Same trade, 3 times a week turns $5k into $6620

hey everyone one of the questions that i get asked the most is do we only trade spx and my answer to that is yes like 95 yes i don't want to say we never trade other tickers because we do but i don't trade much else because spx zero dtes is all that i really need to make a consistent weekly income if you're watching this video you know that there are hundreds of ways to make money in the stock market but all you really need and all you know i implore you to just pick one and then focus on it and get really good at it and the rest of the strategies will just kind of fall away there's a saying right a jack of all trades is a master of none um so while i like to think that i'm not great at penny stocks or scalping or cover calls earnings plays i mean there's so many strategies right while i'm not great at any of those i'm a master of spx zero dtes and that's really all that i need so this video just recaps a very typical week of the type of trading that i do along with rick and joe who i run axe options with it's three trades monday wednesday friday um a pretty good entry a pretty bad entry a pretty um stressful heart attack type of an entry i'll go over each of the days that um we took those trades and um i think i said in my last video but some days we do do two zero dte trades um when there's an opportunity that presents itself maybe on the latter part of the day uh like last week i know we did four trades and i meant to record a youtube video last weekend but i didn't get around to it um but i do try and post like a daily sweet a daily recap on our facebook and instagram pages so if you want to follow there you can um i'll put the links in the description box below otherwise um here are the tricks right here is a five-day 15-minute chart for spx and i put on here are three trades this week a put credit spread on monday a call credit spread on wednesday and an end of day put credit spread on friday let's look at monday on a five minute time frame and i will show you the order how it was alerted so you can ignore this but on at 804 a.m pacific standard time we entered a 3320 3315 put credit spread all we need is for sbx to close above 33.20 and we get to keep the entirety of the 50 cents that we receive upon or upon entering this order so when you're looking at this chart this is the candle that we alerted that entry on and of course now looking back it was the most perfect entry for a put credit spread that day but let me give a little bit of background as to why we entered there so here's where sbx closed on friday here is where spx opened on monday and as per usual we expect the gap to be filled um this candle comes down and almost closes the gap but doesn't and in the past we have seen days where spx will come close to filling the gap but then doesn't and ends up running the rest of the day and doesn't give us a good entry or no good pullbacks for a good entry so i know there was some hesitation on this morning as to whether or not we missed a good entry here but we were patient we waited i think joe knew that there was going to be a more significant pullback and knew not to enter on this candle or this scandal so we're waiting here for the first green candle okay and if you look at this candle you can see that it has a long lower wick so when this candle is forming we can see toward 802 803 that this candle is going to close green and because it has that like long wick on the bottom you know that bulls are trying to drive the price back up so um we knew bulls were coming in at this time so we enter and then we end up getting out our well we put in our 10 cent order as per usual and it ends up filling at 8 52 on this nice move up so of course we could have held it the entire day and taken a max a max profit but we didn't because because it was so early in the day and we just wanted to take the risk off of the table sometimes more time in the trade just equals more risk so that was monday here is wednesday's price action in five minute intervals and on this day we enter a 3390 3395 call credit spread so so long as sps closes below 33.90 we get to keep the 65 cent credit that we take in upon entering the order and the time disappears here so i was filled at 7 30 a.m so somewhere around here we're getting bearish because why are we getting bearish because we have the gap in mind as usual on tuesday spx closes here on wednesday morning it opens here and we're expecting price to pull back into this area so around here we're thinking that spx is going to come back down into this area and we'll be out of our trade it doesn't do that it ends up turning into a winner because it stayed below this price but we ended up being in the trade the entire day and it it made for a stressful day because it kind of hovered here near our bottom strike price for the entire day and because of that the premium did not decay so we take in 65 cents and on any other day as time goes on we sort of expect the 65 to turn into 60 and then 50 and then 45 and you know when the day moves on the decay accelerates and our premium price gets closer gets closer to our our 10 cents but on this day it doesn't and it just made for a pretty stressful day i ended up not getting filled on my 10 cent order until this candle here so this was a long day of pretty stressful trading because it wasn't that we were on the wrong side it's just that we were in this range we're trading in this tight range and premium prices just weren't decaying and so sometimes it just doesn't work out that nicely but this day looking back in hindsight is kind of like a day from a 2019 spread you know where we have not a whole lot of price action you pick a direction in the morning and you just let it ride out and you're not expecting these huge swings but in this environment we are expecting huge swings so even though you know we were in the trade all day and we even you know tapped got pretty close to our strike prices here like even at this point our our um stop-loss rule is typically 3x so if this would have reached like a dollar fifty a dollar sixty we we would have been worried but it never even reached a dollar 20 so we never even got to 2x um so it was a tough it was a tough day to trade but at the end of the day it was a winner all right moving on to friday august 14th so if you are a member of our room you're probably having nightmares about this day it was a tough day to trade so as usual in the morning we are expecting the gap to fill and we're getting these huge candles i mean this type of price action is untreatable it's very hard to find an entry and a direction when you have candles that keep canceling each other out so we couldn't find an entry here we had an upward bias on the day fridays do typically rally but we are also expecting a little bit of a correction and so we were looking to enter a call spread in the morning and then somewhere around this time we give up and we forego taking a trade in the morning so now around 10 30 1 30 eastern time we are looking for either a plunge in excuse me price action or a significant enough pullback where we can get that 50 or 60 cents premium and then ride up the rally at the end of the day so this candle comes great that's a pullback but the timing's not right it's a little bit too early this candle comes even better we're making lower highs this candle comes and it has that significant tail so we think this is a great time to enter the put credit spread so we alert at 11 35 the five three three six zero actually we first alerted a 60 55 so imagine this purple line five strikes lower i mean looking at this candle and looking way down here and thinking wow this is you know this is safe there's no way that spx is gonna pull all the way down this way so the problem is is on this next candle it started to rise up so nobody could get filled so that's when we moved the strikes up to the 60 65 um so that we could get that 50 cents ends up being a terrible decision and i'll show you why let me just so most of us are filled somewhere in these two candles and then whoa that doesn't feel good neither does that neither does that and now we are panicking i mean this does not sit well okay so even with my small position size what did i fill 10 yeah 10 at 50 cents well i end up adding two more 85 cents anyways um you know at this point i'm already at a 3x i'm already looking at over a thousand dollars of loss it doesn't feel good but um i remain confident in the fact that joe and rick have a lot of experience and are confident in that it's going to it may pull down here but it's going to close above here so yeah that happens this happens and we're kind of in a world of hurt this does not feel good with only 30 35 minutes left in the trading day at this point i'm asking myself do i want to just cut my losses here which since the strikes have already breached um i'm probably looking at maybe fifty percent fifty or sixty percent of my max loss like i said my max loss is forty five hundred dollars so maybe a two twenty one hundred dollar loss around this point or am i gonna roll my spread so pick a date next week that i can find a credit to roll my spread to um but of course that ties up my capital i'm still in the position i'm keeping the same put credits red bias like am i still gonna be bullish on spx next week i don't know or am i just like buckling up for the ride um so spoiler alert we stayed in the trade i'm just gonna go through these candles one by one and yay this green candle comes and there's a little bit of confidence but not really because anything can happen in 20 minutes and we need it to close like one penny above this 3365 and then the scandal happens and you know this is just like the stuff nightmares are made of when you're trading credit spreads um but let me just fast forward to this one candle this is the stuff dreams are made of this candle is an insane candle i mean i'm not even sure when the last time we had a 10 point candle in a 5 minute time frame is but i can tell you the wave of relief that came over the members who had managed to have the gall to stay in a trade like this rescued us all and here's how the day ended it pushed up and this was where spx ends up closing at 3372 far and above our strikes but it was not easy it ended up being a winner but it didn't feel like that um so kudos to those of us who um tolerated the stress level that was required of this trade this day so yeah all right there you have it those are my trades for the week i know when i was recapping that filming that i didn't actually talk about the dollar amounts how much i made so on monday i filled for 50 cents i exited for 10 cents i did 10 contracts so that's 400 dollars on wednesday i filled for 65 cents i exited at 10 cents that's a net gain of 550 on 10 contracts and then on friday my first order went in 10 contracts at 50 cents each which i let expire worthless so that was 500 but then i added to when the premium got a little bit higher added too soon obviously but i added to it 85 cents um so those two i that also expire worthless so that's an additional 170 dollars for a total of 1 620 and that's not using more than five thousand dollars of margin or my capital so that's roughly a 32 return on my capital in one week and three trades so there you have it i hope you found some value in the video um i know i'm not digging into like any really deep technical analysis i guess i'm just thinking that my viewers here are you know newer traders and i'm just keeping it at a high level overview but what i really hope that you take away is that all you really need is one training strategy that fits your lifestyle your account growth goals your risk tolerance and that's all you need thanks for watching guys please let me know if you have any questions or you can email me at the email address below thanks see you next time

Channel: Axe Options

Views: 59,635

Rating: 4.9198542 out of 5

Keywords: options, spx, trade, stocks, sp500, signals, alerts, mentor, millionaire, wealth, retirement

Id: ArUkaEVwDOA

Length: 15min 21sec (921 seconds)

Published: Sun Aug 16 2020