Structured research

Trade ideas

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Trade idea

SPX

The speaker demonstrates a 76 60 76 7690 put butterfly with a 650 debit. By calculating the number of steps between strike prices (60 to 65 is one step, 65 to 70 is two steps, 70 to 75 is three steps), the trader squares the number of steps (3 * 3 = 9) to determine the number of embedded butterflies. The trader then adjusts the position based on the index movement, selling butterflies when the index drops to 7665 and maximizing the 70-75-80 butterfly when the index rallies to 7675. This strategy aims to capture the maximum value of embedded butterflies as the index moves around the strike prices.

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Trading Like A Pro: The Wide Butterfly Spread TechniqueVerify source ↗

Trade idea

N/A

A short put is a bullish strategy where the trader sells a put option without owning the underlying stock. It generates positive theta due to time decay and has a defined profit and loss. The maximum profit is the premium received, while the maximum loss is theoretically unlimited if the stock price drops significantly. The strategy is simple, involving only one strike price and one put option. It is often used by traders who are bullish on the stock but do not want to purchase it outright, or who want to collect premium while allowing for some downside protection.

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A Step-by-Step Guide to Trading Options: Short Puts and MoreVerify source ↗

Trade idea

null

The Jade Lizard strategy combines a naked short put with a call spread to generate a credit while managing risk. The short 76 put is the primary driver of the trade, contributing most of the credit and risk. The call spread adds complexity but reduces the overall delta exposure. This strategy is suitable for traders who are neutral to slightly bullish and want to generate income with limited risk, provided they understand the underlying components.

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A Step-by-Step Guide to Trading Options: Short Puts and MoreVerify source ↗

Trade idea

null

The ratio spread combines a short put and a long vertical spread to generate a net credit. The short put provides a credit that covers the debit of the long vertical, resulting in a net credit. The strategy has no risk to the upside but is exposed to downside risk. The key is to ensure the market moves downward, allowing the long vertical to profit while the short put's risk is limited by the credit received.

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A Step-by-Step Guide to Trading Options: Short Puts and MoreVerify source ↗

Trade idea

Microsoft

The put spread is designed to benefit from a decline in Microsoft's stock price. The delta of the spread is initially bearish, but as time to expiration decreases, the delta increases, making the position more responsive to further declines. This suggests that the trade may become more effective as the stock price drops, but the risk of the delta increasing could also lead to higher losses if the stock price rises.

Microsoftput spreadmedium

Delta Explained And Why It Moves Before ExpirationVerify source ↗

Trade idea

MSFT

A put spread with shorter expiration dates (e.g., 5-7 days) is more sensitive to a drop in the stock price due to higher delta. This strategy is suitable for traders who expect a short-term decline in the stock price, such as Microsoft (MSFT). The trade will benefit from a drop in the stock price, with the potential for higher returns compared to longer-dated spreads. However, the trade is vulnerable to rapid price movements against the trader's position.

MSFTput spreadhigh

Delta Explained And Why It Moves Before ExpirationVerify source ↗

Trade idea

SPX

The speaker discusses selling a naked short put on SPX with a strike price of 7395 and a call at 7565, which has a 48% probability of profit. However, the speaker notes that this trade is not recommended and highlights the potential for higher profit with a shorter time horizon. The trade is considered high risk due to the undefined risk associated with naked short puts.

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Do Not Start Selling Naked Puts on Micron. Tom Preston Says Do This InsteadVerify source ↗

Trade idea

P Sky

The speaker suggests selling a short put on P Sky, which is a low-priced stock, to capitalize on the potential for a bullish move. The max profit is $9, and the buying power requirement is $235. The speaker emphasizes that this is a defined risk trade with a clear maximum loss and a potential profit, but the trader must be comfortable with the risk involved.

P Skyshort putmedium

Do Not Start Selling Naked Puts on Micron. Tom Preston Says Do This InsteadVerify source ↗

Trade idea

P50

The speaker suggests selling a 9 put on P50 before its earnings report, expecting the stock to trade above the strike price. The trade has an 81% probability of making half its max profit and a 68% probability of expiring worthless. The speaker emphasizes that this is a trade idea for experienced traders, with a max loss of $235 for a $5,000 account.

P50short putmedium

Do Not Start Selling Naked Puts on Micron. Tom Preston Says Do This InsteadVerify source ↗

Trade idea

short put

A short put is a bullish strategy where the trader sells a put option, expecting the stock price to rise. The trader receives a premium, which is kept as profit if the stock price increases. If the stock price drops below the strike price, the trader may be obligated to buy the stock at that price, which can be advantageous if the stock is purchased at a lower price. This strategy is fundamental and can be used as a basis for more complex strategies.

short puthigh

There Are Only Four Option Strategies You Have to LearnVerify source ↗

Trade idea

short put vertical

A short put vertical is a bullish trade with defined risk and reward. It involves selling a put option with a lower strike price and buying a put option with a higher strike price. The strategy profits if the stock rises above the short put's strike price, with limited loss if the stock falls below the long put's strike price. This trade is suitable for a bullish outlook with limited downside risk.

short put verticalhigh

There Are Only Four Option Strategies You Have to LearnVerify source ↗

Trade idea

IBM

The covered call strategy involves buying a stock and selling a call option to reduce the cost basis of the long stock position. By selling a call option with a strike price above the current stock price, the trader can generate income while limiting the potential upside of the stock. The value of the call option decreases over time due to time decay, which can be used to reduce the cost basis. If the stock price remains stable and volatility does not increase, the call option's value will decrease, allowing the trader to potentially roll the position or hold it until expiration. However, if the stock price rises above the strike price, the call option may be exercised, resulting in the sale of the stock at the strike price.

IBMcovered callhigh

Is Your Covered Call Strategy Actually Working?Verify source ↗

Trade idea

IBM

The speaker proposes selling a call option, buying it back when it is worth less, and then selling another call option. This strategy involves using current market prices to manage the short call, with the potential to capture profit and roll out to another expiration. The strategy is not guaranteed to work and requires careful risk management.

IBMDynamic Option Sellinghigh

Is Your Covered Call Strategy Actually Working?Verify source ↗

Trade idea

NVDA

Selling out-of-the-money puts can be an effective strategy for expressing a bullish outlook on a stock like Nvidia. By selling three 33 delta puts, a trader can replicate the exposure of 100 shares of stock while collecting a larger premium. This approach provides a balance between risk and reward, with the potential for profit if the stock price rises. However, it requires sufficient confidence in the bullish outlook and the ability to manage the risk of assignment if the stock price drops below the strike price.

NVDAselling out-of-the-money putshigh

Most Traders Sell One Put to Get Bullish. Tom Preston Shows Why That's 33 Deltas.Verify source ↗

Trade idea

Nvidia

Selling puts on Nvidia can provide bullish exposure, but traders should be aware of the risk of assignment and increased delta if the stock price drops. Rolling the puts to a further expiration or using a vertical spread can reduce margin requirements and risk. This strategy is suitable for traders comfortable with the increased risk and potential for larger positions.

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Most Traders Sell One Put to Get Bullish. Tom Preston Shows Why That's 33 Deltas.Verify source ↗

Trade idea

PLTR

The speaker uses implied volatility from options to estimate past and future volatility, adjusting it for the number of trading days to calculate expected price movements. By comparing the current price movement to the expected number of standard deviations, the speaker can determine whether the stock is overbought or oversold. This method allows for a more nuanced understanding of price movements, taking into account the stock's volatility and the time frame of the analysis.

PLTRvolatility-based price movement analysismedium

A $10 Move in Palantir Isn't a $10 Move in a $1,000 Stock. Tom Preston Shows the Fix.Verify source ↗

Trade idea

NVDA

This strategy allows for participation in a bullish trade with reduced capital requirements. By buying an in-the-money call and selling an out-of-the-money call, the trader can reduce the cost of the trade and adjust the risk profile. The delta of the long call is reduced by the short call, which also increases the theta (time decay) of the position. This strategy is suitable for traders who believe the stock will rise but want to limit their capital exposure.

NVDAlong call + short callhigh

Control the Stock for a Fraction of the Cash. Here's the Catch.Verify source ↗

Trade idea

170 Call

The extrinsic value of the 170 call is inflated by positive interest rates. To offset this, a trader can sell a front-month out-of-the-money call, effectively using the credit from the short call to cover the extrinsic value of the long call. This strategy leverages the difference in extrinsic value between calls and puts under positive interest rates.

170 CallOffsetting extrinsic value through short-term optionsmedium

Control the Stock for a Fraction of the Cash. Here's the Catch.Verify source ↗

Trade idea

COMCAST

The strategy involves selling naked short puts on Comcast (COMCAST) at a strike price of $23.50. The capital requirement is based on the stock price and remains relatively stable across different expiration dates. The focus is on generating theta decay, with a target return of 1/10 of a percent per day on the capital used. The trade is valid as long as the theta return meets the benchmark, and it is considered a short-term strategy due to the daily decay of the options' value.

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The One Number That Tells You Which Option to SellVerify source ↗

Trade idea

N/A

The speaker suggests that by selling short puts with a capital requirement that allows for a 0.1% theta return per day, traders can generate consistent theta income. This is achieved by managing a portfolio of multiple short put trades, which can offset directional losses with the steady theta gains. The example given involves selling a 23 put with a capital requirement of $427, generating approximately 0.3% per day in theta returns. The speaker emphasizes that while individual trades may have directional losses, the overall portfolio can benefit from the steady theta generation.

N/AShort Putmedium

The One Number That Tells You Which Option to SellVerify source ↗

Trade idea

SPX

The SPX iron condor strategy involves selling a call spread and a put spread to capture a credit. The strategy is market neutral and aims to profit from low volatility. The max profit is $280, while the max risk is $725. This strategy is suitable for traders looking to capitalize on a range-bound market with limited time to expiration.

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How to Trade 0DTE Index Options With a Tenth of the RiskVerify source ↗

Trade idea

null

The speaker emphasizes the importance of using defined risk trades, such as selling strangles, iron condors, or put spreads, to mitigate the risk of large price movements. These strategies are recommended for traders who want to avoid the potential for outlier moves that could destroy a short premium strategy. The speaker also suggests avoiding large trade sizes on any single trade due to the possibility of extreme price changes.

nullDefined risk tradeshigh

Tesla Fell 14% in One Day. Five Years of Data Says That's Still Normal.Verify source ↗

Trade idea

SPY

The transcript discusses the use of high implied volatility options for short premium strategies. For example, selling a put spread on SPY with a 30-day expiration can be a viable strategy if the implied volatility is high. The rationale is that higher implied volatility leads to higher premiums, which can increase the potential profitability of the trade. However, the risk is that if the underlying moves significantly against the position, the trade can result in a loss. The strategy is suitable for a neutral market outlook and requires careful monitoring of the underlying asset's movement.

SPYiron condormedium

The Premium Collector's Mistake: Hunting IV Instead of ThetaVerify source ↗

Trade idea

GM

By selling a call at 84 (5% above the current stock price of 80) and buying a put at 76, the trader reduces the cost basis of the long stock position by 2.5% and hedges against a significant drop in the stock price. The credit from the short call should cover the cost of the long put, creating a collar strategy that limits downside risk while allowing for potential upside.

GMcollarhigh

Worried About a Market Downturn? Try This Put StrategyVerify source ↗

Trade idea

84 puts

Buying a collar strategy with a short-dated put (74 puts) and a short-dated call (84 calls) provides a synthetic long call vertical spread. This strategy is more responsive to short-term price movements and offers better protection against sharp declines compared to a long put alone. However, it requires frequent management due to the risk of the put expiring worthless, necessitating repeated purchases. The trade is suitable for traders who are already long the stock and want to adjust the risk profile.

84 putscollarhigh

Worried About a Market Downturn? Try This Put StrategyVerify source ↗

Trade idea

7484

The speaker suggests buying a call vertical spread as a bullish strategy with a collar-like risk profile. This is recommended for traders who are bullish on the stock and want to manage risk effectively. The trade is not a recommendation but a strategy that can be considered if the trader is comfortable with the risk and strike prices are chosen wisely.

7484collar strategymedium

Worried About a Market Downturn? Try This Put StrategyVerify source ↗

Trade idea

General Motors

The covered call strategy on General Motors involves selling a short out-of-the-money call with a 32-day expiration. The goal is to reduce the cost basis of the long stock position. If the stock price reaches $80, the call will be assigned, and the stock can be sold at a higher price, resulting in a 5% return on the long stock. The strategy is valid if the stock price does not fall below $75.88 within the 32-day period. The trade is considered successful if the stock price reaches the target strike price, allowing for a profit from the reduced cost basis.

General Motorscovered callhigh

Stop Calling the Covered Call an Income Strategy. Here Is What It Really Does.Verify source ↗

Trade idea

N/A

The covered call strategy involves selling call options to reduce the cost basis of a long stock position. The trader must choose a strike price that balances the desired cost basis reduction against the potential profit if the stock price rises above the short strike price. The choice of strike price depends on the trader's outlook for the stock and the volatility of the options market.

N/Acovered callhigh

Stop Calling the Covered Call an Income Strategy. Here Is What It Really Does.Verify source ↗

Trade idea

IWM

A bullish trader can use a short vertical strategy on IWM by selling the 294 put and buying the 293 put. This strategy has a max loss of $71 and a potential profit of $29, with a tight bid-ask spread and high open interest. The trade is suitable for short-term opportunities with limited risk.

IWMShort Verticalhigh

This ETF Put Spread Risks Just $71. Stocks Are Not This Forgiving.Verify source ↗

Trade idea

TSLA

The speaker suggests selling a put spread on Tesla (TSLA) with a max loss of 302, given the stock's higher volatility and potential for higher rewards. The strategy involves taking on more risk compared to ETFs, with a focus on the potential for higher returns. The speaker emphasizes the importance of understanding bid-ask spreads and market execution before engaging in such trades.

TSLAput spreadmedium

This ETF Put Spread Risks Just $71. Stocks Are Not This Forgiving.Verify source ↗

Trade idea

SKHY

The transcript highlights that SK Hynix's options are experiencing high volume and wide bid-ask spreads, suggesting potential for volatility trades. The stock's volatility is lower than SpaceX's initial volatility, indicating a possible market adjustment. Shorting the stock or selling puts could be a viable strategy, given the current market conditions and the potential for volatility to decrease further.

SKHYvolatility trademedium

160% Vol: Tom Preston Won't Buy SK Hynix Options. He'd Verticalize.Verify source ↗

Trade idea

SK Hynix

The speaker suggests a short put vertical spread for SK Hynix, using the 155 put and 160 put strikes. This strategy is recommended due to the high implied volatility and the potential for large price swings. The trade is limited in risk and capital requirements, making it suitable for the current market conditions. The speaker also warns against buying options in this environment due to the risk of volatility decay.

SK HynixShort Put Vertical Spreadhigh

160% Vol: Tom Preston Won't Buy SK Hynix Options. He'd Verticalize.Verify source ↗

Trade idea

SPX

In a low volatility environment, selling iron condors or other credit spreads may yield smaller premiums. However, the non-linear impact of volatility on option prices means that even small changes in volatility can significantly affect the value of the positions. Traders should consider adjusting their strategies or waiting for higher volatility to increase potential returns.

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Most Traders Stop Selling Premium When the VIX Drops. Here Is What to Do InsteadVerify source ↗

Trade idea

PayPal (PYPL)

The speaker identifies PayPal as a candidate for selling a put option due to its volatility skew pointing towards the upside. The implied volatility is 45%, which is higher than the VIX, and the skew suggests the market perceives more risk on the upside. By selling the 42.5 put, the trader generates $2.74 for $600 of capital, leveraging the time decay (theta) as the option approaches expiration.

PayPal (PYPL)theta generationhigh

Most Traders Stop Selling Premium When the VIX Drops. Here Is What to Do InsteadVerify source ↗

Trade idea

META

The short strangle on Meta is generating theta and is slightly profitable. Holding the position for 21 days to expiration allows for continued theta generation while balancing the rate of decay. This approach is suitable for a portfolio aiming to generate consistent income through theta, provided the stock price remains within the strangle range and volatility remains stable.

METAstranglemedium

The Million Dollar Portfolio: When to Roll and When to WalkVerify source ↗

Trade idea

META

The speaker discusses a trade involving Meta (META) where they initially opened a strangle with a 22-day expiration. The trade generated a profit of $11, but the theta decreased to $60. The speaker then decided to roll the trade out to a 43-day expiration, adjusting the strike prices to 550 and 620. The goal was to maintain theta levels close to the initial value of $69. The trade was considered a winning trade, and the speaker planned to collect a credit by rolling the trade out to an August expiration. The strategy involved adjusting the expiration and strike prices to optimize theta generation and profit potential.

METAstranglehigh

The Million Dollar Portfolio: When to Roll and When to WalkVerify source ↗

Trade idea

Micron

The short strangle on Micron can benefit from theta decay if the underlying price remains within the strangle range and volatility decreases. If the underlying price moves significantly against the position, rolling the trade to different strike prices can help maintain profitability by generating additional theta and adjusting the risk profile.

Micronshort stranglehigh

The Million Dollar Portfolio: When to Roll and When to WalkVerify source ↗

Trade idea

META

The speaker suggests buying short strangles on Meta and Micron, assuming they will stay within a range to generate theta. If the trade is losing, it should be rolled to a further expiration to continue generating theta. The strategy involves reestablishing the position with updated theta numbers and managing risk by moving to another high-volatility stock if needed.

METAshort stranglemedium

The Million Dollar Portfolio: When to Roll and When to WalkVerify source ↗

Trade idea

AMZN

Selling an out-of-the-money put on Amazon (AMZN) with a strike price of 220 provides a bullish bias and allows the trader to potentially buy the stock at a lower price (220) if the stock price drops below the strike price at expiration. The premium received ($5.80) reduces the effective cost basis to $214.20. If the stock price remains above 220 at expiration, the put expires worthless, and the trader keeps the premium. If the stock price drops below 220, the trader is obligated to buy the stock at 220, which is cheaper than the current price of 240. This strategy is suitable for traders who are bullish on AMZN and want to give themselves a better entry price while earning a premium.

AMZNselling out-of-the-money puthigh

Sell a Put or Just Buy the Stock? Tom Preston Shows You the MathVerify source ↗

Trade idea

AMZN

Selling a put with a strike price of $220 on Amazon (AMZN) provides a potential return of 20% on capital if the stock remains above $220 at expiration. The strategy involves selling the put to capture the premium, which is $585, and waiting for the stock to rally. The return is calculated as the premium received divided by the capital used. The risk is that the stock could drop below $220, resulting in a loss. The strategy is suitable for traders who believe the stock will not drop below $220 within the 52-day period.

AMZNSell an out-of-the-money put to capture premium while waiting for the stock to rally.high

Sell a Put or Just Buy the Stock? Tom Preston Shows You the MathVerify source ↗

Trade idea

F

When volatility is high and put prices are inflated due to dividend expectations, selling out-of-the-money puts can provide a return on capital. The put price reflects the dividend amount, allowing the trader to capture some of the dividend value without owning the stock. However, the trader forgoes the entire dividend, and the strategy is less capital-intensive than buying the stock directly. This strategy is suitable when the trader is comfortable with the risk of the stock price dropping below the put strike price.

Fcovered call or synthetic long stockmedium

Sell a Put or Just Buy the Stock? Tom Preston Shows You the MathVerify source ↗

Trade idea

SPY

By selling an out-of-the-money call spread on SPY, the trader can capture a premium while limiting upside risk. This strategy is suitable for a market that is expected to trade within a range, with the potential to profit from the premium while capping gains if the market moves above the short call strike price. The trader should monitor the market closely and adjust the strategy if the market moves beyond the expected range.

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The $400 Annual SPY Strategy That Crushes Mutual FundsVerify source ↗

Trade idea

SPY

By selling a short call vertical spread against a long position in SPY, the trader can capture a $70 premium if the market remains below 764 at expiration. This strategy reduces downside risk compared to holding SPY directly, as the premium offsets potential losses in a downturn. However, if the market rallies past 764, the trader may face a loss on the short call, though the long SPY position could offset this. The strategy is suitable for a trader who believes the market will not experience a significant rally within the 56-day period.

SPYShort Call Vertical Spreadmedium

The $400 Annual SPY Strategy That Crushes Mutual FundsVerify source ↗

Trade idea

Micron

If the stock price of Micron drops from 1033 to 950, the 950 put will increase in value, leading to a profit. However, if the stock price rises above 1033, the trade will be invalid. The trade requires careful capital management to avoid margin requirements and potential forced liquidation.

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Tom Preston Shows How to Never Get Squeezed Out of a Trade AgainVerify source ↗

Trade idea

Micron

By selling the 950 put and buying the 940 put, the trader creates a short put spread that generates a credit. The strategy aims to profit from the premium received while limiting the risk of the stock price dropping below the 940 strike. However, if the stock price drops to 950, the capital requirement increases significantly, which could lead to margin calls and the need to cover the position at unfavorable prices.

MicronShort Put Spreadhigh

Tom Preston Shows How to Never Get Squeezed Out of a Trade AgainVerify source ↗

Trade idea

SPACEX

In a high implied volatility environment, selling a short vertical spread on a stock like SpaceX can be a profitable strategy. The initial premium collected is substantial, and as time to expiration increases, the premium collected continues to increase, albeit at a diminishing rate. This strategy is suitable for traders who are bullish on the stock and are willing to take on the risk of a potential loss if the stock drops below the short put strike price.

SPACEXShort vertical spreadhigh

Tom Preston Proved Live That Most Traders Are Choosing the Wrong Expiration on High IV StocksVerify source ↗

Trade idea

Micron

The speaker suggests selling a put spread on Micron with a 3-day expiration, leveraging the high implied volatility. The trade aims to collect a $40 credit, which is higher than the potential $115 or $120 reward from a longer-term option. The trade is based on the expectation that the underlying will remain within the strike range, allowing the seller to keep the premium. However, the high volatility may lead to increased risk if the underlying moves significantly.

Micronput spreadhigh

Tom Preston Proved Live That Most Traders Are Choosing the Wrong Expiration on High IV StocksVerify source ↗

Trade idea

SpaceX

In a high IV environment, short put spreads can be effective as the volatility rewards the short position. The strategy is suitable for bullish market conditions, where the underlying asset is expected to trade within a range.

SpaceXshort put spreadmedium

Tom Preston Proved Live That Most Traders Are Choosing the Wrong Expiration on High IV StocksVerify source ↗

Trade idea

SPX

The speaker proposes a short iron condor strategy on SPX options with a 1-day expiration, aiming to capitalize on theta decay. The trade involves selling 7440 puts and buying 715 puts, generating a $11 credit. The strategy relies on the assumption that the underlying asset will not move significantly, allowing the theta decay to generate returns. The trade is considered low risk due to the short expiration and the high probability of the options expiring worthless.

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Tom Preston Shows How He Would Generate Income on a Million Dollar Account Using Only ThetaVerify source ↗

Trade idea

Crude Oil

The speaker proposes selling out-of-the-money strangles on crude oil futures to generate positive theta. The trade is non-directional, relying on time decay rather than market direction. The strategy involves selling both puts and calls, with a delta of 0.01, indicating minimal directional exposure. The goal is to collect theta over time, with the potential to generate $1,500 per day in theta, leading to $375,000 annually. However, the speaker acknowledges the risk of losing trades and the need for capital to maintain positions.

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Tom Preston Shows How He Would Generate Income on a Million Dollar Account Using Only ThetaVerify source ↗

Trade idea

strangles

By trading high-priced assets with significant extrinsic value decay, traders can generate consistent returns through theta. This strategy involves strangles on high-priced symbols like crude oil, which have higher dollar values of theta. The trader can generate $1,500 per day through theta, even if the underlying asset moves significantly, as the majority of the theta remains intact. This approach is suitable for traders with larger capital bases, as it reduces the risk of directional bets and allows for consistent returns.

strangleshigh

Tom Preston Shows How He Would Generate Income on a Million Dollar Account Using Only ThetaVerify source ↗

Trade idea

strangle

The speaker suggests that strangles and iron condors can offer higher returns than traditional investments, but they require more risk. The trader must be engaged and actively manage their positions, adjusting or rolling them as needed. The strategy is suitable for traders who are willing to take on more risk and are comfortable with the probabilities involved.

stranglemedium

Tom Preston Shows How He Would Generate Income on a Million Dollar Account Using Only ThetaVerify source ↗

Trade idea

EEM

The speaker suggests selling a put on EEM as a bullish strategy, given the ETF's current implied volatility is near its 52-week high. This strategy allows for defined risk and potential profit from the premium received, assuming the price of EEM remains above the strike price by expiration.

EEMShort Putmedium

Stop Putting All Your Capital on One Trade. Here's the Smarter Way to Start.Verify source ↗

Trade idea

SPX

The speaker proposes selling a zero DTE iron condor with strikes at 7390 and 7600, collecting a $2.35 credit. The trade is based on the belief that the SPX will not move significantly in the short term, allowing the seller to profit from the premium. The trade is considered a short-term strategy, and the risk is limited to the premium paid. The speaker also notes that extending the expiration to 1 day or 5 days would result in higher premiums, but the zero DTE option is preferred for its faster payoff.

SPXiron condorhigh

Zero DTE Traders Make $1,000 While Others Make $350Verify source ↗

Trade idea

iron condor

Selling a five-day iron condor at the same strikes with the SPX staying near its current price could yield a $10.75 profit if held to expiration. However, if the trader prefers to take profits earlier, selling the same condor and rolling it down to one-day expirations could generate a $350 profit over four days. This strategy is more profitable than holding the five-day condor to expiration, but it carries higher risk due to the potential for large intraday losses in zero DTE options.

iron condorhigh

Zero DTE Traders Make $1,000 While Others Make $350Verify source ↗

Trade idea

SPCE

The high volatility pricing and tight spreads in SpaceX options suggest that market makers are actively managing liquidity. Shorting out-of-the-money puts could capitalize on the premium decay and the tight spreads, especially if the stock remains stable. However, the risk of a significant move in the stock or widening spreads must be managed carefully.

SPCEvolatility tradingmedium

SpaceX Options: Why Market Makers Are Tightening SpreadsVerify source ↗

Trade idea

SPACEX

The speaker suggests using a short put vertical strategy for trading SpaceX options due to the high volatility and tight bid-ask spreads. This approach reduces the capital requirements compared to naked short options, making it a more efficient use of buying power. The strategy is based on the idea that market makers are hedging their positions efficiently, and the trader can capitalize on this by limiting risk through vertical spreads.

SPACEXvertical spreadmedium

SpaceX Options: Why Market Makers Are Tightening SpreadsVerify source ↗

Trade idea

SPX

The iron condor strategy on SPX zero DTE options is suitable for traders who expect the index to remain within a specific range. The trade generates significant theta and requires minimal capital. The risk is limited to the initial capital outlay, and the reward is the premium collected. This strategy is ideal for short-term market participants who believe the SPX will stay within the specified range.

SPXiron condorhigh

Zero DTE Tesla and Meta Options Exist. Tom Preston Shows Which Ones Are Worth ItVerify source ↗

Trade idea

META

The speaker outlines a trade on Meta using an iron condor strategy, where the trader sells 600 calls and buys 605 calls. The trade generates a 68-cent credit, which is considered a decent risk-reward ratio compared to a similar trade on Nvidia that only generates an 11-cent credit. The trade is viable if Meta remains within the specified range until the close of the trading day.

METAIron Condorhigh

Zero DTE Tesla and Meta Options Exist. Tom Preston Shows Which Ones Are Worth ItVerify source ↗

Trade idea

SPY

The speaker is confident in executing a put spread on SPY with a mid price of $69.70, given the high liquidity of SPY options. The speaker believes that the tight spreads and high volume of SPY options allow for efficient execution close to fair value. The speaker's confidence is based on the current market conditions and the liquidity of the SPY options.

SPYput spreadhigh

Liquidity: The Ultimate Game Changer in Options TradingVerify source ↗

Trade idea

QQQ

The speaker suggests that trading QQQ options is more favorable due to higher liquidity and tighter spreads compared to other options like NDX. The trade idea involves selling a put spread with strikes at 75 and 80, aiming to capture a premium close to fair value. The speaker notes that executing this trade is more efficient due to the better liquidity, but acknowledges the risk of slippage if the market moves against the trade.

QQQSell put spreadhigh

Liquidity: The Ultimate Game Changer in Options TradingVerify source ↗

Trade idea

GOOGL

The speaker suggests analyzing the skew in Google's options to gauge market sentiment. By comparing the implied volatility of out-of-the-money calls and puts, the trader can infer where the market expects the stock to move. The speaker is cautious about taking risk through earnings and instead focuses on assessing the risk premium built into the options. The strategy involves checking the skew to determine if the market is pricing in a bullish or bearish outlook, with the goal of identifying potential exposure to SpaceX's IPO success through Google's stock.

GOOGLoptions tradingmedium

Don't Chase the SpaceX IPO. Trade Google Instead. Here's the Defined-Risk Setup.Verify source ↗

Trade idea

GOOG

The speaker proposes a put spread strategy on Google (GOOG) with a strike range of 345-350. The trade is designed to capitalize on the potential for the stock to remain above $345, allowing the seller to collect a $1.92 credit. The strategy is considered low-risk with a 71% probability of making half the maximum profit. The speaker acknowledges the speculative nature of the trade and advises caution.

GOOGput spreadhigh

Don't Chase the SpaceX IPO. Trade Google Instead. Here's the Defined-Risk Setup.Verify source ↗

Trade idea

SPX

The speaker proposes a naked short strangle on the SPX with zero DTE, highlighting the high potential profit and positive theta. However, the trade requires significant buying power, making it unsuitable for smaller accounts. The speaker suggests that traders with larger accounts can use this strategy to capitalize on market volatility, while those with limited capital may consider alternatives like iron condors.

SPXNaked Short Stranglehigh

Naked Strangle vs Iron Condor: The Small Account RealityVerify source ↗

Trade idea

Nvidia

Selling an iron condor on Nvidia with strike prices at 185 and 255 provides a 75% probability of profit. This strategy is suitable for smaller accounts due to its defined risk and lower capital requirements, even though it sacrifices some potential profit compared to naked short positions. The theta earned is lower, but the buying power effect is more manageable, making it a better choice for capital-constrained traders.

Nvidiairon condorhigh

Naked Strangle vs Iron Condor: The Small Account RealityVerify source ↗

Trade idea

SLV

A calendarized trade on SLV involves buying a slightly in-the-money call in a back month and selling an out-of-the-money call in a front month. This strategy is designed to benefit from an increase in implied volatility, leveraging the higher vega of the back month option. The credit from the front month option offsets the cost of the back month option, making it easier for the trade to be profitable if the direction is correct. This is suitable for low volatility environments where volatility is expected to rise.

SLVcalendarized trademedium

Calendarized Trades: Getting Paid to Hold Long OptionsVerify source ↗

Trade idea

SLV

By selling front month options for a credit, the cost basis of the long call is reduced, making it easier for the trade to be profitable if the underlying asset rises. The speaker explains that this strategy involves balancing delta and extrinsic value, with the goal of reducing the cost of the intrinsic value of the long option. The trade is defined risk, with the long option offsetting the loss on the short option.

SLVcalendar spreadhigh

Calendarized Trades: Getting Paid to Hold Long OptionsVerify source ↗

Trade idea

GE

Using limit orders for in-the-money options, such as GE options, allows traders to control the execution price and avoid slippage. By specifying a limit price, traders can ensure they are not filled at a worse price than intended. This is particularly important in fast-moving markets where market orders can lead to significant slippage. If the market price moves beyond the limit price, the order may not be filled, but this is a controlled risk compared to the potential slippage from a market order.

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Stop Routing Market Orders on Options. Tom Preston Says You're Getting Eaten Alive.Verify source ↗

Trade idea

index

The unbalanced butterfly strategy is used to adjust the risk-reward profile of a regular butterfly by shifting the long put strike further out of the money. This can turn a debit trade into a credit trade, increasing the potential profit while managing risk. The strategy involves buying a 7365 put, selling two 7385 puts, and buying a 7405 call, with the index at 7410. The max profit is calculated as the difference between the strikes plus the credit received, while the max loss is the initial cost of the trade. The strategy is suitable for zero DTE index options and requires precise strike selection to manage risk effectively.

indexunbalanced butterflyhigh

A 30-Year Veteran Shows the Hidden Spread Inside Every Broken Wing Butterfly.Verify source ↗

Trade idea

7385

The speaker proposes a broken wing butterfly strategy involving a short put spread and a long butterfly, structured to capture a credit while managing risk. The trade is initiated by selling the 7385 put and buying the 7365 and 7405 puts, with the goal of either collecting the full credit or adjusting the position by buying back the spread for a lower debit. The strategy is designed to profit if the index remains above 7385, with the risk concentrated in the embedded short put spread.

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A 30-Year Veteran Shows the Hidden Spread Inside Every Broken Wing Butterfly.Verify source ↗

Trade idea

7385

The unbalanced butterfly is constructed by embedding a short put spread within the structure, allowing for a net credit. The trade is profitable if the underlying index remains within the range of the butterfly, with the embedded short put spread generating profit. The risk is limited, but the trade has more potential for profit compared to a regular butterfly. The trade is suitable for traders who understand synthetic positions and are willing to manage the embedded verticals.

7385unbalanced butterflyhigh

A 30-Year Veteran Shows the Hidden Spread Inside Every Broken Wing Butterfly.Verify source ↗

Trade idea

Unbalanced Butterfly

The unbalanced butterfly strategy involves an embedded short vertical spread, which should be managed as part of the trade. The speaker suggests buying back the short embedded spread for a debit less than the total credit generated, leaving a long butterfly for credit. This approach requires understanding the extra risk involved and ensuring comfort with the level of risk taken. The trade is considered a lottery ticket with a low probability of success, but it offers higher potential profit compared to regular butterflies.

Unbalanced Butterflyhigh

A 30-Year Veteran Shows the Hidden Spread Inside Every Broken Wing Butterfly.Verify source ↗

Trade idea

VXX

The VXX's price is negatively impacted by the basis difference between the front-month and next-month VX futures. By shorting the VXX, traders can profit from the drag caused by rolling from the cheaper front-month future to the more expensive next-month future. This strategy is effective when the basis is positive, as the rolling process erodes the value of the VXX.

VXXRolling basis dragmedium

Stop Buying VXX to Trade Volatility. Tom Preston Says There Is a Better Way.Verify source ↗

Trade idea

VIX June Futures

The speaker suggests that when the VIX futures are in contango, the front-month futures tend to spike higher and faster than the back-month futures. This dynamic allows for bullish trades in the June VIX futures options, such as short put spreads or long call spreads. The strategy relies on the expectation that the front-month futures will outperform the back-month futures in volatility spikes.

VIX June Futuresshort put spreads or long call spreadshigh

Stop Buying VXX to Trade Volatility. Tom Preston Says There Is a Better Way.Verify source ↗

Trade idea

VIX

The speaker suggests using a call spread strategy for long volatility, emphasizing the need to define risk and avoid naked short positions. The strategy involves trading VIX futures options before considering VXX, as VIX futures are more direct and offer better control over risk. The speaker also notes that VIX futures are priced without arbitrage opportunities and that the VXX is a continuously rolling portfolio of futures, which can lead to drift over time.

VIXcall spreadhigh

Stop Buying VXX to Trade Volatility. Tom Preston Says There Is a Better Way.Verify source ↗

Trade idea

SPX

The butterfly strategy is a directional bet on the SPX closing near the middle strike (7400) at expiration. The strategy is designed to profit if the SPX remains within a narrow range around the middle strike. The risk is defined, and the cost is relatively low. The trade requires precise timing and prediction of the SPX's movement.

SPXButterflyhigh

Most Traders Buy 30-Day Butterflies. Tom Preston Shows Why Zero DTE Makes More Sense.Verify source ↗

Trade idea

butterfly

Zero DTE butterflies are low-risk, directional trades with high profit potential if the index lands on the correct strike. They are suitable for traders who are neutral or slightly bullish/bearish and can tolerate the low probability of success. The max loss is around $150, while the max profit can be up to $860 if the strike is hit. These trades are more attractive than long-term butterflies due to their shorter time frame and lower cost, though they are not guaranteed to work repeatedly.

butterflyhigh

Most Traders Buy 30-Day Butterflies. Tom Preston Shows Why Zero DTE Makes More Sense.Verify source ↗

Trade idea

NVDA

Nvidia's recent trip to China with President Trump and the anticipation of its earnings report on May 20th are driving a bullish sentiment. The market's skew towards calls suggests a higher risk of upward movement. If Nvidia beats earnings, the stock could rally further, especially if the trip leads to renewed business opportunities in China.

NVDAearnings-driven rallymedium

Jensen Huang's Emergency Flight Signals Something BigVerify source ↗

Trade idea

SPX

The trader is executing a short put spread on SPX with a zero DTE, aiming to collect a credit of $2.20. The trade is based on the linear relationship between option prices and underlying prices, where the SPX index is 10 times larger than the XSP index, resulting in option prices that are also 10 times larger. The trade is considered valid as long as the underlying price remains within the spread range.

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Most Traders Don't Know There's a Smaller Version of SPX Options. Tom Preston Shows the Difference.Verify source ↗

Trade idea

XSP

The speaker suggests selling a put spread on XSP with a 25 cent credit, offering a max profit of $25 and a max loss of $75. This trade is preferred over SPX due to lower risk, even though the potential profit is lower. The trade is suitable for traders who are more comfortable with lower risk and want to avoid the higher risk associated with SPX options.

XSPput spreadhigh

Most Traders Don't Know There's a Smaller Version of SPX Options. Tom Preston Shows the Difference.Verify source ↗

Trade idea

TSLA

This strategy involves selling a 30 delta put and buying a 25 delta put on Tesla (TSLA) with 45 days to expiration. The backtesting results show a 74% profit rate with an average return of 7.72% per trade. However, the largest individual loss is $10,000, which is significant for smaller accounts. The strategy aims to reduce risk by limiting the potential loss while capturing premium income. The trade is suitable for accounts that can handle the maximum loss, which is $10,000.

TSLAsell a 30 delta put, buy a 25 delta puthigh

Most Traders With Small Accounts Trade the Wrong Strategy. Tom Preston Shows the Fix in 9 Minutes.Verify source ↗

Trade idea

short put spread

A short put spread strategy is recommended for traders with smaller accounts who are bullish on a stock like Tesla. This strategy limits potential losses and allows for a more controlled risk profile. The trader sells a higher strike put and buys a lower strike put, collecting a premium while defining the maximum risk. This approach is suitable for traders who want to maintain capital and avoid large single-trade losses, even if the return on capital is lower compared to naked short puts.

short put spreadhigh

Most Traders With Small Accounts Trade the Wrong Strategy. Tom Preston Shows the Fix in 9 Minutes.Verify source ↗

Trade idea

IWM

When volatility is high, a neutral iron condor strategy can be considered to capitalize on the expected decline in volatility. This approach is based on the observation that volatility tends to decrease as equities rally, as seen in the IWM ETF. The strategy involves selling out-of-the-money options to collect premium while limiting risk. The thesis is supported by the speaker's analysis of the implied volatility chart and the IV rank indicator, which provides context for the current volatility levels.

IWMIron Condormedium

Most Traders Use Moving Averages on Their Charts. Tom Preston Adds This Instead.Verify source ↗

Trade idea

SPY

Higher implied volatility can indicate potential for higher option prices, but the effectiveness of a trade depends on the Vega of the option. For example, selling a 715 put with zero Vega and a max profit of $4 requires a significant capital outlay, making it less efficient compared to selling a 650 put with a higher Vega and a lower capital requirement. The trade should be evaluated based on the balance between potential profit and capital usage, with a focus on options with lower Vega to reduce the sensitivity to changes in implied volatility.

SPYshort putmedium

Stop Selling Zero DTE Options Like This. Tom Preston Shows the $4 Trap.Verify source ↗

Trade idea

META

The trader sold a 625-630 put spread for a $1.60 credit, but the stock dropped to 612, making the trade a losing position. The trader is considering holding the trade, betting on a 78% probability that the stock will rally back to 630 within 45 days. If the stock reaches 630, the puts will become cheaper, potentially turning the trade into a profit or reducing the loss. The decision to hold or close the trade depends on the probability of the stock reaching the target price.

METAput spreadhigh

This 16-Minute Video Will Teach You Exactly What to Do With a Losing Options Trade.Verify source ↗

Trade idea

META

The speaker suggests that holding a long put spread on Meta (META) with a target of 630 and a stop at 625 involves betting on a 78% probability of the stock rallying. If the stock fails to reach 630, the trader may consider closing the position to avoid further losses. The trade is evaluated based on the probability of the stock reaching the target price and the potential for time decay to reduce the spread's value. The speaker also discusses the possibility of rolling the position to a further expiration with adjusted strikes, but prefers rolling for credits rather than debits.

METAPut Spreadhigh

This 16-Minute Video Will Teach You Exactly What to Do With a Losing Options Trade.Verify source ↗

Trade idea

META

The speaker proposes selling a call spread (630-635) against an existing short put spread (630-625) to defend the bullish trade. This creates a larger credit and offsets the risk of the bullish trade by adding a bearish position. The trade is considered a decent opportunity if the trader is bearish on Meta, and it adds to the existing credit of $1.60, resulting in a net credit of $2.90. The trade is defended by opposing deltas, with the short call spread offsetting the long deltas of the put spread.

METACredit Spreadhigh

This 16-Minute Video Will Teach You Exactly What to Do With a Losing Options Trade.Verify source ↗

Trade idea

Put Spread

The trader sells a put spread with a specific strike price and expiration date, anticipating a decline in the underlying asset's price. The trade is structured to profit from a downward move, with predefined actions for managing the trade if it goes against the trader. The trader has pre-planned scenarios for closing, adjusting, or defending the trade based on market conditions, such as volatility changes or time remaining until expiration.

Put Spreadmedium

This 16-Minute Video Will Teach You Exactly What to Do With a Losing Options Trade.Verify source ↗

Trade idea

uranium

The spot price of uranium can be significantly impacted by geopolitical events, even if the underlying fundamentals remain stable. Market overreactions create opportunities to buy the dip, as the price may not reflect the true value of the commodity. This strategy requires monitoring geopolitical developments and market sentiment, with a focus on short-term price recovery.

uraniumcontrarianmedium

The Uranium Price You See Online Is Fake. Here's How Lobo Tiggre Trades the Real One.Verify source ↗

Trade idea

UEC

The speaker suggests selling weekly put options on UEC, a stock with a relatively low capital requirement for naked short puts. The trade is based on the 70% probability of the put expiring worthless, with a potential profit of $44. The trade is considered low-risk due to the high probability of expiration and the relatively low capital outlay. The speaker also mentions the potential for generating $1.89 in capital before the expiration date.

UECnaked short puthigh

The Uranium Price You See Online Is Fake. Here's How Lobo Tiggre Trades the Real One.Verify source ↗

Trade idea

GLD

The speaker suggests that if the war escalates, gold prices may decline, making a short strategy viable. However, the speaker emphasizes that this is a high-risk proposition and not a recommendation. The speaker also notes that the skew in GLD options indicates market anticipation of an upside risk, suggesting that selling puts could be a way to capitalize on this perceived risk.

GLDshort strategymedium

The Uranium Price You See Online Is Fake. Here's How Lobo Tiggre Trades the Real One.Verify source ↗

Trade idea

JPY

The speaker had a long position in the yen for several months, using short put spreads. The trade was based on the expectation of a yen spike, which occurred when the Bank of Japan intervened by buying yen and selling crude oil. The speaker attributes the success to pure luck and probability, rather than market analysis. The trade was not based on inside information, and the speaker acknowledges the role of probability in trading decisions.

JPYshort put spreadsmedium

This 25-Minute Interview With an Austrian Economist Will Change How You See Options Markets.Verify source ↗

Trade idea

gold

Given the high volatility in gold prices due to recent price swings, a bearish trade can be executed by selling a call spread. This strategy allows for capitalizing on the premium while limiting risk. The high volatility indicates that the market is ripe for short-term trading, and the skew in options pricing reflects the market's expectation of further price movements.

goldsell a call spreadmedium

This 25-Minute Interview With an Austrian Economist Will Change How You See Options Markets.Verify source ↗

Trade idea

null

The speaker suggests selling a call spread as a defined risk strategy, indicating a belief in the market's skew towards upside risk. This strategy is based on the observed pricing of out-of-the-money calls over puts, suggesting a potential for limited upside movement.

nullselling a call spreadmedium

This 25-Minute Interview With an Austrian Economist Will Change How You See Options Markets.Verify source ↗

Trade idea

Emerging market exposure through ETFs

The speaker suggests that emerging markets offer tradeable opportunities, particularly through ETFs with high volatility. They emphasize that these products allow investors to take positions on specific regions or sectors, such as Brazil or Asia, and that the risk is rewarded with potential returns. The speaker also mentions that the US dollar's depreciation relative to other currencies makes emerging markets more attractive for long-term investment.

Emerging market exposure through ETFsmedium

This 25-Minute Interview With an Austrian Economist Will Change How You See Options Markets.Verify source ↗

Trade idea

Copper

The speaker suggests a defined risk strategy for copper, involving selling a put and buying a call to limit downside risk while capturing upside potential. The strategy is based on the structural supply constraints and long-term demand for copper, but the speaker acknowledges the risks of entering near all-time highs and the potential for market volatility due to geopolitical events and tweets.

Copperdefined risk strategymedium

The Structural Flaw in Copper Nobody's Talking AboutVerify source ↗

Trade idea

AAPL

The speaker is selling a put on Apple stock at the 245 strike price, expecting the stock to remain above that level. The risk is limited to the difference between the strike price and the stock price, with the potential reward being the premium collected. The trade is part of a broader strategy of selling puts across multiple assets to diversify risk.

AAPLput sellinghigh

This 11-Minute Video Will Change How You Think About Every Option Price You've Ever Seen.Verify source ↗

Trade idea

245 put

The trader is considering selling a put option on a stock, which involves receiving a premium for the right to sell the stock at a specific price. The decision hinges on whether the premium is sufficient to justify the risk, with the trader acknowledging that this is a personal judgment. The trade is seen as a way to generate income, similar to an insurance company's model, but with the risk of potential losses if the stock price moves against the trader's position.

245 putselling putmedium

This 11-Minute Video Will Change How You Think About Every Option Price You've Ever Seen.Verify source ↗

Trade idea

N/A

The speaker suggests selling a naked put at a strike price of 21, with a max loss of $2067. This strategy is discussed in the context of a margin account, where such trades are allowed. The speaker compares this to a short put spread with a max loss of $80, highlighting the difference in risk and complexity between the two strategies.

N/ANaked Puthigh

The Worst Advice Every Trader Hears: "Open a Cash Account." It's 75x Riskier.Verify source ↗

Trade idea

CAG

Selling an out-of-the-money put option on CAG can generate a higher annualized return (26.9%) compared to the dividend yield (9.43%). This strategy involves collecting a premium (e.g., 35 cents) every 36 days, which is annualized by dividing by the maximum loss (e.g., $1315) and multiplying by 365/36. The risk is similar to holding the stock, as the maximum loss is the strike price if the stock drops to zero. This strategy assumes the stock does not crash and that the premium is collected consistently.

CAGBullish Strategyhigh

You've Been Buying Dividend Stocks for Income. That's a Lousy Strategy. Here's Why.Verify source ↗

Trade idea

Conagra

If the investor is bullish on Conagra and believes the stock will rise, selling a short put can generate income through premium collection. If the stock rises, the investor can roll the put to a higher strike or sell a call to continue generating income. If the stock drops, the investor may take delivery at a lower price, which could be beneficial if the stock subsequently rises. This strategy allows for income generation while maintaining a bullish outlook.

Conagrashort puthigh

You've Been Buying Dividend Stocks for Income. That's a Lousy Strategy. Here's Why.Verify source ↗

Trade idea

Gasoline Futures

The market's expectation of volatility in December gasoline futures suggests a potential for price increases. While the futures price is currently around $3.07, the retail price is higher due to taxes and profit margins. The volatility of the futures contract indicates that the market anticipates significant price swings, which could translate to higher retail prices. However, the actual retail price movement is influenced by additional factors such as geopolitical events and supply chain dynamics.

Gasoline FuturesVolatility-based tradingmedium

Everyone Is Panicking About $6 Gas. The Options Market Says There's Only a 10% Chance of That.Verify source ↗

Trade idea

SPX

The speaker suggests that the skew in implied volatility for SPX options, such as the 6750 puts with 17.46 volatility and the 6730 puts with 17.8% volatility, indicates a potential opportunity for a volatility trade. The IV rank of 41% and the overall volatility of 19.7% are used as indicators to identify the market's interpretation of the option's value. The trade idea is to exploit the skew by entering a position that benefits from the differing volatility levels, with the expectation that the market's skew will continue to reflect the underlying asset's risk profile.

SPXvolatility trademedium

Most Traders Use IV Rank to Pick Trades. Here's Why That's Only Half the Answer.Verify source ↗

Trade idea

GS

If the market continues to exhibit volatility and trading activity, Goldman Sachs could benefit from increased institutional demand. Selling puts at strike prices like 855 or 6055 offers a defined risk trade with potential credit for a bullish outlook. This strategy is suitable for traders comfortable with short-term volatility and defined risk.

GSselling putsmedium

Goldman Got Paid From the Chaos. Here's How Options Traders Can Too.Verify source ↗

Trade idea

The speaker discusses the likelihood of bond yields reaching extreme levels, such as 7%, by the end of the year, stating that the probability is less than 1%. They also note that the likelihood of a rate hike by the FOMC is now higher than a rate cut, a shift from previous trends. This indicates a growing market concern about inflationary pressures and the potential for rate hikes, even in a low-interest-rate environment. The speaker suggests that traders should consider the implications of these rate changes on mortgage rates and fixed-rate products.

high

The Fed Was Expected to Cut Rates Three Times This Year. Ron Butler Says a Hike Is Now More Likely.Verify source ↗

Trade idea

RKT

The speaker suggests that Rocket Mortgage (RKT) is a decent trading product due to its relatively low stock price, high volatility, and tight bid-ask spreads in its options. The speaker implies that the stock has been punished recently, which may present an opportunity for a rebound. The speaker also notes that the company has made smart moves in the mortgage brokerage space, which could support its stock performance.

RKTtradingmedium

The Fed Was Expected to Cut Rates Three Times This Year. Ron Butler Says a Hike Is Now More Likely.Verify source ↗

Trade idea

null

The speaker sells puts on home building stocks like Lennar, Pulte, and D.R. Horton, which have been punished recently. The speaker believes these stocks are at the mercy of the housing cycle and are currently on the offside of it. The speaker suggests that selling puts can provide decent returns, but the speaker also notes that the option markets for these stocks are not very active and that the speaker rarely trades them outright. The speaker also mentions that the Canadian dollar is currently cheap and that there may be opportunities for trading it, but the speaker does not provide specific details on how to trade it.

nullselling puts on home building stocksmedium

The Fed Was Expected to Cut Rates Three Times This Year. Ron Butler Says a Hike Is Now More Likely.Verify source ↗

Trade idea

SPX

The speaker executed an iron condor on the SPX with strikes 6885, 6910, 6975, and 7000, collecting $295 in credit. By simulating an increase in volatility (from VIX 1550 to 2550), the value of the iron condor increased to $766, demonstrating the significant impact of volatility on zero DTE SPX options. This trade idea suggests that traders should consider the potential for volatility increases when selecting strike prices and managing risk in zero DTE options.

SPXiron condorhigh

VIX at 30 Is Exactly When Premium Sellers Get Rewarded. Here's the Proof.Verify source ↗

Trade idea

SPX

When volatility is high, premium sellers, such as those using iron condors or strangles, are rewarded. Higher volatility allows for larger premiums, which can be captured by adjusting strike prices further out of the money. However, traders should not stop trading when volatility is high; instead, they should consider reducing size or tightening strike ranges. The speaker emphasizes that defined risk trades should be used, and traders should not avoid trading when volatility is high, as it presents opportunities for profit.

SPXiron condormedium

VIX at 30 Is Exactly When Premium Sellers Get Rewarded. Here's the Proof.Verify source ↗

Trade idea

GOOGL

When shorting a put, the trader should aim to buy back the option at or near the intrinsic value to minimize losses. The intrinsic value of the 310 put at a stock price of 298 is 11.75. The trader should avoid buying back the option below this value, as it would result in a loss. The extrinsic value of the option is minimal, so the trader should focus on the intrinsic value when executing the trade.

GOOGLshort puthigh

You're Giving Free Money to Market Makers Every Time You Close an ITM Option. Here's How to Stop.Verify source ↗

Trade idea

310 put

If a trader is short a 310 put and cannot close the position at intrinsic value plus extrinsic value, they can exit by creating a synthetic long put. This involves shorting the stock and buying the 310 call for a penny. The goal is to close the position at intrinsic value plus a penny, avoiding unnecessary slippage and commissions. If the price exceeds 12.80, the trader should consider closing the position to avoid further losses.

310 putsynthetic long puthigh

You're Giving Free Money to Market Makers Every Time You Close an ITM Option. Here's How to Stop.Verify source ↗

Trade idea

N/A

The trader can create a synthetic put by buying the stock at a low price and selling an out-of-the-money call. This locks in the intrinsic value of the put and minimizes delta risk. If the stock price moves up, the call may be exercised, resulting in a loss, but the trader can avoid significant losses by locking in the intrinsic value. This strategy is suitable for short-term trading with approaching expiration.

N/ASynthetic Put Strategyhigh

You're Giving Free Money to Market Makers Every Time You Close an ITM Option. Here's How to Stop.Verify source ↗

Trade idea

IBIT

The speaker suggests selling a put spread on IBIT (Bitcoin ETF) with a strike price of 36.5 and 35, expecting the price to stay above 36.5 within 2 weeks. The trade would yield a profit of 27 dollars if successful, with a maximum risk of 72 dollars. This strategy is presented as a way to capitalize on potential bullish movement in the Bitcoin ETF, offering a higher return on capital compared to other investments like real estate or crypto.

IBITPut spreadmedium

The Government Just Opened Your 401k to Crypto. Here's Why BlackRock Is the Real Winner.Verify source ↗

Trade idea

IBM

A protective put strategy involves buying a call and a put at the same strike price and expiration. This creates a synthetic long call position, which allows the trader to hedge against downside risk while still benefiting from upward movement in the stock price. The risk profile is similar to a long call, but the synthetic position may have different capital requirements and dividend considerations. This strategy is suitable for traders who want to protect their long stock position while maintaining the potential for upside gains.

IBMProtective Puthigh

You've Been Doing Covered Calls Wrong. Here's the Smarter Way to Think About Them.Verify source ↗

Trade idea

IBM

A short put is a bearish strategy where the trader receives a premium for selling the put. The position profits if the stock price remains above the strike price at expiration, limited to the credit received. The risk is unlimited if the stock price falls below the strike price, requiring the trader to buy the stock at the strike price. This strategy is equivalent in risk to a covered call with the same strike price.

IBMshort puthigh

You've Been Doing Covered Calls Wrong. Here's the Smarter Way to Think About Them.Verify source ↗

Trade idea

IBM

By using a synthetic put through buying the stock and selling a call, traders can reduce slippage when closing in-the-money positions. This approach is particularly useful when the bid-ask spreads on the actual options are wide, and the trader has sufficient capital to execute the synthetic position. The goal is to achieve a flat delta position with reduced slippage compared to closing the actual in-the-money option.

IBMsynthetic puthigh

You've Been Doing Covered Calls Wrong. Here's the Smarter Way to Think About Them.Verify source ↗

Trade idea

SPX

The strategy involves selling iron condors or put spreads daily on zero DTE SPX options, with the goal of closing trades early at a 50% profit level. This approach allows traders to manage risk and lock in profits within the same trading day, avoiding exposure to further market movements. The strategy is effective in volatile markets where the SPX options deliver decent volatility, enabling traders to collect credits for their positions.

SPXiron condorhigh

Zero DTE Workaround for Under $25K. Tom Preston Has the Exact ES Setup.Verify source ↗

Trade idea

SPX

The SPX iron condor strategy involves selling put and call options with a $10 width, resulting in a $1.35 credit. The max profit is $135, while the max loss is $870. This strategy is suitable for traders who can manage the risk and are aware of the day trading rules. The SPX options are treated as equity options, so traders must be cautious of pattern day trading violations.

SPXiron condorhigh

Zero DTE Workaround for Under $25K. Tom Preston Has the Exact ES Setup.Verify source ↗

Trade idea

ZB

The 30-year Treasury bond futures (ZB) are more volatile than the 10-year note futures (ZN) due to their longer duration. This increased volatility can be exploited by traders who anticipate yield changes. The DVO metric indicates that a 1 basis point yield drop would result in a $132.68 price increase for ZB, compared to $64.36 for ZN. This suggests that ZB futures are more sensitive to yield movements, making them a better choice for volatility-based trades. However, the non-parallel yield curve shifts may affect the accuracy of this ratio, requiring careful monitoring.

ZBvolatility tradingmedium

Bond Volatility Is Spiking. Here's How to Choose Between ZB and ZN Options Right Now.Verify source ↗

Trade idea

ZN

The speaker suggests that if the ZB versus ZN IV ratio is less than the DVO one ratio, the 10-year note volatility is relatively rich, and selling premium in ZN options could be more attractive. This is based on the relative volatility analysis between ZB and ZN options. The speaker emphasizes that this is not a direct trade recommendation but a comparative analysis to help traders decide where to collect more premium.

ZNdefined risk trademedium

Bond Volatility Is Spiking. Here's How to Choose Between ZB and ZN Options Right Now.Verify source ↗

Trade idea

CL

The speaker observes an unusual skew in the options market for crude oil futures, with puts trading over calls. This suggests a bearish sentiment, possibly due to the recent geopolitical tensions and the market's anticipation of a price decline. The speaker proposes a short position based on this skew, expecting the price to move lower as the market digests the news and the geopolitical situation stabilizes.

CLoptions skew analysismedium

Oil Options Skew Just Did Something Unusual. Here's What It's Telling Traders.Verify source ↗

Trade idea

Crude Oil

The speaker suggests a bullish trade by selling a put spread at the 77s and buying the 76s, which is a short put vertical spread. This strategy is based on the assumption that there is a floor to oil prices and that the market is bullish. The trade has a max profit of 330 and a max loss of 670, with a decent credit collected. The speaker acknowledges that the trade is based on the assumption of a floor to oil prices and the potential for another rally above $100.

Crude Oilshort put vertical spreadmedium

Oil Options Skew Just Did Something Unusual. Here's What It's Telling Traders.Verify source ↗

Trade idea

RKT

The speaker suggests selling the 38 put as a bullish trade, given the skew of the options market pointing towards the call side, indicating perceived risk of the stock going up. The trade has a 84% probability of collecting half of its 42 cents max profit ahead of expiration, with a max risk of 12.58 if the stock goes to zero. The theta is a $1.36 per day, which is considered a good return for theta.

RKTSell put optionsmedium

Why Your Mortgage Rate Went Up Again And the Trade Tom Preston Is Watching.Verify source ↗

Trade idea

RKT

The speaker suggests selling the 42 put in the April expiration as a strategy for expressing a bullish or bearish stance on RKT. The theta is noted as a $1.36 per day return, which is described as a 'pretty pretty good return' for theta. This strategy is presented as a way to capitalize on theta decay, assuming the underlying asset (RKT) behaves in a manner that allows the put to expire out of the money.

RKTselling puthigh

Why Your Mortgage Rate Went Up Again And the Trade Tom Preston Is Watching.Verify source ↗

Trade idea

TLT

The market shows a skew towards the downside, suggesting a bearish bias in TLT. A debit put spread with a $1.17 credit has a 55% probability of making half of its max profit, generating positive theta and a max loss of $117. This strategy is suitable for short-term bearish expectations.

TLTDebit Put Spreadmedium

Rate Hike Probability Just Went From Zero to Not Zero. Here's the Trade.Verify source ↗

Trade idea

EWZ

The speaker suggests that Brazil's economy, which is heavily reliant on oil and soybean exports, could benefit from stable or rising oil and soybean prices. Given the current volatility in oil prices and the potential for Brazil's exports to improve, a bullish trade in EWZ options, particularly around the April expiration, could be a viable strategy. The speaker highlights the liquidity and tight bid-ask spreads in EWZ options, which make it easier to execute trades with lower slippage.

EWZoptionsmedium

The Options Market Is Saying Something About Brazil That Nobody's Talking AboutVerify source ↗

Trade idea

EWZ

The market is showing a slight bias towards the downside, as indicated by the higher ask price for 34 puts compared to calls at 39. Selling the 34 puts could be a viable strategy for a bearish trade, given the 72% probability of expiring worthless and the potential for a $33 profit if the underlying remains above 34. The trade requires a capital requirement of $482 and generates $2.06 per day in theta. This strategy is suitable for traders looking to speculate on a product related to but not directly tied to the Straits of Hormuz, such as EWZ.

EWZselling putsmedium

The Options Market Is Saying Something About Brazil That Nobody's Talking AboutVerify source ↗

Trade idea

The speaker suggests that if food and energy prices continue to rise, leading to higher inflation, the Federal Reserve may need to adjust its monetary policy. This could result in higher interest rates or other measures to combat inflation. The speaker highlights the importance of monitoring these sectors as they directly impact the cost of living for most people.

medium

Gov't Says Inflation Is 2.5%... Here's Why That Number MISSES the PointVerify source ↗

Trade idea

USD/EUR

The speaker suggests that if US interest rates remain relatively high, long dollar trades like USD/EUR or shorting the euro and British pound could be considered. These trades are based on the expectation of a strong dollar and higher interest rates, which are seen as factors that could influence currency values.

USD/EURcurrency tradingmedium

Gov't Says Inflation Is 2.5%... Here's Why That Number MISSES the PointVerify source ↗

Trade idea

OWL

Blue Owl (OWL) is a vehicle for private credit exposure, and if the underlying private credit loans face defaults or liquidity issues, the stock could decline. The lack of transparency and liquidity in the private credit market increases the risk of losses for investors in OWL. Shorting OWL could be a strategy if the market deteriorates further.

OWLshorting Blue Owl (OWL) due to concerns about the underlying private credit loans and potential defaults.medium

Banks Are Hiding a $2 Trillion Problem. Is Private Credit the Next 2008?Verify source ↗

Trade idea

NVIDIA

The trade involves buying the 220 strike call for $1,300 and selling the weekly cycle for about $2 and change. The implied volatility is on the lower end, with an IV rank of 37 and 1/2. The trade is designed to capitalize on potential pre-earnings rallies and the upcoming earnings announcement. The total package is a net debit of $1,031, with the potential for a better entry if the stock moves favorably. The trade is structured to benefit from the volatility expansion and the potential for a rally in the stock.

NVIDIAshort put verticalhigh

Most Traders Buy One Call. Here's What Two Long and One Short Actually Does.Verify source ↗

Trade idea

GDX

The speaker is looking for a pullback in GDX due to the momentum seen in the metals. The short strangle strategy is considered ideal as it allows for potential upside buffer while profiting from a range-bound trade. The speaker believes the rally is likely to stabilize or trade in a range, making the short strangle a suitable trade.

GDXrange tradehigh

Most Traders Buy One Call. Here's What Two Long and One Short Actually Does.Verify source ↗

Trade idea

QQQ

If the pullback is short term and near completion, selling naked puts on QQQ at 66867 (20 delta for October 2022) and 6665 (23 delta) can provide a 10% return. The strategy assumes the pullback is nearing its end and the market will stabilize. The risk is if the pullback continues significantly, invalidating the assumption of a short-term pullback.

QQQnaked putmedium

Most Traders Buy One Call. Here's What Two Long and One Short Actually Does.Verify source ↗

Trade idea

AAPL

The speaker sets up a call diagonal spread for Apple, buying the October 310 call and selling the September 325 call. The trade is based on the belief that Apple's implied volatility is low, creating cheap options, and that a rally from 310 to 325 would result in a significant profit. The speaker emphasizes the importance of keeping risk in check and the potential for a 30% return on the debit paid.

AAPLcall diagonal spreadhigh

Is Now the Time to Buy Apple?Verify source ↗

Trade idea

AAPL

The speaker is long a 15-point wide diagonal spread on Apple, paying less than $10 in debit. They believe that even if implied volatility drops to 19%, the trade would still be profitable. The trade is considered low risk due to the narrow IV range and the potential for rolling down the spread to reduce risk. The speaker also mentions the possibility of adjusting the trade to a crab trade if a sell-off occurs, but prefers the diagonal spread due to its lower upside risk.

AAPLDiagonal Spreadhigh

Is Now the Time to Buy Apple?Verify source ↗

Trade idea

AAPL

The trader is adjusting a diagonal spread in response to potential market volatility. By moving the spread down to a narrower range, the trader aims to reduce the cost and increase the potential credit received. If the market moves significantly downward, the trader plans to roll the position into a calendar spread, which can provide additional credit during a sell-off. The strategy relies on the assumption that the market movement will be within a predictable range, allowing for profitable adjustments.

AAPLdiagonal spreadmedium

Is Now the Time to Buy Apple?Verify source ↗

Trade idea

CLV6

The trade idea is built around the assumption that crude oil will continue to chop around in the short term, with the potential for a more substantial breakout in the longer term. The iron condor strategy is designed to profit from the expected range-bound movement, with the 72-73 put spread and 92-93 call spread capturing the premium from both tails of the price range. The trade is considered worth taking due to the proximity to the 33 cents target, which is in the ballpark of the expected credit.

CLV6iron condorhigh

Everything You Need To Know Before Trading Crude OilVerify source ↗

Trade idea

CLV 6

The iron condor strategy is employed to profit from a range-bound market for CLV 6. The strategy involves selling a put spread and a call spread, with the goal of profiting from the premium received if the underlying asset remains within the specified range. The maximum credit received is $310, and the maximum risk is $690 before fees and slippage. The break-even points are at 7269 and 9231. The strategy is based on the expectation that the market will not break out to new highs or lows, and the physical nature of the oil market suggests that supply and demand dynamics will keep prices within a certain range.

CLV 6iron condorhigh

Everything You Need To Know Before Trading Crude OilVerify source ↗

Trade idea

CLV6

The speaker proposes a 92-93 iron condor on CLV6, collecting a 31-cent credit with a 60% probability of profit. The trade is based on the expectation that crude oil prices will not break above 88, and if they do, the position will be flipped to a long position. The trade is considered a short-term opportunity with a defined risk-reward profile.

CLV6iron condorhigh

Everything You Need To Know Before Trading Crude OilVerify source ↗

Trade idea

flip to long position

The speaker is proposing a trade idea where, if crude oil in the CLV6 breaks through 88, they will flip to a long position regardless of other factors like the Iran war. The trade is based on the physical market dynamics of oil, particularly the flow through the Strait of Hormuz. The speaker mentions a 60% probability of profit and a payout better than two to one, indicating a favorable risk-reward ratio. The trade is considered a 'trade of the day' and is based on the assumption that oil is a physical market where supply logistics are critical.

flip to long positionhigh

Everything You Need To Know Before Trading Crude OilVerify source ↗

Trade idea

NQ

The Nasdaq (NQ) is expected to catch up to the S&P 500 (ES) and other indices as they consolidate. The speaker suspects that NQ might experience a continuation pattern, such as an N-shaped movement, as it aligns with the broader market. This trade idea is based on the expectation that NQ will eventually reach the same price levels as the S&P 500, which is currently at all-time highs. The trade would involve entering a long position in NQ as it approaches these levels, with the target being the all-time highs. The invalidation would be if the market continues to consolidate without NQ catching up, indicating a failure in the continuation pattern.

NQN-shaped continuationmedium

The S&P Hit Records, the Nasdaq Stalled. This Divergence Is the Tell.Verify source ↗

Trade idea

Microsoft

Microsoft's recent gap up following earnings indicates strong buying pressure. If the price continues to move higher and breaks through the overhead resistance level, it suggests a continuation of the upward trend. However, if the price closes below the low of the gap candle, it indicates a potential fakeout and a reversal in trend. The strategy involves entering a long position after a gap up and exiting if the price fails to break through the resistance level or closes below the gap low.

Microsoftgap and gohigh

Every Earnings Gap Is Either a Gap and Go or a Gap and Crap.Verify source ↗

Trade idea

IWM

The IWM has shown a controlled pullback and is at critical support levels. It is also at its 50-day moving average, indicating a potential for a strong rally if the broader market receives a bid. The convergence of multiple time cycles suggests a strong upward move, with a potential target of $340 per share, representing a 20% rally.

IWMBuy on pullbackhigh

The Part of the Market Chris Vermeulen Says Is About to RipVerify source ↗

Trade idea

IWM

The speaker believes that the IWM is poised for a move due to the alignment of multiple cycles and the potential for a wave of money returning to the market. The sentiment has shifted from fear to confidence, indicating a potential for a bullish move. The key is to identify the confirmed breakout and enter the trade with a clear plan for managing risk and taking profits.

IWMbuy on a confirmed breakouthigh

The Part of the Market Chris Vermeulen Says Is About to RipVerify source ↗

Trade idea

SPACEX

The speaker believes that SpaceX's stock, following its IPO, is likely to experience a downward move due to mass psychology and the fact that it is a unique play with no historical support. The speaker anticipates a bearish flag pattern and suggests a short position with a target of $94. The trade is based on the expectation that the stock will continue to underperform, leaving a bad taste in the mouths of investors who are new to the market.

SPACEXbearish flag patternmedium

The Part of the Market Chris Vermeulen Says Is About to RipVerify source ↗

Trade idea

Micron

The speaker believes that Micron has already reached a top and is now on the backside of the move. The strategy involves selling an out-of-the-money put spread to collect premiums while being prepared for a potential retracement. The speaker emphasizes the importance of considering the backside of a move, where the market may correct after an overextended rally.

MicronPut Spreadhigh

How to Play a Bounce in a Beaten-Down Stock Like MicronVerify source ↗

Trade idea

Micron

The speaker suggests a trade strategy based on the price action of Micron, identifying a swing low at 640. By selling the 640 strike and buying the 630s, the trader can capture a 223 credit. The strategy also involves buying the 680s and 690s to capture a potential bounce after a pullback. The max loss is around 678, and the break-even point is around 688. The trade is considered attractive due to the defined risk and reward parameters, with a focus on capturing a portion of the price range.

Micronoptions spreadhigh

How to Play a Bounce in a Beaten-Down Stock Like MicronVerify source ↗

Trade idea

Rocket Lab

The speaker is long Rocket Lab using a two-by-one put ratio spread, betting on a potential rally from the support level at $64. The trade is based on historical resistance at this level and the belief that Rocket Lab will rally alongside SpaceX. The risk is higher than the reward, but the speaker is willing to take it due to the attractive risk-reward profile and the potential for a reversal at the support level.

Rocket LabTwo-by-One Put Ratio Spreadmedium

Gus Downing Bets on a Rocket Lab Bounce With an Aggressive Ratio.Verify source ↗

Trade idea

Rocket Lab

The speaker is shorting Rocket Lab with a defined risk profile, using a short put and long call at the 60 strike. The speaker is willing to exit if the stock falls below 60, indicating a bearish outlook. The risk profile is described as one-to-one, with a reward-to-risk ratio of 7% in the money. The speaker is cautious about the trade due to its high risk profile but acknowledges the potential reward.

Rocket Labshorting with a defined risk profilemedium

Gus Downing Bets on a Rocket Lab Bounce With an Aggressive Ratio.Verify source ↗

Trade idea

HILTON

The strategy involves identifying stocks that pull up on earnings news and then reverting to unchanged levels. The key is to wait for the first down tick after the pull-up to initiate a short, with the backstop at the high. This approach leverages the tendency of stocks to waffle down instead of up after a pull-up, providing a defined risk and potential reward. The backstop at the high acts as a safety net, and the trade is exited when the stock reverts to unchanged levels. The risk is limited to the difference between the entry price and the backstop, while the reward is the potential profit from the pull-up and subsequent decline.

HILTONReverting to Unchangedhigh

A Trader's Trick: Stocks With Earnings Often Snap Back to Unchanged.Verify source ↗

Trade idea

Hilton

The speaker identified Hilton as a potential trade opportunity due to its alignment with the 50 moving average and resistance levels. The structure of the chart suggested a potential reversal, making it a favorable risk-reward opportunity. The trade idea is based on the Stewie pattern, which provides a structured approach to identify potential bottoms in the market.

Hiltonvolatility playmedium

A Trader's Trick: Stocks With Earnings Often Snap Back to Unchanged.Verify source ↗

Trade idea

SPX

The speaker sets up an iron condor by selling out-of-the-money puts and calls and buying in-the-money puts and calls. The strategy is based on the market's implied range, with the goal of collecting a credit. The speaker adjusts the size of the trade based on volatility and aims to take profits at 50% of the credit. The strategy is executed with zero DTE options, and the speaker plans to buy back the position if filled at a certain price.

SPXiron condorhigh

Forget Implied Volatility. At Zero DTE, the Price Tells You the Move.Verify source ↗

Trade idea

Micron

The trade involves selling a put spread and buying a call spread to capitalize on an expected upward move in Micron. The maximum profit is achieved if Micron moves within the range of the spread, while the maximum loss is limited to the cost of the spread. The trade is expected to be profitable if Micron rallies, with the potential for a significant profit if the asset moves up to the upper strike of the call spread. The trade is timed to capture a short-term rally, with the potential for a credit on both entry and exit.

Micronsuper bullhigh

This Bullish Options Trade Costs Almost Nothing to Put OnVerify source ↗

Trade idea

MICRON

The speaker is short a put spread on Micron, with the short put strike at 800 and the long put strike at 850. The trade is expected to benefit from the current high volatility and the price being near the short put strike. The target profit is $250 to $400, with the trade being closed if Micron rallies significantly or if the price breaches below the short put strike. The trade is expected to be a fast mover due to the current volatility and the price being within the expected range.

MICRONshort put spreadhigh

This Bullish Options Trade Costs Almost Nothing to Put OnVerify source ↗

Trade idea

SKYQ

The low float stock SKYQ was a sympathy trade tied to oil prices. When oil made its biggest gap up of the trend, the stock was taken long over the highs. The trade was a short-term scalp, as low float plays are typically cyclical and short-lived. The strategy relies on the emotional and positioning-driven nature of low float stocks, which can move quickly based on market sentiment.

SKYQlow float playhigh

Why So Many Great Traders Start With Tiny, Risky Stocks.Verify source ↗

Trade idea

front side long in thematic plays

The speaker suggests that companies transitioning into AI data center themes during hype cycles present opportunities for front side long positions. These trades are considered in-play and require timing the entry as the narrative gains traction. The speaker also highlights the importance of monitoring dilution events as opportunities for short-term gains, particularly in low float companies that need to raise capital.

front side long in thematic playsmedium

Why So Many Great Traders Start With Tiny, Risky Stocks.Verify source ↗

Trade idea

SPACEX

The speaker is short SPACEX, believing it may retest support levels and potentially decline to 85. The trade is based on the idea that the stock may be oversold and that traders are attempting to identify a bottom. The speaker acknowledges the risk of the stock rallying above 110, which would invalidate the trade.

SPACEXshort positionmedium

Anne-Marie Baiynd Is Short SpaceX and Selling Micron's UpsideVerify source ↗

Trade idea

Intel

The speaker is shorting Intel by selling out-of-the-money calls with a strike price of 1,300 and buying another call with a strike price of 1,200. This ratio spread to the downside is designed to profit from a moderate price increase while limiting upside risk. The strategy is based on the expectation that the stock will rise but not explode higher, as seen in previous earnings reports. The entry is at a stock price of 1,300, with a target of 1,200. The invalidation is if the stock price falls below 1,200 or if earnings reports are negative. The time horizon is short-term, with a focus on the upcoming earnings reports.

Intelratio spread to the downsidehigh

Anne-Marie Baiynd Is Short SpaceX and Selling Micron's UpsideVerify source ↗

Trade idea

TSLA

The iron condor is structured to profit from a range-bound market with elevated implied volatility. The trade is set up to benefit from a neutral market, with a defined risk-reward profile. The speaker collected $200 for the trade, with a risk of $300, and is prepared to adjust the position if the market moves beyond the defined range.

TSLAiron condorhigh

Tesla Trade of the Day with Mike ButlerVerify source ↗

Trade idea

TSLA

The trader is combining an iron condor and a butterfly to capitalize on a potential volatility crush. The iron condor offsets the cost of the butterfly, and the strategy is designed to benefit from a range-bound market with a decrease in implied volatility. The theoretical profit range is between 345 and 375, with a break-even point around 340 and 375. The strategy is effective if the market remains within the expected range and volatility decreases, but it is vulnerable to market movements outside this range.

TSLAiron condor + butterflymedium

Tesla Trade of the Day with Mike ButlerVerify source ↗

Trade idea

NQ

The trade idea involves identifying a VWAP bounce after a rally. When the price pulls back to the VWAP, it indicates a potential long entry. The target is the VWAP with a partial profit, and the trade is invalidated if the price breaks below the VWAP or fails to hold above a deviation. This strategy is based on the idea that the VWAP acts as a magnet, pulling price back to fair value.

NQVWAP bouncehigh

Most Traders Chase Breakouts. Chris Drysdale Fades Them Using One Line.Verify source ↗

Trade idea

CL

The speaker sells a strangle on the August cycle, targeting a profit from time decay and volatility. The trade is based on the expectation that oil will remain within the 75-95 range, with the 21-day cycle being preferred over longer cycles. The trade involves selling a 75 put and a 95 call, with a total premium of $4.17. The speaker acknowledges the risk of a loss if oil moves outside the range, but believes the trade is viable given the current market conditions.

CLstranglehigh

Jermal Chandler Sells a $417 Oil Strangle and Walks the RiskVerify source ↗

Trade idea

MCL

The speaker proposes selling a 66 fall in MCL, leveraging the current skew and implied volatility. The trade is based on the assumption that oil will remain within the 75-95 range, allowing for profit from the range-bound movement. The speaker also emphasizes the importance of liquidity and risk-reward ratio, preferring MCL over CL due to its smaller contract size and lower premium cost.

MCLselling a 66 fall in a 27-day cyclehigh

Jermal Chandler Sells a $417 Oil Strangle and Walks the RiskVerify source ↗

Trade idea

SLV

The speaker proposes a put ratio spread strategy on SLV, buying a 53 put and selling two 51 puts to reduce cost basis and capture premium. The strategy aims to benefit from a drop in the underlying asset while limiting risk through the ratio of long and short positions. The breakeven point is calculated at 4820, with a max profit of $280 if the underlying expires at 51. The strategy is suitable for short-term volatility and price movements, with the potential to reduce the basis of the long position.

SLVput ratio spreadhigh

Mike Butler Collected $2,300 in Premium on One Silver PositionVerify source ↗

Trade idea

SLV

The speaker is looking to capitalize on the upward movement of SLV by using a vertical spread strategy. If the price continues to rise, the speaker can collect premium and reduce the cost basis. If there is a downside move, the speaker can adjust the position by adding more shares at a lower basis, thereby reducing the overall cost basis and increasing the potential for future gains.

SLVvertical_spreadhigh

Mike Butler Collected $2,300 in Premium on One Silver PositionVerify source ↗

Trade idea

SK Hynix

The trade is designed to profit from a decrease in implied volatility or a rally in the stock price. The steep put skew indicates that the put wing is overpriced, and the trader is short Vega by selling the 100 puts. The trade is delta neutral with a negative gamma profile, which means it benefits from a rally or a decrease in volatility. If the stock continues to decline, the trade could transition into a positive gamma trade as the 125 put approaches the money. The trade is flexible, allowing for adjustments in time frame and strike prices based on market conditions.

SK HynixPut Ratio Spreadhigh

SKHY Options Are Pricing In a Crash. This Trader Is Selling It.Verify source ↗

Trade idea

DRAM

The trade idea involves selling naked puts on DRAM, which is an ETF, with the goal of profiting from volatility contraction. The speaker suggests using a broken wing call fly strategy, which involves selling a put and buying a call, with the aim of capturing the implied volatility. The strategy is adjusted based on market conditions and risk profiles, with the lower bound of risk being zero. The speaker also mentions the importance of rolling out of positions if the market rallies, as seen in the case of a 10% rally.

DRAMbroken wing call flyhigh

SKHY Options Are Pricing In a Crash. This Trader Is Selling It.Verify source ↗

Trade idea

Texas Instruments

The speaker executed a calendar spread by selling the 4-day cycle option at 320 strike and buying the 11-day cycle option at 320 strike. This trade capitalizes on the difference in implied volatility between the two cycles, with the 4-day cycle having higher implied volatility. The trade was filled at a $2 debit, reducing the cost basis significantly. The expected move is up to 320 or down to 260, and the trade benefits from the implied volatility crush in the 4-day cycle. The speaker notes that the 11-day cycle's implied volatility is expected to drop to 60%, while the 4-day cycle's implied volatility is expected to drop to 60% as well, creating a 25% and 60% volatility crush respectively.

Texas InstrumentsCalendar Spreadhigh