Thanks Dave. Back in 1972 we had wide ties as well. Remember how wide the ties were, they were like 4 inches across ! We had fat ties and skinny people, nowadays we have skinny ties and fat people ! We also had F Troop and Get Smart on TV, and I dream of Genie ! The other way to do it is to buy the 100 shares at the market and sell monthly covered calls. But I only do it if you can get a 40 % annualised return or better. Keep up the great work and thanks for the review.
Hey Dave! I can’t believe you didn’t reference Kevin Costner’s role in the Big Chill where all we got to see was his bloody wrists. In any case, great content!
I should have added that to this video. Similar to TLTW and I have the same feelings about it. I think there are better approaches with options versus their strategy.
Old enough to have played Pong (table tennis) on a Magnavox Odyssey. Also old enough to have the means to give this a try. Don't forget to show us the Sell Calls side after you get assigned. I'm assuming you've not been assigned yet or you would have included that in your video.
Thanks, that's an interesting idea. I currently have some bull put spreads on LQD dated out to Jan 25. I figure that is far enough out that interest rates should be lower by then. If LQD dips in the meantime, I will likely just sell some more.
Your gambling pitch at the end reminds me of how I try to sell my wife on my "good ideas." LOL. I think this is a good safe wheel strategy and a good example. Nothing wrong with some LQD. I used to sell options on higher premium more volatile stuff and come out good in the end but it can eat up a lot of cash especially when you do it a lot and be stressful at times depending on personality and patience. These days I prefer to just dollar cost average high quality covered call ETFs because it's just less work and I get exposure to a lot more. That said nothing wrong with doing it on your own. It's always nice to do these strategies on stuff that pays a dividend as well if you can. Great video and explanation.
Love the Chanel and big fan of this strategy, but I have to call out something I certainly don’t get and that is as soon as I sell a cash secured put that cash must be just that, cash. It can’t be in a money market fund earning 5%. I have fidelity, Schwab, and robinhood and they are all this way. So in your example I would only get the 6.66% when selling puts. Yes if I own the stock and selling covered calls that generally works to collect the underlying dividends and call option premium.
So when you sell a put in your Fidelity account, it hits your cash balance? Do you have margin setup? If I sell a put it hits my balances but does not hit my cash balance. I need to make a trade and see exactly which area it hits.
@@dangcjr I don't use my up my margin. I'm just using it to support my option trades. I have never had a fee. Trading options should work against your cash position but only at the option value. You will see a reserve under your balances. So while I have "potential" of having stock put to me from sold puts, it does not have a large impact to my cash position. Make sense?
@@wealthadventuresthanks I will look into this and yes it makes sense. Currently when I sell a cash secured put I need the cash available, not in money market fund to be available to purchase the underlying stock at the strike price and quantity.
Get Pong stuck, so we can get a beverage wile the ads play. I've had TLTW LQDW and HYGW in the past. I can't hold stuff that eats its nav. Hope return from Vegas +120K.🎉
All I can say is that you rock, Dave - keep making these awesome videos - they make a huge difference for the investing community!
Are you in any of those?
Thanks! Much appreciated.
Thanks Dave. Back in 1972 we had wide ties as well. Remember how wide the ties were, they were like 4 inches across ! We had fat ties and skinny people, nowadays we have skinny ties and fat people ! We also had F Troop and Get Smart on TV, and I dream of Genie !
The other way to do it is to buy the 100 shares at the market and sell monthly covered calls. But I only do it if you can get a 40 % annualised return or better.
Keep up the great work and thanks for the review.
Wide ties will come back! And sadly, so will string ties.
Hey Dave! I can’t believe you didn’t reference Kevin Costner’s role in the Big Chill where all we got to see was his bloody wrists. In any case, great content!
Ha! I will get it the next time.
I like your idea here Dave. A safety net, but can work up the return with selling covered calls. I wish it had higher volume in the cc options however
Working out so far as LQD is just "hanging around".
Thanks for the Hollywood actors and actresses lesson! 😊
Any time! Ha.
Please consider a revew of Innovator Funds
I was looking at LQDW.
I should have added that to this video. Similar to TLTW and I have the same feelings about it. I think there are better approaches with options versus their strategy.
Old enough to have played Pong (table tennis) on a Magnavox Odyssey. Also old enough to have the means to give this a try. Don't forget to show us the Sell Calls side after you get assigned. I'm assuming you've not been assigned yet or you would have included that in your video.
I had the old setup that clicked together and the Atari version. No assignment yet on LQD. Just expired puts which works for me.
Thanks, that's an interesting idea.
I currently have some bull put spreads on LQD dated out to Jan 25. I figure that is far enough out that interest rates should be lower by then. If LQD dips in the meantime, I will likely just sell some more.
That is also interesting. I will look at it. Thanks!
Thanks, learning a lot of your videos.
Great!
Thank you. I am studying options now.
Welcome! Good luck. Any questions, just ask.
Thanks Dave
Thank you!
Keep it up!
Your gambling pitch at the end reminds me of how I try to sell my wife on my "good ideas." LOL. I think this is a good safe wheel strategy and a good example. Nothing wrong with some LQD. I used to sell options on higher premium more volatile stuff and come out good in the end but it can eat up a lot of cash especially when you do it a lot and be stressful at times depending on personality and patience. These days I prefer to just dollar cost average high quality covered call ETFs because it's just less work and I get exposure to a lot more. That said nothing wrong with doing it on your own. It's always nice to do these strategies on stuff that pays a dividend as well if you can. Great video and explanation.
Ha! Thanks. The wives will never understand... So many good ideas.
I like it
best of luck in Vegas
Thanks!
Love the Chanel and big fan of this strategy, but I have to call out something I certainly don’t get and that is as soon as I sell a cash secured put that cash must be just that, cash. It can’t be in a money market fund earning 5%. I have fidelity, Schwab, and robinhood and they are all this way. So in your example I would only get the 6.66% when selling puts. Yes if I own the stock and selling covered calls that generally works to collect the underlying dividends and call option premium.
So when you sell a put in your Fidelity account, it hits your cash balance? Do you have margin setup? If I sell a put it hits my balances but does not hit my cash balance. I need to make a trade and see exactly which area it hits.
@@wealthadventures I do see choice to use margin instead of cash but how much do I need to pay for margin? I would think more than 5%?
@@dangcjr I don't use my up my margin. I'm just using it to support my option trades. I have never had a fee. Trading options should work against your cash position but only at the option value. You will see a reserve under your balances. So while I have "potential" of having stock put to me from sold puts, it does not have a large impact to my cash position. Make sense?
@@wealthadventuresthanks I will look into this and yes it makes sense. Currently when I sell a cash secured put I need the cash available, not in money market fund to be available to purchase the underlying stock at the strike price and quantity.
Precisely Article 8 of the Uniform Commercial Code.
That is a good Idea.
Hope so!
New one for you to possibly review. QQQI
Yup! Good to see that they got it to market.
Hello. Great content. Can you go over stock ticket ( MAIN ).
I will check it out. Thanks for the idea!
I think you don't like LQDW because it doesn't sell protective puts?
True. I think I can do better.🤷♂️
Get Pong stuck, so we can get a beverage wile the ads play.
I've had TLTW LQDW and HYGW in the past. I can't hold stuff that eats its nav.
Hope return from Vegas +120K.🎉
Thanks! I think if you are up for selling some options, you can outperform TLTW and LQDW.
What can you tell us about Uniform Commercial Code (UCC) And the impact it may have on our investment securities?
How much is the fidelity trading platform subscription?
There should be no cost to open up a brokerage account.
Did you get your 120k from vegas??
Fell short by 122k... Lol. Good times though.
$TRES plays pong.
We will have to come up with a complete PONG list.
'Promosm' 😻