[00:00] actually trade zerodt options. This video, I'm going to show you how understanding zerodt options and how to actually pick the correct puts or calls
[00:12] helped me turn $38,000 into $680,000 on one trade. And it was actually a swing trade. So, I know this a little crazy, but really zero DTE helped me understand how to swing trade options better. And that's what I'm
[00:25] going to show you guys in this video. So, stay tuned. It's pretty exciting. [Music]
[00:37] So in this video going to show you guys how to actually buy the calls and the puts. Now this can be for zero DTE. This can be for swing trading. The visuals the last video are going to be showing you for the zerodte and then how I
[00:52] actually do apply that in swing trading options. So it's going to be pretty interesting. I think a lot of people were blown away how I did this in the So, stick around. It's going to be neat. The uh the trade-offs between big
[01:07] percent gains, so like the big 2,000% gain that I did or kind of steady gains because when you try to go for the big ones, the the 2,000% the whatever, you know, I've even seen three, four, 5,000% gains on zero DT, it's unlikely for them
[01:21] kind of a crazy thing. So you have you have this trade-off between something less, or the thing that is very unlikely to happen and they will pay you more if
[01:35] it does happen. And how to choose the right strike for that. And then really the psychology of trading in the money versus out of the money because that's options. And there is a psychology that goes with this because when I did that
[01:50] big 2,000% trade that got me from 38,000 to 680, um that thing was going up and down, up and down for several days and I was even back at my original entry even though price kept going up and I had to just
[02:04] trade was correct. So I'll show you what this actually looks like because again the visuals are pretty important for understanding how this works. So And once again to understand this or study this stuff you should go and use
[02:22] where you can actually go back and you can see historical stuff. But if you try to look up zerodt options or even option series that have expired you know over a
[02:35] have to use the on demand feature to actually get back to them. And that's what I even used for this presentation. And this is a really really important were real because it's um you know once it's gone it's kind of hard to find it
[02:51] again. All right so here is the actual trade because I want to make sure you this is how I was able to do this. So I put $38,000 on the SOXL trade which was
[03:05] a $15 strike. Uh this so XL was trading $9 at the time. And then uh as we were going along, I cashed in 250% gain just so I could cover my my cost basis. I
[03:17] I knew that I was protected that even if the worst happened, I still had money left to trade. And then I let the thing go and I started cashing out at a little over 2,000% and that turned our 30 my 38 $38,000 into $683,000.
[03:36] So, let me show you how that worked because this is how I'm tying the zerodte experiences and education that I've been learning into how this worked for even a swing trade. So, the difference between in the money versus
[03:50] out of the money. This is a this is the SOXL call. This is a $9 call. And if you notice, this is right where I took the SOXL trade. And this is true for any
[04:02] stock really. This is all going to be about the same behavior. So, SOXL is the Tesla, like whatever. It's kind of the same idea here. So, this is when I originally put on the trade. You can see it's right about $9. So, here's a $9
[04:17] call. And what you'll notice is as the ETF or the stock starts to go up, the value of the option starts to go up. And that's because it's in the money. as
[04:29] soon as the stock starts to go up, the $9 is in the money because price is now over $9. And so the option basically starts to move in a similar fashion to
[04:41] the stock. So you can see they have about the same angle angle of attack, healthy healthy move, don't get me wrong, but it still wasn't 2,000%. I whatever uh $2, $1 to nine. So 900% instead of
[05:01] 2,000%. But you didn't have to deal with um a far out of the money option that where you kind of start to understand like oh okay if you look at this here is
[05:15] the SOXL stock and you can see once again this was the stock or the ETF moving up. Now look at the option. This was a 15 strike call. So, this was out is where I originally went in. And yes, as price moved up, you can see the
[05:34] option moved up. But anytime price either went sideways or down on the stock or the ETF, you can see the price of the option went way back down. I mean, to the point where if this was my original entry, I was equal to negative
[05:50] a few times. So, I went up from I think it was about 17 or 18 cents up to, you know, 40 to 50 cents and back down to my original entry more than once. Now, it
[06:02] a little off here, buy some back here, take a little off, buy back here. Maybe to buy and commit to what I had planned for this trade. But this is the thing.
[06:15] This was the psychology that I had to understand and that trading zerodt options really showed me this and showed me how to ride through some of this. And it showed me how to understand that even though the stock price might be going
[06:29] up, the option price may not be going up or it might go up and come back down, up and come back down. And so the microcosm of trading zero DT and doing this on a day-to-day basis where you're watching this every minute or every hour really
[06:45] crunched my learning. It took something that this took 30 days to do. When I'm doing this with zero DTE, I do it in a matter of six hours, six and a half hours because that's how long our trading day is. And so it compressed my
[06:58] learning. instead of having to figure this out over the course of a month and everything else that life is throwing at you, you compress this into every single day. And so the zerod stuff really gave me just a turbocharging compression of
[07:12] education and learning and practice. There's so much more practice that I get done with zero DTE trading than I do with something like this that I I've gotten like a you know PhD in understanding options than compared to
[07:26] having to do this on 30 days at a time. Okay, so it's a huge difference and can study this stuff pretty darn quickly. So that's what we had. I originally was here. It was up down up down up. Okay, pretty crazy. You can see
[07:42] here that come right back down. So, for as much as this thing's going up and I'm having a great trade and it's up 200% or up 100%. And it comes right back down to zero, you know, you really had to kind of withstand that. Like, oh my gosh,
[07:56] I've got I've got so much money on this. I've got mostly the account on this. Is thing goes up, it comes back down and now I'm negative. And you're really secondguessing yourself. But I really had to stick with this. And then what I
[08:09] because what I teach with the Moxy indicator and how to trade stocks can be applied inside of options on these option charts. And this is the thing
[08:22] impressed. And this is the thing that even surprised me. If you look at this option as a stock, yes, it's waving, waving, waving back and forth, but look
[08:34] at exactly the moment that this thing took off. It is crazy how these options also set up exactly the same way that I teach how to trade stocks. Okay, this is uh more specifically, this is what I call a 50 20050 maneuver. We can get
[08:50] that that a little bit later, but mostly what I'm looking at is that price came back into, in this case, the hourly 50 SMA, held the hourly 50, and then punched up here, and it was exactly when price was able to break past the 200
[09:05] SMA. Again, these are a lot of things that I teach inside of the Moxy room and the Moxy class. And all the principles are there. Part of the reason why it wasn't ready to go back here is because the 200 was still too far away. And if
[09:18] you look, it was exactly here when the 50 and the 200 met and price was able to actually get past the 200. It's crazy how this timing stuff and these moving thing this stuff happens. And I didn't even know this. I discovered all this
[09:34] little bit of an example. I can even show you here how you can see price pulled back underneath the the 15-minute 50 and that the Moxy indicator was above actually held the 200 and then it started to pop. And then you just look
[09:51] up here. We sold it way up here at $340 or 50, something like that. And that was a little over 2,000% from our original entry of about 17. So pretty wild on that one. And this is what I just want to keep rehashing to you guys is that
[10:07] visualizing the option is really the key to my success with options trading. I mean, forget zero DT, even just trading options in general. That is how I got better at trading options is this little secret of being able to visualize this
[10:20] stuff. So for me it's a revolutionary idea and that the Moxy indicator and its patterns actually work on this kind of stuff. And so I say that if you can trade stock you can trade zero DTE because they move in a pretty similar
[10:32] fashion. Okay. And it gives you a better feel for how options work. That's really the biggest thing for me is it gave me a feeling and an understanding of how options work and how they move. And you can even you can even plot spreads on
[10:44] this stuff which is again something else that I had to learn too and we can get that into the next video. But this is just another example where you know the we took a second entry here. But you'll notice how it's basically incubating
[10:59] trade that did really well sideways sideways sideways until finally the S&P actually starts to get inside or into this particular strike. So it goes from
[11:11] being out of the money to in the money. And that's where you go from this incubation period to suddenly going growing in value. And that's just the nature of out ofthe- money type options. So I'll show you one more example, but
[11:24] money continues to work. Here's just another example. Once more, again, you can see that the S&P continued to move up. But look at this particular out ofthe money call. It wasn't moving. It just kept, you know, incubating until
[11:40] finally price started to actually get into that strike and then you can see suddenly it expanded. And it's experiences like this that I've had over the last year or so that I have been learning and teaching myself and just
[11:53] experiencing taught me that I can be right on the movement of the stock and the the option may not respond, but not to get cold feet or not to chicken out
[12:05] throw in the towel too early because then you see all of a sudden it hits. And it was this kind of behavior that I knew because I was able to visualize it more than just looking at the trade uh the the options table, you know, because
[12:21] that really doesn't tell you much as far as this goes. I knew to just wait, wait, Okay, same kind of behavior on here. And it's the same behavior with zero DT stuff. So, how do you actually pick the strikes and how do you do this? I showed
[12:36] you guys this on the last screen, but really this is important for the S&P. You know, one to5 dollars. Now, $1, that's pretty far out of the money. You're the likelihood that it's going to work or become in the money is pretty
[12:49] for something like that to pay off. So, really $3 to $5 is better. Now, if you figure out what it is. If you're picking too cheap of an option strike, the
[13:03] markets are telling you that that strike is very far away and unlikely to work. the S&P and won't give you that potential for the exponential growth that I showed you as the S&P or any stock gets into those strikes. So, it's
[13:18] a trade-off. It's a balance between these things. And you have to say, well, more guaranteed, you know, air quotes about if the price moves up, the option
[13:30] will appreciate. Uh, and you just have to decide what which one do you want. happening, how big is the move going to be, or what is the character of the day for the market. Okay? If there's a big unexpected move, these cheap options
[13:45] will suddenly appreciate in value. So, let me kind of keep showing you a few more examples of what this looks like. Uh, this happens to be today. So we had a pretty good trending day in the S&P market just was stairstepping up all day
[13:59] long and here was a out of the money call. You can see 5970. Okay, out of the money. Look here. Here is the Moxy price trigger. So again the Moxy indicator works well inside of options inside of zero DT options. Again, crazy how this
[14:14] started to actually get up and over these moving averages and from basically here because I I tried to pick the same spot to the top this appreciated 400%.
[14:26] Okay, out of the money because we went there. That's how far this thing was. Now the in the money also same entry. Notice the Moxy price trigger. That's same point it only went 200%. So when it works, the out of the money option,
[14:43] whether it's a call or a put, will appreciate more. You will get more percentage out of it. Okay. Now, the other thing to pay attention to is if you overstay your welcome, because this is an outofthe-oney option, if it goes
[14:57] up into the money and then the market kind of backs off a little bit and gets out of the money, you are going to lose value very, very quickly because that option really didn't have much um value to begin with. and suddenly it became
[15:10] out of the money. And then now the likelihood that this strike the market is going to close at or inside of that that strike or that price that option is very slim. And you can see now you've just lost all your value. Now compare
[15:24] that to the in the money option strike and you can see that even when the market backs off a little bit, you can see here it still held its value from the morning because it was in the money. it actually has value compared to out of
[15:39] the money that closes pretty much outside of the money. It didn't didn't not there. Okay, so these are some of these things that if you're going to be trading out of the money calls or puts, zero DT or even swing trading, if you
[15:56] are going to want to keep it, you need to understand that if the move backs away from where it once came, you're going to lose value very, very quickly. That's why with those SO XL OP options, I knew I was not going to keep this into
[16:09] something you need to understand about this strategy. Now, if you want to keep it or if you want to be able to ride it a little bit longer, then your strategy the market goes up, even if the market backs off a little bit, you will
[16:25] maintain a value because you now have value because the strike is in the couple more examples. Now, this was yesterday and this is an example of
[16:38] of see that here. And look at the difference of call it risk about the out of the money. So, 5930 out of the money. And from the original entry here, there's your Moxy price trigger. And let's just say now this one by the end
[16:53] of the day did happen to get up to here and it did happen to close at this price day long. But look at the path. And this is really where visualizing options is
[17:06] pretty darn neat because this was a rough ride. You know, even if you got in money all day long until finally the market moves up into or near that strike
[17:19] and then suddenly it becomes worth something. Now, as it gets closer and closer to the end of the day, this thing is just barely getting to that strike. you know, the S&P 500 is just barely getting to 5930. And you know, the
[17:31] if it doesn't close in the money, it's worthless. And you can see here, maybe 30 minutes, less than 30 minutes before the market closed, this thing is worth minus 13% from your original entry because, oh boy, it doesn't look like
[17:47] stuff that I don't want to have to deal with. This is way too risky if you're going to put any size of money on here. And this is the risk of trying to pick a there. It's it's a pro and con. Okay, so it's really great when it's great, but
[18:04] you have to understand the risks that go with it. Whereas if you pick something that's more in the money, you can see from the same entry it went 170%. Hey, not that far off from 200. You know, 30% difference. Not that far. And look at
[18:19] the risk that you didn't have. Every low was higher. So every pullback you're still making money, you're still actually doing better. And then once the money. And so this is a little bit easier, softer, kinder to you. You know,
[18:36] it uh it doesn't stress you out quite as much uh from the original entry here, you know, here here you're making higher lows. And so based on the character of to look like. But if you want something that's a little bit more conservative
[18:50] market comes down, you're going to want to pick a strike that is closer to in the money or at the money in order for it to um move like the market and appreciate in value. Even if it slowly goes that direction because remember,
[19:04] you have theta decay working against you. That's why this thing kept going down even though the market was gently kind of going up. theta decay was overcoming the appreciation of value. That's another video we will make and
[19:17] talk about with this theta decay situation. Okay. So, uh I know one of the questions that's going to happen is uh buying and trading S&P at the money is really expensive and yes it is. One contract is going to be a few thousand.
[19:31] Okay, that's not fun. So, what are your options? What can you do? Well, you can trade the XSP which um I don't know if a lot of people know about this. Uh, this is basically the same size, so it's the same price as the spy. But there are
[19:44] some benefits to be trading at the XSP and the S&P, namely tax benefits. So, if you want to do that and look into those tax benefits and differences, you know, go check that out, uh, if you want to do something there. Or you can just trade
[19:56] the SPY. The SPY is onetenth the size of the S&P. Therefore, the options are much cheaper. And if you want to say if you if you're saying, "Hey, I only want to spend $500 per trade." Well, trying to trade SPX in the money not going to
[20:10] happen for $500, but it will happen for the SPY. So, if you are working with a constrained dollar amount that you want to trade with, then you just need to be able to find those options or the right kind of vehicle to get you that. And if
[20:24] to trade at the money, but you want it to be cheaper, then do spreads. So, call debit spreads. And that's uh we'll talk about that in the next video because uh
[20:36] this is another fun one. This is where you can do the same idea. Cost less, lower your risk. You will be capped if the market does move a lot. Okay, so just know that. But you can also then flip this around and you can sell
[20:49] spreads. So notice how I think the the thing is that 80 or 90% of all options expire worthless. Well, you could be on that side where you have like an 80% that's going to be the video that I make next for you guys. And if this sounds
[21:06] interesting, if you want to do a deeper dive into everything I just showed you, we do have the class here. It's the S&P Zerodt breakout session. I just recorded it a few weeks ago. We're getting really great reviews about it. People, their
[21:20] they've never seen before and they're finding it really, really interesting to see this the way that I see it now. And again, my eyes had to be opened. Nobody this. I had to figure this out on my own. And I really just kind of stumbled
[21:38] they're like, "Wow, I didn't know that happened. I didn't know this was They didn't know what to do with it. It's like having a tool that somebody
[21:51] this is what I'm teaching you guys of how to do this. It has been around. It's it. It is the craziest thing. And then what you can do is you can pair this
[22:05] with the leverage ETF breakout session. And this is also how I've now combined leverage ETFs with options trading swing trading and how I get all this. And that is the secret of how I combined my ability to zero DT zero DT day trade
[22:21] with these leverage ETF trading combine it and I made 260%. I made, you know what, $38,000 to $680,000 on that one trade because I saw the opportunity. And
[22:33] it's these two classes combined that gave me that. So, this is where you guys here. We're going to have the link down in the bio. Also, come join us in the I do. We're getting a lot of great people coming into that room and people
[22:50] it's been fun. I love doing this. I eat, sleep, breathe it, you know, and so I what we do here, okay? People put a lot of time and effort in me and I want to
[23:04] in and we'll see you at the next video. Hey, TG here with Simpler Trading. comment below. Also, make sure to subscribe and click that notification
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