20 thoughts on “SELLING CALLS ON SPY WITH A SMALLER ACCOUNT | TRADING OPTIONS”

  1. Please learn about pin risk before trading spreads!!! These trades can wreck you financially, and this video is irresponsible for neglecting to discuss it.

  2. That can be quite dangerous if someone exercises on you. You sold that call, if SPY spikes, and some n00b on the other side of the trade(the buyer) freaks out and exercises the contract(yes, unlikely, but I know enough people that have gotten shares called away to know the risk there), you are on the hook to buy the stock at whatever price its as at the time, and sell those shares for the strike price. So you have to be well aware that your risk here is much more when you factor in someone exercising on you…and you go +$40k in the hole. That'll be a very bad day for you and a lesson you'll likely never forget. Hell, you might jump off a bridge. Its best to not try this without having the backing of liquidity.

  3. This is a great video, I learn a lot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to Mrs. Diana Langley for improving my portfolio. keep up with the good videos.

  4. The risk is… you sell a 22 put but it tanks to 15 overnight. So you either have to buy back the put at a huge loss, likely 500 to 700 dollar loss or get assigned those shares at 22 and you'd be down 700 bucks on that position. So pick your stocks wisely.

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