Make Money with Apple Stock when it is Stagnant!

all right so thank you guys for tuning in to another episode of the beginner day trading YouTube channel I greatly appreciate you guys for being here so this particular strategy I'm going to show you you can do it as a day trade but if you decide you want to swing trade it that's also perfectly fine now for this scenario you would use this strategy with a stock that is virtually not moving much so you may have a week where there's no economic data coming out there's not much news or the markets are waiting for news and it's virtually not doing anything so in a lot of cases I'll do this strategy and it works out for me pretty much every time so what we're going to do here is we're going to click on where it says trade okay and I have apple open we're going to hit CL uh trade options I'm sorry now today is September 10th and we've got a few days until this expiration for September 13th so I'm going to click there okay now with this strategy time is on your side so time Decay the more time that goes by the more of a premium you'll collect and this the the more the more the the stock remains pretty stagnant trading within a small range you can profit so let's go ahead and show you this particular strategy and we'll give you guys a few scenarios so notice at the top here we have call and it is on buy by default so what I'm going to do is I'm going to select the buy that is at $222 now I'll come back here and click sale and now I'm going to go with the 220 okay if I click there all right now if we click there notice it's going to say call Credit spread this is exactly what we want okay so this is the first half of it and it's called an iron Condor now we're going to change this to put okay so we changed that to put now we're going to go down to the $275 7 put which is here we're going to click there now we're going to change this to buy okay now we're going to go to the 215 put we're going to click there and now we're going to click four options selected continue notice it says iron Condor here so by default you can see it says your max profit is going to be $166 and then the max loss could be $84 but for me I don't sit in these long enough to even get to that point I get in I get a nice little premium maybe not even necessarily $166 maybe I take 20 or $30 out of it and I'm out so what you want to do now to get a little bit more in depth is click this upside down arrow here and notice it shows you it gives you a visual if the stock stays between $215 and 284 two $221 is some change you can potentially make between a dollar all the way up to $166 now if it goes out of range let's say it gets very volatile it goes all the way out to 215 or 22220 maybe you get in the in the danger zone okay but typically you want to get out before you even get to that point okay now let's go ahead and give you guys a little bit different scenario so I'm going to come out of this right so so notice we're still on the put okay still put now we're going to change this buy and we're going to spread this thing out more so we're going to go to 210 now we're going to notice on this spread as we bring it out a little bit further it becomes a little bit more expensive but the premium gets higher so now we're going to change this to call we're going to change this 22 250 and we're going to go to 230 okay now let's click this for options selected now look what happens here now the premium is $357 and the max loss is $243 I'm sorry 643 now let's click this this triangle here okay now notice look at this spread here now if you're in between 21393 and 22357 you can make between a dollar all the way up to $357 if you hold it all the way up to uh 913 for example now there's something I want to show you we briefly spoke about time Decay right time is on your side so if I click in here right you'll notice that the well let me bring that out let's go to this one here since it's selected you notice the Greeks right and where is the so you'll see Theta which is here not sure there we go so notice this thing it says Theta right here this is what's on our side so Theta is the time Decay so virtually this means for every day that this option is open then this stock goes down I'm sorry this particular option I'm sorry goes down in value uh by $10 Okay so so for every every day that goes past this option goes down $10 in value which is good for us okay in this particular case is because we want time to go because it's going to be on our side okay so hopefully that makes sense to you all so again this is called an iron Condor now let's say I I went ahead and I went through with this right and then I did review and then I swiped up to buy so then if you want to hedge against your position right we already know that the max we can make in that particular instance was like $300 and something dollars so let's say that there's a volum today and apple just goes absolutely crazy to the upside to protect yourself you can come in here to the 232 which is one leg past the 2 30 for example you can click there and then you will come down here to hit continue and then maybe you buy a couple of contracts here maybe you do five or something okay if if you decide you want to hold this thing into expiration or or I would say for the next couple of days not necessarily to exp expiration so you you you put up $30 here in case this thing goes up that way you're hedging against your position so you can do that to the upside and to the downside for example you can do something something similar in case it goes outside of your range to the downside so then you can buy a put as well maybe you do something I don't know maybe not even five maybe you do two or three whatever you feel comfortable doing so even if you make $300 right and you use these these hedges to help you out if the stock goes outside of out of the range then you still get to collect a little bit of money if the uh the price goes out of your range of the iron Condor so I'm hoping I'm making sense there so those are just some tricks that you can use to kind of hedge against your position okay now hopefully I've giving you guys some insight on how you can make money with the stock that remains stagnant especially a stock like apple because it has a lot of opportunities where it sit still so we're not necessarily um in an environment for that I would say for today but maybe next week or you know the week after when there's not a lot of news coming out not a lot of um you know economic data and and not much going on with earnings Okay so I hope I helped you out guys please hit that thumbs up as we continue to go the channel and I'm out peace