Make $100 A Day Trading Stock Options [The Easier Way]

[Music] hey what's up youtube this is foxtel digital coming to you begin with black girl stocks and in this video i'm going to show you how to start making a hundred plus dollars every day trading options now this is actually a lot easier than i think most people think it is i just switched my weeble account from a margin to a cash account so with that you know you won't be penalized with pattern day trades so i mean you can day trade doing this but keep in mind that these don't have to be day trades so you can get into an option trade today exit it tomorrow later a month and still get 100 plus a day and just for an example i bought this walmart option way out of the money expiring next january so this doesn't expire until next year and you know it generates income every day uh i really you know i was just playing around with this just to see what happens but it's up 60 this is in robin hood though you know those of you know uh i do most of my trades in weeble so if you don't have weibo make sure to click the link below use my link so that you get two free stocks on me so in this video we're going to talk about how much money that you want to start with realistically okay i'm not selling false dreams out here so you know how much you really want to start with what stocks that you're going to want to look for to do these options on where and how you can find them and then how to plan for your profits and minimize the losses that was a mouthful but first if this is your first time watching this video please make sure that you click that thumbs up button it really helps the channel also subscribe we just hit 95 000 subscribers on tuesday so uh if you're new to the channel please introduce yourself in the comments and then make sure that you click that notification bell so that you get notified anytime i upload a new video for you guys and with that let's get into it okay so the first thing that i want you guys to know is that it's okay to have dollar amount goals like a hundred dollars a day two hundred dollars a day thousand dollars a day you know with your trays but what's really going to make it easier for you is to focus more on percentage gains first question that you guys are probably going to ask was well how much do i even need to start training with but yeah this is going to be the first important factor now i said i was going to be realistic so i say you want to start with a minimum of 500 to a thousand dollars in your account at least that's just me being honest it's the honest truth i mean you can make a hundred dollars with less but you'll just need bigger gains and some of those are hard to come by with smaller stocks so realistically starting with more you'll get more for the purpose of this video i want the calculations to be easy so let's just say we're going to start out with the thousand dollars now going back to the percentages if you're starting with a thousand dollars shoot for 10 games a day boom hundred dollars hello hello hello end of the video no i'm just playing but yeah just 10 percent that's really not that much when you break it down start out with percentages have a daily goal of 10 20 a day it's just going to build up now also keep in mind your position sizes and then how much you're willing to pay to get into the trades so with a smaller account honestly with really with any size account but specifically for new beginners and traders in general you never want to risk your entire portfolio on any trade you don't want to do that now you could do that and you might be profitable but then literally you can wipe your account out like that keep a percentage limit to the size of your trade and this is going to help you get to that 100 percent yeah don't risk half of your portfolio on any trade if you're a beginner i would suggest investing no more than five to ten percent of your entire portfolio on any trade 20 max so let's say if you have that one thousand dollars in your account and you're only willing to risk five percent on your trades then that means the most that you're gonna pay to get into a contract is gonna be fifty dollars so you wouldn't get into any option trades that cost more than fifty dollars i know that i know that sounds kind of low so let's bump it up a little bit so let's say 10 so if you're willing to risk 10 of your portfolio on your trades then you can spend 100 on an option trade now we're getting somewhere a lot of quality stocks have options that are in this range so for example you can get american airline options for fifty dollars thirty dollars eighty dollars so you can get two contracts of this on our budget uh we're going to get into the actual trade risk versus reward a little bit further on in the video we're going to want to look at stocks that are priced within a nice range so we said we're not willing to risk more than 10 percent per trade max 100 for the option contract now you know there's differences between stock share prices and option premium prices but the profit rewards from options is just on another level so you can definitely find stocks that cost between 10 and 50 or maybe a little bit over that that have option contracts that are pretty cheap also now the trick with this is you're going to want to find options that have a lower implied volatility because that's going to have a lower price option premium so the first way i'll suggest is using tiblio okay it's an online service that gives out hundreds of different option plays every day they update their list every five to 15 minutes so really you just have to go through check the stock charts see which option plays would be good for you they will literally give you everything strike prices expiration date all of that so make sure that you check out tiblio i'm going to leave the link below because when you use my link then you're going to get 20 off of your first month another easy way to search for these stock options is going to be to use scanners now i'm going to use the thinkorswim scanner because that's the only one that i know for sure that you can specifically search out only stocks that have options that have a certain implied volatility and the option price so honestly it really just kind of saves you the time of scrolling through lists alright so this is thinkorswim right here i have more videos showing you guys this but this is just an example okay so i already made this but you see here i have the stock and this is going to be the actual stock price it's going to be in between 10 and 75 dollars max on the stock then you want to have a high volume i always say high volume so i started out with a million you can do maybe 500 000 but i like a million because i'm trying to get in and get out stop playing the implied volatility boom i want a minimum of 20 percent max 40. i might do 50. anything above like once you start getting into 60 70 80 uh-uh too high not for a long play now if i was doing a credit spread or doing something like that then that's fine uh and then look at the option as so as far as the price you can pick last that's gonna give you a more realistic look um so for the option price let's say okay minimum there is no minimum but the most that i wanted to pay for this option contract is let's say one click scan yeah here's a list so we have a list of stocks that fit this criteria okay that's in a downtrend put put put okay call okay so that's just that's just an example of you know how you can actually search for them but like i said i'm not going to go into the scanner in this video i have videos on that so i'll probably leave that in the link below too alright so next let's say that you found the particular stock that you want to trade the options on for that day or if you're gonna swing trade it or whatever so you're gonna want to start being very very picky about the trades that you enter into so there's certain setups that you'll look for to get into trades like like maybe the price being at the bottom of your boiling bands or an ema crossover to signal a trend reversal so if these types of criteria are not met then you are not going to take that trade so let me just give you an example so we're looking at this stock right here no let's say this is a few days ago this is the 10 day 30 minute time frame so let's say a couple of days ago okay we see this stock is in an uptrend do i want to get into it right now hold on now if you were looking at this on wednesday you're preparing for it the day before after hours you know it's kind of consolidating a little bit it's not really giving me a lot of moves during the after hours it did shoot up but then i see this crossover i don't know if i want to do a long call on this yet i don't know or if you saw that it was in an uptrend and you can anticipate that it's going to have a pullback then you wouldn't get into that pullback until you saw that crossover boom you know quick little profits with the puts boom same thing right here starting to come back up again uh the next day a little bit crossover boom but you see it kind of consolidated there and it was you know moving sideways during after hours and then boom as far as going back into the calls we see a crossover on the further out time chart boom now this is this is a week chart normally when you're setting up your trades you want to start further out so i'll always start a few months out get a bigger idea of what's going on so we see overall the stock is in an uptrend moving a little bit further and you want to see when you want to get in you're going to want to use indicators so on my charts so you want to use your trend lines have your trend trend is your friend we're going with the trend boom use your macd indicator you want to wait for crossovers boom boom boom boom and then using the rsi indicator too so there's so many different ways that you can you know maximize your profits here but we only want to get into trades that fit our criteria for me personally if i was doing an uptrend like look at this we have our trend line you saw that this was in an uptrend and even though it hit that high and you saw it drop a little bit boom it hit that trend line probably on his way back up let's be honest so if you wanted to do a swing on this boom you can get into that the last thing that we're going to talk about is actually picking the option contract that we want so let's say we wanted to use pfizer we already know you know they talk about these boosters and all this other myths these stocks are probably going to be doing well okay so that's something to to think about we know the stock we have the setup now we just need to make a plan for how we're going to trade it so now it's going to come down to which option contract that you're going to want to pick the strike price expiration date all of that go to the options all right so the first thing i want to say about options uh with any platform that you're trading please make sure that you know selected for calls puts or both oh my gosh i cannot tell you how upsetting it is to get into a trade you're looking at the stock chart it's going my way what's going on you picked the wrong place so that's that's definitely something uh that's gonna save you so please just slow down and make sure that we're doing this right okay so we have a list here first of all i want to talk about the expiration date so let's say going back to this stock chart i anticipate this swing up maybe within the next week or so so i'm not gonna pick a seven day option if you feel like it's gonna happen in a week pick an option that expires two weeks from now because that gives you more time for one that stock to go in your favor and then two you're gonna have less less time decay time decay is an important thing with these options so for me i would probably pick something 14 7 14 days out for this the only thing is they're going to be a little bit more expensive but hey and actually it's not too bad the okay honey we can get a cute little fonza for one 120 120 that's not too much out of our price range this is working out very nicely we found this on our screener see it's a no-brainer so we're gonna pick an option contract that's further out now as far as the strike price for me this is just for me normally i'm gonna go in the money or at the money and at the money is literally the closest option series to the to what the stocks actual price is so the stock right now is trading at 49.37 boom you can get the 49 strike price for 139 basically 140 or you can go ahead and get that 49.50 it's a little bit cheaper 20 cheaper you know it really just goes goes in with that now look at these implied volatility are all low picking in the money versus out of the money so you'll look back here look right here to our greeks the important ones to me are the delta gamma and the theta and i have a video on the option greek so i'm not going to go into all of that right now just know that whatever your delta is the dollar amount that the actual stock increases that's going to be that profit that your option gains and then the gamma is going to show you how the delta is going to change it's a lot it's a lot i have a whole video on that check that out but you see right here when we're closer to the actual stock price we have higher delta you want high delta high delta means more profit for your options you scroll up a little bit that delta's starting to drop so if you get this 51 if you get this 51 strike price right here let's say you pick this let's say you picked that it's cheaper you know you're going to gain less from that every dollar amount you're only going to get 30 30 versus 50 so it's a little bit cheaper but you're not going to get as much but also we're only going to want to pick option contracts that have high volume and high open interest this is absolutely beautiful to me seeing six thousand what is it six thousand for the open interest a thousand for the volume so yeah that's that's pretty much that on that now the last thing i want to talk about is saving your risk to reward the main thing for this to me is going to be the stop losses all right you have to have stop losses in place with your trades and if somebody just left a comment yesterday and they said you can do stop losses on options you have to have a stop loss for me i would say i like to keep my stop losses not too close but it depends on how risky you are sometimes i like a little reds but i would suggest keeping your stop losses ten percent lower than the price that you got in let's go back to the stock chart let's say if we got in i don't even want to say 10 percent you i mean it depends on your risk it depends on how much you're willing to risk you can do it five percent ten percent so let's say if we got in right here the stock price is at 49. i honestly i would put my i will put my stop price stop loss maybe around 45 but to me it's a little bit safer i'll do maybe 47 because clearly if it starts to go the opposite way honey we're on our way down so you don't want your stop-loss too far out i'll keep it kind of cute but you have to have a stop-loss in place and let me see let's just use this one as an example this is uh this is a bad one well this is a free stock i've gotten 14 of these so shout out to weeble for the free stocks you can do take profit stop loss i really like that one you have your stop loss order you want that to be a little bit lower now this is actually really nice um you can have your stop loss so for this i might put my stop loss maybe at 46. and then my take profit i'm gonna do 59. so this is the honestly this is the perfect order that you can do you have a stop loss so if the stock drops too low for you it's automatically going to get out of that so one thing i want to say is with the stop loss it's not going to get out at the exact price that you put it at so i want people to know that it's gonna it's going to do a market sell so it's going to sell it at the best price that it can sell it at at that time and then you have your take profit boom uh if the stock goes up and you don't want to be too greedy so as far as profit goes you want to have profit amounts um so you remember we said we get that 10 that was a 10 of the entire portfolio this is actually on each trade so for each trade you can have a certain percentage that you just like to get on your on your trade so let's say we get into this trade i want to wait until it gives me 50 a 50 return and then i'll just get out automatically so if you keep doing that continuously yo there's no this is a this is a win-win strategy in my opinion you have your stop-loss you have your take profit can't beat that that's going to wrap up this video i didn't want to go into too much but make sure you check out this video where i go over in more detail how to go about picking the right option contracts strike prices expirations all that what is the delta so yeah make sure you check this video out right here [Music] check that

Channel: Black Girl Stocks

Views: 139,093

Rating: 4.9323359 out of 5

Keywords: make $100 a day trading options, $100 every day trading options, trading options, 100 per day trading, options, $100 options trading, how to make, how to make $100 a day trading options, options trading, day trading, stock market, webull options, thinkorswim options, day trading options, how to day trade, option trading, black girl stocks, how to trade options

Id: E_U8854mX4w

Length: 16min 13sec (973 seconds)

Published: Fri Aug 20 2021