🚨 Did ‪@ashleytradingwithashley‬ LIE or Post a FAKE TRADE? 🚨

Summary

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Wealth and Health Podcast with David Jaffee

Episode: 🚨 Did ‪@ashleytradingwithashley‬ LIE or Post a FAKE TRADE? 🚨

Date: March 31, 2025

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Episode Overview

David Jaffee explores a controversial options trading strategy presented by @tradingwithashley, who claims to have turned a $4,000 loss on a Tesla put credit spread into a $20,000 gain, and potentially a 40% annualized return. The episode dissects Ashley's strategy, her explanation of the trade mechanics, and the validity of her claims. David critically analyzes the video, challenging both the technical details and Ashley’s credibility as an educator, with a candid and irreverent tone.

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Key Discussion Points & Insights

1. The Premise: Ashley’s “Ultimate Put Credit Spread Hack”

• Ashley’s Claim (01:21, 04:02):
  She allegedly turned a $4,000 loss into a $20,000 win on a four-contract Tesla put credit spread by “breaking apart” the trade, utilizing extra cash, and rolling her short puts lower and further out in time.

  “I was able to break apart the trade and maneuver it in such a way that I turned that four thousand dollar loss into over a twenty thousand dollars... and potentially a 40% annualized return.” – Ashley (01:21, 02:58)

2. David’s Real-Time Analysis & Skepticism

• Strategy Dissected (02:58 – 05:43):
  David speculates Ashley’s process likely involved rolling the spread to a naked put and extending duration, but he quickly points out fundamental misconceptions in her explanation of credit spreads:

  “If you think a stock is going to go up, you’re much better off buying a call... when you sell options, your maximum profit is the credit you received...” – David (05:43)

• Risks with Rolling & Margin (03:00, 06:42, 09:00): He warns that rolling can dramatically increase risk, especially if volatility spikes and margin requirements balloon.

3. Step-by-Step Breakdown of Ashley’s (or a Simulated) Trade

• Ashley’s Walkthrough (07:22 – 13:43):
  She describes managing a deep-in-the-money Tesla credit spread, selling off her profitable long puts, and rolling the short side lower and further out in time for credit:

  • She claims this “releases capital” and reduces assignment risk.
  • David interrupts, noting major buying power issues and highlighting that rolling to naked positions significantly increases, not decreases, capital requirements.
  • Ashley claims she rolled from $280 to $230, collecting a $1,500 credit per contract, and states her buying power actually decreased (23:35).

  “That is going to lock in another $4,795 in cash... However, it’s going to leave one of my positions uncovered...” – Ashley (21:51)

• David’s Critique:

  • He calls out contradictions in contract numbers (three versus four), trade dates, and risk management.
  • Points out that Ashley conflates market value of long options with buying power (28:02).

  “There’s no way that you’re going to free up cash by rolling a $10 wide put credit spread to a naked position. Rolling to a naked position is going to use up much more buying power.” – David (21:33)

4. Evidence of Possible Inconsistency or Fabrication

• Mismatch in Trade Examples (16:46 – 20:01, 24:45):

  • David believes Ashley created a new, relatively safe trade for demonstration, rather than showing her real, original (riskier) trade.
  • The demo trade has limited risk and loss, but contradicts the larger loss numbers and risk claims earlier.

  “This trade as it is right now, it doesn’t need to be adjusted at all... [she] doesn’t want to show you the actual trade...” – David (18:18, 18:47)

• Buying Power and Capital Misrepresented (24:45 – 28:31):

  • David highlights that Ashley’s statements about “freeing up” capital and reducing buying power do not match reality or actual option margin calculations.
  • Points out the significant discrepancies in cash and buying power before and after the trade adjustments.

5. Community, Education, and Critical Tone

• Ashley’s Community (19:19, 32:12):

  • Ashley discusses how her membership community brainstorms trade scenarios, but David disparages the utility of the group and questions the value of paying for such education:

  “I love this community because when I make mistakes, you guys pay me with your membership fees and it reimburses me for the money I lose.” – David (32:16)

• Closing Thoughts and Challenges (31:03 – 33:09):

  • David challenges listeners to provide proof of Ashley’s actual trade, suggests she doesn’t understand basic options concepts, and reiterates his skepticism in a comedic, biting manner.

  “In my overall opinion, I just think that Ashley is so stupid. Maybe you disagree, but let me know...” – David (33:09)

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Notable Quotes & Memorable Moments

• On portfolio discipline and cash (01:54):

  “If you don't have the cash waiting on the side... you're not going to be able to maneuver something like this.” – Ashley

• On deep skepticism of buying power (09:00):

  “If she's going to end up rolling this down to naked, ... the buying power requirements on a cash account for four contracts are going to be $120,000...” – David

• On the disconnect with assignment risk (18:18):

  “For every put credit spread that she sold, she's only showing a loss of about $500... So here she's only showing three. This trade is nowhere even close to being at risk of getting assigned.” – David

• On Ashley’s use of margin concepts (28:24):

  “No, that's completely false... your available buying power has actually been cut in half.” – David

• On questioning the legitimacy of the trade (31:03):

  “If anyone is in her discord group, please share with me the original trade. ... I have no way of knowing this. I think that she ended up selling a short put with a strike of over $400.” – David

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Timestamps for Key Segments

| Timestamp | Segment | |-----------|-------------------------------------------------------| | 01:21 | Ashley outlines her “$4,000 loss to $20,000 win” hack | | 02:58 | David speculates on rolling and risk consequences | | 07:22 | Ashley describes cleaning up her Tesla position | | 09:00 | David warns about naked puts and margin explosions | | 13:12 | Extending duration, risk in bear markets | | 16:46 | Ashley walks through new (possibly fabricated) trade | | 18:18 | David spots contradictions and lack of assignment risk| | 21:51 | Ashley demonstrates locking in $4,795 from long puts | | 24:45 | Buying power and capital claims scrutinized | | 28:02 | David exposes misunderstandings on buying power | | 31:03 | Call to the community for proof and opinion |

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Recap & Takeaways

• Strategy Review: Ashley’s purported strategy involves advanced rolling and risk management but, according to David, demonstrates deep misunderstanding of options mechanics—especially on margin, assignment risk, and capital requirements.

• Critical Analysis: David strongly suggests Ashley did not show her actual trade and ridicules several claims and the contradiction between the demonstration and the scenario described at the outset.

• Community Value Questioned: David repeatedly asserts listeners would be better off seeking free education elsewhere, given the lack of technical rigor and consistency.

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Conclusion:
This episode is a critical and often sarcastic investigation into the truthfulness of a viral “trade hack,” providing both advanced options insights and a cautionary tale about vetting educators and strategies. Whether Ashley’s purported trade was legitimate remains unresolved, but the episode strongly cautions listeners to dig deeper, demand transparency, and know their risk before following any “magic bullet” options strategies.

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Transcript

[A]

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[B]

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[C]

My name is David Jaffe. Welcome to the wealth and Health Podcast where you'll learn valuable skills and positive habits that will improve your life. This podcast originally aired as a video on my YouTube channel at YouTube.com beststopstrategy. The wealth and Health Podcast is brought to you by beststopstrategy.com all right, we're going to check out how to turn a four thousand dollar loss into a twenty thousand dollar win. The ultimate put credit spread hack by trading with Ashley. Because trading with Ashley is in my opinion the absolute best options trader that you could possibly learn from. So let's see what nuggets of knowledge Ashley is going to share with us today.

[B]

Welcome to the Trading with Ashley Sheds Bull Trap Bear Snap. I bet you haven't because I completely made it up. But I made up the term after I was able to figure out a way to take a put credit spread that was losing about $4,000 because I had four contracts and I was able to break apart the trade and maneuvered in such a way that I turned that four thousand dollar loss into over a twenty thousand dollars.

[C]

Wow. Come on Ashley, show me how to.

[B]

Do it and show you exactly how I did it. But what I loved so much about what I was able to accomplish is it is now something that I will use in my future trading because it has an incredible built in hedge. Now I'm going to share with you. If you want to use something like this, you must follow one of my trading disciplines and that is having plenty of cash to the side. So so that you can work yourself out of a situation like this and turn it into a positive. If you don't have the cash waiting on the side, if you have all of your cash in the market, then you're not going to be able to maneuver something like this. In fact, once I crunch the numbers and I looked at it, I went from a trade that was going to be losing a thousand if I let it expire in June and I turned it into a trade that was able to grant Me, like I said, another $20,000. And if the stock that I'm working with, if it continues to perform like I think it will, I will actually be able to turn this into about a 40% annualized return. So that's pretty cool to go from.

[C]

All right, real quick because I kind of think I know where she's going to go here because there are multitude of things that she can do here. Maybe she's going to end up rolling the credit spread to a naked position and extending the duration. Perhaps she's also going to add some additional put options or even some call options on there. However, I will say rolling positions is not free money, especially if you extend the duration on a trade. Because right now we're in the middle of March in 2025 and Vix is only trading slightly above $20. There have been times when Vix has traded over 50. In fact, I remember in March of 2020 when Vix hit a high of around 84. If you extend the duration when rolling out puts and then volatility spikes from 20 to 50, you are likely going to be placed into a margin call if you're trading on margin. If you're not, then you're still going to be showing some massive losses. But maybe I'm completely wrong here. So let's see what Ashley recommends.

[B]

A losing trade to a 40% annualized return. On the positive side, and this could only work if you fully understand options and how they work.

[C]

Yes, I definitely want to understand options as well as Ashley. I want to learn this trading method. Show me what you're doing that you.

[B]

Learn to help get yourself out of a situation that would otherwise not be positive for you. And I was so excited that I pulled together all of my members on Friday on these regular calls. They were so excited to learn about it and already strateg in about different ways.

[C]

I'm sure that they were super happy when you put on that negligent MSTR trade which I believe cost you around $300,000 too to use this to not.

[B]

Only hedge our portfolios but make good money. Because when you go into a trade, when you fully understand what I'm about to teach you, you go into a trade more confidently, stop talking in ways for you to get out of the trade or even profit from it like I have. So. So this particular trade was on Tesla.

[C]

She probably ended up selling a put credit spread with a short strike of around 350. But let's see what she really did.

[B]

A few months ago when Tesla was riding high and nobody could have forecasted that it would dip as significantly as it has since I initially took out the trade. That when I initially took out the trade, I went well below the 200 day moving average to open my trade. And it's a put credit spread. And credit spreads work well for individuals that are wanting to to write the price movement of a stock. If they believe that the stock is going to continue to go up and not get down to their strike price, it works out pretty well. Until it doesn't work.

[C]

I have no idea what that means. That's not the intention of a put credit spread. If you think that a stock is going to go up a lot, then you're better off actually buying a call debit spread. A put credit spread has maximum value if you open the position and the stock doesn't move at all. And the reason for that is if you sell a put credit spread and then the stock goes down, then that trade is going to show you a loss. Maybe that trade will expire worthless, but at that moment when the stock is decreasing in price, then that trade will show you a loss. And then you're going to structure it as a credit spread because you want it to be defined risk. But she's wrong here because if you think a stock is going to go up, then you're much better off buying a call or buying a call debit spread or even just purchasing stock as opposed to selling a put credit spread. Because when you sell options, your maximum profit is going to be the credit that you received when you initially put on that trade.

[B]

A stock retreat.

[C]

But I'm really sorry because I know that Ashley is a master trader with infinite trading knowledge. So I really don't like to contradict anything that she said because she is just so brilliant when it comes to.

[B]

Trading that has a tumble like Tesla did. It blew through my strike prices and it enveloped both of them. And I was just faced with a losing trade. But following one of my own trade disciplines of cleaning up my portfolio weekly, what I had done is I had sorted all of my trades from top to bottom and I always look at the green ones first. I'm a glass half full person.

[C]

Oh yeah, I bet you she likes that wine glass to be more than half full.

[B]

And I go ahead and try to take profit on those trades and then I'll address the trades that may not be positive and determine do I just weigh them out or do I roll the trade or just close it down for a loss? So that's how I usually manage my portfolio. Well, when I did that, I noticed that the purchased puts on my put credit spread, the purchased Tesla puts, they were in incredible profit because I purchased these when Tesla was well into the four hundreds. So now that Tesla is well below the $300 mark, they have appreciated over 400%.

[C]

Yeah, I told you. She's going to sell the protective put, which is the hedge, use that premium and extend the duration on the short put to roll down the strike price tremendously.

[B]

I've got this money on the side that in the broker because I cash up in anticipation, especially when the market's riding high. I had cashed up waiting for a pullback.

[C]

Yeah, sure.

[B]

Why don't I take it?

[C]

What I believe she ended up doing was simply accumulating the money that her members and students were paying her because that acts as a hedge against her trading losses. That's my gut feeling.

[B]

Advantage of that, I'll go ahead and lock in my profit on these purchased puts. However, it would leave the sold puts. It would leave me vulnerable to early assignment because that was still above where the current price is. So what I decided to do was I went ahead and took the sold put and I rolled those down in strike price.

[C]

Oh, my God, Ashley. Wow. My mind is blown. That is so complicated. Okay, so basically she makes it seem so much better than it truly is. First off, the reason why the hedges were showing you a massive profit is because that trade is so incredibly underwater, which leads me to believe that the short put is probably somewhere between 430 and 450. So she's showing a 400% gain on the protective put, which is conveniently left out, is that the naked put that she sold is probably showing around a 1,000% loss. And we've seen in past videos where it doesn't really seem that Ashley has the best grasp on buying power requirements and buying power expansion. So if you take a defined risk trade from Tesla, which is $50 wide, that means that every contract that you sold is going to require $5,000 of buying power. Here she says that she used four contracts. That means that your buying power requirement for that defined risk trade is going to be $20,000 less the amount of credit that she received. If she's going to end up rolling this down to naked, let's say she rolls it down to $300. The buying power requirements on a cash account for four contracts are going to be $120,000. So you went from $20,000 to six times that. And if you're using regulation t instead of 120,000. It's going to be 60,000. So this requires a lot of extra capital and you're not going to be protected on the downside. So if the market doesn't end up turning around and Tesla drops all the way down to $200 a share, you're going to end up getting crushed and annihilated.

[B]

Accomplished a couple of things. Rolling the down in strike price helped me avoid an early assignment or at least minimize the risk of our reassignment. But it also released some capital. So I was able to roll it down enough to where it freed up a couple of thousand dollars in capital being held for the trade.

[C]

My mind is completely blown. I can't even fathom what she's talking about right now. The first point that she made about decreasing the assignment risk, that is a little bit valid, but the reality is that as long as the option has extrinsic premium on it, then it's very rare that it's going to be assigned, because if it were assigned, then you can simply sell the shares and then resell the option and you'd be able to make riskless profits because there would still be a decent amount of extrinsic premium. So usually as long as there's more than about 10 or 20 cents of extrinsic premium, you're not going to be at risk of assignment. Regarding freeing up capital, I would say that the likelihood that she's telling the truth, that you're able to roll in the money put credit spread that's already trading and near or at maximum loss, and then you're going to extend the duration and turn that into a naked position while automatically increasing your buying power. In my opinion, the probability of that occurring is about 0.5%. The only way that that would really occur is if you're able to roll down the naked put options so low that the strike price on those naked puts is actually lower than the width of the original strikes on the put credit spread. So, for example, let's say her original put credit spread was she sold the 450 and then she bought the 400. So that means it's $50 wide. What she said is accurate if she would be able to roll that 450 by 400 all the way down to a naked put with a strike price of $30. But the probability that she was able to do that is close to zero percent. So I actually think that she's completely lying here and misleading her audience because it just simply doesn't make sense if you're Going to roll a 450 short put, maybe you roll it to even 300, but that's going to use up significantly more buying power, as we mentioned earlier, than keeping on a 30 or $50 wide put credit spread.

[B]

And then by rolling it further out in time, I was able to get a credit for the trade. Now a lot of you will look at this and you'll say, well, wait a minute, you push this trade out quite a bit of time, you're gonna have to wait a long time to take profit. But not necessarily. What I've done is I've calculated and.

[C]

One of the big problems when you extend duration very far out is if we experience a bear market and then volatility spikes from 20 to 60, those put options are going to end up showing you massive losses.

[B]

In this sold put that I have on Tesla, we didn't.

[D]

It will be at the break even point.

[B]

And from my calculations and estimates, it looks like maybe around October of this year I will be able to exit this portion of the trade.

[C]

Okay, so what she's probably doing is looking at the daily decay by looking at theta and then estimating when she'll be able to close it out for break even.

[B]

And I will be able to exit at an even trade and I will hold on to all of the money that I just locked in for the purchased put.

[C]

What I don't understand is if she was mentioning that she made the trade when Tesla was over $400, Tesla was trading at about $220. It basically got cut in half. So if she sold the long puts, the best thing that she could have done would have been to extend duration and use the profits from the long puts to decrease the strike price on the short puts. But now she's making it seem like she's liquidating the long puts that she used as hedges, keeping that money. And all she did was extend the duration on the short put for an option that was tremendously in the money. I mean, she's talking about that she was concerned about getting assigned. So if she's concerned about getting assigned on a put credit spread spread, then I'm assuming that something like Tesla, which has high implied volatility and therefore has a lot of premium, that trade was probably over $100 in the money. So even if she extended out the duration by a year, considering that that trade was at least $100 in the money, I don't think that she even was able to roll it down to around 300, in my opinion. I actually don't think that she made this trade at all. I think that she's just completely BSing, but hopefully I'm wrong. So if you are in her discord, if you can send me the exact trade that she made, and if she shared it with the discord community, then I would really appreciate that.

[B]

Guys, this seems complicated to you? Don't worry, I'm going to break it down and lay.

[C]

No, it doesn't seem complicated at all. It just seems like you're lying because this type of structure is going to end up using significantly more buying power, yet you're saying that you were able to free up capital. Also, anyone with even a little bit of options trading experience would know that a short put that is so deep in the money, like Tesla, to a point where you're actually concerned about assignment, you would not be able to roll it down significantly simply by extending duration. Because that put option is so far in the money. Yes, you definitely will be able to roll it down, especially considering that Tesla has high implied volatility. But the smart thing to do would have been to allocate the profits from the long put position towards decreasing the strike price on the short put and extending the duration. But it doesn't seem that you did that, which leads me to believe that you didn't make this trade at all.

[B]

I'm going to show you the actual trade so that you can visualize and better understand what happened. Let's go into the computer and take a look.

[D]

Here's what I want to show you. So I have initially done a credit spread.

[C]

I opened it, but that's super weird because I'm almost positive that she said that she did four contracts and now she's only showing three contracts. And I also believe that she mentioned something about 400 and she was saying that it showed her $1000 loss or $4000. And this is actually showing a loss of 1500 dollars, but it's only three contracts. My gut feeling is that she put this trade on just to explain it to her audience, but that the real trade she had on probably had strike prices where she sold the short put somewhere between 400 and 450, and the long put strike was probably around $400. Plus this trade as it is right now, it doesn't need to be adjusted at all. For every put credit spread that she sold, she's only showing a loss of about $500. Yet previously she said that she was showing a loss of around $4,000 for four contracts. So here she's only showing three. This trade is nowhere even close to being at risk of getting assigned. So in my opinion, I don't believe that she's showing you the real actual trade here because it just simply doesn't make any sense. This trade here is not in any risk of early assignment. Also, it doesn't match what she said earlier in the video. I think that she doesn't want to show you the actual trade that she made. Made because similar to the trade on mstr, she was way too aggressive with her strike prices and probably sold a put credit spread on Tesla with a strike price of over $400. And she doesn't want to look like an idiot. Another indication that this trade was just recently put on is that you can see that the total returns on this trade are way too close together. The short put is showing a loss of 403% and the long put is showing a gain of 420%. And again, either Ashley has no idea what she's talking about, even though she's charging you thousands of dollars to teach you how to trade options, or I believe that she's simply lying. But if you look at this trade, you can see that the short put is trading at $54.28. The long put is trading at $47.53. That means that the difference is about $670. But this is a $10 wide strike. You sold the 280 and you bought the 270. There is no way that you would ever, ever be assigned an option where they would basically give you a free $330 for every single contract that you ended up selling. I would say that I'm about 99.5% confident that she's lying. All the signs are there. This trade is at no risk of assignment. It's three contracts not for the original. Numbers don't match up where she was saying that it was showing a $4,000 loss with four contracts. Also, the percentage gains and losses are so close to each other that it makes me believe that she just put this trade on. But let's see what else she says while ago.

[D]

And my credit spread strikes were 280 for the sold put and 270 for the purchased put. So we've blown through those strike prices and this would be a total loss if I let it expire. But I started considering how these work and I couldn't help.

[C]

Just real quick, if I had this trade on right now, I would completely leave it. There's no need for you to make any adjustments on this position at all. Also, From a buying power perspective, this trade is using up $3,000 of buying power less the credit received for putting on this trade. She received about $450 in total for putting this trade on. So let's just round it and say that this Trade required around $2,500 of buying power.

[D]

But notice the extreme value. This has gone up 421% depurchased put. And I got to thinking, gosh, I would just love to take advantage of that. So I started playing with how these work and let me show you what I discovered. I had four of them and so I already did this for one of them and I'm going to show you what I'm going to do to lock.

[C]

Okay, so now she's saying that she had four and she was saying that she was showing a four thousand dollar loss which was completely not accurate. But let's see what else she says.

[D]

In profit on this. Put on the purchase put and then roll down and out the sold put. Okay, so it's going to free up cash because I'm going to go down and strike from this 280 right here and then I'm going to lock in cash on one of these. So let me show you.

[C]

The more videos I hear from Ashley, the more I think that she's either a complete idiot or she's a complete fraud. There's no way that you're going to free up cash by rolling a $10 wide put credit spread to a naked position. Rolling to a naked position is going to use up much more buying power.

[D]

Click this button right here, it's going to send it to a ticket. Let me do that now. So I'm breaking apart this spread and I want to do these one at a time just to see how it is affecting my margin. Sell to close. Let me show you how that looks. That is going to lock in another $4,795 in cash. So that's good because I'll be able to take advantage of that. However, it's going to leave one of my positions uncovered and I'm going to show you how I address that. So I like what I'm seeing here. I'm going to go ahead and put in a limit order. Okay, good. This got filled. It filled at 4832. So now I have another $4832 I've locked in. Now I need to go address the other part of the trade. Going back to it. Here it is right here. It's this $280 put remember, we had three above it. So now I'm going to have to go ahead and roll one of these out. So let's do that. Now, once I get to the screen, I want to do a rule. So here's what's going to happen. I'm going to close down this sold put, but I need to change it to one because I'm doing these one at a time. And now I am choosing a new expiration date that will go as far out as possible on the option chain to give me the most premium for this role. Now let's look what I have going on here. This is going to free up another $5,000 in cash and let me explain why I've gone down to the $230 strike. So instead of requiring 28,000 for this trade, now it's only going to require 23,000 because I went down in strike and look, I'm getting a credit of almost $1,500 for making this change.

[C]

Doesn't make any sense at all. That's not how the broker calculates buying power. The reality is very simple. When you sold those three $10 wide put credit spreads, your buying power requirements for holding those positions was around $2,500. Then when you decided to cash out that one long put that left that 280 uncovered. So, so therefore the buying power requirements for a cash account on that one $280 short put is then going to be $28,000. Then if you rolled it forward in time and decrease the strike from 280 to 230, it's going to decrease the buying power requirements by $5,000. Like she mentioned, your buying power requirements for those three put credit spreads was only $2,500 in total on an option that expires in June 2027 is going to be around $23,000. How is that freeing up any cash? It doesn't make any sense at all what she's talking about besides the fact that I think she's completely lying because this position looks like it was just put on recently and it was also at no risk of getting assigned.

[D]

Let's take a look at the changes that have happened. Whereas a new initially I had 95,000 in cash. Now by making the changes, I actually went ahead and made the changes on all three of those contracts remaining. Now I have $111,000 cash. This is because I collected new premium on the roll. Plus I went ahead and locked in everything that I had gained on the purchased puts. Now when you look at the Buying power that's being held. Initially, you saw 71,000 in buying power being required for my sold options, but now that's been reduced to 58,000 because I went significantly lower in strike price on all.

[C]

Okay, this is so confusing, but in my opinion, she's intentionally lying and being misleading. So it's very, very difficult and complicated for me to follow this. All right, let's break this down real quick. Okay, first off, the long option value is not the buying power requirement at all. She has no idea what she's talking about. The long option value represents the value of the long options at that specific moment. In the top half of the screen, it shows around $71,700. And that's because the market value of those long options are $71,700. On the bottom screen, the reason why it shows a $14,000 decrease is because she sold those options. So instead of the value of those long options being 71,700, it's around $58,200. And you know where that money went to? It went to cash. The reason why that cash number on the bottom is not the exact difference between the liquidated long options that she sold is because when she rolled this position forward in time, she also picked up some credit. But here's where she's lying to you. Or she's either, in my opinion, too stupid or too ignorant, despite charging her members thousands of dollars to teach them very basic options trading strategies that I believe they can end up learning for free. If you look at the option option requirement on the top screen, it says $76,000. If you look at the option requirement on the bottom screen, that is $101,000. That means that this trade ends up reducing your available buying power. If you look at the top screen, the difference between the cash and the option requirement is close to $20,000. If you look at the bottom screen, the difference between the cash and the option requirement, it's only about $10,000, meaning that it's been cut in half. Your amount of available buying power is basically dropped by around 50% for making this trade. Besides the fact that I believe that this trade was completely fabricated and put on just recently, I believe that the real trade that she made, and I have no, no evidence or proof of this, probably would have shown that she had sold Tesla with a short put strike of over $400 initially, you saw.

[D]

71,000 in buying power being required for my soldier.

[C]

I don't even know why she says stupid things like this. Why does she believe that buying power requirement is equal to the long option value. That doesn't make any sense. Wrong. Option value equals long option value, meaning the market value of your long options. Why does she think that? That means that it's the buying power requirement options.

[D]

But now that's been reduced to 58,000 because I went significantly lower in strike price on all.

[C]

No, that's completely false. As we showed, your available buying power has actually been cut in half. So I actually think that Ashley never should have released this video. I think that the trade example that she gave was completely wrong. She mixed up the buying power requirements and the long option value and doesn't seem to understand both basic option terminology and how buying power works. But hey, you guys are still paying her thousands of dollars to learn basic option trading strategies that you can probably end up learning for free. So what do I know? Maybe you guys are smarter than I am.

[D]

And when you can see, consider the amount that I received for the purchased puts and then having a break even dynamic on the sold puts in the amount of premium, this equates to around a 40 annual return.

[C]

I have no idea where she got that 40% from. I'm not even going to delve into how she calculated that because in my opinion this trade recommendation is incredibly stupid and it doesn't even make sense because the trade that she actually showed was at zero risk of getting assigned.

[D]

But if Tesla moves in the right direction, then I should be able to exit well before the expiration date of 2027. Now the risk for me is if Tesla stays flat or it goes down, then I will be stuck in this trade even longer. Whereas I could have used my capital somewhere else.

[C]

A much bigger risk is that if the VIX and volatility ends up spiking to around 50 or 55, then those long dated put options are going to show you such an enormous loss due to the volatility expansion. But obviously you don't mention anything like that because it's my opinion that you really have no idea what you're talking about when it comes to trading options.

[B]

I hope you found this intriguing and it stretched your mind. Oh yeah, way to trade. And I really think what I like the most about it is the fact that it has a built in hedge. As long as you have the capital that you're able to maneuver that sold put and my.

[C]

I don't understand what's that built in hedge? You basically cashed out the hedge and now you're trading naked with no protection and an increased buying power requirement. And you forced this trade because the trade that you actually showed, which in my opinion didn't even need to be touched, nor was that trade consistent with how you described it in the beginning of the video.

[B]

They were super excited about it as well. I had pulled them all together last week to share with them all of this information.

[C]

If anyone is in her discord group, please share with me the original trade. As I've mentioned, it's my belief and I have no way of knowing this. I think that she ended up selling a short put with a strike of over $400. But please let me know maybe I'm wrong. Hopefully I'm wrong because I don't want to see you guys lose money and.

[B]

They'Re already coming up with trade scenarios and that's what I love about my community. So fun, bright individuals that are a part of it.

[C]

And so y' all love to make money.

[B]

Like the market pullback, we are using it to actually figure out ways to make our trades smarter and to hedge our portfolios. We are becoming more and more savvy.

[D]

And.

[C]

We'Re becoming so savvy that maybe in the future I won't even mix up the long option value with the buying power requirements. Oh my God. That's how we do it in the South.

[B]

You know, for years I just traded alone, so this is a different dynamic for me.

[C]

Actually, I don't even believe that you were trading for years because you make simple mistakes. It makes seem like you've only been trading for a few months.

[B]

Having so much fun, having this wonderful community to brainstorm with.

[C]

Oh yeah, I love this community because when I make mistakes, you guys pay me with your membership fees and it reimburses me for the money I lose.

[D]

But we are a community and we.

[C]

Do things together and yes, we even lose money together.

[B]

We are putting together a little get together for all you of with us and we're going to all get to actually meet in person.

[C]

Oh yes, we going to go to the strip club and I'm even going to be hooking you up with a few dollars. That way we can all be making it rain.

[B]

I cannot wait for that. But hopefully you found this helpful. If you want to know a little bit more about rolling, I had actually come up with another trade hack called the Delayed World.

[C]

Oh yeah, I want to know, I want to learn about that more premium.

[B]

When you're rolling your trade. If you, if you want to watch that, I'm going to put it right up.

[D]

You can watch.

[B]

Remember, if you're with me trading with Ashley, there is a nature left behind.

[C]

Oh no. Trader left behind. All right, so yeah, I made a lot of jokes in this video and a lot of it was my opinion because I had to make a lot of assumptions because I don't believe that she showed the actual trade that she made. And it seemed like the trade that she actually showed was made just recently. And it also contradicted which he had said earlier in the video about assignment risk and showing a $4,000 loss. But in my overall opinion, I just think that Ashley is so stupid. Maybe you disagree, but let me know your thoughts below. And if you have the original trade that she put on in Tesla, I would greatly appreciate if you could email it to me. Thanks again and have a great day. Visit Best Stock Strategy and submit your email address to receive valuable free training. Please give this podcast a positive reading and review. If you have any questions, visit beststockstrategy.com and send me a message.

[E]

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[C]

What do you have to lose?

[E]

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[A]

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