How Much Money Can I Make Trading Options?

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Close – Once you have a solid understand of where our “edge” is as traders we can back into how much money you can make trading options or what your targeted portfolio returns might look like for different capital allocations. Again, it’s no unreasonable to generate an above-average (Alpha) return on a small amount of your overall capital.


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rafael alejandro bravo cadena says:

Hi Kirk, if you destinate 25% of your portfolio to trade in an options margin account, do you make arround 10% a year of your whole portfolio or 10% of your 25% in your options account? thanks in advance

Philip Alu says:

This along with all the other video's from OPTIONALPHA.COM ARE MUCH MORE THAN YOU WOULD EXPECT….

kevin veney says:

thanx for the lesson ..really helped me alot

Yunus Tasliel says:

Love the video! Just to make sure I get my math right. At 20:15 the annual return is displayed at 11.71%. When I pull out my calculator, 0.12% x 365 x 25% equals to 10.95%. Not a huge difference, what I'm really worried is if I did not understand the math 🙂 Would be great if you can elaborate and thank you for a great tutorial!

Jeff Fairchild says:

You say that you ask people, do you want high profit or high roi…Shouldn't you instead be asking them what is your brokerage fee for each trade? since really roi is what matters overall, you could figure out which would be a higher profit by comparing spread vs naked by including commissions, to get comparable roi's.

VTL // Nomad-Trader says:

WOW!!! Thanks so much Kirk, this video is amazing!!! Thanks for all the tips and strategies 🙂 I have a question, which platform are you using or how can I find a free options chains with Probability ITM ? Mine doesn't have that tool and I can't find any on the web. Can you please share a link? Cheers!!!

DrTed Lem says:

Quite nice. This is better than the mentors that I paid money for.

andrzej magrys says:

Fantastic staff !

Steve Vet365 says:

You say "margin" quite a few times. Margin to me is a loan from my broker so I can purchase a position. Being it is a loan, it comes with interest. If it's margin that you withdraw from your account, I think I would understand your explanations better.  Very good video. Thank you

Para Emprender says:

Just awesome

Winchu Lu says:

Kirk I love the videos but can you explain how if your shooting for 70% success and if you are risking $162 for a max profit of $40, can you tell me how that would be profitable if I run this same trade 10 times and win 7 times my profit would about $280(7x$40) but if I lose the other 3 it would be negative $486(3x$162), or are we taking into account a stop loss before we hit the max risk?

tracy alexander says:

Hello Kirk! I'm new to trading options just learning as much as I can before I get my feet wet! What platform or where do I go to see the big chart where you can search at the top left and it shows the put on the right and call on left shows the strike prices etc.

mark says:

Is the price table that you show at 16:00 generated in Thinkorswim?


John Lake says:

Ok, what is the difference in Implied Volatility, and Volatility, do you ever use stochastics as an indicator !

John Lake says:

Hello: Excellent Video, Question, what control IV, the market as a whole or the sector the stock is in ? Why is one stock at 46 IV and the other is at 70 IV, what controls this ?


Melitus Aloysius says:

if i invest $5000 and my return will be 10% per year that is $500 per year.??? is it worth?

KhaiTri LacHong says:

Just wondering how you get to pay only 1.25 dollars per trade.

Eric McAlley says:

How are you quantifying your risk on each trade? How do I know what a 2% position is for example?


King Of Kings says:

Hello Kirk, I have a question on why you are taking the selling positions of the options.. what difference does it make? At first I thought it was because of the probability is higher but looking down the chart on the screen the probability is high. Maybe I am missing something..

Kris Kringle says:

whats the reasoning behind only trading 25% of your account? If you have an 80% chance to win wouldn't you make more money trading all of it? or is that remaining 75% what you have to put up for risk?

Kapur Shah says:

i have enjoy this video and i have learned quit a lot

Hendranata Prasetyo says:

Hi, really good video, so if ther is a 100k account, and you invested 25%.. which is 25k.. is 25k is going to be used in margin in single trade? or 25k is the target premium you want to collect in 1 year? thank youu….

lucci brisc says:

All i can say is WOW. You have truly cut the bull and just talked sense into me. I have been educating myself by watching videos and reading materials in this for past a year now. But this video alone is worth money. Thank You!!!!!!

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