This content is accessible for paid members only.
Login To Unlock The Content!
If you are already a "Free Member", CLICK HERE to upgrade your account
This content is accessible for paid members only.
Login To Unlock The Content!
If you are already a "Free Member", CLICK HERE to upgrade your account
Hi Nishant – item 2 ….if the price goes up, then…. fyi
Thanks! updated post
Once you get a Discord account setup, you will see the alerts in a thread there.
All the trades are posted live on our Discord group. Did you join the group yet?
Hello, if you haven’t joined Discord, you will not see anything. All the live trading is done on Discord. email me nishant@25koptionschallenge.com
Instead of brokers you have mentioned
Can I use different one ?
Like bull call spread
Will there be Bear put spread?
Yes, you can use any broker as long as you can trade vertical spreads.
Yes, we do bear put spreads too. However, I trade in the general direction of the market. In the current bullish market conditions, bull call spreads are working out better than bearish positions.
The content and the presentation of the video are awesome. Only one thing that I would like to recommend is if you can speak up or make the higher volume of your voice it would be great.
thanks for the feedback. Working on the next video, will pay attention to volume
if the BKNG at is around 1150(between 1145 and 1155) and I try for 1150/1160 spread, if it costs more than your cost($530), should I buy ? how much more can I spend on the spread than your cost ?
Also, I tried both RUT and BKNG when the prices were lower than when you alerted, I saw that there were no sellers/buyers for one of the leg and it was not filled.
Great question. This rule of thumb might help. An ATM spread usually costs 1/2 of the width of the spread. So, a 1145 – 1150 or an 1150 – 1160 spread both should cost approx $500. You can easily play around with the price. Its okay to pay $560 for it, or $480.
When you see the spread not getting filled, pay attention to the current price of the spread vs the price you are trying to buy. It shows you that in the monitor tab where unfilled trades are waiting.
@Nishant 1145 – 1150 is a 5 point spread whereas 1150 – 1160 is a 10 point spread.
So, theoretically the first would cost $250 while the second would cost $500, correct?
Or am I missing something here?
Yes, you can use that as a quick cheat/mental math to calculate P&L and risk for a typical ATM Debit Spread.
@Nishant Thanks!
Next question: do I buy the options at asking price? Or do a limit at some mid price?
TOS seems to suggest a mid price between bid and ask, but then that risks not getting filled.
Same question applies closing out my position.
Yes, always choose the mid price. The risk of not getting filled is perfectly fine at opening. When closing, if it is not getting filled and expiration is near, I keep adjusting the bid up by .10c every 2-3 hours, it eventually gets filled, always!
Typo in the last bullet point before the video – “… a $1145 – $1150 or an $1150 – $1160 spread both should cost approx $500 …” Actually the $1145 – $1150 will cost $250, right?
Thanks.
Thanks for pointing out. Fixed the mistake. Changed the spread to $1145 – $1155.
@Nishant – Thank you for the awesome video.
Given the wide trading ranges, if the underlying quickly rallies and goes in the ITM intraday, then do you typically close the trade ASAP when it reaches your personal target(even if it’s an intra-day move)?
Replying to a really old comment. This video will answer your question: https://25koptionschallenge.com/why-is-my-debit-spread-not-closing-even-when-it-is-itm/
Thanks…this is a great video!
I often don’t get a fill because I want to get at, or a bit below, the mid-price of the legs. Have you addressed this anywhere?
It happens sometimes, but should not be a common occurrence. I have addressed this on Discord. Check the FAQ channel, faq#14.
Very useful one. would appreciate if you have captured profit closing ($4.85 GTC for $5 call spread) as well. where can I find that video for TOS?
Hi Naresh, it is already there. Have you checked this video: https://25koptionschallenge.com/closing-debit-spreads/