💸How to Make $100 Per Day Trading Options 💸

this will be my best video to date because in this video I'm going to teach you how to bring in one hundred dollars per day trading options let's go so right here are the steps to make $100 a day trading options and you might be saying Matt I've already seen you make one of these videos and I've already watched it but here's the thing I always tweak my strategy to get better and better and better to help you make that 100 dollars a day so here we are the 10 steps if you don't want to watch the whole video I'll recap them with you right now we're going to go over how to pick the right platform my favorites and the worries and the frustrations of picking the wrong platform how to apply for options how to deposit money how much to put in to get in that $100 a day what you should study before entering any trades and before doing anything as well as finding the best setups which senate's I use personally for me to bring in money every single day and number 6 we're gonna tell you how to pick the correct options once you find that setup something that it's hard hard hard burn new traders to do this is the biggest frustration this is the most confusion is picking the right option number seven once we have that right option we're gonna discuss the risk reward and figure out if we should take it and number eight we're gonna make a plan on the trade and develop it and see if we can follow that plan number nine we're gonna exit our profits slowly one thing traders do not do correctly is exiting slowly for profits my exit strategy is gonna help you make that $100 a day much more simpler so I'm curious guys why haven't you grabbed my free option trading course in the link in the bio and also number nine we've got to honor our stop losses because you're gonna be wrong you're just getting started don't beat yourself up for finding losing trades and getting into them it happens it happens to everyone last number 10 we're gonna repeat this every single day and some days we may make more than a hundred bucks a day in that case we can take a day off how cool is that let's get into it right now and always step number one is to subscribe to my channel like this video because I'm the best option trader on YouTube that's gonna take you to the next level the first thing we need to do is pick the right platform and as a new trader guess where gonna do you're gonna have to Robin Hood or we bowl because they say it's free for options free for stocks and that's gonna get you intrigued but that's where you're making your biggest mistake in limiting your upside limiting the potential for you to make that $100 a day I use Robin Hood for my small account challenge taking $250 close to 1,000 in just under 8 weeks if Howard's using any other platform like thinkorswim our tasty works I would have been able to take that 250 all the way to 2,000 or 3,000 using Robin Hood definitely limited my upside and made it very hard for me to enter trades get out of trays and profit from trades so Robin Hood is very slow it shuts down at brendham points during the day and sometimes you may get stuck in a losing position because of that and you could lose all the money in your account I've had over a dozen traders in my premium option trading group do this so as you can see right now I just don't hold too much cash on Robin Hood I'm just holding one AMD call just to see what happens but right now this is how you purchase calls and puts on Robin Hood again it's not easy cancer replacing is not easy everything on this platform is not easy so you can start out here but I am warning you if you really want to do this professionally and do it well you can't use Robin Hood and you can't use Weibo so this is weevils desktop platform although it looks pretty although it's got a lot of functionality it does shut down like Robin Hood and when you're in a trade when you have a lot of money on the line and you have to exit at a certain point if this shuts down it ruins everything for example I was up a hundred percent in one trade on Monday morning at the open and I couldn't lock it in cuz we Bowl was down for five minutes it drove me crazy and it hurts your P&L at the end of the day so you can sign up for these there's links in the bio for free stocks but what I suggest is going to think or swim this is TD Ameritrade open an account with them this is the most professional platform free for stocks 60 cents for options and you can test drive options with paper money basically fake money to learn how it works learn how your setups work and practice trying to make that hundred bucks a day with realistic money in your account so what you could do is have them schedule a platform demo to walk you through but it's a very high-end platform I'm not gonna go in-depth on it as plenty of videos on it but I would highly suggest you head here to open up your account and start becoming a professional trader today if you haven't yet make sure you grab my two books bulletproof recession proof set ups link in the bio only three bucks so moving on traders we're gonna talk about applying for options because when you open up an account they're not gonna give you the ability to buy options or buy spreads spreads are like this level 2 or level 3 where you can sell puts or sell calls it's very attractive if you can't afford day trades to learn how to use spreads and I think every beginner should learn it before they start trading because you can lock in profit very easily doing that I have plenty of videos on my channel talking about this but what you want to do is head to Robinhood Weibo thinkorswim head to the settings maybe call up your broker if it's a professional broker like TD Ameritrade and say hey I want to apply for option trading and they'll lead you to the link you need to go to to answer the five or six questions it basically says what's your risk tolerance what's your investment speculation and if you answer them correctly they'll allow you to apply for options and get approved so this is my options lever right here all I had to do is go to settings on Robinhood and basically just answer the questions and they prove you same day I think the system may be slower with the news going on with Robin Hood right now as you can see once I got approved I upgraded to level 3 and this allows me to buy calls and puts which is level 1 and in selling covered calls selling cash covered puts and then lastly buying and selling spreads so spreads is where you're shorting puts shorting calls and that's level 3 so not many people can do that unless they upgrade it after they get approved so that's how you apply for options and that's how you can trade spreads and spreads are just a really great way of locking in profit locking in losses if you can't afford a day trade because there's no sense in letting something run straight to zero if you can just get out of it with a spread so I'm curious guys why haven't you grabbed my free option trading course in the link in the bio and this is super super important traders deposit how much money you're gonna put in and what's the possibility of you making one hundred dollars a day I broke it down for you right here I would say this wrenchy right here is gold this is the best thing you'll find on the internet because I'm breaking down how much you need and how much you can make using my specific strategy no one's gonna talk about this strategy is one of the best ones you can use to profit make money and scale out my best strategy the one I use personally with my options trading group so if you got 500 bucks you can make this possible let me show you how this works we have the capital used per trade if you're a new trader you don't want to put 50% of your money into one trade 30% the max I'm gonna say is 20% even that is very high 10% more reasonable and 5% even more reasonable so with 500 bucks in your account you can afford a $25 options trade with 5% use of your account value so ivory trade you don't want to use more than a specific portion of your account and what we do this is the secret sauce guys is once you have that amount you can use break it up into thirds divide it into thirds so 25 divided by 3 is about 8 bucks so once we find an option we like we're gonna buy 3 of those and this is why we're gonna scale out slowly nobody does this correctly and this is how you pay yourself to maximize the returns so we always scale out around a hundred percent but recently I've been seeing 50% being a great place to scale out so that means if we have one contract go up 50% we lock that in for bucks in our pocket so if that if the other two contracts goes back to break-even we can cut it at breakeven and we're still at $4 now if we go up to a hundred percent we lock in that that's eight bucks a total of $12 we still have one contract we can let it ride to 300% for a $25 exit so in total that would be a $38 profit if we exit slowly every month who released a limited quantity of trading t-shirts like this bull and bear battle t-shirt hit him up below me so the thing is if you exit everything at 50% you're limiting your upside if you exit everything in a hundred percent you're limiting your upside if you exit everything at 300% it's probably we're gonna hit that so that's why we always exit at certain levels of resistance profit resistance and here if we use 10% of our count value we're gonna exit 8 when 17 and then 50 bringing us in $75 that day it's not a hundred but guess what if we put in twenty percent into one trade it's a little high a little risky we can bring in 1733 and then a hundred dollars or that three hundred percent exit a total of one hundred and fifty dollars on that day it might not happen but with five hundred dollars you can possibly bring in one hundred fifty dollars per day and the best part is once you bring in that 150 your account value is now up to 650 so check this out I just changed this to 650 we have these amounts changing dramatically over here on the right we have forty nine ninety eight and then 195 meaning we can risk less in our account and still hit that hundred dollars a day profit and then reinvest it back into the account let's say we reach $900 one day now we only have to risk about 10 to 5% let's say 7% to make that hundred bucks per day you don't want to risk too much because with small amounts you can make a lot if we pick the right setups so one more thing let's go over the thousand dollars per day and then the five thousand dollars per day because some people start out with five grand and they lose it instantly if you don't follow these rules and these profit taking strategies that's what's gonna happen so with one thousand dollars per day we're risking for five percent fifty dollars per trade ten percent a hundred dollars per trade 20 percent two hundred so that if you're looking at options you can't buy Amazon for two hundred bucks and you can't buy three of Amazon for two hundred bucks that's why if you don't have a lot of capital you can't be playing the big names because you have to buy at least three options to use this strategy and with this five percent for a thousand dollars we're scaling out at 8:17 and fifty four that's 75 bucks per day the maximum make with the thousand dollars is three hundred dollars per day using options pretty crazy the max will make for five grand risking twenty percent in our count is $1,000 for the total trade break that up into thirds three hundred dollars per option that puts us in a whole nother ballgame for what we can buy and that's a total of fifteen hundred dollars in returns one single day using this strategy if we hit three hundred percent returns so now that we know how much we need to deposit just ask yourself what's your goal how much you're willing to risk and then work backwards to see how much capital you want so let's say I want to make seventy five dollars per day I don't want to risk more than 5% well you're probably in this category right here where you need five percent to make seventy five that's a thousand dollars in your account using that strategy it's possible every options trade you're not risking more than seventeen dollars per contract so it's not really feasible to do this because you can't buy too many contracts it's gonna be tough to find the actual stocks that are affordable with this budget too this is one of my favorite option trading strategies the back spread with puts or calls and this isn't my option domination course which comes with one month in my trading group grab it link in the bio okay step number four after we picked the right platform open an account apply for options deposit the correct money to make that possible hundred bucks per day we need to study because you can't just jump in start training and just go willy-nilly follow people on Twitter enter my disk or just following everybody throwing out the latest stock that's popping trying to follow my trades and get paid instantly that's not how it works you got to have a plan you gotta have a strategy you have to have your own strategy more importantly so this is the best ways to study and get better at understand the stock market and utilizing it number one grab my free options trading course link in the bio because this course will help you understand options and if you're gonna trade them you have to know how they work and basically the biggest mistakes with them number two you got ahead to my youtube channel spend one week going over every single video writing down things you learn applying them to your future strategy and just learn learn learn from the videos because they're all free I'm not trying to have you spent any money but if you do I would suggest you get these books bulletproof recession proof setups because they got the best setups I've ever seen in the stock market and these setups could save you some time when you're trying to understand when to get in want to get out and what to look for because finding the best setup is extremely hard I'm gonna spend about five minutes in this video trying to help you understand how to find setups but again it's not going to be easy for beginners to spot them that's why I say get this book read it every single day look through every single setup trying to figure out how you can look for it on your screen in real time so this is gonna be gold right now I'm gonna teach you basically the smallest ways and the easiest ways to find setups to play tomorrow if you want to get started trading so number one you have to know the difference between consolidation and then breakouts and trending patterns you don't want to play consolidation with option trading because you're gonna get shopped out waiting for the move to happen there are certain patterns that are ready to break out that you can play but for the most part something like this this is AMD and it's completely sideways I mean you can see it's just not going anywhere you don't want to play setups that aren't going anywhere you want to wait for them to start going and then get into them so what I do personally is I have a bunch of stocks I watch all the time those are IPOs could be a regular stock watch list on trading view calm all I have to do is press the UP button to look for setups look for things that I could play so I want to look for things that are going up or down pretty simple up or down and then I want to enter off that so this is going up this is P D D this is a stock I could be playing for a possible continuation higher the only thing I have to understand is where to enter because once I think it's moving I want to find the best entry point and again we want to play things that are moving so what you can do is add indicators I'll just add my indicator template which is moving averages Bollinger Bands and then my secret sauce the market mover indicator which is only for my premium option trading members so right here is P D D and what I'm looking for for an entry point is a possible move to a moving average possible move inside the Bollinger Band mid Bollinger Band maybe even a trendline so I love playing trend lines I think this is the easiest thing beginners can do so right here I just drew that trendline does mean anything but I can play it for an ounce so as you can see up up up up up what I want to wait for is and move to the trendline I want to make sure we hold support and then I want us to break higher if we do touch that trendline so that is the prime place to get into a trade I'm going to show you one that worked out perfectly that I threw out to my option trading group is this P time set up so as you can see broke out all time highs coming in and then we pop pop pop on the trend line and then gap tire gap tire so two days in a row of gapping and movement higher so we don't want to play things that are chopping like this unless we find good support or good resistance we want to play things that are really moving and the trendline is the easiest thing you can add to your screen at your trading arsenal to enter a play and have a high success rate trendlines super easy you can also do trendline resistance so again one more setup that's running right now is GL D so all you can do is a trainer is just basically plot support resistance and wait for the breakout so this is GL d as you can see clearly broken out from past resistance and it's moving higher so as a beginning trainer I think these some of the best setups you can play because we need things to move for options we need movement to happen relatively quickly or we need use option contracts with more time on it and we'll get into how to pick the perfect option contract but generally when I'm looking for a set up all I'm looking for is movement above the other candles are movement below the other candles one more set up this is LVS and we call this drop from last week so basically we broke this trendline we played puts and we sailed off on Monday for about 30 percent wind before it reversed so as you can see just a trendline that broke you can play trend lines breaking trend lines bouncing it's all very easy over time you're gonna figure out what works best for you so that's trend lines that's thinkorswim indicators I'm not going in depth check out all my videos I have plenty of them teaching you technical analysis that's what it's called so let's go over the next thing we're going to talk about is how to pick the correct options because once we have the correct setup which options pick that's so hard most traders can't get this correct I'm gonna make it so simple for you we're going back to our example capital sheet how much money we need to use because this is gonna grate in the limit which options you can actually buy so for stocks around 20 dollars you can buy options 10 to 30 bucks stocks around 50 dollars you can buy options around 40 to $100 stocks around a hundred bucks you can buy options around 100 to maybe even 300 dollars well above that we're probably getting out of the price range of most people in here so 300 bucks probably the max we're gonna see four options but what I'm gonna say is stocks 50 bucks are your sweet point so for a 50 bucks we can take a thousand dollars put 10% of our capital into a trade and buy three options at 33 bucks a pop so 50 bucks and under I'm going to show you one setup we absolutely nailed in the option group this is snapchat it's been completely soaring since last week so what we're gonna do is going to pretend like this is going to continue to soar and we're just going to look for the right options and then plan our trade from it so snapchat one of the news had all the way out this is what I do as a trader I head back to the highest timeframe to see huge support huge resistance I see huge resistance being $24 I see even higher resistance up here being 30 snapchat to $30 let's say that's possible within one to two months maybe even next week who knows but that's a strong strong move that could happen over time so what I'm gonna do now is go on the smaller timeframes to gauge an entry point as you saw I just scaled to the weekly to daily now I'm on the 4-hour in the 4-hour is where I start to draw my patterns so I'm gonna draw the trend line because we are trending up I want to find a trend line that I can't enter off of very simple staircases one two three four we're right at the staircase one more time I think we got room to run so as a trader this has momentum this is the prime place to enter now it's all about figuring out if options make sense if it's within our budget so again it's under 50 bucks it should be within our budget let's type in snapchat on Robin Hood just to see what the options are trading ass so the next thing and ask yourself is which option do I pick so if you think the moves gonna happen tomorrow you want to use options with seven to ten days for expiration if you think the moves gonna happen in a week from now you need to multiply that by three so if it's gonna happen next week you need options with three weeks of time on it if it's gonna happen tomorrow multiply that by three three days you can use the options expiring this week if you think the move is gonna happen tomorrow for a dollar or two dollars we'll analyze the risk reward in a second but basically if we're gonna hit 30 bucks in the next couple weeks I might want to use options let's say 30 days out so as you can see this option chain for July 24th about 30 days out are trading at 165 125 and then further and further you go out of the money which is where we're just scrolling above this Green Line Green Line is where the price is at currently the further we go the more time decay on it the less money we're gonna make because we're battling all that fada and all those other Greeks so you don't want to go too far out of the money I would say the safe rule of thumb is to go 5% out of the money maybe even 10% if you're feeling risky so 10% would bring us to about $25 we shouldn't be picking strike prices above 25 it's a little too risky in my opinion and the lest you think the move is gonna be that large if you got enough time on your options maybe it makes sense but as you can see the options are the money right here popped about 13% 26% today but if I scroll up the options way way way out of the money pops about 3.5% about 14 about 4% so the options out of the money just don't move as much on days where the stock doesn't move as much so although the price of the stock went up it didn't go up enough to be time decay which is going to be your biggest nemesis with options trading so $25 again is that 125 if I go to my budget I need 33 bucks tract to beat into anything and this doesn't make sense for me I'm not gonna put 125 in if I only have a $33 minimum to buy three contracts if you haven't yet make sure you grab my two books bulletproof recession proof set ups link in the bio only three bucks let's go a little bit shorter in expiration let's go to July 10th so these are about three weeks out and as you can see the 26 is all right 32 within our budget and then the 25 53 so right now I get theoretically by 3 at 26 and it's still within 10 percent ish of the out-of-the-money movement so basically breakeven is about 1011 percent so that's still not too bad and it costs total 96 bucks which is pretty nice so these options look great they have enough time on it what we're gonna do is plan out the trade from here so theoretically if we were going to move I think we would move off this trendline within one day so right now let's say we're gonna play a $2 pop in the stock let's go from 20 350 all the way up to 25 50 and that's just a generous movement I think is possible but again we have this trendline which is gold because that's gonna give us a hard line place to put our stop loss so if we fall underneath this trendline I'm gonna risk no more than let's say 50 cents something like that we're gonna calculate the risk reward from here but basically once we break this trendline it's no bueno we don't want to be in the trade all we want to do is play the pop off the trendline hopefully gaining maybe a $2 even $1 15 move now we have to see if we can make in our example of fifty hundred three hundred percent return because all we're trying to do is make $100 per day and this option moves within the next day or two this is very very possible so with trend lines we see movement very quickly and that's the best part about playing things that are moving we can use shorter expirations and we can play things that are ready to go so pretty simple check this out if we go from twenty three fifty to twenty five fifty that's two dollar move in the stock an easy way of calculating how much you can make with the two dollar move is just go down to strike prices so 26 down to 24 is $87 an option so that would bring us if I pop back over here from $33 to about 87 front so the amount you can make in this is about a hundred and seventy bucks so if you subtract those numbers you get 55 divided by your initial investment 32 that's a possible percent return of a hundred and seventy percent so I'm just gonna multiply that by 100 a hundred and seventy one percent possible we're looking for again it could run to three hundred that's why we always keep one contract on to see if it can happen but again if we scale out at a hundred percent we're still making the total between these two which is 50 bucks it's not a hundred but that could be 50 bucks if we don't get that last contract to run over to 300 so here's the thing this setup is perfect it makes sense we have room to run to 300% return if it does move now we want to calculate how much we're gonna risk in this trade because as we know we can make a hundred and seventy percent for the upside let's call it a hundred percent we don't want to risk more than 50 percent down so if we drop from twenty three fifty let's say two twenty three dollars that's fifty cents in the stock all you have to do is take the strike price which is twenty six look at the Delta which is twenty two so if we move fifty cents that's half of a dollar move we're gonna lose half of Delta which is 11 so we're gonna go from thirty three for this option we're gonna lose eleven dollars from it it's gonna go to twenty two so we'll calculate that really quick 22 divided by 32 about eleven dollars lost let's say divided by 32 that's about a 34% loss in the option so that's not fifty percent which is nice we can risk more than that if we need to so we can let this option go straight to sixteen dollars if we need to but we're pretty safe with this setup we're not risking more than we should we're risking thirty percent fifty percent max and we are out so that is the line I'm drawing once thirty percent fifty percent down I'm gonna start exiting this position once we really crossed this trendline it's no good for me but what you're seeing here is a possible hundred and seventy percent return possible hundred percent scale-out 50 percent scale-out with this option and then we leave out last one on to possibly run two three four even five hundred percent depending on your strategy when you want to get out so I'm moving on to the last couple steps once we make that plan how do we exit we have to prepare and we have to actually follow that plan so exiting slowly is key once you start making money don't exit everything get all excited say I'm out at fifty percent and then you're done and then last we have to honor that stop-loss so let's go to the example one more time just to show you how you can change this though we can say 30% and we exit we can't say 70% we exit it doesn't have to be 50% for that first place tags it contracts it's basically what you normally see with your trading strategy for example if you normally see 70% being a profit zone of resistance take profit there and then 150 percent maybe that's your next zone but for me personally I exit at 50 I exhibited a hundred and I exit at 300 so right here for this thousand dollars we could change this if we want exhibit 70% we can make even more exit at 150 we can make even more there may be this last ones 500 percent it's your plan you just gotta follow it so make a plan and follow it so basically right here all I'm looking for is off its own to profit zone and the last one is my third and last profit zone so we have three profit zones one two and three that's what the best traders do is have three and then one stop-loss because if you lose 50% it's okay because guess what we're probably gonna make a hundred percent in the next trade or we might even pay ourselves at 50 and it could drop back and we still have profit and the best part is if it hits our stop loss when it drops back at that point we may even break even if we took enough profit so lastly we're gonna repeat this process you can do it day in day out 100 bucks per day but I'm telling you guys it all starts with the setups you have to find high quality setups that are moving and pick the right options the last and final thing I did not talk about but it's the most important is you have to analyze your specific option just from the theta and the Delta part so Delta is how much you make per dollar move so if this option for snapshot goes up one dollar will make $22 plus gamma so gamma gets added on later so eventually it's almost a hundred percent return but it's around let's say 70 50 to 70 for that first dollar move and next dollar move is going to be a hundred but we're gonna lose two bucks per day so you gotta know you got to make a note of that you always want that theta to be a lot less than Delta so Delta's $22 theta is two dollars you want the ADA to be very very low the higher thing is the harder it is for you to make money holding an option because time decay is gonna eat away your profits it's gonna stop you out really early so always analyze this obviously the maximum I will take in a trade is where Delta is twice of theta so let's say theta was 11 Delta was 22 I may take it it's a little scary for me though this is such a better scenario to down 22 up that's a very good set up for me so all beginners need to watch my small account trading strategy in the video to the right of me you don't want to miss it when you first get started trading in the stock market you most likely don't have a lot of money but you still want to make a lot of money from that small account and that can be very hard if you don't know the right strategies so in this video I'll be teaching you the best small account

Channel: Market Moves - Matt Giannino

Views: 30,122

Rating: 4.8713045 out of 5

Keywords: how to make 100 per day, how to make 100 dollars per day trading option, 100 dollars per day trading options, trading options 100 dollars per day, $100 a day trading, 100 dollars a day trading, make $100 a day day trading, make 100 dollars a day day trading, can i make 100 a day day trading, make 100 a day day trading, 100 a day day trading, day trading $100 a day, make 100 dollars a day trading, robinhood options, robinhood trading, option trading, day trading options, options

Id: 4CNsacL6x8E

Length: 30min 37sec (1837 seconds)

Published: Thu Aug 06 2020