Yeah the way you explain it is how you use margin to sell the puts. And if you are assigned then you would pay interest. And that it is a good strategy to use because you make money off it even though you are not paying on it. But robinhood is not letting me do that. I have the buying power to buy the shares. But then if I go to the options. It takes away the margin and only let's me use what I have in cash available
Robinhood does not grant margin for options. Margin is available based on your stocks and stocks that you can buy with your cash. Depending on your settings, if you have cash then your buying power will show 1.5x your cash because most stocks will have a 50% available margin.
Thanks for the video! Brokers usually don't allow margin on securities/etfs below a particular amount like $5 - Fidelity needs it to be above $3. Etrade is above $2 but its 75% until you get to $3. It is there to protect themselves for when a stock or ETF is racing towards zero - like SIVB. Same reason why NYSE needs any company's stock to be above $1 in order to maintain its listing.
I have margin enabled and I see it reflected in my buying power (robinhood) but when I go to sell puts, it only shows my cash as buying power, no margin. How can I make it so that I can use margin to sell puts?
Robinhood does not grant margin for options. Margin is available based on your stocks and stocks that you can buy with your cash. Depending on your settings, if you have cash then your buying power will show 1.5x your cash because most stocks will have a 50% available margin.
So you don’t pay interest until you are assigned for puts sold on margin ? If it’s expires worthless then you keep the premium and your margin collateral is released right ?
Yes! Where is part #2??? I am very happy to have seen that you made this video, but now, I've watched it several times for the,"RUclips algorithm" but I am desperate for the rest, like apparently are so many others. Thanks again for all your videos and insights.
Great, great, awesome video… it’s a breakthrough knowledge….thank you so much for sharing… appreciate your effort four doing this! I don’t see the part 2, can you please share the link. Thank you
Good information, as always. I've been trading multiple accounts (HSA, Roth, Traditional IRA, and brokerage account), primary focus selling Puts on SPY/QQQ/IWM, but occasionally run the wheel. My portfolio is $1.1M, but I'm ultra cautious in my brokerage account (selling .03 to .05 Deltas), to avoid having to close a position at any loss and trigger a 30-day Wash Sale issue. Can you do a video that covers the Wash Sale Rules when it comes to options - specifically how it affects rolls and various legs/spreads. There is a lot of conflicting information regarding tax opinion and the loss of an option position and/or leg. Is it better to LLC and apply for Mark to Market? Maybe touch on how you're set up for trading to avoid those tax concerns. Thanks again!!
Cool! So basically you sell a put on a good stock and if you get a margin call you buy the shares and sell another put at a lower price to cover the interest. Right?
Thanks for the video! Just started a margin account recently. I am a little confused by what it means to "Initial Margin", "Maintenance Margin" and "Buying Power". I am concerned about getting margin call when trading on margin.
Love the video. All of them actually. Thanks for sharing the knowledge. I have a question. Most of my money is in TD which is where I do most of my puts/ calls. I also use Robin Hood for spreads but I was wondering if I should just switch all my money to one account. Any input?
I know Robinhood has a horrible amateur hour stigma to it but it is literally the best for trading options easily. I’m embarrassed to tell people I use it but who cares. I’m printing money with it from options
Does Robin charge interest on spreads and condors if they expire worthless? Assuming it does I get to keep the premium. Robinhood says I can margin 86k right now.
It does not matter which strategy is used. Margin will only accrue interest if the options are exercised/assigned. If they expire worthless then you are not charged.
Great vids as always Henry but I do agree with the comment of long intro . Your videos are always insightful and full of great content you explain it well . Thank you
@@AliSaleh-n9s I usually don’t let it come to that unless it’s a stock I would like to own, like Coca Cola. In that case, I would do the wheel strategy and start selling in the money covered calls for a premium
@@its9333 Oh gotcha. So getting assigned it is not the worst thing that happens to you unless the stock tanks. But the best thing is to avoid getting assigned ? thanks for your comment/reply.
@@AliSaleh-n9s getting assigned isn’t, you can use a stop-loss or take profit limit order after you place the option if you don’t want to get assigned though. I recommend options on stable companies like coke, because even on their worst day they don’t go down quickly
@@its9333 i totally agree with your concept. I sell credit spreads they are way profitable but if you are on the wrong side of the trade it can burn you quickly. Just wanted to get exposure to margin but i always hear people saying stay away from it. thanks for your time.
Hi I’ve watched all your videoes and I have a put credit spread on Tesla threw Webull. My max loss was 200 but I think I got assigned and now owe 17k!!? Trying to find out how to close this position but Webull is very confusing PLEASE HELP!
I have margin and it says I have buying power. But when go to sell a put. It says i don't have enough cash. It won't let me use the margin selling puts
@@brandonlane1683 he is using margin on other positions in his portfolio. But selling puts specifically requires 100% equity for those specific positions. So in totality he is using lots of margin but just not on the puts
Sorry this one I tried to give as much background as possible and make it a longer episode. If you guys don't like I won't give any details on thoguht process. WIll keep this in mind.
You’ve had some great videos but this one wasn’t one of them. You spent 15 minutes talking about what you were gonna cover and didn’t cover any of it. It was huge let down. 🤷♂️
Damn man :D really love your vods, but it took you over 1 year now for part 2. what happened? Just found you like 1 week ago and consumed your content like crazy.
I am not sure if it was mentioned, how do you avoid paying the standard margin interest rate of 11.5% and a margin interest rate of 7.5% from Robinhood? I know when you're using margin, most brokerage apply daily margin fees. "Robinhood Financial charges a standard margin interest rate of 11.5% and a margin interest rate of 7.5% for customers who subscribe to Gold"
If you sell a put, it is only a promise to purchase shares of it drops below the strike price so technically, although margin is "allocated", it isn't being consumed and therefore, no margin percentage. If you had to buy shares, it would be on margin though.
@@JosefTorkelsen Thanks. I am a beginner. Are you saying that Margin interest rate only can be triggered when the put option become In The Money? So, as long as the stock is up over the strike price, it's no margin interest rate? Does it apply to any broker?
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Is there a part 2 ? I couldn't find it.
Do you know a timeline for part 2? This first part was really informative and Id like to know all I can from you before I touch margin trading
Where is part 2? Loved part one and want to learn more!
Henry your my dude. Every time I have a question about the stock market you already have a video from a year ago about it. I appreciate you brother.
Was part 2 ever released? Thanks again for all you do.
I like the long thought process and long vids
21.48 People from Chicago DO NOT EAT Deep Dish pizza thats what ppl NOT from Chicago eat...We eat Cracker THIN Crust Pizza !
Yeah the way you explain it is how you use margin to sell the puts. And if you are assigned then you would pay interest. And that it is a good strategy to use because you make money off it even though you are not paying on it. But robinhood is not letting me do that. I have the buying power to buy the shares. But then if I go to the options. It takes away the margin and only let's me use what I have in cash available
Have you tried using margin to buy the shares then sell calls against it? I don’t think they let you sell puts with just your buying power.
Robinhood does not grant margin for options. Margin is available based on your stocks and stocks that you can buy with your cash. Depending on your settings, if you have cash then your buying power will show 1.5x your cash because most stocks will have a 50% available margin.
Henry, there’s a section in robinhood you can look at all ur holdings and margins used. Don’t need to go thru the headaches and math
True
Thanks for the video! Brokers usually don't allow margin on securities/etfs below a particular amount like $5 - Fidelity needs it to be above $3. Etrade is above $2 but its 75% until you get to $3. It is there to protect themselves for when a stock or ETF is racing towards zero - like SIVB. Same reason why NYSE needs any company's stock to be above $1 in order to maintain its listing.
The margin on a stock is usually decided on by the market capitalization. 500 million and under usually gets 100%.
When can we get part 2? Thanks 🙏🏿
best channel on youtube!
I have margin enabled and I see it reflected in my buying power (robinhood) but when I go to sell puts, it only shows my cash as buying power, no margin.
How can I make it so that I can use margin to sell puts?
Selling puts require 100% equity. The margins is used for buying stocks
Robinhood does not grant margin for options. Margin is available based on your stocks and stocks that you can buy with your cash. Depending on your settings, if you have cash then your buying power will show 1.5x your cash because most stocks will have a 50% available margin.
So you don’t pay interest until you are assigned for puts sold on margin ? If it’s expires worthless then you keep the premium and your margin collateral is released right ?
Yes
Correct
Thank you so much for doing the margin video!!!
Great video Henry
What I've doing is holding dividend stocks while selling put options with margin. I don't pay interest when margin is held as collateral.
Same
Watch ALL of Henry’s videos. These options strategies really do pay 2% a week. Forget the dividend stocks
I know they don’t charge margin interest on selling puts but can anyone advise on spreads? Will I be charged Interest on spreads ?
Using the wheel strategy on margin has been great for me!
Thanks Henry! Can't wait for pt 2!
Yes! Where is part #2??? I am very happy to have seen that you made this video, but now, I've watched it several times for the,"RUclips algorithm" but I am desperate for the rest, like apparently are so many others. Thanks again for all your videos and insights.
Still waiting?
@@EJL045 part 2 is sell put on low delta
Great video! Yes please do more of these margin videos
What do you think about using margin for selling very conservative credit spreads like 99% chance of profit?
How do I join your discord?
calendly.com/invest-with-henry/option-income-academy
Great, great, awesome video… it’s a breakthrough knowledge….thank you so much for sharing… appreciate your effort four doing this!
I don’t see the part 2, can you please share the link.
Thank you
Please post part 2
Let's say I sell a put option and it expires worthless does the premium go towards my cash balance or does it increase the amount of margin I can use?
This is one of your best videos!!! I’m ready to join the discord!!! Talking to the wife right now.
Excellent video. I can't find part 2.
Good information, as always. I've been trading multiple accounts (HSA, Roth, Traditional IRA, and brokerage account), primary focus selling Puts on SPY/QQQ/IWM, but occasionally run the wheel. My portfolio is $1.1M, but I'm ultra cautious in my brokerage account (selling .03 to .05 Deltas), to avoid having to close a position at any loss and trigger a 30-day Wash Sale issue. Can you do a video that covers the Wash Sale Rules when it comes to options - specifically how it affects rolls and various legs/spreads. There is a lot of conflicting information regarding tax opinion and the loss of an option position and/or leg. Is it better to LLC and apply for Mark to Market? Maybe touch on how you're set up for trading to avoid those tax concerns. Thanks again!!
Agreed - this would be a great video. Thanks Henry
I don’t think I will ever use it but it’s still good hear about how it should be used. Thanks.
Cool! So basically you sell a put on a good stock and if you get a margin call you buy the shares and sell another put at a lower price to cover the interest. Right?
Thanks for the video! Just started a margin account recently. I am a little confused by what it means to "Initial Margin", "Maintenance Margin" and "Buying Power". I am concerned about getting margin call when trading on margin.
Part 2 pleae
Love the video. All of them actually. Thanks for sharing the knowledge.
I have a question. Most of my money is in TD which is where I do most of my puts/ calls. I also use Robin Hood for spreads but I was wondering if I should just switch all my money to one account. Any input?
I’ve tried 4 brokers. Just switch to Robinhood . It is by far the best and easiest to use.
I know Robinhood has a horrible amateur hour stigma to it but it is literally the best for trading options easily. I’m embarrassed to tell people I use it but who cares. I’m printing money with it from options
Does Robin charge interest on spreads and condors if they expire worthless? Assuming it does I get to keep the premium. Robinhood says I can margin 86k right now.
It does not matter which strategy is used. Margin will only accrue interest if the options are exercised/assigned. If they expire worthless then you are not charged.
This answered questions I didn’t even know I had about margin.
Hey. Thanks for the great video.
Great Video Henry Thank you very Much
Great video! Where is part 2?
How do you get Margin enabled on robinhood? I’ve tried and it says contact customer support
You can do it all online. Just answer the questions and say you have margin and options experience
Great vids as always Henry but I do agree with the comment of long intro . Your videos are always insightful and full of great content you explain it well . Thank you
Thank you!
I like how this is EXACTLY what I have currently been doing. It’s low risk and consistent
what happens when you get assigned on selling put with margin? thanks
@@AliSaleh-n9s I usually don’t let it come to that unless it’s a stock I would like to own, like Coca Cola. In that case, I would do the wheel strategy and start selling in the money covered calls for a premium
@@its9333 Oh gotcha. So getting assigned it is not the worst thing that happens to you unless the stock tanks. But the best thing is to avoid getting assigned ? thanks for your comment/reply.
@@AliSaleh-n9s getting assigned isn’t, you can use a stop-loss or take profit limit order after you place the option if you don’t want to get assigned though. I recommend options on stable companies like coke, because even on their worst day they don’t go down quickly
@@its9333 i totally agree with your concept. I sell credit spreads they are way profitable but if you are on the wrong side of the trade it can burn you quickly. Just wanted to get exposure to margin but i always hear people saying stay away from it. thanks for your time.
Hi I’ve watched all your videoes and I have a put credit spread on Tesla threw Webull. My max loss was 200 but I think I got assigned and now owe 17k!!? Trying to find out how to close this position but Webull is very confusing PLEASE HELP!
If you got assigned start selling calls. Run the wheel
You can sell the shares you were assigned for the current price (165 today) and lose $500 or wait until Tesla comes back above $170 and then sell.
Thank you so much!!
I have margin and it says I have buying power. But when go to sell a put. It says i don't have enough cash. It won't let me use the margin selling puts
Selling puts requires 100% equity
How is he selling puts on margin in this video ? I'm confused how he is using margin.
@@brandonlane1683 he is using margin on other positions in his portfolio. But selling puts specifically requires 100% equity for those specific positions. So in totality he is using lots of margin but just not on the puts
How is he able to do this without paying interest?
Selling puts at least on robinhood will require half of your margin . Example I have 20k in margin I can only sell a put on anything 10k or under.
Where’s part 2
Part 2 please
First Like & comment!
Will we ever see part 2? ....
Appreciate you!
Люблю тебя, дядя Генри!
Imo never use margin unless ur doing wheel safe otm.. people will use margin and play options and yolo
I appreciate the detailed explanations, thank you! 👍
Part 2????
Awesome video
Another great video, but where is Part 2?? Too much vacationing
So part 2 tomorrow orrrrr?
I like selling puts on margin. Been doing it since 2020. I'm not making no $200k in 3 months though😞
Lol
What stocks you selling puts on?
What stocks and how much is your basis?
This is dangerous and Henry is crazy. J/K!
11:00 minutes in and I'm losing interest because you haven't started the video
Sorry this one I tried to give as much background as possible and make it a longer episode. If you guys don't like I won't give any details on thoguht process. WIll keep this in mind.
Unfortunately I have to agree. The latest videos have so much fluff these days and don't have much as much substance per minute of actual video time
Love all the videos and all the background research you do !! Thanks for another great video uncle Henry !!
Exactly! This was a boring one. He likes to talk about his account though. 🥱
it’s hereeeeee
Too much yapping, and information it’s pretty generic
You’ve had some great videos but this one wasn’t one of them. You spent 15 minutes talking about what you were gonna cover and didn’t cover any of it. It was huge let down. 🤷♂️
Got it I won't do this style again
@@InvestwithHenry Henry don’t let the comments get you down. Please do this style again
@@shill1103 the comments were constructive.
@@InvestwithHenryignore him all your content is a blessing.
Oh nice. Thank you for saving me time
You can see how much margin you’re using in the settings. Why are you even doing math?😅
Robinhood doesn't work outside USA 😊
Damn man :D really love your vods, but it took you over 1 year now for part 2. what happened? Just found you like 1 week ago and consumed your content like crazy.
I am not sure if it was mentioned, how do you avoid paying the standard margin interest rate of 11.5% and a margin interest rate of 7.5% from Robinhood? I know when you're using margin, most brokerage apply daily margin fees.
"Robinhood Financial charges a standard margin interest rate of 11.5% and a margin interest rate of 7.5% for customers who subscribe to Gold"
If you sell a put, it is only a promise to purchase shares of it drops below the strike price so technically, although margin is "allocated", it isn't being consumed and therefore, no margin percentage. If you had to buy shares, it would be on margin though.
Honestly who cares what the margin rate is. These options strategies pay 2% a week. Do the math …..
@@JosefTorkelsen Thanks. I am a beginner. Are you saying that Margin interest rate only can be triggered when the put option become In The Money? So, as long as the stock is up over the strike price, it's no margin interest rate? Does it apply to any broker?
Brother can you make 1 video someday where you don’t plug yourself half the video
thanks so much for your videos when i was younger in 2020 I gambled on the market and lost 20k ive been in debt since thanks for helping out
Older man is 30?! 😮💨
Too much verbage. Had to quit watching. Great topic. Redo it please. 10 minutes max.
Your impatience is very foolish. This info is priceless and isn’t taught in college
Too much talk and don’t say the strategy
Lol this guy has quite the ego
You have a lot to learn
@@shill1103 don't we all
Must be click bait 10 min lost so far