I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $200,000 to create a strong investment portfolio, which stocks would you choose for better returns?
I think a good investment portfolio should have three basic things: ETFs for diversification, dividend stocks for cash flow, and leading tech stocks. With your budget, it's a good idea to talk to a fiduciary financial advisor for expert advice.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
@@PatrickLloyd- I'm glad I found this conversation. I have cash to invest but am worried about picking the wrong stocks. Can you refer me to your financial advisor?
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
Hey buddy! Don't be seduced by large dividends. Concentrate on total return. There is no sense in collecting large dividends if your overall investment is going down however I’d say SPYI, JEPQ, QQI and IWMI. But do your research. Personally I put down 1.3m$ on few ETFs, still diversifying. It was this time last year I made a huge break through with 200k. Handed it to a firm here in Texas, I get weekly pay out which I put back on long term ETF's. IWM will probably crush it this quarter
Henry you my friend are one smooth dude you are an excellent teacher also a show off but hey I’ve never seen anyone so transparent as you. A millionaire and not even 30yrs old impressive. I f I knew this strategy when I was in the AMC cult I had blinders on but I wasn’t advanced enough at that point I learned a lot of expensive lessons. I am 57 elevator constructor a pretty good retirement but Its not work unless i can use this strategy thank you for ur time
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
If you don’t understand the markets, stick to an index like the S&P 500. Dollar cost average and hold long term, or better still consider financial advisory to avoid losses
Sometimes I'm surprised most people don't even know they can do that. I've been making at least 200k every year from my investments by working with an FA. When you realise it, it feels like a life hack.
Wow, that's interesting . I've recently been exploring the option of working with an FA too. Any chance you could recommend who you work with? in her area and works for Empower Financial
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a geniusl Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
I earn over 10k per month (on average) doing puts (to acquire) and covered calls (to sell) for regular income. I have done it for 23 months in a row since starting.
@@chinchowpowpook I never said I didn't get assigned. In fact, I get assigned often but it's part of the game. Once assigned, I just flip to selling calls. It's an ongoing cycle.
@@sammelemotivxtion I use AMD, TSLA, DKNG, HE, NVDA, SHOP and maybe a few others. I have 100's of 1000's at play but my friend uses about 100k on same stuff and earnings about 3k on average per month after I taught him about it.
Hi why on SQ you bought directly the stocks and don't sell the PUT ( at ATM for example) ? 1:03:38 Sell put @65 premium 0.92 ? MOre or less 1.4% in two days
I appreciate this video so much. I just recently started selling covered calls and selling puts with a similar mindset that you have on choosing certain stocks. This video just helps reinforce the idea that you can make bank with a large portfolio with very little if any risk using these option strategies. I am definitely considering working 1 on 1 with Henry to get more advanced plays and tap into his experience. You can tell he is very organized and focused on simple ideas that will make your trading days worthwhile more than any other method I have seen or learned on the internet. Thank you!
I just started and CCs are my favorite. I've been selling CCs on SOFI, HUT, PLTR, ALT, ARCHER, RIOT, MARA, UUU... Most of them took off and got away from me and have been rolled out to April. I would have made a lot more if I just held the stocks, but I am up over 34% in 3 months so I'm not complaining. I am experimenting with multi-leg options and LEAPS as well. I know that I'm doing wrong by using 100% of my portfolio in trades, but I am making so much that I can't stop until something happens and I learn a lesson. Thanks for the great videos!
“Don’t get a covered call on a stock that’s at its all time high”? What? That’s a great time to get a covered call. You’ll get more premium for strikes that the stock would have to work harder to reach. The stock would naturally come down and you’d be able to close and secure your premium sooner.
@@Ray-j6u eh, when it comes to making videos, he has to plan it out, record it and edit it. That’s different from having a brain fart while live on air.
I'm surprised that you just bought the stock at whatever price at the moment with determining if it's a fair price. I'm a newbie in investment so I'm want to understand your logic. Thanks! This is a very good channel I stumbled upon.
the BARRIER to entry here is the COST of buying 100 shares of a profitable stock that would net safe profit consistently. 100 shares of Microsoft is 41,010.00 right now. 100 Shares of Coca - Cola is 6,985.00 right now. This is not a cheap and easy strategy.
New to options and your videos are extremely helpful. I am not looking ahead to the scenario of rolling over my question is If you roll over out to 30 days or so and at a higher strike price, prior to expiration, what happens to the original premium?
If I don't have 100 shares and want to buy 100 shares by selling a put option, would the profits from selling a put premium consider to be the same as the premium from selling a covered call?
I've been writing covered calls like you on my stocks for many years, and I agree completely that it's almost a fail-safe way if not a totally safe way of have the income flow. My big questions is, do you think that the presidential outcome in November will have any effect on the stock market in any way. Would one party be more favorable than the other. I'm strongly leaning in favor of Trump because of his history, and I'm very afraid of Kamala Harris' proposal to tax UNREALIZED capital gains. That could have a detrimental effect on our gains. What you do say, Henry?
Yes! Basically stock goes up with Trump and down with Harris. I was living in Mexico for 9 years. Mexico elected a communist president so I got the heck out of there and back to the USA. The taxing of unrealized gains is bad! Very bad! So I voted for Trump. If you have nothing then getting taxed on unrealized gains means nothing. But if you have worked your behind off to grow that unrealized gain then it’s PURE THEFT! I mean if your unrealized gain goes down are they going to pay back the tax? I think not. So very happy Trump won!
The premium will be realize when you exit the covered call by buying it back, letting it expire, or you being called out. That means unless it is in you ROTH you will have to pay tax on it. That’s why I hold stock longer than a year in my cash account and why I do all my short term trades inside my ROTH. Manage your taxes or they will eat up you profits. Fund you ROTH EVERY YEAR you can to the MAX. The ROTH is a powerful tool.
Either way. Just make sure it is higher than what you bought it at. That means your strike price needs to be higher that what you bought the stock at. Otherwise you’re going backwards.
What if the stock price will reach the strike price before the exp date? Will I sell my 100stocks automatically or the share price should be above the strike price after the expiration?
Great content thank you ...curious with Airline trade ..you bought 900 shares but sold 10 contracts ...did you mean to go 9 ? or did I miss something ?
I think he already had 100 shares (1 contract worth) to begin with. Buying the 900 gave him a total of 1000. Check out the video around 13:15. His screen shows AAL 100 shares. I hope I'm addressing what you're talking about...
The wheel strategy is one of the safest option play for conservative investors however you need be very careful when a stock is selling at a YTD or all time high
I currently own a significant 401k and it’s growing nicely. However, I’d like to start a smaller one to personally play with. Should I start out at 2k or 5k, or 25k. Also should I use a Roth or personal trading account?
Premium is keep when you sell option put/call BUT rolling means you have to buy/sell back the option @ higher/lower price. All together that can produce a loss depending how when and a what strike you intend to roll...
So if I have to diversify a lot I have to use a lot of stocks with multiple strikes and expirations. This becomes time consuming. I want to spend time on Monday and Friday and a little monitoring during the week. I have been sticking with weekly’s mostly except when I’ve had to roll. I like setting it up and have it over by the end of the week and spend weekend not worrying about it. I buy Leaps instead of stocks to sell calls against and also use the wheel strategy. I’ve been doing well but not sure I can sustain it. I am definitely not diversified.
Look at buying an ETF that holds stocks you like, then work the wheel on that ETF - SPY-DIA-QQQ or cheaper ones . Look at PLTR and work the Wheel on that one for a while . Do a monthly and know when and where to Roll your position.
I don't understand the gain on the AAPL theta decreasing towards the end of the video, if you are mostly focused on the premiums and the gains if it is called, how did you make money as the value of the contract was going down towards expiration?
I love your content but I had a question. I understand if you don’t want to sell the stock, you can BTC and then make another contract and then STO another contract. Where I’m confused is if you use the “roll” function, do you not buy back the contract first or does the exchange automatically deduct that amount from your cash position? Thank you in advance.
If you use the "roll" function, the BTC and STO transactions happen simultaneously. So the premium from the new STO offsets the loss from the BTC. This may still result in your cash position shrinking if the difference between the BTC and the STO is not a positive number, but it is better than having your shares called away if you absolutely do not want them to be. I am dealing with that now with Nvidia which just went up like 14% in the last five days. I had strikes at 133 & 134 with an expiration in late Oct and Nov 1. The stock was at 122 when I sold those and there was a lot of prior resistance at 130.. I had to roll those out to 145 and 149 with expiration dates in November just to offset the problem. Now I have to manage those strike prices. Nvidia can explode out of nowhere.
Selling a call on a deep pull back odds are that stock will rebound and the call will be profitable to the buyer of the call. This is not the way to sell covered calls. The goal is to keep premium and keep shares. Sell covered calls at high where supply is heavy confirmed with order flow. Sell call for 100 bucks stock pulls back call goes worthless win win
Hi Henry, thanks for the course. At 43 min, you mentioned about your aapl option being at a lost even it was out of money. Does that mean the options's price, after you sold it, is being traded in the secondary market and that means market risk (on the price of the option) is a relevant factor to consider? Thanks a lot.
It is actually 100. Represented as 1. Slightly deceiving to be honest. Options are more for rich people making money off of their money..if that makes sense.
Hello, I love your videos, they're always so informative and engaging. I'm curious, what are the potential risks of investing in cryptocurrency? Do you have any recommendations for a reputable and experienced broker?
Bitcoin has beaten every other tradable asset so far and I used to think that buying the dip and holding it is the only way to achieve success in crypto, but it's actually buy, invest and repeat
I totally agree with you, the crypto market is the most profitable venture I ever invested in, I reached my goal of $500k yearly trade earnings. Setting realistic goals is an essential part of trading
All stocks will go down. How much and for how long differs by stock. For example YTD TSLA has gone from 248 to 144 then up to 350. Year before last TSLA kept going up then down more then up a little then down more. I sold lots of TSLA covered calls totaling about 400k that year in premiums. Yes I got called out a couple times. Now this year is different. TSLA is going to be on a up trend so I will not do covered calls on TSLA. Instead I’ve bought TSLL the 2x TSLA ETF and some LEAPS on TSLA.
When I traded stocks when I lived in Mexico I still had to pay a few million in US taxes because I was still a US citizen. I do not think Henry got rid of his US citizenship so ya he would have to pay taxes on his personal realized gains unless they were in a ROTH.
When putting together the PMCC, the Max Profit and Max loss show zero. Sell OTM, Buy Deep ITM... but comes back as zero??? I would appreciate any help.
Hi: Thank you for the video it is helpful. I'm closer to retirement. How I can do passive what I already have? I have 100 chairs on Ford and Fidelity stock. Not many in Palantir or Nvidia. I'm not working right now due to injury.
what do you thing about this ? I have 100% of my account, which is $10,000. I will use 50% of the account ($5,000) to buy XYZ stock at the market price, let’s say at a strike of $23. This means I will own 100 shares of XYZ stock. With the remaining 50% of the account ($5,000), I will sell a put option at a $20 strike price. If the stock drops below $20, I will be able to buy more shares of XYZ at a lower price, which will average down my entry price. Plus, I’ll collect the premium for writing the put option. Additionally, I’ll sell a call option at a $26 strike price. If the price stays below $26, I will collect the premium from the call option. If the stock rises above $26, I will be forced to sell 50% of my shares (100 shares) at the $26 price, which will give me a profit because I originally bought them at $23. Plus, I’ll collect the premium for writing the call option. If the stock price stays between $20 and $26, I’ll be able to collect premium from both the put and the call options, making this a "win-win" strategy.
I tried this but it doesnt work because when the stock price goes down (it doesnt have to crash, just going down 2-5%) you dont find any calls at a strike price high enough for you to eventually sell the stock in gain, or better you can find it but it would pay very very low. And Apple can easily go down 2-5% and then just stay there for months and you would be stuck. Sorry, no free lunch!
? What you described is how a covered call works. Either one of 3 things happen. 1) The price goes up and you get called out, meaning your 100 shares are sold at your strike price. 2) The price goes down and you buy they covered call back at a discount netting the difference as a profit and you keep you shares. 3) The option never meets or exceeds the strike price before it expires worthless and you keep your shares and all of your premium. Stocks that are surging up do not sell a covered call, just enjoy the growth. However when they slow down or go sideways it is a good time to sell covered calls. Hope that helps ya ❤
@randydiver3076 this also why it is key to diversify the stocks you options trade. Unless there's a major macro downturn 2-3 of your stocks should be moving sideways or gradually moving up.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $200,000 to create a strong investment portfolio, which stocks would you choose for better returns?
I think a good investment portfolio should have three basic things: ETFs for diversification, dividend stocks for cash flow, and leading tech stocks. With your budget, it's a good idea to talk to a fiduciary financial advisor for expert advice.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
@@PatrickLloyd- I'm glad I found this conversation. I have cash to invest but am worried about picking the wrong stocks. Can you refer me to your financial advisor?
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
I have a lump sum in my possession, what about aggressive dividends etf to hold now
Hey buddy! Don't be seduced by large dividends. Concentrate on total return. There is no sense in collecting large dividends if your overall investment is going down however I’d say SPYI, JEPQ, QQI and IWMI. But do your research.
Personally I put down 1.3m$ on few ETFs, still diversifying. It was this time last year I made a huge break through with 200k. Handed it to a firm here in Texas, I get weekly pay out which I put back on long term ETF's. IWM will probably crush it this quarter
I already added VOO and QQQM, can you share this firm with me
Yeah, Jennifer Kristie Taylor use her name to look her up
SPY, QQQ, IWM, and currently TLT. I only have 4. Jennifer’s firm is a good one, I live in Connecticut.
Ymax etfs or best nvdy msty
10 contracts of AAPL… yeah everyone has 2.2 million in AAPL stock. While in theory you are correct, for most investors this is a ridiculous notion.
220,000, and you can just sell 1 apple contract, or pick a cheaper stock.
@@rainmanz687 nice maths
You have to think of it differently.
Start building a portfolio and in time you'll have a 100 shares to start selling contracrs
2.2 million would be 100 contracts lol
It's the same video every week...yet I still watch and enjoy
facts
lol same
Repetition is learning.
The “sunk cost” explanation was very helpful!
Now I understand why I hesitate to sell covered call for TSLA and NVDA, thanks Henry
I got burnt selling a Tesla call , had to sell at 230 3 weeks ago .
Thank you Henry I am learning much with you.
can you tell me what stocks are best for this strategy under $30? I have a small account $10k
Henry you my friend are one smooth dude you are an excellent teacher also a show off but hey I’ve never seen anyone so transparent as you. A millionaire and not even 30yrs old impressive. I f I knew this strategy when I was in the AMC cult I had blinders on but I wasn’t advanced enough at that point I learned a lot of expensive lessons. I am 57 elevator constructor a pretty good retirement but Its not work unless i can use this strategy thank you for ur time
I am rewatching this video , apparently I didn’t pick up the right strike price and I didn’t roll in time , thank you Henry !
Thank you!!! Makes sense. Need to learn about rolling forward but I will try it.
My entire portfolio is
75% BIL, 12.5% AGG, 12.5.% XDTE
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
If you don’t understand the markets, stick to an index like the S&P 500. Dollar cost average and hold long term, or better still consider financial advisory to avoid losses
Sometimes I'm surprised most people don't even know they can do that. I've been making at least 200k every year from my investments by working with an FA. When you realise it, it feels like a life hack.
Wow, that's interesting . I've recently been exploring the option of working with an FA too. Any chance you could recommend who you work with? in her area and works for Empower Financial
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a geniusl Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I just got into covered calls. This video is amazing. New follower.
Thank you Henry for sharing your hard earned knowledge with us!
I earn over 10k per month (on average) doing puts (to acquire) and covered calls (to sell) for regular income. I have done it for 23 months in a row since starting.
Care to share what stocks you sell the CSP on and what capital required? I’ve been wanting to do this for a while now
Bullshitting..don’t tell me not even one get assigned with negative
@@chinchowpowpook I never said I didn't get assigned. In fact, I get assigned often but it's part of the game. Once assigned, I just flip to selling calls. It's an ongoing cycle.
@@sammelemotivxtion I use AMD, TSLA, DKNG, HE, NVDA, SHOP and maybe a few others. I have 100's of 1000's at play but my friend uses about 100k on same stuff and earnings about 3k on average per month after I taught him about it.
@@chinchowpowpook I think he is running the wheel strategy
Hi why on SQ you bought directly the stocks and don't sell the PUT ( at ATM for example) ? 1:03:38 Sell put @65 premium 0.92 ? MOre or less 1.4% in two days
I appreciate this video so much. I just recently started selling covered calls and selling puts with a similar mindset that you have on choosing certain stocks. This video just helps reinforce the idea that you can make bank with a large portfolio with very little if any risk using these option strategies. I am definitely considering working 1 on 1 with Henry to get more advanced plays and tap into his experience. You can tell he is very organized and focused on simple ideas that will make your trading days worthwhile more than any other method I have seen or learned on the internet. Thank you!
I just started and CCs are my favorite. I've been selling CCs on SOFI, HUT, PLTR, ALT, ARCHER, RIOT, MARA, UUU... Most of them took off and got away from me and have been rolled out to April. I would have made a lot more if I just held the stocks, but I am up over 34% in 3 months so I'm not complaining. I am experimenting with multi-leg options and LEAPS as well. I know that I'm doing wrong by using 100% of my portfolio in trades, but I am making so much that I can't stop until something happens and I learn a lesson. Thanks for the great videos!
I literally finished an entire 1 hour informative video while having a yummy dinner. I am so satisfied! Thanks Henry!
🤗 you sound so content. Girl, I'm happy for you! I wish I was at your level of peace right now. Blessings
thanks for this video. It is very rare that someone chares his portfolio in all detail like this and trade in direct. Very encouraging.
just starting out should i go higher and shorter term to be safe and learn
doing this with coinbase right now up to 9k in premiums facing assignment right now but made a fair amount
“Don’t get a covered call on a stock that’s at its all time high”?
What? That’s a great time to get a covered call. You’ll get more premium for strikes that the stock would have to work harder to reach. The stock would naturally come down and you’d be able to close and secure your premium sooner.
Absolutely!
yeah i saw this too, but i think he made a mistake. it happens
@@Ray-j6u eh, when it comes to making videos, he has to plan it out, record it and edit it. That’s different from having a brain fart while live on air.
I'm surprised that you just bought the stock at whatever price at the moment with determining if it's a fair price. I'm a newbie in investment so I'm want to understand your logic. Thanks!
This is a very good channel I stumbled upon.
You're awesome Henry and love your thorough and cogent content. Peter in Florida❤
Glad you like them!
What’s your annual rate of return from the wheel versus appreciation from stocks YTD
Is there a video for buying calls an put ?
Thanks for the video. I know you are an expert. just fyi. You bought 900 American airlines and you sold 10 contracts. So, you are short of 100 stocks
Very valuable video. Life changer! Thanks!
You're welcome!
the BARRIER to entry here is the COST of buying 100 shares of a profitable stock that would net safe profit consistently. 100 shares of Microsoft is 41,010.00 right now. 100 Shares of Coca - Cola is 6,985.00 right now. This is not a cheap and easy strategy.
Exactly. How does the little get started?
It doesn't have to be those specific expensive stocks, stocks like nio or sofi will offer more income for much less collateral.
New to options and your videos are extremely helpful. I am not looking ahead to the scenario of rolling over my question is If you roll over out to 30 days or so and at a higher strike price, prior to expiration, what happens to the original premium?
This video is gold, thanks Henry!!!🎉
If I don't have 100 shares and want to buy 100 shares by selling a put option, would the profits from selling a put premium consider to be the same as the premium from selling a covered call?
Is soun good for covered calls in your opinion
I've been writing covered calls like you on my stocks for many years, and I agree completely that it's almost a fail-safe way if not a totally safe way of have the income flow. My big questions is, do you think that the presidential outcome in November will have any effect on the stock market in any way. Would one party be more favorable than the other. I'm strongly leaning in favor of Trump because of his history, and I'm very afraid of Kamala Harris' proposal to tax UNREALIZED capital gains. That could have a detrimental effect on our gains. What you do say, Henry?
Yes! Basically stock goes up with Trump and down with Harris. I was living in Mexico for 9 years. Mexico elected a communist president so I got the heck out of there and back to the USA. The taxing of unrealized gains is bad! Very bad! So I voted for Trump. If you have nothing then getting taxed on unrealized gains means nothing. But if you have worked your behind off to grow that unrealized gain then it’s PURE THEFT! I mean if your unrealized gain goes down are they going to pay back the tax? I think not. So very happy Trump won!
QUESTION: what about sellling put of companies that you want to own? you can make $$ doing that
Yes great way to buy stock. This is the way Warren Buffet buys his stock.
If the premium is unrealized gain before the expiration date then, what’s the premium that we collected right after we do the cover.
The premium will be realize when you exit the covered call by buying it back, letting it expire, or you being called out. That means unless it is in you ROTH you will have to pay tax on it. That’s why I hold stock longer than a year in my cash account and why I do all my short term trades inside my ROTH. Manage your taxes or they will eat up you profits. Fund you ROTH EVERY YEAR you can to the MAX. The ROTH is a powerful tool.
Tq , start doing sell call/put with my small account
hope to grow big i day..
When do you take a covered call when stock- price is up or down ?
Either way. Just make sure it is higher than what you bought it at. That means your strike price needs to be higher that what you bought the stock at. Otherwise you’re going backwards.
Hi sir we can trade covered call strategy in crude oil 🇳🇪
how do you determine how much you roll it up?
What if the stock price will reach the strike price before the exp date? Will I sell my 100stocks automatically or the share price should be above the strike price after the expiration?
Great content thank you ...curious with Airline trade ..you bought 900 shares but sold 10 contracts ...did you mean to go 9 ? or did I miss something ?
I think he already had 100 shares (1 contract worth) to begin with. Buying the 900 gave him a total of 1000. Check out the video around 13:15. His screen shows AAL 100 shares. I hope I'm addressing what you're talking about...
thanks Henry! this is the best cover call youtub out there.
The wheel strategy is one of the safest option play for conservative investors however you need be very careful when a stock is selling at a YTD or all time high
I currently own a significant 401k and it’s growing nicely. However, I’d like to start a smaller one to personally play with. Should I start out at 2k or 5k, or 25k. Also should I use a Roth or personal trading account?
Me emprestar 10 mil dólares, me ajude eu pago com juros
What happens to your original premium when you roll an option, do you pay it back?
Premium is keep when you sell option put/call BUT rolling means you have to buy/sell back the option @ higher/lower price. All together that can produce a loss depending how when and a what strike you intend to roll...
So if I have to diversify a lot I have to use a lot of stocks with multiple strikes and expirations. This becomes time consuming. I want to spend time on Monday and Friday and a little monitoring during the week. I have been sticking with weekly’s mostly except when I’ve had to roll. I like setting it up and have it over by the end of the week and spend weekend not worrying about it. I buy Leaps instead of stocks to sell calls against and also use the wheel strategy. I’ve been doing well but not sure I can sustain it. I am definitely not diversified.
Look at buying an ETF that holds stocks you like, then work the wheel on that ETF - SPY-DIA-QQQ or cheaper ones . Look at PLTR and work the Wheel on that one for a while . Do a monthly and know when and where to Roll your position.
Your teachings are such a great help. Very clear and concise. You are such a great teacher! Love and respect.
Yes,keep watching!
Not all stocks have weekly options.
Add selling bull puts to your covered call strategy.
Awesome video Henry! Bicep over tricep I’m learning lots. I will contact you for tutorial soon 😊
Sounds good!
This was great! Thanks for sharing.
This shit is blowing my mind right now. Thank you so much!
Great Video. I wish I found these a few years ago.
there is no perfect time to sell puts on TSLL. Ive made 10k in 3 weeks just selling a crap ton of puts on TSLL. This price is on the sweet spot.
TSLL went down $2 yesterday, are you still trading it?
And what are the good companies to own 100 shares in to sell covered calls? With portfolios of 10K?
I don't understand the gain on the AAPL theta decreasing towards the end of the video, if you are mostly focused on the premiums and the gains if it is called, how did you make money as the value of the contract was going down towards expiration?
Can anyone please clarify how much capital is needed to generate $8k/mo??? What is the range of expected yield per day/week/month?
2% to 3% a month so $400,000 for 2% return a month or $270,000 approx for a 3% return a month....This will generate $8000 a month
@@johnwho5567 damn, I need something that does at least a percent a day. Thanks!
I love your content but I had a question. I understand if you don’t want to sell the stock, you can BTC and then make another contract and then STO another contract. Where I’m confused is if you use the “roll” function, do you not buy back the contract first or does the exchange automatically deduct that amount from your cash position? Thank you in advance.
If you use the "roll" function, the BTC and STO transactions happen simultaneously. So the premium from the new STO offsets the loss from the BTC. This may still result in your cash position shrinking if the difference between the BTC and the STO is not a positive number, but it is better than having your shares called away if you absolutely do not want them to be. I am dealing with that now with Nvidia which just went up like 14% in the last five days. I had strikes at 133 & 134 with an expiration in late Oct and Nov 1. The stock was at 122 when I sold those and there was a lot of prior resistance at 130.. I had to roll those out to 145 and 149 with expiration dates in November just to offset the problem. Now I have to manage those strike prices. Nvidia can explode out of nowhere.
I love when you talk about dividents for us retirees for double dividends Thanks for the love Uncle Henry !!
The problem is we don't have cashflow to buy 100 shares if you have any 100 shares with 1000 i can try and do my first trade
What are you looking for volatility? Beta parameter or gain(cahnge) in 1 year
But how do i choose a good strike price?
Find something between the bid and the mid usually works.
Selling a call on a deep pull back odds are that stock will rebound and the call will be profitable to the buyer of the call. This is not the way to sell covered calls. The goal is to keep premium and keep shares. Sell covered calls at high where supply is heavy confirmed with order flow. Sell call for 100 bucks stock pulls back call goes worthless win win
Thank you for your video im learning from you
Its always easier than you think but not so simple
Can u do options without having stocks?
Options are for the wealthy to make wealth off of their wealth. Lower costs, I’d stick with ETFs and stocks. Until to build up a nice egg.
How are the premiums from these covered calls taxed?
That all works if stock is going up.
I am hesitating to sell covered calls , because not much premiums and got called away on NVDA and Apple
Hi Henry, thanks for the course. At 43 min, you mentioned about your aapl option being at a lost even it was out of money. Does that mean the options's price, after you sold it, is being traded in the secondary market and that means market risk (on the price of the option) is a relevant factor to consider? Thanks a lot.
Awesome video stumbled upon ur page and this is really useful, waiting for the next update for sell puts
So when u say u need 100 shares of a stock, is that literally having 100 of them or is there a way to by them cheaper
It is actually 100. Represented as 1. Slightly deceiving to be honest. Options are more for rich people making money off of their money..if that makes sense.
Thanks for the great video Henry!
Hello, I love your videos, they're always so informative and engaging. I'm curious, what are the potential risks of investing in cryptocurrency? Do you have any recommendations for a reputable and experienced broker?
Bitcoin has beaten every other tradable asset so far and I used to think that buying the dip and holding it is the only way to achieve success in crypto, but it's actually buy, invest and repeat
I totally agree with you, the crypto market is the most profitable venture I ever invested in, I reached my goal of $500k yearly trade earnings. Setting realistic goals is an essential part of trading
How does this whole Bitcoin stuff work. I'm interested in it. And willing to invest heavily in it. But I need guidance so I don't loose out.
I love your comment so much.. i have a question for you. Where do i see her advice on crypto happenings?
Thanks, I really appreciate your feedback!
Hi ' I would like to ask a question do you still have to watch the charts trading options
Learn something every time even rewatch the same video
good stuff Henry!
Which stocks don’t go down?
All stocks will go down. How much and for how long differs by stock. For example YTD TSLA has gone from 248 to 144 then up to 350. Year before last TSLA kept going up then down more then up a little then down more. I sold lots of TSLA covered calls totaling about 400k that year in premiums. Yes I got called out a couple times. Now this year is different. TSLA is going to be on a up trend so I will not do covered calls on TSLA. Instead I’ve bought TSLL the 2x TSLA ETF and some LEAPS on TSLA.
One of the best ever!
Hi Henry, Thanks for sharing knolwdge! Do you have inperson classess for $25000 account?
Hey brother since your in Europe is there 30% withholding tax trading us stocks?
When I traded stocks when I lived in Mexico I still had to pay a few million in US taxes because I was still a US citizen. I do not think Henry got rid of his US citizenship so ya he would have to pay taxes on his personal realized gains unless they were in a ROTH.
Why are you seeing negative delta for calls? It is positive for calls, no?
When putting together the PMCC, the Max Profit and Max loss show zero. Sell OTM, Buy Deep ITM... but comes back as zero??? I would appreciate any help.
The brokerage programs can not calculate profit and loss when you have option spreads where the options have different expiration dates.
@1Ferengi thank you for the response. So does that mean we have to do our own calculations?
Would you do calls on nvidia or tesla?
GREAT VIDEO.
Where's your huge easy run up for nvda before earnings?
Great video! Thanks Henry
Great content Thanks Henry
Hi:
Thank you for the video it is helpful. I'm closer to retirement. How I can do passive what I already have? I have 100 chairs on Ford and Fidelity stock. Not many in Palantir or Nvidia. I'm not working right now due to injury.
what do you thing about this ? I have 100% of my account, which is $10,000. I will use 50% of the account ($5,000) to buy XYZ stock at the market price, let’s say at a strike of $23. This means I will own 100 shares of XYZ stock. With the remaining 50% of the account ($5,000), I will sell a put option at a $20 strike price. If the stock drops below $20, I will be able to buy more shares of XYZ at a lower price, which will average down my entry price. Plus, I’ll collect the premium for writing the put option.
Additionally, I’ll sell a call option at a $26 strike price. If the price stays below $26, I will collect the premium from the call option. If the stock rises above $26, I will be forced to sell 50% of my shares (100 shares) at the $26 price, which will give me a profit because I originally bought them at $23. Plus, I’ll collect the premium for writing the call option.
If the stock price stays between $20 and $26, I’ll be able to collect premium from both the put and the call options, making this a "win-win" strategy.
Henry this strategy presupposes that you own a large number of stocks. This is NOT for a small account
hint: do less contracts than he shows if you have less money
@@gorhcpgoNEW 1 contract is 100 shares. That adds up quickly. I guess I just have to do it with much cheaper stocks
Henry, how can I have you look over my portfolio and give me some recommendations?
I tried this but it doesnt work because when the stock price goes down (it doesnt have to crash, just going down 2-5%) you dont find any calls at a strike price high enough for you to eventually sell the stock in gain, or better you can find it but it would pay very very low. And Apple can easily go down 2-5% and then just stay there for months and you would be stuck. Sorry, no free lunch!
? What you described is how a covered call works. Either one of 3 things happen. 1) The price goes up and you get called out, meaning your 100 shares are sold at your strike price. 2) The price goes down and you buy they covered call back at a discount netting the difference as a profit and you keep you shares. 3) The option never meets or exceeds the strike price before it expires worthless and you keep your shares and all of your premium. Stocks that are surging up do not sell a covered call, just enjoy the growth. However when they slow down or go sideways it is a good time to sell covered calls. Hope that helps ya ❤
@randydiver3076 this also why it is key to diversify the stocks you options trade. Unless there's a major macro downturn 2-3 of your stocks should be moving sideways or gradually moving up.
I love this video, Henry thank you I gotta watch it again. Make sure I got it all.
Happy early Birthday!
Very very helpful!