How I turned $500 into $1,000 in 2.5 Months | 0DTE SPX Strategy

hey guys welcome back to modern options i got a pretty exciting video today i want to talk to you about how i turned a 500 account into a thousand within just two and a half months so in my td ameritrade account i you can see here on june 15th this was right after i posted that video where i had the max loss i just wanted to start fresh so i have this account strictly right at 500 and over the course of two and a half months you can see today i just hit over a thousand so 100 return within two and a half months and that's something that would not have been possible without the use of options so one of the things that you hear all traders on youtube say all the time but no one ever listens to it is you actually have to trade with a plan and that's going to mean that you need to actually define some rules that you will follow and use every single time that you trade and if you don't do that and you're just hoping that the stock value or the option value goes up then you're already i used to do that as an options trader and you can i can clearly tell you that that is not going to be a good long-term play for you and you have to find the strategy that works for you too right because i've tried many different ones swing trading i've tried three month expiration one-month expirations same day and you just have to find the one that niche that works for you with your risk tolerance your work lifestyle and then also how big your account actually is for me it just happened to be the zero days to expiration and i'm gonna keep riding that train until it's not fun anymore and right now it is really fun so you can see me scrolling through here it's not to say that this is a perfect strategy and that it's just going to continuously go up you can clearly see that there's up and down days but that's the next thing you have to be able to take a loss if you can't take a loss and just think that every single trade that you're going to make is absolutely perfect then you're you're not going to be profitable long term and that's doesn't mean like sell it when it's way down like you have to already have that calculated loss before you even decide to go into the trade so let's go ahead and look at this week's trades i had another perfect week with zero days to expiration on monday i sold a put credit spread now for those of you that are new here or haven't been around for a little bit credit spreads are when you are receiving money up front by selling a short leg and a long leg of an option to just count as insurance for yourself because if you didn't buy that insurance on the bottom you would actually need the amount of collateral required to cover this short put by itself which would be 45 15 times 100 so 450 000 and i don't have that so instead you can just bring your strike price down five points and that means the width of the spread is five dollars which means that you're only risking 500 at one point minus the credit that you received so on this day um tech was opening strong rushing into new highs and then just continued to remain stable throughout the day so i did not see any sort of reversal or any any turnaround within the beginning of the day and i got in right about here about 10 15 with my put credit spread selling the 45 15 and buying the 40 45 10 and a huge bowl candle just came in right after that and continued to rise up decaying my spread pretty quickly at that point but i did move my stop up from being a two times loss to break even if you haven't watched my videos before too i like to make my stop two times the premium that i received and that's a hard stop so that way i don't i don't play mental games i don't see like uh maybe i'll get out it gets me out that way i live to trade another day so on this day i sold that spread for 50 cents so not a huge one that day but that was okay i didn't want to ride into this trend and then have it turn on me so i did a little bit less premium than i normally might have done and it expired worthless so i kept all 50 of that today moving on to wednesday's trade i did an iron condor so remember an iron condor is both a put credit spread and a call credit spread combined easiest way to think of it again i sold the 4515 put and bought the 4510 and i sold the 45-45 call and bought the 45-50. so on wednesday there was just mix of sectors battling each other so energy financials and healthcare were down but nasdaq was hitting all-time high so it was a constant battle throughout the day so uh there's a lot of back and forth going on here in the morning and then a huge red candle and then a slightly bigger green slightly smaller green candle right after that so there wasn't a clear direction for the day so i figured i was going to put on an iron condor and for this iron condor i took in 70. so that's a decent amount of premium off of 500 collateral so 500 because that's the width of the spread minus 70 which means i only had 430 at risk so this continued to be a great day for an iron condor slightly went up towards my call side but didn't get close enough to actually test breaking my stop right around here at two o'clock i believe i moved my stop from being 2x and i brought it down to break even so that way i at least guaranteed that i wasn't gonna lose any money for the day and then going on as the day continued around maybe three o'clock i moved it up to have at least some profit so if i did get stopped out i would still make some money but i didn't buy to close and it ended up expiring worthless and i kept all that 70 so let's move into friday's trade i did another iron condor and man 45 15 and 45 10 puts held it strong throughout the entire week that was the same put legs that i've used i also sold the 4550 call and the 45 55 call so for friday job reports came out with a big miss there is expected to be 720k but only 235k were actually created so that's what brought it down in the morning but then also still some optimism from the jackson hole symposium with uh jerome powell talking there so that kind of bounced it out and there wasn't a clear direction again today so i felt comfortable taking on an iron condor and i opened this at 10 16 a.m and i got some pretty good premium on that day as well today and that was 80 cents so 500 collateral minus 80 means i only had 420 bucks at risk and throughout the day it continued to slightly inch higher throughout the day again did not test my call side of it at most it was at 45 41 so it was still nine strikes away so i was comfortable not closing this early but again i did move my stop loss from 2x which is what i normally do as soon as i open the trade and brought it up to break even and then slowly start to bring it into profitable throughout the day if you guys need any further explanation on that if i've been confusing you on that by moving my stop just let me know in the comments and i can create a dedicated video on it so that led to another perfect week for zero days to expiration trades and i made 188 dollars and 14 cents for the week not too bad for only using 500 of risk at each of them so this is a pretty awesome milestone for my small account guys and just proving to anyone that you truly can make some money off of options even if you have a small account as slow as 500 so i want to give out some clarity on where i want to actually see this account take me and what i want to use it for so one of my ultimate goals to have this account do is actually fund my roth ira for me as well as my wife's so that means that this account would need to generate me about a thousand dollars a month to go into both of our ira accounts and then i don't even have to take that money out of my own personal income which i think is would be an amazing thing something else i want to use the money i earned from this account for is to actually improve my equipment for this channel so getting better microphone getting a better camera getting a better computer this computer is almost 10 years old and then as well as just anything to improve quality of life for my family i'm a firm believer that you shouldn't just keep all of your options money within your options account because options can always go to zero and you can lose all your money so if you don't at least put something in the long term or buy yourself something or your family members or friends around you then that's money not necessarily wasted but that you could have spent to bring other people joy and this isn't my only account that i have in the stock market i still have my tsp account for my long-term funding as well as my roth ira account and then this one is just a bonus to see if any additional income that i'm able to create to supplement my full-time pay so that's all for today's video guys if you enjoyed it give it a thumbs up and let me know down below how the zero dates to expiration trades been working for you and consider subscribing if you want to see more content like this that's all for this one guys and i'll see you in the next one you

Channel: Modern Options

Views: 976

Rating: 4.9200001 out of 5

Keywords: $500 account, 0 dte spx iron condr, 0dte, 0dte credit spreads, 0dte iron condors, 0dte spx, 0dte spx strategy, 0dte spy, credit spreads, day trading, day trading options, how to grow your small account, how to trade options, how to trade with a small account, investing, iron condor, options, options for dummies, options strategy, robinhood, small account, small account options strategy, small account strategy, spx, spx options, stock options, thinkorswim, webull

Id: hBYQlqE-nr0

Length: 8min 29sec (509 seconds)

Published: Sat Sep 04 2021