Options Trading Strategies How I Make $1 Million a Year Trading Stock Options [2021]

Options trading strategies. How I make $1 million dollars a year by trading options. My name is David Jaffee from BestStockStrategy.com and you can go there and enter your email and receive around $400 worth of free information I also helping other people and being of service actually makes me feel good so I want to tell you a very I want to tell you the exact strategy that I use in order to make a million dollars a year by trading options now a million dollars a year by trading options is a little bit misleading because I do have a multi-million dollar account alright so I usually earn anywhere from around I'd say 50% a year in 2017 I'm a 72 percent this year in 2018 I'm going to make less of people are greedy they're not satisfied with earning fifty percent a year and that's totally cool because if you try to make more money the reality is that you're probably going to end up losing all your money so if you're not satisfied with earning 50% a year then do whatever you think is better and that serves you and then learn from that experience that's exactly what happened to me and I graduated from an Ivy League university and I worked as an investment banker for five years and I've been surrounded by some of the greatest trading minds in the world and I still gave in to my inherent human greed to make more money as quickly as possible and I can tell you that that really sucks when you lose money so if you are not satisfied earning 50% a year then you can still watch this video and you can disregard and think everything I'm telling you is bullshit and you can try other strategies and I hope that you're gonna make money but I know that you're not because I have a tremendous amount of experience and I'm OCD and fanatical about making money and optimizing my trading so once you try other strategies and you end up losing your money then you're welcome to come back and I'm still going to be here and I'd be happy to teach you and happy to help you so the most important thing that you need to do is limit your information sources we live in a where there's way too much information and there's not enough action you want to turn yourself into a creator and not a consumer the second thing that you want to do is you want to evaluate your account size if you have an account size that's below $15,000 you want to have a watch list with five securities on it and you want to have positions on with at one time with no more than one position a maximum of two so you have a watch list of like five or six securities and at any one time if your account sizes below 15,000 you're gonna have a maximum of two trades on preferably one alright I have a multi-million dollar account and at one time I only have trades on I have five securities right these five securities are Facebook Amazon Boeing Lockheed Martin I even find four but I usually also have positions on maybe like half of these like RT n which is Raytheon Goldman Sachs at gaming stuff like a TVI or ttwo and PayPal so maybe I have a I have you know six positions on at any one time Facebook Amazon Boeing Lockheed and then two of these five right so I choose those I put them on my watch list and this is what I've been doing for like the past five or six years and then I just get comfortable with the trading range so for Facebook is trading right now with a hundred and seventy-five dollars I know that it's trading ranges around 170 to around 182 dollars I simply wait for Facebook to fall to the low end of that trading range around 172 dollars and then I sell an out of the money naked put option with the strike price of around 150 eight dollars I know that a lot of people are thinking right now that selling naked options are incredibly risky but the people that you heard that from are not successful and profitable traders ask them for their trading statements and ask them for screen recordings that show their entire transaction history and they are not going to provide it selling naked options is way safer than selling vertical credit spreads because it maximizes the credit that you receive it's incredibly easy to manage and roll a naked position as opposed to a vertical credit spread and also when you sell a naked option it inherently reduces your buying power by substantially more than a credit spread as a result it protects you against your human desire to engage in greedy activities I can't tell you how many times someone who would sell to naked options ends up selling 20 vertical credit spreads and then they get caught because the underlying stock that they sold that option on trades below the naked option that they or rather it sells below the option that they sold and above the option that they bought to turn it into a vertical credit spread so they end up getting assigned those 20 contracts which is too large for their account and their broker ends up forcing and closing them to close out that trader the massive loss vertical credit spreads are dangerous because inherently it reduces the amount of credit that you receive since you're buying a throwaway option it's very hard for you to roll and manage that position since you constantly have that drag of having to buy an overpriced option and perhaps the most important thing is that it tells people and gives them a false sense of security that they can trade way more contracts than they should be able to trade all right so you sell the way to be profitable you sell naked options then what you do is you sell a naked option with an expiration of around six weeks out you can wait like two or three weeks to see how that option is doing let's say you sold an option on facebook when was trading your one hundred and seventy five dollars then let's say Facebook goes up to a hundred and eighty five dollars two weeks from now there's no point for you to wait in incremental four weeks when that option that you sold when Facebook was trading at 175 is now is now trading for like 10 cents when Facebook was trading at 175 and you sold that 158 put option you probably collected around $1 per share and premium now two weeks later if Facebook was traded up to 185 maybe that option is trading in fifteen cents so you have been able to receive 85% of the premium in like one third of the time that you've waited as a result it is not capitally it's not it's not capital efficient and it's not an efficient usage of your capital for you two wait there in incremental four weeks to simply collect 15 cents a share close out that position and then scan your watchlist for you know for Goldman Sachs or Boeing or Amazon or Lockheed Martin or one of the gaming stocks or PayPal see if there is an an opportunity for you to sell puts in one of those positions if one of those positions are trading at the low end of its trading range and then you sell an out of the money put and then you just simply wash rinse and repeat and continue to hit for affirmation bias or any any of that crap I trade for 15 minutes a day you can go to BestStockStrategy.com and enter in your email and receive $400 of free training if you want to sign up and be a member of my trade alerts product it's and share this video if you have any questions leave a comment below I'm doing this because I want to be of service to other people I'm doing that actually helps me feel good so I'm doing this for selfish reasons and if you have

Channel: BestStockStrategy

Views: 191,892

Rating: 4.9588051 out of 5

Keywords: options trading, options trading strategies for beginners, trading options for beginners, options trading strategies, option trading strategies, option trading strategies for beginners, how to trade options, options trading for beginners, stock options trading, options trading tips, how to trade stock options, option trading, options strategies, option trading for beginners, best option trading strategies, tastytrade, option alpha, smb capital, trading options, humbled trader

Id: feeejRlkVno

Length: 7min 41sec (461 seconds)

Published: Fri Sep 21 2018