INTRODUCING THE EASIEST & MOST Hands-On Way to Become a
Successful Options Trader
Options Trading 360 with Brent Osachoff
Professional options trader (and former professional golfer) Brent Osachoff has partnered with T3 Live to reveal his most closely guarded options trading strategies.
Brent is the options trading genius you've never heard of. He preferred to stay in the shadows and work with his high net worth clients...
Until he couldn't take it anymore.
Something terrible is happening in options trading
Should you be worried? Yes. Absolutely.
If you're trading options for one of these three reasons, you should be terrified:
"yes, this is why I'm trading options."
While options provide these advantages, the use of options for ONLY these 3 reasons will almost guarantee that you will eventually lose your money.
Yes, your risk is limited, but knowing how much you might lose is not very comforting when your chances of making money are slim.
So what do you do?
Put yourself on the winning side of the options trade.
Brent has pioneered a game-changing method called Options Trading 360. The process is a breakthrough that puts the odds in your favor before you place a trade.
The world of derivatives can seem complicated for newbies, especially options. If there is a thorough way to learn about them, this is it!
Let's let Brent explain...
Brent has systematically simplified various options trading strategies, making his trade ideas:
Easy to understand
Easy to execute the trade
Easy to manage the trade
He includes everything about options: types, strategies, formulas, pricing, Greeks, etc. Since, the details can seem overwhelming to some, he uses simple language to make things easy.
In the world of options trading, basic calls and puts are in every strategy, whether simple or advanced.
Here's a recent example of an Options 360 trade from start to finish.
On June 3, 2019, Brent Osachoff launched his first trade of the month for the new Options 360 program. It was a short position in CVS puts.
Now you can see the full trade alert members received that morning.
Make sure you read this full post. At the end, you'll get a FREE educational video. Plus, you'll see just how profitable this trade was after only one day!
June 2019 Trade of the Month: CVS Short Put Trade
.The S&P 500 is still struggling of late and currently finds itself down -6.6% from the all time high set just one month ago. Now that may not sound like much, but if we pull back a little further we realize that the S&P 500 hasn't made any significant progress in almost 18 months now. It's currently still below the levels it reached all the way back in January of 2018.
2 Year Chart of The S&P 500:
So is this is just a short term pullback and we'll soon see all time highs again? Or is this perhaps just the start of something worse?
Of course nobody has a functional crystal ball to know the answer to that question, but all I'm concerned about is finding the trades with the highest probability of success, and then allowing patience and time to bring in the profit.
The first question we always have to ask ourselves when looking for potential options setups is, where is volatility right now? There are many factors to a good options trade but above all else, the level of current market volatility is going to determine the type of trade. Here's a chart of the VIXindex for the last 5 years:
So we can see in that chart, the VIX index is certainly not the highest it's been in the last 5 years. That honor goes to the February 5, 2018 "Volmageddon" spike which took the VIX index over 50 intraday.
However, with the VIX index currently at 18.71, that is still quite an elevated reading. How do I know that? By calculating the percentile ranking.
A percentile ranking is a way to determine where the current value ranks in relation to itself over a specified time period.
Within the last 5 years, today's VIX index reading of 18.71 is the 81st percentile. That means 81% of the time in the last 5 years, the VIX index was lower than it is today. So it's pretty easy to see, market volatility is elevated right now.
As all of us geeky options traders know, when the market is struggling and volatility is elevated, we are looking to be net sellers of premium. We want to be short Vega.
One of my go to trades in times like this is just a simple short put option on a stock that has a good long term outlook. I'll go through my watchlist and see if I can find something that is near 52 week lows, but still something that I wouldn't mind holding for the long term. Today's target is CVS Health Corporation
Today's Target: CVS Health Corporation (CVS)
1 Year Chart of CVS
It's clearly been beaten down of late, but I'd still be comfortable owning the stock at these levels. Whenever that's the case, why not bring in some premium for doing something that I would do anyway?
SELL to OPEN 1 x 7/19/2019 CVS $52.50 Put
46 days to expiration
Guide to the trade explanation:
1 X means one contract (we use one contracts in these trades to keep things simple - you may size your own trades as you see fit)
7/19/2019 is the expiration date of the option, CVS is the symbol of the underlying, $52.50 is the strike price
Whenever I'm selling short puts, I trade them as what's called "cash secured."
That means I reserve the full amount of capital it would cost to hold the shares outright.
Cash secured put margin = (Strike price * 100) * (# of contracts) Cash secured put margin = ($52.50 * 100) * 1 = $5,250
This trade requires $5,250 in capital per contract. Now it won't technically require that much to execute, but I still leave that full amount available in unallocated cash to deal with the event that this contract is actually assigned to me towards expiration.
I always trade cash secured puts with a 10% total value stop-loss.
Remember, just because a stock is beaten down in price and near a 52 week low, that doesn't mean it can't go down further. For all we know this is just a short term stop on its way to much lower prices, so we always have to put risk management at the forefront and use a stop loss.10% of the margin requirement of $5,250 is $525.
That means if this trade is down more than $525 per contract, I would stop-loss out and look for other opportunities elsewhere.
Using the daily profit curve (in my ThinkorSwim software it's that pink curved line) you can track the day to day value of the contract. In your software you will definitely have something similar.
It's a good idea to check the trade once a day to see how it's doing, and if its value ever does dip below -$525 per contract, it's time to close it.
Trade Review: 1 Day Later
On this next chart, the entry is denoted with the circle. Since this is a short position, it profits if the price falls.
So we want it to trade lower.
CVS stock surged the next day, and the puts fell from around $1.80 at the time of entry to as low as 90 cents the next day.
That's a great one-day gain.
Options 360 with Brent Osachoff provides comprehensive options trades, detailed training videos related to each trade, and trade updates. Each issue arrives at your inbox on the first Monday of each month.
An annual (12 month) subscription is just $49.
Each issue is organized with instructional material at the beginning of each trade, followed by advanced explanations for correctly implementing the strategies and tactics .
Brent stays focused on his purpose as expressed in the title "Options 360" of how option strategies can be used for various purposes in a portfolio, not just techniques to apply mechanically.
Each options trade includes charts, screenshots, and videos that are designed to increase your comprehension and conviction in the trade.
This annual newsletter is very comprehensive and covers material suitable for the professional or very advanced trader, in addition to basic concepts.
The video archive also serves as a great reference for future use and continuing education.
Two-Part Video Series
Stock Replacement Through Options - How to earn a higher long-term profit, as well as mitigate some of your portfolio risk. Stock replacement can be done on any asset that has a liquid options market.
Use this strategies on indexes like the S&P 500 or the Nasdaq, hundreds of individual stocks, bonds, gold, real estate ETF's -- or anything else that has an options market. ($99 Value, Yours FREE)
If you'd like a quicker pace of ideas, try Brent's Trade Per Week subscriptions.
1 Options Trade Delivered on the First Monday of Each Month
1 Powerful Options Trade Delivered Every Monday
1 Powerful Options Trade Delivered Every Monday