13 Comments

1. 

   John Ellison on March 21, 2020 at 5:52 am

   Hi Nishant – item 2 ….if the price goes up, then…. fyi

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     Nishant on March 21, 2020 at 12:10 pm

     Thanks! updated post

     Reply
2. 

   Neenah Chaiya on March 24, 2020 at 3:10 pm

   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.

   Reply
   • 

     Nishant on March 24, 2020 at 3:12 pm

     thanks for the feedback. Working on the next video, will pay attention to volume

     Reply
3. 

   Arun Raj Karunakaran on March 24, 2020 at 4:25 pm

   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.

   Reply
   • 

     Nishant on March 24, 2020 at 5:05 pm

     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.

     Reply
4. 

   Philip Rowland on March 29, 2020 at 3:41 pm

   @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?

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   • 

     Nishant on March 29, 2020 at 3:43 pm

     Yes, you can use that as a quick cheat/mental math to calculate P&L and risk for a typical ATM Debit Spread.

     Reply
5. 

   Philip Rowland on March 29, 2020 at 4:01 pm

   @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.

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     Nishant on March 29, 2020 at 8:27 pm

     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!

     Reply
6. 

   Dan Simon on May 11, 2020 at 9:00 am

   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.

   Reply
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     Nishant on May 11, 2020 at 9:05 am

     Thanks for pointing out. Fixed the mistake. Changed the spread to $1145 – $1155.

     Reply
7. 

   JL Bil on June 7, 2020 at 11:51 pm

   @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)?

   Reply