HOW TO MAKE BETWEEB $500-$900 A WEEK ..Tieing up less than $7000

[METFAN]

Make sure you can trade vertical put spreads. You can buy and sell options on Shopify (SHOP) every week . Shopify is an online shopping platform. With the holidays and Covid here, I expect a lot of online shopping.

Currently trading around $1034 . You usually want to look at put options that are $50-$60 out of the money. But with the holidays I will look at $997.5 /$990

You open to sell the higher and open to buy the lower. This causes a spread in your favor. Usually you make this trade late Monday afternoon or midday Tuesday morning.. this way you see how the market is and you only have a few days to expiration. shopify is a stock that can move double digits in 1 day.

PROCESS

Sell to open December 4th $997.50 puts
Buy to open December 4th $990.00 puts

DIFFERENCE is a .90 credit to your account =$90/option 6 contracts gets you $540 less commission I bought 10= $900 less $13 commission

to make this trade my stock buying power was reduced $6613.57...that's a gain of between 14-15 % per week

BEWARE..Usually I play only $5 between strike prices but with shopping at a premium I feel good about the extra $2.50/$5.00 through the Christmas season

ALSO: After you make this trade you will see big profits and losses in your portfolio. IGNORE THEM ! The just mean you could have bought or sold at better prices depending on the market move of the stock. If the stock goes up you will see the lower puts show a big loss because you could have bought them Cheaper and the higher will show gains because you got more than the current worth.Again IGNORE

ONLY CONCERN SHOULD BE A DRASTIC PRICE DECREASE IN THE STOCK in which I will keep you posted here.

IF YOU ARE RICH..JUST SELL THE $995 PUTS FOR $1200 but you will tie up $99500 as collateral . Still over 1% per week =$62400/yr an almost 63% return on your money for those who want to lie low

There are also plenty of less expensive stocks you can do this with on a weekly basis

GOOD LUCK

 

[jdpII]

That's really bad advice! The more complicated the more BS that's involved. Keep it simple! Learn to read charts and this kind of stuff is nonsense! Just my opinion.

 

[METFAN]

Its not complicated at all..You are risking minimum amount of time.No charts required and its an easy $30k per yr as I will prove.The trade takes less than 1 minute per week.So unless your making more than $500/minute,your opinion is incorrect.While your reading charts,I am golfing and reading results.

 

[Thunderdog]

METFAN, I think the way you do about verticals.

Its only complicated your first time. And then its complicated when you are getting beat.
I have been playing verticals on the Bond ETF. Every week I put on about a 2 week option on about about $4-$5 out of the money.
I just did the 12/18 154/156.5 for $38 credit. BPR was $212. I put on 16 contracts. $3392 to make $608. If I keep them on until expiration.
I also do the SPY and SPX. I use Iron Condors, verticals, put selling, covered calls, strangles and ratio spreads.
Ill try some SHOP verticals. Thanks

 

[METFAN]

you sir are obviously a well versed investor...getting $608 on a $3392 layout is great..You are obviously aware that these low grade options trades are easy money and a sound way to go as most BIG TRADERS are oblivious to them

CONTINUED SUCCESS THUNDEDOG

 

[Bruins4Life]

If i could figure it out i would be doing this lmao.

 

[JamesHat]

Following... Thanks METFAN

 

[METFAN]

GOOD LUCK..I will post every week.Lets see if we can make over $30K this yr doing just this.

Finally made the turn The wind on the last 2 holes was brutal..

 

[METFAN]

YTD +$877

Just sold 10 OPTIONS strike $1015 expiring next Friday dec 11 th AND bought 10 @ $995 strike for a $1800 credit less $13 commission = $1787

$12063.72 frozen in my acct if all goes well a 14.81% return on your money in 1 weeks time

 

[METFAN]

if anyone is following this on ameritrade, check your account. Mine was off $4000 today. They showed the $997.50 Puts still had a value of $4.30 When it should have been .10.

I told them I will sell him another 10 @ that price . He had no idea what to do. He just agreed and told me he would let me know. ale=ways check your trades and balances.. I had up the + and - of the day and compare to the previous day every day and this is the 2nd time I found an error..Just saying

 

[Ricboff]

Make sure you can trade vertical put spreads. You can buy and sell options on Shopify (SHOP) every week . Shopify is an online shopping platform. With the holidays and Covid here, I expect a lot of online shopping.

Currently trading around $1034 . You usually want to look at put options that are $50-$60 out of the money. But with the holidays I will look at $997.5 /$990

You open to sell the higher and open to buy the lower. This causes a spread in your favor. Usually you make this trade late Monday afternoon or midday Tuesday morning.. this way you see how the market is and you only have a few days to expiration. shopify is a stock that can move double digits in 1 day.

PROCESS

Sell to open December 4th $997.50 puts
Buy to open December 4th $990.00 puts

DIFFERENCE is a .90 credit to your account =$90/option 6 contracts gets you $540 less commission I bought 10= $900 less $13 commission

to make this trade my stock buying power was reduced $6613.57...that's a gain of between 14-15 % per week

BEWARE..Usually I play only $5 between strike prices but with shopping at a premium I feel good about the extra $2.50/$5.00 through the Christmas season

ALSO: After you make this trade you will see big profits and losses in your portfolio. IGNORE THEM ! The just mean you could have bought or sold at better prices depending on the market move of the stock. If the stock goes up you will see the lower puts show a big loss because you could have bought them Cheaper and the higher will show gains because you got more than the current worth.Again IGNORE

ONLY CONCERN SHOULD BE A DRASTIC PRICE DECREASE IN THE STOCK in which I will keep you posted here.

IF YOU ARE RICH..JUST SELL THE $995 PUTS FOR $1200 but you will tie up $99500 as collateral . Still over 1% per week =$62400/yr an almost 63% return on your money for those who want to lie low

There are also plenty of less expensive stocks you can do this with on a weekly basis

GOOD LUCK

cool thread metfan, options r a cool vehicle , can be deployed with minimal capital ( other than selling calls/puts).. In the Dec 2018 market crash , W Buffet make just over $4 billion in premiums by selling puts

my fav option strategy is a bull put spread using a beast of an underlying at a strike price delta of .10


no free lunch in life, options not exempt

3 keys
-the chosen underlying
- TA
-management of the position



not hard to learn , as Metfan is pointing out.

 

[METFAN]

True..but i have made over 6kin the last 3 weeks with absolutely no issues just on this FREE money

 

[METFAN]

THIS WEEK...The option expires Dec 24th. shopify currently trading at $1171.00

I sold to open DEC 24 EXPIRATION, $1090 STRIKE
I bought to open DEC 24TH EXPIRATION $1080 STRIKE

For a $1.20 credit spread meaning I get $120 for every option. I did 5 because that should pay for my Christmas Eve Christmas party

5x$ $120 = $600 less 6.50 commission = $593.50...Hopefully that's enough when I go to pick the food up. My wife likes to over order

 

[centreline]

just wondering how this is doing? Are you having the success you hoped? New to this type of trade so i am trying to figure it out

 

[METFAN]

In 3 weeks I made $3268 JUST ON SHOPIFY..By January 15th, I expect to be up over $10000 on these trades or own some good stocks at great prices. Since this is the last week of the year and people will be taking GAINS to offset loses, I will be laying low. If you want to own a stock you like at a great price, you may try it. I am considering selling Chewy (CHWY) $80 strike January 8th expirations for $40/option..That is a good price but you have to hold $8000 /option until that date and be prepared to own the shares at that price as well.