If it were the case that max loss is 2-5% then why did you decide to hide the other side of the graph where the real risk was shifted. I do realize that it is less likely, it is misrepresenting the strategy by only showing the favorable side. If it were true that the max loss is 200, then that would mean that should be the margin, but I bet TOS set aside way more than that on margin...
@TheManInTheMasks Hi there, if you manage your trades correctly using our R.A.S., the Revolver Adjustment System, then you can keep the risk to within 2%. Thank you and good luck on your trades.
to make a trade like this you buy 1 expensive at the money option and sell two out of the money options to pay for it, either all puts or all calls. to reverse the trade sell to cheap options to cover the cost of one expensive option.
Actually, the investment on this trade is very low, and can actually be absolutely free if you have TOS Portfolio Margining. Secondly, there is no risk to the upside because you would simply exit with a huge profit before ever getting to a point where you can lose money. Thank you for your comments, they are great.
@rameshjain2009 We find that trading these very short term can prove to be risky, but a little farther out in time gives the trader more space and the time needed to prevent drawdowns to the upside.
If it were the case that max loss is 2-5% then why did you decide to hide the other side of the graph where the real risk was shifted. I do realize that it is less likely, it is misrepresenting the strategy by only showing the favorable side. If it were true that the max loss is 200, then that would mean that should be the margin, but I bet TOS set aside way more than that on margin...
TheManInTheMasks 11 months ago
@TheManInTheMasks Hi there, if you manage your trades correctly using our R.A.S., the Revolver Adjustment System, then you can keep the risk to within 2%. Thank you and good luck on your trades.
sjoptions 11 months ago
Great video man
StockTradingMaster 1 year ago
how much real money does a trade like this take up from your account
ceed4eva 1 year ago
to make a trade like this you buy 1 expensive at the money option and sell two out of the money options to pay for it, either all puts or all calls. to reverse the trade sell to cheap options to cover the cost of one expensive option.
Ricobomb11 1 year ago
Actually, the investment on this trade is very low, and can actually be absolutely free if you have TOS Portfolio Margining. Secondly, there is no risk to the upside because you would simply exit with a huge profit before ever getting to a point where you can lose money. Thank you for your comments, they are great.
sjoptions 2 years ago
Does not address risk to the upside (which is very high) nor the amount of margin (capital) required for a trade like this (which is also very high).
udtfrog5 2 years ago
@udtfrog5 U R right . Suppose the market rises considerably. The loss will be very high
rameshjain2009 1 year ago
@rameshjain2009 We find that trading these very short term can prove to be risky, but a little farther out in time gives the trader more space and the time needed to prevent drawdowns to the upside.
sjoptions 1 year ago
can you explain or show how you set this up in TorS, what is the strike price. Also how you choose the type of underling stock.
dszlauer 2 years ago