Options Trading Mistakes To AVOID
trade stocks October 2nd. 2020, 10:24pm1.📸 Follow me on instagram: https://www.instagram.com/investitrade
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Here are some beginner mistakes I have seen option traders make. If you recognize and can relate to any of these, I hope my instructions will help prevent you from making future mistakes. Enjoy ! 🙂
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Keywords: thinkorswim, options, options trading, td amertitrade, trading, carmine rosato, stock trading, options, supply and demand, live trading, trade recap
#psychology #daytrading #supplydemand
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October 2nd, 2020 at 11:21 pm
Great video as always Carmine. Thank you for all your hard work. Why don't you recommend ITM options?
October 3rd, 2020 at 12:00 am
Pro tip: Stop BUYING options all together #thetagang 🐌 😎
October 3rd, 2020 at 12:02 am
I don't agree with you on the option prices being a mystery when it comes to the stop loss all you have to do is subtract the delta and half of the gamma and you get pretty darn close every time if you have a decent stop loss Vega really won't crush you within a five minute time span
October 3rd, 2020 at 12:45 am
I'm a newbie at options trading and this video was made for me. Had 3 bad contracts and one good one. Thank you for the content. New subscriber.
October 3rd, 2020 at 1:29 am
I’ve been learning how to trade for the last 8months, struggling the whole time.
Came across your channel 2weeks ago, and trading is finally making sense to me. Still paper trading, but holy shit, my accuracy is on another level now!
Keep it up, and your channel will grow at an insane rate
October 3rd, 2020 at 2:15 am
bro you have saved my ass so many damn times, i thank you
October 3rd, 2020 at 2:22 am
do you take into consideration theta?
October 3rd, 2020 at 2:24 am
How is TOS treating you guys lately? Have they finally gotten their stuff together? I tried them a couple of times over the last few months but always had horrible luck with their servers going down etc.
October 3rd, 2020 at 2:54 am
Thank you great video!!
October 3rd, 2020 at 3:44 am
Yeah I’m having that issue with appl I got in when it was going up crazy 2 March 2021 contracts and now the delta is so low i did 165 and 145 🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️thank u for this video
October 3rd, 2020 at 4:37 am
Thanks Carmine… I learned everything you said the hard way…
October 3rd, 2020 at 5:04 am
GREAT VIDEO!!!! This is about the best options video that I have seen. Easy to understand, concise and full of valuable information. Thanks!
October 3rd, 2020 at 5:22 am
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October 3rd, 2020 at 5:49 am
Third straight very good week using supply and demand zones. 👍🏻👍🏻
October 3rd, 2020 at 5:53 am
Great content, I'm a newbie so its very appreciative.
October 3rd, 2020 at 6:46 am
Really enjoy your videos, newer sub
October 3rd, 2020 at 7:13 am
Thank you very much you are a great teacher and a great human being
October 3rd, 2020 at 7:42 am
Very True but there are some exceptions to the Far OTM rule. If you know a big movement of a stock and your account can handle a little lost if it goes wrong ,the risk reward is massive. Last Friday i wanted to test my theory out and was willing to lose 2k it never got there. I bought a 200 strike roku for sept 25 the previous week for .25 cents a contract. Went with 100. Roku has been my go to and only time i load up on 100 contracts. Last 3 big roku run ups i hit big. Monday i got in 100 contracts @ 160 strike for 2.30 and 2.50. Avg in 50 and 50. My thinking was if the 200 fails the 160 strike more than covered it. Usually on run ups i would close out all my contracts when roku goes up 15 points. Monday when it hit my target i held a little longer because the uptrend was so strong. I ended up closing 90 contracts at 185 for 16 bucks premium and kept 10. I ended up holding those 200 strike contacts over night which i usually would never do. Those 25 cent calls ended up going up to 3.15 in premium and i sold 50 at 2.90 and 50 at $3. 2k netted me roughly 50k. I did this as a test to see how much more i could add from my 160 strike 100 contracts. I also ended up closing my 10 from Monday right before roku break 200. I would never recommend anyone doing what i did. Never hold more than 10 contracts of weeklies over night or if the premium you bought is over 5 bucks. I had alert and scanner set up for when roku hits a certain amount of volume. When it does, i get an alert telling me its institution that’s in the trade buying up roku. Moral of the story is get to know one stock and study it religiously. It is very possible to make money with a lot of contracts with far OTM weekly options but YOU HAVE TO KNOW that stock has a catalyst from news. It has definitely paid off for me. Big payouts on roku this past week, early July and also Aug 25-28 was a gift and curse. My ego got big to the point i was trading options on other stocks like FB, Shopify, Tesla, WMT and DKNG with too much size. Ended up giving back about 40k which would be about 1/4 the profit i made off roku. Before Monday, i had to go back to trading stocks only to build up my confidence again and remind myself to stay humble and that small wins each time will win. Anyone reading this trust me, when you ever get in a position where you made 30-40k within 45mins to 1 hour span. That ego will kick in and it will hurt you because you will go into winning trades and hold much longer and it will humble you. My moment came in a Tesla trade when i was up 8k and being smart decided to hold on thinking i was going to hit target to 15k. Ended up losing -15k. Keep up the good work Carmine! It because of your videos on how to trade options on TOS is how i started trading options.
October 3rd, 2020 at 8:39 am
Thank you! Appreciate the education!
October 3rd, 2020 at 9:30 am
Great video Carmen. However I had one inquiry about the first example. With a $350 if you bought 2 contracts for 1.70 at a .36 delta, a dollar move up would equate to approx. $72 profit . The 10 contract bought at $35 dollars with a .09 delta would equate to a $90 profit. So wouldn’t the latter be more effective for smaller accounts?