enter your email and receive around $400 worth of free information I also
exactly what happened to me and I graduated from an Ivy League university
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
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 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
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
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
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