Really enjoy all of your great insights on trading options!
@sonny5982
Жыл бұрын
Great video thanks for the explanation and spreadsheet
@CreditSpreadInvesting
Жыл бұрын
Anytime!
@abr2926
Жыл бұрын
Hey I don't see a column for dividends. Also if you have deeper pockets, instead of just the CC sell a covered strangle, so after stock assignment you begin selling call and another put. If the stock falls you can roll the put if you don't want assignment.
@AlternativeLine
Жыл бұрын
Oh huge respect, i shared your video with many friends. I was looking for something similar to that sheet, i do know how to trade wheel but im pretty awful with excel... Tyvm man and i wish u best of luck draining theta ;) Update: I just tryid the sheet and its designed to do a single wheel with 1 Cash secure put. If i am playing 9-20 at a time the sheet dont recognise it as i am doing more than 1... :( I was so excited... I guess ill be going back to my stone age sheet that i have to write down everything on my own
@CreditSpreadInvesting
Жыл бұрын
I’ll update that tonight. I just need to update a couple of cells :) I somehow forgot and didn’t notice when I was testing with multiple options 😅
@CreditSpreadInvesting
Жыл бұрын
The quantity issue has been fixed… I’ll see if there’s a more foolproof way of formulating that but at least for now as long as your quantity is always the same, the tracker will work. Let me know if there’s any other issues or suggestions. Always looking to improve the tracker for you all to use for free. Thanks again my man for spreading the word about my channel.
@rakeshraju7307
Жыл бұрын
excellent analysis ...the tracker will only work for 1 ticker and for only 1 quantity
@CreditSpreadInvesting
Жыл бұрын
Hey I believe that the tracker should already be fixed for this one quantity issue. Please do let me know if that’s not the case! As for one ticket, please do make a new tab for another ticker so that it can be tracked separately. Thanks again for watching the video! Hope the tracker is helpful for you! And let me know what else you would want me to add and I can get that automated for you 😀
@rakeshraju7307
Жыл бұрын
@@CreditSpreadInvesting Thanks yes quantity issue is fixed. I am waiting for a pullback to do CSPs ..
@CreditSpreadInvesting
Жыл бұрын
Haha yeah for sure. I’ve been selling a lot of covered calls recently and it’s been a good time 😀
@samuellee1431
Жыл бұрын
I miss your credit spread videos. When do you plan on uploading more credit spread videos? Also, have a quick question when doing spreads. When you do your spreads, how long does it usually take for you to hit your profit target, not including rolls?
@CreditSpreadInvesting
Жыл бұрын
It really depends from ticker to ticker. Sometimes within a couple of weeks because the stock went in the right directions. Other times longer cause it’s gone sideways and it’s draining theta. Even though technical analysis helps in getting in trades, there’s never a guarantee that my hypothesis is correct.
@samuellee1431
Жыл бұрын
@@CreditSpreadInvesting . Thanks, I am noticing in this market with the VIX low, I am noticing my spreads are taking a bit longer to reach the 50% profit.
@samuellee1431
Жыл бұрын
Also noticing that with a 30-60dte, across different sectors, avg return on credit spread is 5-10%.
@samuellee1431
Жыл бұрын
Currently testing out on papertrade a 7-14 dte credit spreads since I could possibly get 10-20% at a faster pace, and acknowledging the win rate could be less.
@CreditSpreadInvesting
Жыл бұрын
Yeah market conditions shift so I don’t really care too much about the time it takes, just as long as it does hit. If I sell a 45 DTE, I’m already committing 45 days to this one trade and if it’s faster, great … if not then I’ll just wait. Good luck with your trades. You just have to find your own style and if 7-14 works better for you, then that’s your way of trading! Lmk how they work out for you!
@halbouma6720
Жыл бұрын
Thanks for the video and tracker. I just tried to play with it and sadly your quantity column breaks the whole thing. You indicate in this video debit/credit is the total money you were credited or debited. But the profit column is based on the credit/debit times the quantity. If I sell 3 puts for a credit of $90 that expire worthless you instead show a profit of $270. None of this matters though because your stock cost basis assumes that I'm only doing 1 contract (100 shares) which you even show in this video. This makes the quantity column useless. My cost basis is 3x the amount it should be if my 3 puts are assigned. Either support the quantity column, or as it will likely be easier, have a fixed contract size in the summary column for the wheel run, or just have it track a single contract since its goal is to show rate of return. Then I think it would also be easier for credit/debit have us enter the per share price that the sheet multiplies by the contract size. Also, since this tracker only supports 1 wheel, the stock column is redundant too.
@CreditSpreadInvesting
Жыл бұрын
Ah good catch. I'll have that fixed!
@halbouma6720
Жыл бұрын
Oh, having the ability to add in dividend payments would be great too!
@AlternativeLine
Жыл бұрын
@@halbouma6720 Myself i trade wheel for 3 or 4 yrs now i avoid dividend stocks because first of all it gets cut with witholding tax and my dividend is split in half and the premiums are very low for dividend stocks u cant even get 1% per month
@sonny5982
Жыл бұрын
In your opinion what would you say is the highest yet consistent rate of return you can get a month from doing the wheel strategy?
@CreditSpreadInvesting
Жыл бұрын
Hey! I don’t think there’s a set answer for this. Overall, It really depends on your risk tolerance and what you think is enough. Small caps with larger volatility will yield higher returns on the premium but at the higher risk of stock price fluctuations. For larger companies, the premiums are less but the asset price fluctuations can be much more stable. Look at microsoft and apple in 2022 and 2023 vs Lyft and other small caps. (With obvious capital requirements) Another variable is strike and time. I sell mine 30 to 45 days out normally so my yield is not maximized since I’m draining theta, but there are people who like to sell aggressive weeklies (ie: very close to the strike) who return higher percentages than I do. For me personally, as long as I beat my risk free rate of return after taxes, I’m happy. But everyone is different and you should figure out how much is enough for you, using this strategy. I would however caution against wanting massive returns from selling options. That I’ve seen causes people from over extending and end up selling on highly volatile stocks with no real intrinsic value, as I stated in the video as a huge risk for selling cash secured puts. Hope that helps
@sonny5982
Жыл бұрын
@@CreditSpreadInvesting thank you for the reply this helped !
@CreditSpreadInvesting
Жыл бұрын
Anytime. Lmk if you have any other questions!
@garyqlau
Жыл бұрын
Hi - I have a question about your spreadsheet as I find that the profit and cost basis calculations seem not to be taking into consideration the quantity of options sold. I find that if I'm selling more than 1 lot of options the profit and cost basis calculations are not correct. Thanks
@CreditSpreadInvesting
Жыл бұрын
Yeah… there’s a bug that I didn’t catch. I’ll have it fixed shortly 😃
@radekwe8681
Жыл бұрын
I don’t get why anyone would just jump into options trading without educating themselves first. This is oversimplified and doesn’t cover risk properly. If you don’t want to put in the time to understand at least the Greeks and how iv plays a role you should not touch options. These types of strategies are just trendy trash. If things go south how are you defending your position? Just sit on 100 shares for unspecified amount of time with hope. Most important is understanding the mechanics and have a defense plan. Wishful thinking and best case scenarios will hurt you. And this whole wheel strategy would just be better off as only options. Lastly, you don’t need any special spreadsheets you can do it in your head.
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