My Strategy - I have large cap stock that I want to keep if possible. Goal - low risk income. First, use chart to read Weekly Bollinger Bands & Daily, Weekly, Monthly Support/Resistance Levels - If in upper range of BB & at resistance - Sell 30 day higher delta covered call (0.25) - If in bottom range of BB & at support - Sell 30 day lower delta covered call (0.15) - Take note of earnings. Sell options that expire before earnings. Did I miss anything?
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
What people don't realize is that the money you make on these per option is $50-100. So unless you own LOTS, you are making very little and you aren't going to get rich. Not saying you cant' do this over and over and over and over and it will add up... but just want to keep people's expectations realistic.
Henry, at the beginning of your video, you discuss selling call options, but your screen is set to buy calls. This would most likely bring the premium collected much lower than shown, but it’s still valid content for today and the future. Continuing to show how we should repeat the covered call process is important, just like in the wheel. Thank you
Woah for real? I'm so excited. Loretta Logan strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
I think expiration date is a function of checking that your gaining time value premium in a linear fashion for each week you go out. I’ve found sometimes it’s best for 1-2 week expiration because going 3-4 weeks out barely gives any extra premium. Just something to evaluate each time
Love your videos. Way different compared to people who try to sell something in the name of quick money. Very educational. I have a good amount of experience in stock market but I have never made a consistent returns. Your strategy seems interesting. I tried out a couple of times, and it worked. I need more experience to be able to say if it's gonna work in a long time or not. However, my question to use that you do make RUclips videos, trying to educate people and make revenue out of them. Can put a small video of how much RUclips pays you for the number of subscribers or the viewers? Talking about transparency will help a lot in people trust in your videos.
The problem with covered calls is the only ones with decent premium are the high vol assets like Tesla, Bitcoin Miners, tech small caps. Then you end up blowing your account when you get called away. It's better to just hold the assets and take your own premium in interest payments at the end of the day.
@buyethereum6911 how is he wrong? I've been learning to sell CCs and whenever I use a really good stock, it seems to run away from me and I can't possibly roll it out far enough to be worth it, so I would have made more money if I had kept the stock.
I like NIO at $6-7. I think we will see NIO at these depressed levels in 2024, Q2-Q3. I would love to sell calls on NIO. I remember when it was in the 60s, I flipped NIO for 2X when I bought it at $30 some time in 2020.
Plz don’t buy any C- stocks like NIO , alibaba, xpeng etc etc .. it’s my personal opinion.. I had very very very bad experience I lost around 300k on NIO ( they will change or manipulate the records and they will not disclose to anyone and end of the week will fucked up simple .. I brought 6k stocks at 3.75 it went to 56$ and I want to hold it for very long time but now it came back to 5 $ . My biggest mistake is holding and not selling .. when it is falling I have I have added even more by taking margin money from broker .. and I total screwed up . The stock is continuing to fall and finally lost everything because of China rules etc etc .. and my mistake also involved but just giving warning the be careful with those stocks simple . If you want buy that range of 5$ stocks search for US stocks .. like SOUD etc .. am not financially adviser plz do your research ..
A safer stock for option sells would be one with a rising chart, not falling. If the stock gets called away you make money on both your OTM sold options and the shares.
@@No_BS_Options_Trading It kind of worked for me today. I hadn't seen the PMCC version before, so that was informative. I haven't done a deep dive in PMCC yet, so it was interesting to see he does it with a term shorter than a leap.
I have to cut you off just 2:30 into your video. Selling CCs is NOT a bullish strategy. It`s not. The ideal scenario for selling CCs is the flat-to-slightly-bearish direction. Why? Because the flat part insures that the NAV will PROBABLY not rise above your strike price (if you followed recommended Delta choice of 20%ish) and cause your shares to get assigned away. Slightly bearish because, slightly bearish is at least not falling knife bearish, and as long as you keep collecting option premiums you continue to lower your cost basis, and so you can handle slightly bearish because overall you are stil in the black. The bullish strategy is NOT doing CCs at all, it is owning the stock, or the index, so your upside potential is not capped, as it is by definition when you are doing CCs. Your 'double bottom' thesis as your downside protection also was not valid, as NIO is way down since your video, to 6.08 as of 2/15/2024. Good luck in your trading.
try itm covered call and a call credit spread on top of that. supercharge income!!! 3-5 week expiry. let mek now what ya think. if youre shorting the underlying do a itm covered put and pcs.
I've been reading a lot lately on the subject can you elaborate using nio from the video. Eg strike prices on the covered and credit call? Sorry it's a bit overwhelming trying to learn all these spread strategies thanks
Ill tell u something i had to do which was great and i didnt relaize it.. i was stuck in 8.50 cc and price is 1.45 above.. i made alot of premiums.. i then rolled it out made 5k more to 9 strike..then it went up i rolled it back to 8.50 collected 18k more.. then it traded sideways and on a dip i rolled it out same strike 4 weeks 8.50 and picked up another 24k.. i figued if im stuck at 8.50 i pulled out extra 50k in premiums with same 8.50 strike... o well... if this pulls back 1 dollar and i can buy them back for cheap it would of been best move i did....and im in 8.15 a share.. never thought id hope for a pull back..lol
Thank you for sharing your knowledge and experience and educating us. I love these PMCC. Please keep educating us on PMCC and managing them properly, as well as other strategies.
Henry - when do you roll a SPY covered call option that is over your SP? I’m thinking of rolling my SPY $460 ending this Friday today vs later on the week since market is green. Thoughts?
Can you please do a latest video on the same content related to best stocks to run covered calls at this point with significant run up on most of the stocks. Thanks
Thank you so much for your video, you opened a door for me to earn some passive income in my retirement. I have one question about selling cover call. If I sell a cover call at $10 which expire at the end of next month, from now and the end of the month, if the price goes higher than $10 in the middle of the contract, will my shares be called away on that date or at the end of the month?
Hello Henry, I have two covered calls in Tesla money, one of 90 and another of 100 respectively with an expiration date in January 2025. I don't know what I should do whether to take an upward roll or wait for the expiration to get closer.
@@aaaproduction6869 well, i'm honestly surprised that you haven't been early assigned yet if you had sold calls at 90 & 100. at this point, i'm not sure you could roll up & out far enough to get a credit to where your strike is above your cost basis...even if you went out to jan 2026.
Ok. What was rational? This makes no sense unless you thought Tesla would drop hard hard You really never ever sell covered call on LEAP. only reason I could think is needing the cash to pay bills why you’d risk gains on Tesla.. and or a massive order of thousands and wanting to limit cap gains tax Why would you not sell atm that day of writing I can’t even comprehend this. I’d assume you’re stuck as they prolly ain’t even anything you can roll to further out nor would I recommend that given risk for Tesla to go up even more
@@aaaproduction6869 so you basically sold covered calls long ago at below stock price and never rolled them on the way up and did not close the positions because you believed Tesla would fall back hard again... happened to me with Palantir. There is not much you can do, you lost a lot of money. You might want to close one of your two tesla covered calls at a major price drop, keep the shares , wait to rise and sell a covered call at the top! Selling cover calls is an art trying to find the sweet spot that the stock price will not surpass at the time of your expiration.. or you sell a covered call deep in the money for securing a large cash premium if you want to still own the stocks but believe that the price will drop significantly within the first half of the option period
When you have to sell your stocks in a covered call option contract do you get the money you spent on the 100 stocks back. For example, if 100 stocks cost me $246 and I receive a premium of $165. Then when I have to sell those stocks will I have a net +$165 OR a net -$81.
Curious how NIO worked out over time, selling calls each month the stock was imploding. I suspect the strategy is at a loss right now? Also, not exactly fair to call a strategy in which you're long such a speculative stock as 'conservative.'
wouldnt this be good for a covered call strategy? since the stock didnt hit the strike? only bad thing would be that your shares of the nio are depreciating? or am i dumb
If you get called on a PMCC on your first trade in do you receive the credit back for the long call position you took or is that all sacrificed if you actually were to reach the strike on your short call?
I was really hoping to lead how to do a Coved Call but got completely lost either way all the side chatter. I understand it’s not scripted but following an outline with training objectives would be a huge improvement.
I would not recommend nio.. un profitable for ever.. and nkt even getting close.. re looking back at this video and not following nio is 6 dollars.. yikes...
Great job! I find this channel a good help in understanding the unique problems facing us individuals, I wish they taught me this in college. As a beginner I was scared of losing my savings, you've helped me a lot Ms Pacey Arnold. Imagine I invested $2,000 and received $8,600.
This all all bullshit people!! Telegram people will take your money. Alot of Expect Traders on there. They can't even spell expert right. Follow your own guy and do your research. Stocks to Trade on Telegram is a scam, I have proof.
I’m curious why you can buy a call that is so much in the money (TSLA at 210)for an expiration date months from now. I thought once you buy a call option you can sell it once it’s in the money but if you buy already in the money why not just sell it? What am I missing?
You must really don't think much of your subscribers to give content from 7 months ago. To me that shows that you are just in it for yourself so don't pretent like you want to help people succeed.
20:23 probably the most delusional statement I've heard this guy speak. He ONLY needs $8k-$10k a month without a family? Buddy do I have news for you from people living on planet Earth...
My Strategy - I have large cap stock that I want to keep if possible. Goal - low risk income.
First, use chart to read Weekly Bollinger Bands & Daily, Weekly, Monthly Support/Resistance Levels
- If in upper range of BB & at resistance - Sell 30 day higher delta covered call (0.25)
- If in bottom range of BB & at support - Sell 30 day lower delta covered call (0.15)
- Take note of earnings. Sell options that expire before earnings.
Did I miss anything?
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
Facts
This did not age well. NIO is 5.40
china is dangerous.
You can't win everything.
Thats why you diversify.
5.28 lately
@@patricksuwala4090
Can you be more specific what you mean by that?
Soo… switch to selling puts? Lol
What people don't realize is that the money you make on these per option is $50-100. So unless you own LOTS, you are making very little and you aren't going to get rich. Not saying you cant' do this over and over and over and over and it will add up... but just want to keep people's expectations realistic.
Henry, at the beginning of your video, you discuss selling call options, but your screen is set to buy calls. This would most likely bring the premium collected much lower than shown, but it’s still valid content for today and the future. Continuing to show how we should repeat the covered call process is important, just like in the wheel. Thank you
You right ... He didn't choose the "sell" tab .. But the general idea is still valid
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2023
Wow that's huge, how do you make that much monthly?
More awesome T.A. with mrs Loretta Logan! Keep driving those Bullas! 48K BTC? Oh Yeah. Cheers, Mate🤩
Woah for real? I'm so excited. Loretta Logan strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
she's mostly on Telegrams, using the user name.
....
*_@loretta191^^^ that is it_*
I think expiration date is a function of checking that your gaining time value premium in a linear fashion for each week you go out. I’ve found sometimes it’s best for 1-2 week expiration because going 3-4 weeks out barely gives any extra premium. Just something to evaluate each time
Love your videos. Way different compared to people who try to sell something in the name of quick money. Very educational. I have a good amount of experience in stock market but I have never made a consistent returns. Your strategy seems interesting. I tried out a couple of times, and it worked. I need more experience to be able to say if it's gonna work in a long time or not. However, my question to use that you do make RUclips videos, trying to educate people and make revenue out of them. Can put a small video of how much RUclips pays you for the number of subscribers or the viewers? Talking about transparency will help a lot in people trust in your videos.
The problem with covered calls is the only ones with decent premium are the high vol assets like Tesla, Bitcoin Miners, tech small caps. Then you end up blowing your account when you get called away. It's better to just hold the assets and take your own premium in interest payments at the end of the day.
Ur lost “dogegamer”
@@buyethereum6911How so. Please enlighten me with your vast and superior wisdom on the topic.
@buyethereum6911 how is he wrong? I've been learning to sell CCs and whenever I use a really good stock, it seems to run away from me and I can't possibly roll it out far enough to be worth it, so I would have made more money if I had kept the stock.
I like NIO at $6-7. I think we will see NIO at these depressed levels in 2024, Q2-Q3. I would love to sell calls on NIO. I remember when it was in the 60s, I flipped NIO for 2X when I bought it at $30 some time in 2020.
Plz don’t buy any C- stocks like NIO , alibaba, xpeng etc etc .. it’s my personal opinion.. I had very very very bad experience I lost around 300k on NIO ( they will change or manipulate the records and they will not disclose to anyone and end of the week will fucked up simple .. I brought 6k stocks at 3.75 it went to 56$ and I want to hold it for very long time but now it came back to
5 $ . My biggest mistake is holding and not selling .. when it is falling I have I have added even more by taking margin money from broker .. and I total screwed up . The stock is continuing to fall and finally lost everything because of China rules etc etc .. and my mistake also involved but just giving warning the be careful with those stocks simple .
If you want buy that range of 5$ stocks search for US stocks .. like SOUD etc .. am not financially adviser plz do your research ..
Ok, I fomo'd. I took 100 shares of NIO at 9.20 and sold the CC at the 10 strike for 0.1 credit expiring this week.
bro, u good?
@@ChelovekOdin lmfao, I sold at 8, took the loss.
Thanks Henry. It looks like it's time to trade OTLY again. I sold 10x $1 Put a couple weeks ago. The premium is juicy.
A safer stock for option sells would be one with a rising chart, not falling. If the stock gets called away you make money on both your OTM sold options and the shares.
Do you sell options in a company name? Or, do you sell in your personal name? Salute
Half of this video is a re-upload?
yup, he recycles content all the time unfortunately.
@@No_BS_Options_Trading It kind of worked for me today. I hadn't seen the PMCC version before, so that was informative. I haven't done a deep dive in PMCC yet, so it was interesting to see he does it with a term shorter than a leap.
Thanks for this Henry! I been watching you for about a year now! I finally sold a couple call options! Thanks for all this!
I have to cut you off just 2:30 into your video. Selling CCs is NOT a bullish strategy. It`s not. The ideal scenario for selling CCs is the flat-to-slightly-bearish direction. Why? Because the flat part insures that the NAV will PROBABLY not rise above your strike price (if you followed recommended Delta choice of 20%ish) and cause your shares to get assigned away. Slightly bearish because, slightly bearish is at least not falling knife bearish, and as long as you keep collecting option premiums you continue to lower your cost basis, and so you can handle slightly bearish because overall you are stil in the black. The bullish strategy is NOT doing CCs at all, it is owning the stock, or the index, so your upside potential is not capped, as it is by definition when you are doing CCs. Your 'double bottom' thesis as your downside protection also was not valid, as NIO is way down since your video, to 6.08 as of 2/15/2024. Good luck in your trading.
try itm covered call and a call credit spread on top of that. supercharge income!!! 3-5 week expiry. let mek now what ya think. if youre shorting the underlying do a itm covered put and pcs.
I've been reading a lot lately on the subject can you elaborate using nio from the video. Eg strike prices on the covered and credit call? Sorry it's a bit overwhelming trying to learn all these spread strategies thanks
Nio is definitely not a safe stock at all. I learned my lesson
This dude is the real deal. I don't care about 200 k. Respect 👍
do you sell the covered call in the same order (stock leg) or do you open the positions separately?
Ill tell u something i had to do which was great and i didnt relaize it.. i was stuck in 8.50 cc and price is 1.45 above.. i made alot of premiums.. i then rolled it out made 5k more to 9 strike..then it went up i rolled it back to 8.50 collected 18k more.. then it traded sideways and on a dip i rolled it out same strike 4 weeks 8.50 and picked up another 24k.. i figued if im stuck at 8.50 i pulled out extra 50k in premiums with same 8.50 strike... o well... if this pulls back 1 dollar and i can buy them back for cheap it would of been best move i did....and im in 8.15 a share.. never thought id hope for a pull back..lol
I'm doing in the money ones and buying back when it drops. Getting rid of anything Tesla related before earnings. ..
Great move Henry. Thank you!
Thank you for sharing your knowledge and experience and educating us. I love these PMCC. Please keep educating us on PMCC and managing them properly, as well as other strategies.
What’s with those expiration dates?Is this video old?
Henry - when do you roll a SPY covered call option that is over your SP? I’m thinking of rolling my SPY $460 ending this Friday today vs later on the week since market is green. Thoughts?
Thank you for being so clear in your videos.
Can you please do a latest video on the same content related to best stocks to run covered calls at this point with significant run up on most of the stocks. Thanks
Well that depends on risk tolerance and goals
Most common answer is highly volatile stocks. But with that could come greater swings.
Thank you so much for your video, you opened a door for me to earn some passive income in my retirement. I have one question about selling cover call. If I sell a cover call at $10 which expire at the end of next month, from now and the end of the month, if the price goes higher than $10 in the middle of the contract, will my shares be called away on that date or at the end of the month?
Do you recommend building up my account first and ignoring any debt or eliminate any debt then focus on portfolio?
Debt. Can you out earn the interest rate also minus cap gains tax. Prolly not.
Debt first
What happens when someone buys deep in money call like for Leap End 2024? Assume Tesla 200 usd expiring 2024?
Thank you for your efforts Henry. I like what I'm hearing. You sound sincere to me. New subscriber.
Rule #1 We sell OTM calls on stock that is UP trending in which either are DOW or S&P stock with strong growth potential ONLY
Hello Henry, I have two covered calls in Tesla money, one of 90 and another of 100 respectively with an expiration date in January 2025. I don't know what I should do whether to take an upward roll or wait for the expiration to get closer.
wow...i have questions on this. when did you open the covered calls? were those CCs above or under your average cost basis?
@@korofrog My average cost is 129
@@aaaproduction6869 well, i'm honestly surprised that you haven't been early assigned yet if you had sold calls at 90 & 100. at this point, i'm not sure you could roll up & out far enough to get a credit to where your strike is above your cost basis...even if you went out to jan 2026.
Ok. What was rational? This makes no sense unless you thought Tesla would drop hard hard
You really never ever sell covered call on LEAP. only reason I could think is needing the cash to pay bills why you’d risk gains on Tesla.. and or a massive order of thousands and wanting to limit cap gains tax
Why would you not sell atm that day of writing
I can’t even comprehend this. I’d assume you’re stuck as they prolly ain’t even anything you can roll to further out nor would I recommend that given risk for Tesla to go up even more
@@aaaproduction6869 so you basically sold covered calls long ago at below stock price and never rolled them on the way up and did not close the positions because you believed Tesla would fall back hard again... happened to me with Palantir. There is not much you can do, you lost a lot of money. You might want to close one of your two tesla covered calls at a major price drop, keep the shares , wait to rise and sell a covered call at the top! Selling cover calls is an art trying to find the sweet spot that the stock price will not surpass at the time of your expiration.. or you sell a covered call deep in the money for securing a large cash premium if you want to still own the stocks but believe that the price will drop significantly within the first half of the option period
Haha. I remember buying Nio at 53. Back in 2021. The next day started the falling knife
great content and knowledge
When you have to sell your stocks in a covered call option contract do you get the money you spent on the 100 stocks back. For example, if 100 stocks cost me $246 and I receive a premium of $165. Then when I have to sell those stocks will I have a net +$165 OR a net -$81.
Appreciate this great education!
This is an old Video !
Curious how NIO worked out over time, selling calls each month the stock was imploding. I suspect the strategy is at a loss right now? Also, not exactly fair to call a strategy in which you're long such a speculative stock as 'conservative.'
need video explanations on do and don'tsfor selling covered calls ITM
Delta don’t mean nothing seen low deltas and the stock goes 2-3 dollars away from the strike
What do you do when the price of your stock starts dropping?
if u lose the shares u can re-buy it fast at lower or the same price
How is this passive income if you are actively trading?
So you can cancel your option? How do you cancel once you committed?
Buy to close
@@nkratzke1835 wont that cost me more money?
Is nio a buy now at 4? And sell covered calls at $6 strike?
Three months later and Nio is $4.64 per share…
wouldnt this be good for a covered call strategy? since the stock didnt hit the strike? only bad thing would be that your shares of the nio are depreciating? or am i dumb
Yes covered calls are good and yes if the stock goes down its ok! Yoy bought shares since you believe in the company@sule_lol8960
If you get called on a PMCC on your first trade in do you receive the credit back for the long call position you took or is that all sacrificed if you actually were to reach the strike on your short call?
confusing video plus NIO is horrible stock to sell covered calls , it is in free fall .
Very nice 👍💰💰💰💰💰💰💰
What are some low cost stocks to trade covered calls?
What about yieldmax funds?
NIO is junk but this is a great strategy for blue chips, especially with a dividend.
I don't know how you do it working part time. I do very well, but I work about 6 hours everyday. My options are all 5 to 10 days max.
Why do you trade covered calls on cheap stock? You get way more premium on something like AMD.
I was really hoping to lead how to do a Coved Call but got completely lost either way all the side chatter. I understand it’s not scripted but following an outline with training objectives would be a huge improvement.
how do you lose on covered calls?
Hey man how can I get you to be my mentor? I’m ADHD and dyslexic and I feel I retain a lot more with you
Nio is $5.30 in September
You lost me at wanting exposure to China? Why?
Because he's a business man! ... Why there are a lot of american businesses manufacturing in china? ... Profitability!
How long this vid was made? SPY as of 12/28/23 was over 465
Old content. SPY is now at 475. He makes more money on RUclips than in the stock market.
Can't believe how many lemmings here do not notice that. Man.
BYD is best Chinese EVER company!
Do you like NIO at $4?
Ha 5 89 now!
Nio at $4 today. Rip
How is this saying may 19th only 19 days away????????
I would not recommend nio.. un profitable for ever.. and nkt even getting close.. re looking back at this video and not following nio is 6 dollars.. yikes...
Great job! I find this channel a good help in understanding the unique problems facing us individuals, I wish they taught me this in college. As a beginner I was scared of losing my savings, you've helped me a lot Ms Pacey Arnold. Imagine I invested $2,000 and received $8,600.
I made my first $8k investing as a beginner. Now I have time for my family and other things in life.
This all all bullshit people!! Telegram people will take your money. Alot of Expect Traders on there. They can't even spell expert right. Follow your own guy and do your research. Stocks to Trade on Telegram is a scam, I have proof.
It’s funny to look back on this video and see the spy hit the high of 5200 already
Nio is $4 now, this video aged well
I’m curious why you can buy a call that is so much in the money (TSLA at 210)for an expiration date months from now. I thought once you buy a call option you can sell it once it’s in the money but if you buy already in the money why not just sell it? What am I missing?
The dollar thing is just narrative
You must really don't think much of your subscribers to give content from 7 months ago. To me that shows that you are just in it for yourself so don't pretent like you want to help people succeed.
I almost thought this was new video 🤦🏾♂️
Lost me at "invest in China"
Do any of these people ever show you how to place an actual options trade? Lol
Come On MAN. Video U r using is OLD, shows 1 day ago from Dec. 28, 2023, Really? Henry, you too?
4:40
Henry get out of the market. Bad bad crash coming
You should make an updated video for 2025 with trump winning the election and how that'll effect the market!
NIO 4.17 now😂
Old video
Hahaha nio at 8$… look at it now
Sorry you lost me at invest in China 👎🏻
20:23 probably the most delusional statement I've heard this guy speak. He ONLY needs $8k-$10k a month without a family? Buddy do I have news for you from people living on planet Earth...
Like
i learned nothing. you didn't explain anything