High Probability Options Trading Defined

http://optionalpha.com - If you're new to options trading you've likely heard from either us us or someone else the idea of making high probability trades. But sometimes this concept can be hard to grasp. In this quick video tutorial we'll define high probability trading with regard to your possible win rate and probability of success based on the types of strategies and strike prices that you select. You'll actually be amazed at how easy it is to find and execute high probability trades that give you an opportunity to see a win rate of more than 70% on average long-term. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Very nice tutorial! I use Interactive Brokers but I can't figure out how to display ITM probability in the option chain. What platform did you use in this video?
2. what program is that in the video?
3. Hi Kirk, Thank you for your videos!
   
   I have a novice question:
   
   I can see that your probability of success is 100%-16,55%= 83,45% ~ 84% which is indeed nice.
   
   BUT
   
   It means, out of 100 trades approx. 84 will be winner
   Which in this case means, you pocket 16$*84%= +1344$
   BUT in the meanwhile you lose about: 84$*16%= -1344$
   
   So you are at 0$ !
   
   OR
   
   If we go with 83,45% success rate, you can make, 16$*83,45%= +1335,2$
   And lose 84$*16,55%= -1390,2$
   
   So now, you are at -55$ after 100 trades!
   
   How can this "high probabilty" trade be profitable, if the amount of money that you going to win is so low(!) that the amount of you are going to lose(!) is far outweight it on the long run, even with such probabilities?
   
   Thanks,
   Oliver
4. Would you rather just sell a naked put then the vertical spread for more profit? I know that's more riskier but 16 dollar profit.... is that enough?
5. Hi, I am new to your channel.. its really helpful. keep up the good work!
6. I'm PA realtor have plenty of time follow your videos Keep up the good work
7. Nice job i watch all your videos.Super easy tutorial on how to make $$$$.I will work with  you any day :) 
8. The profit wont even cover the total commission for 1 spread
9. very helpful!