QQQ returned around 30% in that same period for just holding it (truly passive). So a comparison against automated selling of shares (passive income) would be interesting
Everyone’s been preaching investing lately as a source of passive income but with a 70 hour weekly jobs and limited knowledge of financial instruments, how can I actually stay on top of things, I see every RUclips video saying BUY BUY! But when and how do I sell for profit at the right time?
Well all i know is that you cannot go wrong taking profit at near high. No one ever went broke taking a 10% loss. It's best if you consult with a fiduciary advisor to get informed buying & selling decisions
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like “Sharon Lynne Hart” I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
Perfectly explained as always, thanks for all the content! One question, in another video you mentioned something closing a trade when reaching like 80%. Can you do another video for this please? Not getting it 100% yet
10:36 If you bought and held for a year you would have made $3200 more + dividends. On the top of it you would be taxed at a lower bracket since long term capital gain is taxed at lower %. Correct me if I am wrong
@@silentexploration How about In addition to always showing a positive campaign from cherry picking a starting point, Seth also could show a year of abysmal results from a campaign that starts at a much less favorable point.
Most people think that investing in cryptocurrencies consists simply buy and hold until what it increases, but the best investments in cryptocurrencies consist of placing them on TRADING and forextrading...
I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
Instead of using the wheel strategy on a monthly campaign, you can earn more income by selling weeklies. As an example, I sold the June 7th NEM 40 put for $293.
what am I missing ?? if you just bought 100 shares of QQQ in May '23 @ $336 and sold in May '24 @ $451 that would of been a 34% gain. More than DOUBLE the setup you showed. Please explain.
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. With Samantha Jack, my portolio is doing really great and im proud of the decisions i made last year.
Honestly SMB these options videos are just not in the same ball park for the rest of your content. It's like there are always huge holes in these "suggestions" and so much of the mindset is missing. Risk is always skimmed over.
Would be nice if you also explain the risk of this strategy, since this only shows the upside. You still have quite a significant amount of capital at risk.
I can explain the risk. If you're selling puts and end up getting assigned to buy the shares, the stock/security could tank. So trying to make money selling covered calls on those shares might put a dent in the capital you have set aside. Covered calls, same deal, if the security is tanking you're not going to make much premium if you're trying to sell at or above the strike where you bought the shares. So, it's tanking AND you can't make much premium. Yeah, that sucks. Hope I explained that.
@Anshul-nc4he: If you'd been put the QQQ's in 2000 near the top, they sank by over 80 percent by the bottom, and didn't hit new highs again for roughly 15 years (working from memory here). That's a SUBSTANTIAL amount of risk, which isn't surprising given the high volatility of tech, and even a big cap tech. index like QQQ. Just saying "there is not much risk" is MEANINGLESS unless you quantify WHY you think that. I'd say there is SUBSTANTIAL risk, as you'd need to let the funds sit for a LONG time and just gain a tiny dividend, if tech. stocks have a big bear market -- assuming you don' want to take any realized loss. I actually prefer to do something like OWN some QQQ, sell calls against it on rallies, and sell a put against it on meaningful pullbacks. If you have both an OTM call and OTM put sold, only one of them can end up ITM. But regardless of what you do, there is some risk, and you should be able to quantify it IF you know what you're doing.
So if the trader doesn't have the capability to top up its capital then this strategy is not viable right? How about a passive weekly income strategy with options, say a 10 delta $SPY or $SPX selling IC in all a low and high VIX environment, could SMB produce a video for an example of this?
If this was so easy and automatic there will be mutual funds, ETFs and hedge funds doing this day and day out on many indexes and stocks. The ones who try underperform the averages; still suffer badly in bear markets
LoL ,but PUTW is a mutual fund that sells puts....it is fairly easy to understand concept in the video that isn't overly complex. Execution of strategy is just as important. The video just shared a concept or possibility under the right market conditions. 😎
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Michelle Stewart
It works in a bull market. However, if there’s a severe correction like in Feb2002, it would take a full year to get your money back as the market keeps getting lower and lower, the premium on your call would be minimal.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Catherine Gauthier.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
Worst thing thst can happen to you is you are owner of 100 x QQQ which is one of the besf performing ETF index fund! Dont do wheel on shitty stock like RIDE 😂 like rockwell trading guru 😅
Even better is to sell each month at the beginning of the year. The end months will pay 2500 and once you reach a year you'll earn that monthly if you continually open the 12 month position upon current expiration. You will need more capital but the same strategy works on a quality stock you would want to own long term. 😊
"more capital" is right - to the tune of 12 X, or in this example around $480,000. Even for those few who have that much on hand, it would be a significant risk to put on one stock or ETF. If you do it on margin, your risk is even higher.
@@toby6180 It wouldn't be any more capital used on a $30 stock... I don't see why it would be more risk to put all $30k into the Qs vs a single stock? And you would be getting much better returns after each month especially since market direction is historically up. It would be like dollar cost averaging but with an additional discount of time premium. I actually run this exact system on AAPL with weeklies 8 weeks out. Since I'm past 8 weeks I'm getting basically $6 weekly premium for risk instead of the $2.50 for just running an ATM put one week out. When assigned the shares I sell an ATM call 8 weeks out and just keep it all going. You don't have to go that many weeks and it doesn't have to be an expensive stock. You may want to skip earnings weeks though.
This is not passive investing and should not be compared with bonds. If QQQ tanks 20% you're going to lose 20% of your capital. And by the way if you just hold QQQ for that period you would have gained more without any added risk
Best wheel strategy I've seen on RUclips. Thank you SMB.
QQQ returned around 30% in that same period for just holding it (truly passive). So a comparison against automated selling of shares (passive income) would be interesting
Excellent video as always, Seth. Always appreciate the content and knowledge.
Got it. So i can work at SMB now and make a few trades a month
Thank you so much, great education!
Everyone’s been preaching investing lately as a source of passive income but with a 70 hour weekly jobs and limited knowledge of financial instruments, how can I actually stay on top of things, I see every RUclips video saying BUY BUY! But when and how do I sell for profit at the right time?
I also think everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
Well all i know is that you cannot go wrong taking profit at near high. No one ever went broke taking a 10% loss. It's best if you consult with a fiduciary advisor to get informed buying & selling decisions
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like “Sharon Lynne Hart” I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
Perfectly explained as always, thanks for all the content! One question, in another video you mentioned something closing a trade when reaching like 80%. Can you do another video for this please? Not getting it 100% yet
Understandable. Any strategies that require less capital? Great example and teaching execution.
10:36 If you bought and held for a year you would have made $3200 more + dividends. On the top of it you would be taxed at a lower bracket since long term capital gain is taxed at lower %. Correct me if I am wrong
These guys never spend enough time on risk. Always reward.
Selling puts is pretty safe bro
@@shill1103 Yeah, in 1 lots
He mentioned the risk of assignment. Then you own the QQQ and you have risk associated with that. Not sure what more you want to talk about here.
I agree. I plan on doing this, but, I am concerned with what happens when the QQQs have a bear market, as in 2022.
@@silentexploration How about In addition to always showing a positive campaign from cherry picking a starting point, Seth also could show a year of abysmal results from a campaign that starts at a much less favorable point.
Seems to underperform just buying and holding SPY or QQQ. I am confused.
It is a strategy that I am well aware of. I do like the way it is presented as a campaign which is how it should be viewed rather than a binary event.
Most people think that investing
in cryptocurrencies consists
simply buy and hold until
what it increases, but the best
investments in cryptocurrencies
consist of placing them on TRADING and
forextrading...
I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
He's definitely a top player in the trading world. His ability to make successful trades is really impressive.
Please do you mind sharing any means of reaching out to him easily?
Instead of using the wheel strategy on a monthly campaign, you can earn more income by selling weeklies. As an example, I sold the June 7th NEM 40 put for $293.
what am I missing ?? if you just bought 100 shares of QQQ in May '23 @ $336 and sold in May '24 @ $451 that would of been a 34% gain. More than DOUBLE the setup you showed. Please explain.
what time do you make the trade? and isnt selling put ATM risky?
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. With Samantha Jack, my portolio is doing really great and im proud of the decisions i made last year.
gram with her username
Fxsamanthaj, that's it
At nicegram
Scammers
Scammer
I use this strategy a lot myself but I prefer to trade stocks that pays dividends. This way if I am Put I can earn dividends while I sell Calls.
Honestly SMB these options videos are just not in the same ball park for the rest of your content. It's like there are always huge holes in these "suggestions" and so much of the mindset is missing. Risk is always skimmed over.
Would be nice if you also explain the risk of this strategy, since this only shows the upside. You still have quite a significant amount of capital at risk.
I can explain the risk. If you're selling puts and end up getting assigned to buy the shares, the stock/security could tank. So trying to make money selling covered calls on those shares might put a dent in the capital you have set aside. Covered calls, same deal, if the security is tanking you're not going to make much premium if you're trying to sell at or above the strike where you bought the shares. So, it's tanking AND you can't make much premium. Yeah, that sucks. Hope I explained that.
There is not much risk associated with it u just need to work with the instruments which u think won't go zero in future that's it
@Anshul-nc4he: If you'd been put the QQQ's in 2000 near the top, they sank by over 80 percent by the bottom, and didn't hit new highs again for roughly 15 years (working from memory here).
That's a SUBSTANTIAL amount of risk, which isn't surprising given the high volatility of tech, and even a big cap tech. index like QQQ.
Just saying "there is not much risk" is MEANINGLESS unless you quantify WHY you think that. I'd say there is SUBSTANTIAL risk, as you'd need to let the funds sit for a LONG time and just gain a tiny dividend, if tech. stocks have a big bear market -- assuming you don' want to take any realized loss.
I actually prefer to do something like OWN some QQQ, sell calls against it on rallies, and sell a put against it on meaningful pullbacks. If you have both an OTM call and OTM put sold, only one of them can end up ITM.
But regardless of what you do, there is some risk, and you should be able to quantify it IF you know what you're doing.
So if the trader doesn't have the capability to top up its capital then this strategy is not viable right? How about a passive weekly income strategy with options, say a 10 delta $SPY or $SPX selling IC in all a low and high VIX environment, could SMB produce a video for an example of this?
Can one buy back a put or call they sold before expiration instead of having the shares assigned?
I think yes, many recommend buying back when 70-80% of profit is realized
If this was so easy and automatic there will be mutual funds, ETFs and hedge funds doing this day and day out on many indexes and stocks. The ones who try underperform the averages; still suffer badly in bear markets
You think they are not doing it on much safer strike prices
There are funds that do this, quite a few. Check out OARK.
LoL ,but PUTW is a mutual fund that sells puts....it is fairly easy to understand concept in the video that isn't overly complex. Execution of strategy is just as important. The video just shared a concept or possibility under the right market conditions. 😎
Why doesn't SMB trade futures or forex anymore?....is there something wrong with those utensils that we don't know about?....
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Michelle Stewart
Michelle Stewart strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
The first time we had tried, we invested $1400 and after a week we received $5,230. That really helped us a lot to pay our bills.
she's mostly on Telegrams, using the user name.
Make a video about selling puts on margin!!
классный обменник
BNB Market Price 528, Sell call 500 strike rec 28.8 prem. Sell 560 Put rec 32.8 prem. Exp day market close 538.80
What will be the PNL outcome ?
Beginners doesn not have $36k
And they can’t get there because they take outsized risk to get there
It works in a bull market. However, if there’s a severe correction like in Feb2002, it would take a full year to get your money back as the market keeps getting lower and lower, the premium on your call would be minimal.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Catherine Gauthier.
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
I'm new at this, please how can I reach her?
she's mostly on Telegrams, using the user name
GAUTHIER6 💯 ..that's it
What to do when the stocks keeps going down and never goes back above?
You can buy a put Option to get rid of the stock
Someone should explain the tax implications of this strategy.
Great content, but the "wheel" strategy is not "passive". Selling calls/puts is "active".
Is it really that simple?
Is it really that simple? Are there downsides to this strategy?
Worst thing thst can happen to you is you are owner of 100 x QQQ which is one of the besf performing ETF index fund! Dont do wheel on shitty stock like RIDE 😂 like rockwell trading guru 😅
Why not using this strategy weekly?
even daily for QQQ
It’s good strategy on in bear market but now you don’t want to do it at ATH prices otherwise you will hold a bag if market corrects
такому нужно учится в школе, начинать с малых лет, потому что это уже будущее
I’d like to see how this strategy worked in 2022.
Where can I get in on some pork bellies?
/HE...futures options.
☦🕊❤
In your videos you only show the potential gain what's about the risk and the maximum possible loss. This should be made clear
Even better is to sell each month at the beginning of the year. The end months will pay 2500 and once you reach a year you'll earn that monthly if you continually open the 12 month position upon current expiration. You will need more capital but the same strategy works on a quality stock you would want to own long term. 😊
"more capital" is right - to the tune of 12 X, or in this example around $480,000. Even for those few who have that much on hand, it would be a significant risk to put on one stock or ETF. If you do it on margin, your risk is even higher.
@@toby6180 It wouldn't be any more capital used on a $30 stock... I don't see why it would be more risk to put all $30k into the Qs vs a single stock? And you would be getting much better returns after each month especially since market direction is historically up. It would be like dollar cost averaging but with an additional discount of time premium. I actually run this exact system on AAPL with weeklies 8 weeks out. Since I'm past 8 weeks I'm getting basically $6 weekly premium for risk instead of the $2.50 for just running an ATM put one week out. When assigned the shares I sell an ATM call 8 weeks out and just keep it all going. You don't have to go that many weeks and it doesn't have to be an expensive stock. You may want to skip earnings weeks though.
cocaine everyone wants a coke
LOL if you just have 30k+ sitting around
This strategy can be used on stocks that are more in line with your purchase power.
Total BS
This is not passive investing and should not be compared with bonds. If QQQ tanks 20% you're going to lose 20% of your capital. And by the way if you just hold QQQ for that period you would have gained more without any added risk
Ties up too much money. R/R not great.
So many videos that make the same ridiculous claims.