Buffett Buys Dominion, TSLA To The Moon, and Trading Option Debit Spreads on tastyworks

Buffett Buys Dominion, TSLA To The Moon, and Trading Option Debit Spreads on TastyWorks | Coffee With Markus | Episode 62

Intro: 0:00
What's Going On In The Markets: 1:54
Omaha Oracle Warren Buffet's Berkshire Hathaway Purchases Dominion Energy: 6:33
Trading Option Debit Spreads on TastyWorks: 13:16
Deep Dive Q&A: 26:10
Q: What strategy do you use on Tasty Works? 37:32
Q: So when trading verticals, on trade will be going up, and on trade going down? 38:50
Q: Do you take the same PXO trades across all your different accounts, or trade different strategies for each? 43:46
Q: When do you get out of the spread? 44:57

This directional strategy is a great one to add to any option trader's trading toolbox.

Sign up for a tastyworks account here: https://www.rockwelltrading.com/tastyworks

Trading Option Debit Spreads On Tasty Works https://www.youtube.com/watch?v=87hx-63DsU0&t

We know that we use call debit spreads when we’re slightly bullish, or expect the market to go up. Conversely, when we expect the market to go down, we will trade put debit spreads.

I really think debit spreads are great tools for reducing the price of the trade and the break-even point of the trade.

There are 3 things you need to know when trading options
What stocks or options trade
When to enter the trade
And when to exit with a profit or a loss.

This is why I use the PXO system when trading options.
Check out the PXO strategy here https://bit.ly/2wMQ7zW

When choosing the call option spread for this video, PXO recommended the entry and exit price for me automatically.

If I was going to trade a call option, this same trade would have looked a little different. The cost to enter the trade would have been $210. The max risk for this position would have been $210 and the break-even price would have been $22.41. The maximum reward for this position would be unlimited.

Since I decided to trade a call debit spread, things are a little more affordable. The cost of the trade is now $160. The max risk on the trade is only $160, and the break-even price has been reduced to $21.60. The max reward for this position would be $680.

When we look at this deal in the profit picture we can see what it looks like represented on a graph. The orange line indicates the theoretical price of the spread as we’re trading it.

The green line on the top of the spread represents the maximum profit at expiration.

If you like the information presented in this video, remember that I go into detailed steps about these types of trades and many others in our class.

This class is on Tuesday, July 7th, 2020.

If you want access to this class, and an amazing deal on the PowerX Optimizer Software Package, check out this July 4th Freedom Deal https://rockwelltrading.com/freedom

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Видео Buffett Buys Dominion, TSLA To The Moon, and Trading Option Debit Spreads on tastyworks канала Markus Heitkoetter