Investing Small Accounts - Target: 1% Daily Return on Capital Trading JCP & FXY

http://goo.gl/EaF69C Tom Sosnoff and Tony Battista discuss investing strategies for brokerage accounts with limited capital. In this segment they discuss certain strategies that your could use in FXY and JCP to maximize your return, limit your risk, all in a brokerage account under $2.5k. ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Trying to apply this to concept to my current small acct. Taking profits early vs time decay. What does this mean? If I want to exit the trade if i'm in the black I can exit the trade at any time selling puts? If I wait to expiration, I stand to make the full $92 or potentially loose. Sure wish I could find answers to simple questions without having to pay a service. Anyone know the answer?
2. Great info! Luv u guyz.
3. I think you should use credit spread instead of naked short put option. Naked Short option involve inherit risk. The risk defined strategy (credit spread ) is better choice
4. hey guys thanks for approaching this topic.... hey by the way have you done any bit coin related videos??
5. Tom for President!
6. Hi, I'm a bit new into options but started breaking down the numbers and the resultant profits and didn't get results so amazing as they seemed. I think I must be misunderstanding something or forgetting some of the lessons learned recently. There we go:
   
   If you have a max. 50% ROC that you earn 57% of the times and you spend $320 on 1 contract, then, would you earn $160 57 trades out of every 100? 10% of the times you would be earning $0-160, and 33% of the timesyou would be losing 320$, am I wrong?
   
   57x160= 9120
   33x320= 10560
   
   10560-9120= 1440
   
   You then would have to make a medium profit of $144 (1440/10) on those other 10 trades not to lose money??
   
   I guess you will laugh a bit with my newbie doubts but I would appreciate someone telling me what I'm understanding wrong from the video. Thanks very much!
7. Thanks for this review
8. these numbers are so amazing and very valid except for one small tiny cancerous fly in the ointment... transaction fees. You'd pay more in transaction fees that you'd make for the entire year. trading with a small account simply isn't possible.
9. This is similar to the skimming technique where you sell puts near, but out of the money until you are assigned, then you sell calls at the same strike until called away. You are skimming the option premiums. I generate an average 33% a year doing this and have done so for 3 years straight.
10. Fantastic! Options are the best way to earn income......jason you don't know jack what you are talking about! These cats are doing this to educate small investets and are doing a great job!
11. Assuming traders are equal smart, each trader has 50% to win. I am right?
12. It amazes me that there are people like Jason who view this site and then come out with idiotic statements that reveal their total lack of understanding of options and what is being said here. Perhaps he is an investment advisor.
13. Why in the world would you ever want to trade an option????!!!! Options are very difficult to manage losses and profit. Not liquid either. For small accounts, please save your money and get 30K plus capital so you can just trade the underlying stock. Seriously this guy is a joke. Nice hat too trying to push his crappy software with overpriced broker.
14. so to sell 1 put here on jcp requires 320? what about a strangle
15.  
    i agree 100% with the comments requesting a structure of process to trade in the method being applied but i have no idea where to begin on this site even with all the videos, so what about it Batty and Tom, some bullet point structures would be a good start PLEAZZZE
16. what is the trading platform she is using
17. selling the JCP May 13 puts at $.92 has max loss of $1208.00, this is a directional play with positive delta so any moves below 12.08 (break-even) results in negative P/L. is that correct?
18. both trades worked out
19. 1.00 width of the strikes - 0.40 credit you collect = 0.60
20. At the beginning, I though you are a funny rich guy with strange hat that makes you distinctive. But after I listened to you several time , especially with your daughter teaching her how to trade, I changed my mind about your trading abilities but still wondering: are you that good at math or you memorize it? and since you own TOS why don't you use the risk tab to show how the math looks graphically;  a picture worth a thousand word. I started to like some of your new ideas especially the Reverse volatility smile you described. Anyway Keep on with these ideas it is very interesting!!