based on 20 years of trading.
Ready to discover the shortcut to mastering options trading?
❤️ and RT this post and I’ll DM you the 15 articles that will get you from beginner to expert in record time.
(must be following as well).
Tired of being an option trading spectator?
Discover 9 powerful strategies that can dramatically improve your game.
Intrigued?
Keep reading, get ready for a breakthrough.
1. Rhino
Brian Larson created the Rhino trade. It is a Broken Wing butterfly traded on $RUT with
Selling Calls can make you an income
Selling Puts can make you wealthy
Selling Puts on solid stocks lets you buy them at a discount automatically
When prices come back, your portfolio increases in MV and you have dividend income
This is why Quality > Quantity in Put Selling
1⃣ Save at least 10% of your income.
As Clason writes, "A part of all you earn is yours to keep."
Another name for this concept is "pay yourself first"
If it's not yet 10% that's fine, this is a solid goal though
Ever wanted to make more money than you know what to do with?
Learn the wheel strategy, a proven options trading method guaranteed to skyrocket your profits.
Keep reading.
It's time to change your life.
$SPY $AAPL $MSFT
Steal this cheat sheet for buying quality stocks:
EPS % Change Last Quarter > 25%
EPS Growth This Year > 25%
Sales Growth Last Quarter > 20%
ROE > 15%
Average Daily Volume > 1 mil
Then watch the charts for a good entry point.
Smooth sailing all but guaranteed.
How to Scale Your Account with Options:
𝟮𝗞-𝟭𝟬𝗞: Credit Spreads and Condors
𝟭𝟬𝗞-𝟮𝟬𝗞: Credit Spreads and CSPs
𝟮𝟬𝗞-𝟱𝟬𝗞: Ratio Spreads, CSPs, and Longer Dated Credit Spreads
𝟱𝟬𝗞 𝗮𝗻𝗱 𝗨𝗽: Add in the Poor Man-Covered Call for additional income
You sold a put and now the stock has dropped.
Rather than potentially being assigned, you can delay assignment by rolling the put down and out.
Let’s look at an example in this thread 🧵:
Unlock the secret of trading with Poor Man's Covered Calls.
Who said you need 100 shares to sell covered calls?
You don't!
Here's your game plan:
- Step 1: Acquire a LEAP call. Aim for roughly 70 delta.
Paul Tudor Jones is one of the most influential Hedge Fund Managers in the world
💰He's worth over 5 billion dollars
Here's 7 of his most famous market quotes to make you a better trader:
A good scanner for finding put selling candidates:
Implied Volatility above 30%
Total call volume above 2k
Market cap above 40b
Price above 21d moving average
Last Price below $150
And voila, there you have it.
Beyond Meat is now worth more than Campbell’s Soup, E-Trade, Under Armour and Molson Coors.
Switzerland has a 50 year bond with a negative yield.
The world has officially gone mad.
So much of trading is a mental game. One of the most important thing is focusing on the PROCESS rather than the MONEY. Get the process right and the money will take care of itself. Have a great Sunday. 👍
🔆So you want to sell some covered Calls🔆
But should you sell weeklies or monthlies?
Well luckily we did an experiment to find out
Read on to see which is best 👇
7 Steps For Trading Iron Condors:
1. Identify a stock or ETF with high IV Percentile
2. Check earnings dates
3. Place the short call at short put at the 15 delta
4. Set width for the long call and puts. Usually $5 wide.
5. Choose an appropriate position size.
6. Place the
Peter Lynch used these criteria to select stocks.
- Trailing PE < 25
- Forward PE < 15
- Debt/Equity < 35%
- EPS Growth > 15%
- PEG Ratio < 1.2
Here are some results from that scan:
$TME
$UAA
$STM
$JNPR
$BABA
$CADE
2⃣ Make your money work for you.
After you've saved, don't just let your money sit idly.
This is where the markets come in
Whether you sell options for the income or stash it in index funds, make your money work harder than you do
New to Selling Options?
it's essential to follow a logical learning journey to build a strong foundation in options trading.
Here's a step-by-step guide on the topics you should learn and the order in which you should approach them:
I've crafted 2,213 articles on options trading from my 20 years of experience. 🚀
Ready to unlock the shortcut to mastering options?
❤️ and RT this post, and I'll DM you the 15 articles that will propel you from beginner to expert in record time.
(Must be following as well)
Today, you will learn about each of the greeks, their importance and how they impact option prices and strategies.
Whether you're a seasoned option trader looking to sharpen your skills or a newcomer eager to unlock the secrets of successful options trading, this post will equip
5⃣ Increase your ability to earn.
This goes beyond your primary source of income.
It means improving skills, gaining knowledge, and creating opportunities for additional income.
After all, your earning power is your greatest asset.
3⃣ Get advice from those more knowledgable
Seek wisdom from those who are experienced and successful in managing their finances.
Twitter is a great place for that if you know where to look
With the advent of the internet, this is now easier than ever
Ever wanted to make more money than you know what to do with?
Learn the wheel strategy, a proven options trading method guaranteed to skyrocket your profits.
Keep reading.
It's time to change your life.
$SPY $AAPL $MSFT
How to win in life:
- Smile
- Exercise
- Be driven
- Help others
- Be optimistic
- Try new things
- Be self-educated
- Build a side hustle
- Avoid toxic people
- Define your purpose
- Be financially literate
- Find the right partner
- Make inspiring friends
What else?
With over 2,213 articles on options trading from my 20 years of experience, there's a wealth of knowledge waiting for you.
Want to fast-track your options journey?
❤️ & RT this post, and I'll send you the top 10 articles every options trader should read.
Want to know a secret to skyrocket your option trading profits?
Here's a list of low-priced stocks and ETFs perfect for Wheel trades.
Get ready to take your trading to a whole new level!
$ABNB
$INTC
$SQ
$UBER
$MRVL
$WFC
$FXI
$EEM
$GDX
$ARKK
$BITO
$XLF
$XLE
$EWZ
$XLP
$XLU
In mid-2023, options trader Tom King published a video explaining his favorite strategy, known as the 1-1-2.
It is called the 1-1-2 because it consists of one out-of-the-money long put option, one short put option below that, and two short put options below that.
When I first started trading options I was losing money pretty bad.
So, I decided to buy a second screen.
After that I started losing money twice as fast.
Boom, boom
Have a great weekend everyone.
4⃣ Preserve your wealth by avoiding risky investments.
Similar to # 2, this tip is to help keep your expectations tempered
Value stability over quick returns.
Again Selling options and index funds come to mind here
🧵 The Impact of Time Decay on Options: Theta Strategies 🕰️
1️⃣ Today, we'll delve into the concept of time decay and how it affects options, along with strategies to leverage it. Let's jump in!
Top 5 Cash Secured Put Tips:
👉 Stick with quality companies
👉 Choose delta around 15-20
👉 Around 30 DTE. Shorter-term if you have the time to monitor them
👉 Roll down and out if you’re not ready to take assignment
👉 If assigned, take ownership, and sell covered calls
The little book That Beats the Markets is an Investing Best Seller
The Book introduces the "Magic Formula" For investing
But the real magic is its simplicity to follow
Here is that magic Formula and how it can apply to options: 👇
The Trend is your Friend 📈
Everyone knows this trading saying, but its tough to do
Here are 3 simple but effective ways to help you identify the trend 👇
Trading Hack
𝗧𝗵𝗲 "𝗪𝗲𝗲𝗸𝗲𝗻𝗱" 𝗧𝗿𝗮𝗱𝗲
Sell a SPX put (or a Put spread for safety) Friday 15 minutes before the close
Buy it back to close on Monday 15 minutes after the open
Look to play Monday or Tuesday expiration
$TSLA Doesn't pay a Div
Here is how you can make your own 17% Yield
🟢 Buy 100 Shares for $21,500 today (215/share)
🟢 Sell a September 2024 260 Call
You bank 17% on your money if it expires, you make 44% if it gets called away
This is how you make your own dividend
Using $O stock, we started a wheel example in early March.
Since then, the stock is -6.2%, but our wheel trade is +$270 or around 2.19%.
That's why I love the wheel. 🎡