We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
Thomas Real: And meanwhile, this video maker has been recommending things like buying aggressive calls in stocks like Tesla, Palantir, NIO, etc. which have been getting MURDERED over the past year, overall.
Sometimes I really wonder how people make huge profit investing in the stock market, I know investing is a legitimate way to gain financial freedom but how is it done
Having monitored my portfolio performance which has made a jaw dropping from $360k just the past two quarters alone, I have learned why some people make enormous returns from the market.
@@oreillywilliams214 Interesting. I have a lump sum of cash doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how did you achieve this?
It's really quite simple. You get rich slowly, spend less than you earn insure against disasters and invest wisely if you don't know how it's good to seek expert mentorship or you can just buy and hold an index fund every month and do nothing
@@clinfordbenjamin730 Am trading with Everleigh R. Carvalho, Met her sometime early last year at a start up funding event. She said some interesting things about the state of algorithmic trading today.
Question: other channels suggest buying a shorter term long call while you go for a LEAP call 12-24 months to expiration. It seems to me that going for a LEAP is more expensive (obviously) but also has less risk compared to a 90 day long call. Do you agree?
Sounds good but I did several pmcc but end of loss money. the problem was when the stock price went up to high and I didn’t want to get the call option assigned….what’s your suggestion?
you need to roll the option. Most times when you roll, yes you first have to pay hefty prices for rolling, but the credit you end up getting after the expiration ends up being more profitable. Example. if you sell a pmcc on apple at $100. you get a credit of 3.00. But now price is $110. More than likely to roll this new sell pmcc at $110, you will have to pay a debit of around $6.70 (im guessing here) But because you now have a 10 point spread, your actual gain at expiration will be $11.00 (or $1100) assuming apple expired above $110. This is what most rollers do. Do your research
It won't be 1/3 the price, in the money options have intrinsic value. You still have to buy the 100 shares of stock at the strike price, and by the time you sell the shares for market price you'll probably end up at a loss because you paid a premium for the contract as well
New subscriber here. Just found you and what a goldmine of information. I've been trading crypto this past year or so and am forever getting spiked and stopped out, just to see the coin/token continue in my original direction shortly after and it's really starting to get me down, so I'm thinking this might be a alternative solution with some of my coins just sitting in my spot wallet not doing much. I understand the DELTA part of around 80%. That would allow me to pick up one Bitcoin with a $25k strike at $5k but since Bicoin is a lot more volatile than most stocks, I'm thinking of covering with weekly opposed to monthly contracts. With a current BTC price of $30k, would you recommend the same 10-15% above market or a little less?
i am but still not sure how to actually close the weekly or monthly, not the call your buying far out but the weekly or monthly would you close them keep rolling them because once you close one of those does it let you continue reoping new positions on the call youve purchsed for far out
Do I need to currently own shares to sell a covered call? Since the definition is you are willing to sell the shares at the date if at or above the strike price
I'm a noob but having researched this quite extensively over the past few days, its the original LEAP that is the 100 shares [as mentioned in this very video], so if your cover bet blows up in your face, then the LEAP would get cashed out to satisfy your obligation and you'd start over again
Hello Henry. I know this was a long time ago video. Could you by any chance update us as to what happened with this position ? Its the mgt strategies you did that am interested. Appreciate it, thanks bro.
First I'm brand new to this & I've been watching a lot of videos & nobody answers this ? in there videos. So i buy a call one year out & sell a call one year out with the same expiring date. I get all that but lets say in 2 months the stock drops 5 or 10% could i just wait for the stock to go back up since i have 10 months left b4 my expiring date? I understand cutting my losses but is waiting for it to go back up a option? & you never said how to close the position
I will forever be indebted to you, you’ve changed my whole life, I’ll continue to preach about your name for the world to hear. You’ve saved me from a huge financial debt with just little investment, thank you so much Mrs. DonnaElizabeth
Mrs DonnaElizabeth changed my life, she has been amazing, ever since I met her, my life took a positive turn because of the passive income i earn through her, she really is a professional trader and awesome person
after you explained this very nicely, i would suggest to make a video explaining how you roll when in profit, and how you roll when your short is about to be exercised and you still want to keep the underline stock. This is very important. Cheers.
Ok I have a few questions: Can you buy a call say 2 months out and sell a call say a week out? Do you lose the buy option call money if your sell call goes over it's strike price?
This trade is actually called the poor mans covered call. It’s a diagonal calendar spread. You don’t need 100 shares of the stock, you just need a call (or put) with a lower (or higher;for the put) strike price with most brokerages. I know that Webull doesn’t allow this however. Robinhood and Td ameritrade do though.
I love most all your vids. The only thing I would suggest here would showing people how to advance the trade each month when the time comes to sell the call again.
@@InvestwithHenry Yep. I myself do it pretty regularly, but still watch your videos on the regular to see if there's anything else I can pick up. For those that are learning though, each and every step would certainly be helpful to them.
I like selling weeklies.....and only on green days. Many have tried. From time to time you see fund projects launched that have a segregated covered call tranche. They almost never work and the fund gets closed and any money left returned. If you find one that works let us know. If I find one I'll let you know. Condors are another albatross altogether....ha ha!
Hey Hanrahan what happens is the stock goes past the call I sell should I close it before so and take the L cause nobody ever talks about what happens if the call I sell goes in the money absolute worst case blows past my call? I heard I lose the difference between the 2 options if so that is soooo risky and blows cause you don't lose shit on the stock. Now if they just take my long option and I keep the credit but get reimbursed for my long call like a regular covered call great so what happens buddy please clarify for me
First example has a 56 percent chance of profit, second has 59 percent chance of profit. Please try options with much greater odds if you want to make money. Remember you have to have a lot more winners than losers to make money. In this example you could win this trade 3 times, but one loss would wipe out the other three profits. That's the way with options, need a lot more winners than losers, not 56 percent but at least 80 percent winners.
Can we all just band together and start down-voting the scammers/spammers on these financial videos? I like to read other points of view in the comments but they are just overrun by "I've made $100,000 in the last month by trading with Karen McMoney. You can trust her!" Just one down-vote per comment and we can send them to the bottom comments.
Hey Henry, in your 1st example you are buying a $160 call on TSLA for $80.60 in essence creating a break even of $240.60 on the stock. Then selling the 230 call for $5.25 lowering your breakeven to $235.35. If the stock rises to $230.01 on expiration you are locking in a loss of $4.34 or $434. To ensure a profit you would have to sell a covered call above the breakeven to begin with otherwise there is a chance for a guaranteed loss right off the bat…..
First, there are NO option trades (or stock trades) you can make that don't have risk of loss as well as chance of gain. If you don't want to risk loss, try treasury bills, but you'll lose on inflation and taxes there. Second, the long $160 call is 14 months out. So if the stock goes to $230 in a month, that LEAPS call goes way up (still having 13 months left), and you keep a big profit on the call you sold as well. You can always buy such calls back, and if you wait until expiration day and the stock goes to $230,01, you could buy it back bear the close for 5 cents or something. Then you could sell the next month's covered call for another $5 or so WELL out of the money. Or close out the whole trade for a NICE profit. It's important you KNOW WHAT YOU'RE DOING (and talking about) when understanding how option trades will work out. If you want to talk about realistic risk, if the market stays weak and Tesla goes down a lot, you'd lose a lot more on your long LEAPS call than the $525ish you gain on the call you're short. I'm NOT recommending anything or saying any of this is good or bad. Just pointing out that what you're claiming isn't right, and I think it's because you're making bad assumption. You don't HAVE to lock in anything. And if you got out, in the case you mention, you'd make SIGNIFICANT money, NOT lock in a loss. The main caveat here is it's FAR easier to make videos, claim people will get rich, etc. and earn money on clicks than to actually MAKE money over time trading options. Think about it. Why are all these folks making so many RUclips videos if they're such great traders instead of relaxing and living on their vast trading earnings?
Thanks for the content, Henry!!! I've been watching your content for years. I have a question, I have a Tesla leap ending in Dec 2026 with a strike of 250, can I sell Tesla calls below my breakeven but above my strike without fear of getting assigned?
Question if place a 4 option order where I receive a premium $875 and max loss $25.00 does this mean i will get to keep $850 of premium or end up paying $925 if trade goes bad
Great video thank you, one question I do have is how do you calculate your cost basis when doing your selling of covered calls because the stock price can fluctuate during the year , the price on the purchase of the call is so low I’m a little confused as to where to sit your cost basis. Thank you.
Nice vid i am a disabled and light just was brighter and everything fell into place. I have a lot time to just make money for my kids when I go. Agin a big pow wow for the video
I’m just learning about calls and puts. I see you bought a call and sell a call the same date a year out. Will you have to buy another call when it comes to that experation date? Thanks
The stock price of 200 and the strike price of 160. the difference is 40 dollars. because an option contract is really for 100 shares... 40 x 100 =$4000 value
If you know how to make lots of money trading options, why not do so? Why present such ideas to RUclips watchers, and then often lose them LOTS of money, which you frequently do, looking at some of your videos over the past 18 months, where you recommend buying expensive calls and LEAPS calls on stocks like Tesla, Palantir, NIO, etc.
Instead of doing a PMCC by buying a deep ITM call ($160 strike for $8000), can you accomplish the same thing even cheaper by doing a Poor Man's Call Credit Spread by buying a way OTM call like the $825 strike for $2.65?
I think potentially that could work but if the delta of the call you are buying is lower than the one you are selling you risk losing money if the stock goes up
@@BeekFreak If the stock stays flat for the next 12 months, due to decay you lose about $1600 on the ITM call while only $265 max on the OTM call. If your goal is to collect premium as cheaply as possible, and you think the stock will stay flat or go down, then I think buying the way OTM call makes more sense than the ITM call.
How do you close the option/spread ? if you buy a call and sell a call and you’re ready to get out of the position a few weeks later because you’ve made some profit etc.
Are you going to try this? Appreciate you hitting the like button.
U charge $ too much.
Thank you so much for your help! 🙏🏼
We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
@Hardy Patrick
Thomas Real: And meanwhile, this video maker has been recommending things like buying aggressive calls in stocks like Tesla, Palantir, NIO, etc. which have been getting MURDERED over the past year, overall.
“”I’m new to cryptocurrency,What’s the best way to earn as a complete beginner with $1000””
@@Catherineann11
Sometimes I really wonder how people make huge profit investing in the stock market, I know investing is a legitimate way to gain financial freedom but how is it done
Having monitored my portfolio performance which has made a jaw dropping from $360k just the past two quarters alone, I have learned why some people make enormous returns from the market.
@@oreillywilliams214 Interesting. I have a lump sum of cash doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how did you achieve this?
It's really quite simple. You get rich slowly, spend less than you earn insure against disasters and invest wisely if you don't know how it's good to seek expert mentorship or you can just buy and hold an index fund every month and do nothing
@@clinfordbenjamin730 Am trading with Everleigh R. Carvalho, Met her sometime early last year at a start up funding event. She said some interesting things about the state of algorithmic trading today.
@@oreillywilliams214 That's impressive. Are you giving her your money or it stays in your trading account? how does it works
Question: other channels suggest buying a shorter term long call while you go for a LEAP call 12-24 months to expiration. It seems to me that going for a LEAP is more expensive (obviously) but also has less risk compared to a 90 day long call. Do you agree?
It really depends. Something I can cover for you in Discord if you like. There's many factors.
Sounds good but I did several pmcc but end of loss money. the problem was when the stock price went up to high and I didn’t want to get the call option assigned….what’s your suggestion?
you need to roll the option. Most times when you roll, yes you first have to pay hefty prices for rolling, but the credit you end up getting after the expiration ends up being more profitable.
Example. if you sell a pmcc on apple at $100. you get a credit of 3.00. But now price is $110. More than likely to roll this new sell pmcc at $110, you will have to pay a debit of around $6.70 (im guessing here)
But because you now have a 10 point spread, your actual gain at expiration will be $11.00 (or $1100) assuming apple expired above $110.
This is what most rollers do. Do your research
Why not just buy a leap in the money call option and straight away exercise the option to get the 100 shares for one third the price?
It won't be 1/3 the price, in the money options have intrinsic value. You still have to buy the 100 shares of stock at the strike price, and by the time you sell the shares for market price you'll probably end up at a loss because you paid a premium for the contract as well
@@chimchu3232 I understand now.
How would you make a like trade for a stock going down
Thanks
Thanks for the video. Can we sell ITM put instead of OTM call to collect more premium if the TA says it is in an Uptrend?
The leaps video you mention at 1:05 is not in the description btw
Why will Robinhood not allow me to make a custom option spread? Can I do them separately, or will that not work?
You need to upgrade your robinhood account to level 3
Thanks Henry. Great videos. I can count on you for great shortcuts to profits always!
New subscriber here. Just found you and what a goldmine of information.
I've been trading crypto this past year or so and am forever getting spiked and stopped out, just to see the coin/token continue in my original direction shortly after and it's really starting to get me down, so I'm thinking this might be a alternative solution with some of my coins just sitting in my spot wallet not doing much.
I understand the DELTA part of around 80%. That would allow me to pick up one Bitcoin with a $25k strike at $5k but since Bicoin is a lot more volatile than most stocks, I'm thinking of covering with weekly opposed to monthly contracts.
With a current BTC price of $30k, would you recommend the same 10-15% above market or a little less?
I'm going to need to watch this 3 more times...atleast.....
i am but still not sure how to actually close the weekly or monthly, not the call your buying far out but the weekly or monthly would you close them keep rolling them because once you close one of those does it let you continue reoping new positions on the call youve purchsed for far out
Do I need to currently own shares to sell a covered call? Since the definition is you are willing to sell the shares at the date if at or above the strike price
I'm a noob but having researched this quite extensively over the past few days, its the original LEAP that is the 100 shares [as mentioned in this very video], so if your cover bet blows up in your face, then the LEAP would get cashed out to satisfy your obligation and you'd start over again
Wait, so no live trades?
does that strategy use margin interest rate? Thank you.
Wonderful. Much better ROI than stock covered call.
Hello Henry. I know this was a long time ago video. Could you by any chance update us as to what happened with this position ? Its the mgt strategies you did that am interested. Appreciate it, thanks bro.
Can I buy first 160call and sell 230 weekly
Good thing no one used this.... unless they did hehehe
I love to. Yes you can show me thank you
I'm interested and ready thanks again
Also I need to know more about covered call your favorite
What happens if the monthly call doesn’t sell?
it will
Let's talk here💬
I’m king of Tesla Stock💰💰💰 easy money🤪
Really wish someone could teach me how? Need to share with each other & everyone needs to help each other more ..
@@SemajSemaj I have a video on how I make money with Tesla💰
Biden loves you !
First I'm brand new to this & I've been watching a lot of videos & nobody answers this ? in there videos. So i buy a call one year out & sell a call one year out with the same expiring date. I get all that but lets say in 2 months the stock drops 5 or 10% could i just wait for the stock to go back up since i have 10 months left b4 my expiring date? I understand cutting my losses but is waiting for it to go back up a option? & you never said how to close the position
Option is the hope for the ordinary people ..to improve their financial
Just subscribed
I will forever be indebted to you, you’ve changed my whole life, I’ll continue to preach about your name for the world to hear. You’ve saved me from a huge financial debt with just little investment, thank you so much Mrs. DonnaElizabeth
I’m surprised you know her too. I’ve been making lot of profits investing with her for a few months now.
Mrs DonnaElizabeth changed my life, she has been amazing, ever since I met her, my life took a positive turn because of the passive income i earn through her, she really is a professional trader and awesome person
I’m new to this, how can I reach your coach?
You can communicate with her on telegam, with the username below.
tesla hit 233 yesterday lol
after you explained this very nicely, i would suggest to make a video explaining how you roll when in profit, and how you roll when your short is about to be exercised and you still want to keep the underline stock. This is very important. Cheers.
Ok I have a few questions:
Can you buy a call say 2 months out and sell a call say a week out?
Do you lose the buy option call money if your sell call goes over it's strike price?
I want to turn 500 into 2500😊
There's no free lunch but selling weeklies on green days is close.
I love ❤️ you posting and chanal,
I'm beginner in this case if I make the money next day can I close it and move on next one Henry??
That’s a miminmum wage weekly check….
I thought cover sell a calls you must have 100 share of Tsla?
This trade is actually called the poor mans covered call. It’s a diagonal calendar spread. You don’t need 100 shares of the stock, you just need a call (or put) with a lower (or higher;for the put) strike price with most brokerages. I know that Webull doesn’t allow this however. Robinhood and Td ameritrade do though.
@@ninamatthews8747 Thanks!!
@@ninamatthews8747 Wouldn't you have to have equivalent cash in the account to be able to exercise the leap call?
lmao this is the fastest way to lose everything you got ? henry you seriously wana bet 8k on tesla not moving 20% within a month lol ?
I love most all your vids. The only thing I would suggest here would showing people how to advance the trade each month when the time comes to sell the call again.
Ok you mean like roll it?
@@InvestwithHenry Yep. I myself do it pretty regularly, but still watch your videos on the regular to see if there's anything else I can pick up. For those that are learning though, each and every step would certainly be helpful to them.
Question
When do you buy the leap. Rsi?
Stock price? Etc
I like selling weeklies.....and only on green days.
Many have tried. From time to time you see fund projects launched that have a segregated covered call tranche. They almost never work and the fund gets closed and any money left returned.
If you find one that works let us know. If I find one I'll let you know.
Condors are another albatross altogether....ha ha!
Hey Hanrahan what happens is the stock goes past the call I sell should I close it before so and take the L cause nobody ever talks about what happens if the call I sell goes in the money absolute worst case blows past my call? I heard I lose the difference between the 2 options if so that is soooo risky and blows cause you don't lose shit on the stock. Now if they just take my long option and I keep the credit but get reimbursed for my long call like a regular covered call great so what happens buddy please clarify for me
First example has a 56 percent chance of profit, second has 59 percent chance of profit. Please try options with much greater odds if you want to make money. Remember you have to have a lot more winners than losers to make money. In this example you could win this trade 3 times, but one loss would wipe out the other three profits. That's the way with options, need a lot more winners than losers, not 56 percent but at least 80 percent winners.
Let's talk here💬
Can we all just band together and start down-voting the scammers/spammers on these financial videos? I like to read other points of view in the comments but they are just overrun by "I've made $100,000 in the last month by trading with Karen McMoney. You can trust her!" Just one down-vote per comment and we can send them to the bottom comments.
Hey Henry, in your 1st example you are buying a $160 call on TSLA for $80.60 in essence creating a break even of $240.60 on the stock. Then selling the 230 call for $5.25 lowering your breakeven to $235.35. If the stock rises to $230.01 on expiration you are locking in a loss of $4.34 or $434. To ensure a profit you would have to sell a covered call above the breakeven to begin with otherwise there is a chance for a guaranteed loss right off the bat…..
First, there are NO option trades (or stock trades) you can make that don't have risk of loss as well as chance of gain. If you don't want to risk loss, try treasury bills, but you'll lose on inflation and taxes there.
Second, the long $160 call is 14 months out. So if the stock goes to $230 in a month, that LEAPS call goes way up (still having 13 months left), and you keep a big profit on the call you sold as well. You can always buy such calls back, and if you wait until expiration day and the stock goes to $230,01, you could buy it back bear the close for 5 cents or something. Then you could sell the next month's covered call for another $5 or so WELL out of the money. Or close out the whole trade for a NICE profit.
It's important you KNOW WHAT YOU'RE DOING (and talking about) when understanding how option trades will work out.
If you want to talk about realistic risk, if the market stays weak and Tesla goes down a lot, you'd lose a lot more on your long LEAPS call than the $525ish you gain on the call you're short.
I'm NOT recommending anything or saying any of this is good or bad. Just pointing out that what you're claiming isn't right, and I think it's because you're making bad assumption. You don't HAVE to lock in anything. And if you got out, in the case you mention, you'd make SIGNIFICANT money, NOT lock in a loss.
The main caveat here is it's FAR easier to make videos, claim people will get rich, etc. and earn money on clicks than to actually MAKE money over time trading options. Think about it. Why are all these folks making so many RUclips videos if they're such great traders instead of relaxing and living on their vast trading earnings?
Selling monthlies isn't a very good idea frankly. Sitting through brutal heat week after week will ruin your weekends.
Too much risk and a huge assumption that may go wrong specially giving the long term exposure to market conditions, alot can change in a year
Thanks for the content, Henry!!! I've been watching your content for years. I have a question, I have a Tesla leap ending in Dec 2026 with a strike of 250, can I sell Tesla calls below my breakeven but above my strike without fear of getting assigned?
I love Tesla and your ideas !
Nothing about a 80 delta is a poor man’s leap? Poor man’s leap would be lower delta cheaper?
If your 30 day selling calls , against your leap option , what happens if your 30 day call , gets exercised ? Do you lose your leap option ? Or not
What platform/broker is this ?
He never show us how to exit the trades
Easy to get in
How do you get out
Is way more important
Especially for beginners
synthetic vertical spread?
Noice!
what broker is this? btw thx for the video 👍👍👍👍
Anyone wheel TSLA ? ( CC / CSP )
Seems like there’s lots of premium ATM w / TSLA
Yeah there is
Let's talk here💬
Absolutely Excellent Commentary!!!! Thank You!!!
Question if place a 4 option order where I receive a premium $875 and max loss $25.00 does this mean i will get to keep $850 of premium or end up paying $925 if trade goes bad
Great video thank you, one question I do have is how do you calculate your cost basis when doing your selling of covered calls because the stock price can fluctuate during the year , the price on the purchase of the call is so low I’m a little confused as to where to sit your cost basis. Thank you.
Nice vid i am a disabled and light just was brighter and everything fell into place. I have a lot time to just make money for my kids when I go. Agin a big pow wow for the video
I’m just learning about calls and puts. I see you bought a call and sell a call the same date a year out. Will you have to buy another call when it comes to that experation date? Thanks
The reason this doesn't work is because your long call is about 50% time value.
That 230 strike price is totally possible with tesla. Too risky for an example but maybe doable with other less volatile stocks
So what happens when the sold call closes in the money? Youd have to dtart over??
What if the option I buy is on a stock that splits before my expiration?
How do you close the call debit spread if you leave it until the day of expiration?
Even while you're on the tiolet?
lol
where did you get the 4000 at 10:20?
10:05
The stock price of 200 and the strike price of 160. the difference is 40 dollars. because an option contract is really for 100 shares... 40 x 100 =$4000 value
cries in dutch broker whos doensnt suport this. or puts it behind a giant paywall . sigh but still awesome information! very usefull for me!
Did i miss the part where you were supposed to show the title "turn $1000 into $1500 weekly?"
That $421k buying power : )
Could you do the opposite trade if one was bearish about the Market?
If you know how to make lots of money trading options, why not do so? Why present such ideas to RUclips watchers, and then often lose them LOTS of money, which you frequently do, looking at some of your videos over the past 18 months, where you recommend buying expensive calls and LEAPS calls on stocks like Tesla, Palantir, NIO, etc.
Let's talk here💬
What happen if your sell call goes ITM?
Buy it back is the short answer. You should find my video on rolling. Invest with henry rolling
Great Explantation, can you make a video of bullish volatile stocks - just give us a list of stocks.
Instead of doing a PMCC by buying a deep ITM call ($160 strike for $8000), can you accomplish the same thing even cheaper by doing a Poor Man's Call Credit Spread by buying a way OTM call like the $825 strike for $2.65?
I think potentially that could work but if the delta of the call you are buying is lower than the one you are selling you risk losing money if the stock goes up
@@BeekFreak If the stock stays flat for the next 12 months, due to decay you lose about $1600 on the ITM call while only $265 max on the OTM call. If your goal is to collect premium as cheaply as possible, and you think the stock will stay flat or go down, then I think buying the way OTM call makes more sense than the ITM call.
Looking ahead near term we'll likely see end of year rally. Once the bad news starts piling up in February better get to cash.
How do you close the option/spread ? if you buy a call and sell a call and you’re ready to get out of the position a few weeks later because you’ve made some profit etc.