$5,000/Month Wheel Strategy Option Trading
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- Опубликовано: 29 янв 2023
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Wheel Strategy
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!
![mgk - Sun to Me (Zach Bryan Cover) [Live from Cheshire Cottage]](http://i.ytimg.com/vi/_ZnbTEs4O6U/mqdefault.jpg)
'I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made".
I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?
@@danielkey1463 I invest across the top markets but not by myself though. I follow the guidelines of 'MARGARET ANN WARNKEN" I can correctly say she's worth her salt as an investment advisor as her diversification skills is top-notch, I say this because of the results, as my portfolio grows by averages of 20 to 3O% every month, unlike I can say for my IRA which has just been trudging along. my portfolio just mirrors what she places and not just on some particular industries of my choosing. she gave me that financial freedom I needed.
@@mariahhayes5089 That’s great, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financially stable. Do you mind sharing info on how to reach this person?
@@mariahhayes5089 I just looked up this person, and surprisingly she seems proficient. I thought this was just some overrated BS, I appreciate this.
You said it all. It's hard to predict the future, but one thing you can always rely upon is human GREED. Once stocks start rising again, people are going to think back and kick themselves and ask why they weren't willing to buy things at a 60-80% discount.
I started with about 18k and I can make around 500 a week doing the wheel strategy with Tesla or Nvidia. Sell a cash secured put, if I get called sell a covered call rinse and repeat.
Do you know how much capital is needed to earn 5000 per month using this strategy?
@@michstockholm1164 Mich, that'll depend on how much you can consistently return per month. If you think you can make 4% a month then you'll need roughly $125000.00 invested.
Something for a lot of very new investors that is most likely a no brainer to others is that you need to make sure you have the collateral for the initial put opion you want to sell. I got in to investing through the appeal of dividends, so when I found this video, I was intrigued, but didn't just have $700-&1000 sitting in my buying power and I didn't want to sell my long positions to support that. Worked and saved a small bit of my paycheck (and capitalized off multi-leg option strategies) until I had a cushion to support this.
EXCELLENT .Exactly what I needed. Thank you!
Awesome video Henry! Very well explained and with a lot of ideas on how to trade the strat! Thanks 👍
Solid video - I like use the wheel along with spreads as a part of my portfolio.
Most informative from someone who's an expert. Thanks a ton - Dhriti Sil
Henry I found your channel last month - about early to mid-December and have been selling Put and Call vertical spreads and Iron Condor's. Initially I started with just using SPY and QQQ. Last week and this week I moved to some individual stock like MCD, LMT and BRK.B. I have been running these trades with 3 different brokers. I had a tiny Robinhood account worth less than $20 and added $500 cash in December to trade options. SInce Dec 27th I am up 27.8% about $192 not including today's trade (Iron Condor on BRK). Cool fact - my office is next to were you went to college.
Henry, can you delve more into choosing how to select tickers for different option strategies?
As always a great video Henry!
Love your videos and option strategies. Your teaching option trading the right way to grow a portfolio. I'm learning. Personally I like Iron condors and the wheel strategy . 👍
Helpful for me, a small trader and as an older fellow helpful for some gain, like a second job now in Roth accounts.
Good Stuff! Easy to understand!
This is good stuff. Thanks
Great video, would you use same idea on AMC stock today. Because it is trading sideways for 3 month ?
Hi Henry, what if after get assigned, the share keep falling even if the fundamental is good, what is the risk management like cutting loss when price drops to certain percentage
Ive been trading the wheel for a year straight. I dont make a lot at all and its not as cray and exciting but i have been slowly going up. I only trade ETFs with monthly or quartely dividends so my premium is very low in comparison to the other stocks. But its high probability that I will want to keep the underlined and I get dividends that are reinvested every month. It would be amazing if I had a huge account because I could sell lots of contracts and make a really good living but right now its a small amount per month.
Make sure to mention you need the buying power for the value of the contracted shares in the sell put.
Hi Henry, do you have other platforms to recommend that are simple to use like robinhood for someone who would like to learn options , but lives outside of US
Best strategy but you have to have capital ❤
Everyone starts somewhere
Do you know how much capital is needed to earn 5000 per month using this strategy?
That's what I was wondering
@@michstockholm116410m dollars 😂
@@mahernajjar9913 1 options contract = 100 Shares of any stock, so you need to have enough cash in the account to at least cover 100 shares of the stock you want to do a Put option on, in case you are “assigned” the stock if the stock hits the Strike price under your Put contract. Keep in mind that a $12 stock x 100 shares = $1200 that you need to be ready to pony up, versus a $120 price stock where you would need to have $12,000 to pony up. So do the math. The higher value the stock, the higher value of your Put option that you have ‘in play’. As the saying goes, you have to start somewhere, but as the saying also goes, you need money to make money. The more money you have the more you can make.😊
What’s the strategy once you are assign on the puts n the stocks keeps dropping week after weeks
In the future would you do a comparison of the long strangle versus the wheel? I watched another video saying the long strangle is a more profitable strategy.
I like how you explained the wheel option so easily in a way I can understand. I just scheduled a call for Monday for your weekly options income course. Do you still have openings for tomorrow's webinar?
New to channel love the info but how come you don’t do live option trades
Please do you have any video about 1,1,1 strategy
So are you doing these simultaneously or are you selling the calls after you finish your put?
Do you backtest option strategies? I'm trying to figure out how it's possible?
Hi Henry, Nio got assigned to me at when $40, and the share kept falling. How to avoid this during wheeling?
Why is your earned 4% interest on available cash not turned on?
Does this strategy only work on Optionfy? Or can it be used on other platforms like robinhood?
Amazing job.
Thanks!
What are the best stocks for the Wheel strategy, starting with an account of $2k?
Great video but if someone was new to option selling your video would have them thinking that if selling a put and the stock hits the strike you need to buy those shares. Not true you didn’t even once mention to roll the short option for a credit and buy it back for a small loss but sell a an option further out and down. Or on the call side same thing. If I don’t want to own the stock I’ll roll and have accumulated lots of credits along the way. Otherwise great content!
Whoa!🤯🎉
I like the wheel strategy... But I try to do it on a weekly basis. Thanks for the insights in the monthly way.
Quick question on the Cash-flow Wheel Options Strategy. What would you say is a realistic monthly ROR range on Wheel plays? Does 4-8% monthly sound about right most of the time?
what if u want to sell a put option with strike price 10 bucks but the stocks fall down to 3 dollars.
Hi.... I'm a total newbie. At (7:09) in the video you mentioned that you get to keep the $26 at the expiration date if the stock stays above $11. is this $26 per individual share or $26 for the entire 100 shares? I'm a bit confused on this part, any input is much appreciated. TY
It's $26 for the 100 shares or $0.26 per share
26 For The Entire 100 Shares . 26 cents × 100 = 26.00
you missed the scenario where the stock tanks downside and its hard to get good premimum to sell calls which could be below your original strike ... could be loss on this case, please confirm?
So ideally, you’d only want to do this strategy with cheaper stocks because if you’re stuck buying 100 shares, that would be a lot of money to pay if it were an expensive stock right?
Exactly
You have a third scenario which was not covered in this video. You can roll the option instead of being assigned.
Hi Henry! Love your video! Quick question, do you let the option expire or do you close the option early? Thank you for all the teaching ❤️
you let it expire if it doesn't hit your strike. If it goes past your strike you can either do nothing and let the shares move OR you can close.
@Rolexy jallow aren't we all?
In a given year, is it more profitable, assuming for sake of argument you never get assigned and you're targeting 30% ish delta, to sell 52 puts once a week, or less puts less frequently (3 weeks, 6 weeks etc.)?
Info about discord? Thanks
Thank you for this video. Its well done and seems like a great system. Please consider me for a seminar invite. I appreciate what you share.
The greatest risk of this strategy is when the market falls down 50-70% hard. Then you can't recover, all you can do is wait.
Henry your advice is great but I would not put my money on this Chinese stock and left holding the bag because of the VIE structure this company operates and listed in Nasdaq. So guys be very careful where you put your money and with current geo political issue things can change against you anytime.
I have 200 open puts on Nio at $10.5 and $11. I like that strike as a decent entry point to start building a position. Nio will be a solid company in about 3 to 5 years IMO:)
Nice
200 open contracts? Too rich for my blood, I hope works out for you.
@@jaymes7521 thanks
daymn.. wish i have that kind of money..
Nio is like $8 now lol
Henry, Why not sell the Put and Call for any given cash or Stock position. Ultimately, only one can be exercised, and it effectively doubles the return in the long run. Or am I missing something?
@user-qj2mw2hg9r EMAIL?
How much capital one does one have to have to be able to earn 5000 USD per month with that strategy?
Great video, thanks! I've been studying the wheel strategy for a while, but haven't tried selling options yet. Plan to do so in the near future.
Question: How much cash is you student using to make the $5k/month? I'm sorry if I missed that part, but I don't think you mentioned it.
Also, what type of returns (approximate) do you think one could see monthly with say, $35k to play with? (assuming the wheel strategy was played correctly in recent market conditions).
Thanks!!
His portfolio in the beginning shows $2M. This means he's earning ~3% on the strat, which is very low compared to just investing in a stock that follows the S&P.
@@PainterCM he is not using his whole 2 million to generate 5k dollars
nio is 7.7 , how do you avoid a 5$ lose, or you just tank it cause you like the underline?
@ahmedmedo198 i dont recognize the number or the person. nice picture btw
Why you never mention how to find which stock and at what price we should buy?
1st to comment
lol
How come no one talks about brokerage fees when it comes to selling calls or when getting assigned?
If you use interactive brokers, there is no assignment fees which is really good.
RE: NIO. I've been avoiding Chinese stocks, the only time I've broken that rule was for Luckin Coffee, and I lost over 90% of my position (fortunately a small one) when it came out that they fabricated their financial documents. Now back to avoiding China! Just curious if this concerns you with NIO?
So... You need like 250k in your account to make around 5k / month
Nio’s current price a year later vs this video…..
So $5000 / $26 (from the 11 strike contracts) = 192 contracts x 100 shares = 19,200 shares x $11 = $211,200 buying power required to make $5000 a month? Did I do that math right?
Not sure if the math is right but it definitely will take money to make money all u have to do is enter it in as if u were going to buy it to get an idea of how much u would need to make a certain amount I entered it with amc and seen it would take about $100,000 to make around 2k a week so if u have the money u should definitely do the wheeling strategy
Not to be negative but these wheel threads are all the same info.
This is neither safe, nor low risk
Wheel strategy is completely useless in a bear market.
What strategy can we use in bear market?
Wheel works so long as the stock doesn’t plummet and your at risk selling calls for cheaper than you bought it and gets assigned .
Correct. In an ongoing bear market the wheel strategy falls apart, so be careful.
you can sell more put at a lower out of the money... continued to collect free money.. and if you are assigned, you automatically average down. and now you can sell CC with better premium. i had to sell puts 3 times to average down and finally CC and away the stock goes.. start fresh again.. i did it with AMC and i got 1K in premium total w/ 30 contracts. take advantage of high IV when you see it..
@@josephsaeteurn9158 try doing this with meta at 300$ then drops to $100
@@sef2273 do it on stocks you can afford
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Mrs Julia David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
You invest with Julia too? Wow that woman has been a blessing to me and my family.
Great to see you guys talking of Julia, Trading on your own can be very dangerous i can testify to that. This woman changed the game for me
Any info on how i can liaise with her, i'm new at this
With the user name *investwithjuliadavid1*
crappy stock..why not sell put on a dividend stock instead..
If you're doing weeklies who cares about dividends?
@@bastinelli443 in case you get assigned you can collect a dividend too?
@@certifiedfinest5065 I don't bother, I just do weeklies for the premiums. If I get assigned I just sell a covered call rinse and repeat
@@bastinelli443 collect both a dividend and premium for double income
@@bastinelli443 also in the chance of market collapse, stable dividend paying companies can weather the storm better than speculative growth stocks, and allow you to still collect income while you wait it out while the latter will be too low to still sell calls on or may even go bankrupt depending on the severity of the collapse
Hope he didn’t buy too much nio💀
You will lose money in a bear market. Promoters of the Wheel Strategy never provide any proof (brokerage and/or tax returns) that the strategy works over long periods of time. 100% hype.
rofl Nio is at 7$ right now hahahahah he must be rich by now
where is your discord please
Holy shit dude, you're making 5k on a 2m account.. Im about to try to sell you a course bro. How are your returns so low..
Nice I like this idea, what’s the discord invite link?
here it is calendly.com/invest-with-henry/option-income-academy
I think IT IS TIME for someone to open the OPTIONS door for smaller investors! There should be the option to buy or sell puts & calls on a 25 shares or 50 shares contract bases, not just on 100 shares! More individuals with less capital in their accounts could then start trading options. There was a day when stock investing was only for the RICH. But someone eventually opened that door to small investors when the opportunity came that allowed lower income individuals the chance to purchase FRACTIONAL shares of stock. This changed the market landscape and brought in more $$ than ever before! Now IT IS TIME to change the options market by opening the door for those smaller investors.🎉