Is it Easy to Make Weekly Income Through Options Trading? (the answer may surprise you)

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In this video we provide the details of a simple $SPX index weekly options strategy that can be put on each week throughout the year to help earn weekly income. Register for our free intensive trading webinar http://smbu.com/seth

#WeeklyIncome #weeklyoptions #daytrading

*SMB Disclosures* https://www.smbtraining.com/blog/smb-disclosures

Comments

Jonathan Dong says:

Thanks for the great content!

Arsal Kahn says:

Shalom Seth. Please advise whether or not the platform I used cheated. So I bought the following on the 25th November.

Spy trading at 312.50 25th November 2019 (last monday). 3 hours before close, I bought the following.

Sold 100 contracts at 312.50 calls @0.53
Sold 100 contracts at 312.50 puts @0.06
Bought 100 contracts at 315 calls @0.02
Bought 100 contracts at 309.50 puts @0.02

Contracts expired worthless and I realised a profit of 5600 on the trade. It was reflected in my total account value on the start of the trading day 26th. Total of $5600. The 25th had expired. However, today, all the profit was wiped out along with another $5000+.

What happened and where did I go wrong? Please advise whether I made a mistake or they cheated or something inbetween. I never closed the trades. I assumed that since it's not a stock option, you don't get assigned and so the profit realised stays in my account.

Nuno Sousa says:

Seth, thank you again for your contribution to the trading community, very informative. Really liked how you put all the risks on the table, indeed there is no magic in trading. Although, as newbie in options trading i would like to see an approach on the how to backtest strategies. Could you provide with some future videos or tools available in internet? Thank you in advance.
Nuno

Jerry G says:

I would think a short volatility trade such as this ought to have some consideration on when you may not likely have the best timing – such as this period where the vix is closing outside its lower bollinger band and the bollinger bands have contracted as much as they have. Which brings up the question as to whether you have rules that state when you do not put that trade on…such as when we are at a low IV rank for the year? Short vol at the lowest vol in a great deal of time seems like a high risk low reward play at the moment. Might you alternatively consider a long vol trade like a put calendar during these times?

Jack Rybak says:

It's one of my favourite strategies for income generating. One caveat though – it does require a sizable capital Thx…

think41c says:

Video starts at 2:30.

Dan Clark says:

Seth, thanks again for another great video. Question, after getting into the trade, then the market turns, like December, August,, would it be prudent to go ahead and close the trade, especially on the short puts and let the long puts ride for a gain? I struggle with tearing the initial legs apart, but it makes sense to me to grab some profit when the market is obviously going against the trade. Thanks.

trexieville says:

What signal you need to trigger this trade? and do you need a bias for this trade or a neutral.

Ryan says:

Thank you for the information, I'm still a bit fuzzy though. Can someone explain to me what the main differences is between this strategy and a put credit spread?

Mark Edquid says:

I’ve learned quite a lot through your guy’s videos on certain strategies. Was very inspired by the video of the person making 2500 a week on the SPX doing verticals. I have a small account and I took this strategy onto the SPY. Decided to utilize iron condors instead of verticals for more security. I would wait 2 hours before market closing to start looking for set ups Tuesday for a Wednesday expiration and the same for Thursday for a Friday expiration doing $.50 wide on the spreads themselves, but had a $3.5 – 5 dollar wide placement of the spreads from where the SPY was currently or 1% placements of where the spy was. Which would most times get me a .04 to .10 per contract on $50 dollar collateral. Started with 3 contracts with a small quick return the next day. It wasn’t a lot in returns but with the compounding effect to it. I’ve slowly moved up to more contracts and opening orders an hour to an hour and a half before market closing to keep my exposure in the market to a minimal. And now implementing it on Friday to Monday expirations at a much wider gap for more security at 100 collateral per contract. It’s all small gains, but every little bit adds to more contracts.
Anyways thanks for what you guys do! As a self taught options trader learning everything the hard way. Watching your guy’s video has been super educational and very inspirational. Thank you!

Ed Riley says:

Good video Seth like the other video about the trader who came to you about vertical credit spread weekly puts seems easier. Could you do another video on that subject.

tom nicholas American historian says:

Seth…..you are true inspiration…..i feel like a better trader just listening to your videos…..let me get this straight you made three directional trades down….the mkt went up and you still made money? .for me who knows nothing about options…difficult to comprehend….my question is -as a daytrader are there any simple option strategies that can use to play the open?
thank you …your work is outstanding……

Richie Thayil says:

Good one Seth. Aced it as always.

Hana says:

In my experience, back testing never gives the accurate win ratio and risk reward as when you try the strategy live. There are also many extra variables like fills, bid ask spread and psychology (e.g patient for targets) that makes this difference. Have any of your prop traders been trading this for a year, or is just the results of a back testing algorithm?

Sathya m says:

Hi Seth, why are we doing it only on the put side ? Is it not better if we do this butterfly on both call and put side to get some cushion ?

TheCanMan Can Since 1990 says:

Was on the way out the money put for charter telecommunications
An a call for HIE Or HEI

Gregory Jules says:

Where do I apply? I just got my options certifications!

leonardo Cubillos says:

thank you!!! great video

TheCanMan Can Since 1990 says:

Can anyone help me out?
Like I knew the vol was gonna move move the price and it did
Adoption jumped up from $20 to 215 215 back down to 53
Backup to 181 but they won't fill the the bed even if I low ball the crap out of it like I did it before the baounce after the bounce

TheCanMan Can Since 1990 says:

If you have a guys ever got options there's no bids for?
I ran into serious trouble with this latey

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