David Jaffee is a 36-year old former Wall Street investor and Ivy League graduate who taught more than 1,000 students how to profit from the stock market by trading options that brings higher returns while reducing the volatility of their portfolios.
Through his website and YouTube Channel, he's shared with more than 1,000 people of how to make approximately 30% a year by selling option premiums.
What Are the Strategies for Options Trading?
David Jaffee has always taught his students how to behave like insurance companies do, by placing trades with high probability for large profits and minimal losses. His trades are usually structured to bring a 95%+ winning rate. As a matter of fact, he had for the year 2019 trades up by 115% and zero losses.
What he focuses on is selling put options while a bull market is happening. If there’s a bear market, he switches to call options selling. When selling put options, those doing it agree to buy the underlying stock for as long as it’s under the strike price at which it has been sold during the expiration date.
As an example, let’s take AMZN trading at $1,850. In this situation, David would agree buying AMZN at $1,650 by selling the strikeout option of $1,650, which would translate in collecting $3 option premiums or $3,000 for each sold contract. In the case of call option selling, the option’s seller makes the agreement of selling the underlying stock for as long as its price is more than the strike price of selling during the expiration date. Options selling is all about reducing risks and maximizing gains.
A Closer Look at the Best Stock Strategy
Looking closely at the strategies provided by the Best Stock Strategy, it becomes clearer and clearer that David profits from selling premium on the stocks leading the market, like for example, Amazon, Facebook, JP Morgan and so on, but when these are trading at their low trading range. He after chooses the strike price offering the substantial option premium that’s far from the market price at that moment, so the option doesn’t become challenged at any point.
What Can Options Trading Strategies Can Do During a Recession?
In one of his most recent YouTube videos, David Jaffee explains how he thinks the stock market is going to be more volatile in late 2002. This is why he’s now trading vertical credit spreads and not naked options. This way, he reduces risk and volatility. As soon as the market will enter a correction and recession period, he will start to sell call options, which spread when the stock market in such situations.
Best Stock Strategy Conclusion
All in all, David Jaffe’s Best Stock Strategy is one of the best online courses investors should take if they want to be proud of their financial statements. David has more than 1,000 students who are very happy with the advice he’s offering. Seeing he’s an Ivy League graduate, also a former Wall Street investment banker, it can be said he’s as well the most capable to train both novice and more experienced traders to become more profitable in the hectic environment that is the stock market.