Options Trading Strategies With Adam Mesh, Founder of WealthPop
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00:00What like what's your you know, you don't have to show us your screens
00:03But like you have just a bunch of different option chains up. Are you a chart guide?
00:07You have news up give us if we're sitting there at a mesh. What are we looking at?
00:12so I have my list of
00:15Stocks to trade it's around 30 stocks. Also watching the indexes
00:20I try to get to know them pretty well. I don't mess with the list too often every once in a while
00:25I kind of add some names take some off
00:28Come into the day. I do pay attention to where things are trading. I'm not a fundamental guy at all
00:34If it's something fundamental, I'll put it in a different account. So I don't look at it. Otherwise, I'll be tempted to trade it
00:40So purely based on momentum and when it comes to my core option strategies
00:46The the first one I lean into like if there's a trade and I want to be right like reminiscence the stock operator
00:51If you only have one trade that you want to be right
00:53I'm gonna target
00:5530 Delta credit spread so I'll sell at the 30 Delta
01:00which is the expected move of the stock over around the 30 to 40 day period and
01:06and
01:08When I if I get 50 to 60 percent of that premium collected early, I'll just close the trade
01:13I won't even wait for the rest. That's a trade. I do often it has over an 80% win rate
01:19People feel comfortable with you as Dennis said it's very boring
01:23But when the trades over people like it because your P&L is one up
01:27So that's number one. The other is a diagonal calendar
01:32I could do that with credits present both sides
01:35But typically the way I'll do it is I prefer to leg in so if something's looking good for the day
01:40I'll try to jump on buy a call and if I can make money quick
01:45I might just close it
01:46But if all of a sudden it stops or it starts to go against me a little bit instead of getting out
01:50The call all on will go out a couple months
01:53So then I'll sell next week's call against it again around the 30 Delta above it
01:57So I start to collect premium which is like collecting rent
01:59So I look to bring down the cost of the trade and put myself in position where any kind of a move at that point
02:05Is it make me profitable?
02:07So that's the way I use options