These videos are education tools that you need to go back to and watch again as you get experience trading options and using them to protect stock positions, or to enhance yield in your position or portfolio. I have been an OptionsPlay member since the summer of 2020. There is just so much in the OptionsPlay tools and reports that it takes time and real-world experience to absorb it, and grasp what to do and how to do it. The newer videos with Jessica and Tony are among the best ever. I use OptionsPlay even to analyze trades if I am buying the stock itself, and not just the option. OptionsPlay has grown into what is now a superb, I might even say must-have, tool for the dedicated DIY retail investor.
Wouldn’t have said it better :) Options are difficult but rewarding on so many level as they give flexibility and hedging. Tony is the perfect teacher, the new version of the Optionsplay Platform is really slick and all-encompassing. It does take a considerable amount of time to use and master - let alone understand ! - every aspect of option trading and I feel there will never be enough hours in a day for it :)) Thanks Tony for making it atteinable
Thank You Thank You Jessica! Your chart and the way you explained it made me fully understand by the 4:58 mark in this video. I've been studying the wheel for 2 months on RUclips and this video finally closed the circle for me.
Hi Prince, I made a video on the Wheel Strategy: ruclips.net/video/BkG2Hg_sClM/видео.htmlsi=2_-TTe7UotsXwUIV. Hope this helps! Let me know if you have any questions - Tony
Absolutely great webinar. Thank you ! Will try platform. Is it possible to draw option pain chart for the expiration time ? (2 options open interest lines for puts and calls to see where is maximum pain for both sides )
Great question, you can choose shorter expirations. However, you will receive less premium and will require more portfolio management. 30-45 DTE is optimal from a yield perspective based on back testing S&P 500 securities.
Just started with the Wheel Strategy and this video was fantastic! Also this question and answer where perfect, thanks for asking and thanks for the answer!!!
Very interesting video - with a special thanks to Jessica. I noted that most of your videos assume that the option trader wants to buy or sell stock. I am predominantly trading options for income, without any specific interest of owning the stock. I would appreciate your advice on how to position trades with income in mind rather than owning stock. Thanks you.
If you just want income... u can get it with a high probability if u sell a cash secured put at .10 Delta. ............. but there is a 10% chance the stock could get assigned to you(u'd own the stock).................and with a .10 DELTA cash secured put... u'd not be collecting much income.
The wheel strategy is intended to utilize the obligation of short puts to purchase stocks/ETFs and the obligation of short calls to sell stocks/ETFs - the intent is to welcome assignment. However, one can avoid assignment by not holding an option until expiration. Additionally, check out Tony’s video on credit spreads that focuses on income generating strategies without owning the underlying. Link: ruclips.net/video/BPVGBJhYjX0/видео.html
Thanks for this video, I've never been able to figure out the best way to go about setting up a covered call. I know you mentioned going out 30-45 days But I have a question on monthly vs weekly strikes? I see there is more liquidity with monthly expiration compared to weekly experirations and therefore easier to enter and exit and trade. Would you use monthly expirations only?
We recommend 30-45 DTE as this is optimal from a back testing perspective. Theta increases drastically at the end of expiration, the longer dated options allow you to capitalize on the theta decay (which benefits the premium seller). Additionally, selling weekly options decreases your premium, requires more position management and you are more likely to be assigned.
I am new to the options. Any suggestions on learning real world application, I have downloaded thinkorswim paper trading platform, there are so many buttons and charts which can be overwhelming. I do know the basics, but not professional on this. I am interested of understanding and implementing the wheel strategy. If I am bullish, I want to call the put. Which means I am collecting premiums for buying puts? If I am bearish, I want to short the put. Which means I am collecting premiums for selling puts? Thank you in advance!
I heard in minute 11 this strategy can be used in my Retirement account. I didn't think that was in possible. I am in Canada and we have RRSPs. Is it different here than in the USA
Love the video, thanks for the depth of information. Am I safe to assume that your service is purely knowledge based and not an intermediary/broker like tasty works?
I am going to be honest, the reason I want to learn options is because I would like to have exposure to an asset that I cant afford to purchase enough shares to make it worth while eg. $AMZN , $TSLA even $AMD. I blew up my td account not knowing what i was doing. Apprec the education. Tony I appreciate your knowledge and patience, love your segments on Options Action. Jessica I am going to give u advice.. use real eg. trade them ... tell us a story.... challenge us.. thanks
Thank you for the question! A cash secured put is deep in the money when the underlying drops considerably below the strike price. Remember, this strategy is a bullish strategy focused on utilizing the obligations inherit with options to establish entry and exit points - the cash covered put being your entry. If you are still bullish on the stock you can allow assignment, or roll down to collect additional premium (to a lower strike farther expiration date). If you are not bullish on the stock, you can buy to close the option to remove the risk of assignment. Essentially you should ask yourself if you would like to own the underlying security and re-evaluate your sentiment.
@@dennisdeltoro5800 It's credited to the seller account as soon as the put is purchased, so it's paid upfront. If the option expires worthless the seller keeps the premium already in his account
It's credited to the seller account as soon as the put is purchased, so it's paid upfront. If the option expires worthless the seller keeps the premium already in his account
you wrote 14:09 "what is a Cash Covered Put?" isnt that the same as a Cash Secured Put? did you just write it worded differently? or is it different than CSP?
guys great video please forgive me if what im about to say is dum i am new to the market. so i like lcid for the long haul so what i am doing is selling weekly in the money puts at different strike levels i usually sell at least 1 point itm and go up to 4 points itm i am in the mind set that as the stock goes up i could buy back the lower strike and sell a higher one up the chain and so on and if i get assigned its ok with me ill just sell some calls or sell the stock and start over again or just hold the stock till it recovers i am yet to see a video on this so please tell me if its a dum strategy its just something i came up with i am far far from a pro i came to the market at the start of covid but did not sell options till last May i like selling a lot more then buying options so let me know what you guys think thanks and great video
I think you are ''rolling'' your options. Great way to make $$ with options. But instead of selling puts, they bought CALLS on stocks they are bullish on. I think you are doing the same thing by selling puts on stocks you're bullish on. I don't know about your strike prices though. The nice thing about buying naked calls/puts is you can only lose the premium you pay. They were buying ATM calls though. Don't know why. Maybe they move more on a percentage basis than ITM calls. More Beta? Better odds of being ITM/ increasing in value I imagine. Batting for singles, not home runs I think. ITM calls and puts are more expensive, that's for sure. Maybe you can take the extra you pay or receive in premiums for ITM and BUY/SELL more ATM CALLS/PUTS in that order. I see the Najarian brothers use this option strategy. But If what you're doing is working, keep it up. Best of luck!
someone please answer my question, since we need to own/ buy a 100 stock , how much capital do I need to have to trade wheel strategy? is $10,000 enough? I know penny stock is not a good choice for this.
You can trade the wheel strategy with 3k-5k. This is not advice and I am not a financial advisor. You can trade any stock that is optional but we are sure and follow all the rules they discuss. The strategy works better after doing your research for which stock and where it is in technical. Is it near the ceiling or the floor? Do research on volume and volatility. The service Optionplay provides will give you great stock picks based on how much premium per stock price is available. Paper trade and do lots of research.
So I’ve been doing the wheel strategy, but now I $237,000 in the hole. I can still salvage these positions (like FedEx and Intel), right? Please advise.
Here’s a thought say you sold the $50 on a good company and bought the $48 for protection and still collected .50 credit. Let’s say the stock drops the $35 before expiration Say you collected 200 on csp your cost basis is 48 on a 35 stock $1300 unrealized loss. On the one that’s protected ur cost basis is $37. Imagine what you’d make the next week if the stock went back to $45. $850. If the $50 put expires worthless. You still collected $50. 1 percent. Not bad
Annoying she's always asking us to refer to other videos or send the questions, Tony would take 10 seconds to go over the concepts as a refresher, ie Extrinsic value, cost vs tax basis, etc.
These videos are education tools that you need to go back to and watch again as you get experience trading options and using them to protect stock positions, or to enhance yield in your position or portfolio. I have been an OptionsPlay member since the summer of 2020. There is just so much in the OptionsPlay tools and reports that it takes time and real-world experience to absorb it, and grasp what to do and how to do it. The newer videos with Jessica and Tony are among the best ever. I use OptionsPlay even to analyze trades if I am buying the stock itself, and not just the option. OptionsPlay has grown into what is now a superb, I might even say must-have, tool for the dedicated DIY retail investor.
Thank you so much for all your support throughout the years, Bob!
Wouldn’t have said it better :) Options are difficult but rewarding on so many level as they give flexibility and hedging. Tony is the perfect teacher, the new version of the Optionsplay Platform is really slick and all-encompassing. It does take a considerable amount of time to use and master - let alone understand ! - every aspect of option trading and I feel there will never be enough hours in a day for it :)) Thanks Tony for making it atteinable
Thank You Thank You Jessica! Your chart and the way you explained it made me fully understand by the 4:58 mark in this video. I've been studying the wheel for 2 months on RUclips and this video finally closed the circle for me.
Love this - as soon I started learning about options this strategy clicked and it's sooo much better than buying and holding stocks
Hi tony, would YOU be able to do a wheel strategy video please ?
Your teaching style is exactly like how a teacher would wxplain to their students
Hi Prince, I made a video on the Wheel Strategy: ruclips.net/video/BkG2Hg_sClM/видео.htmlsi=2_-TTe7UotsXwUIV. Hope this helps! Let me know if you have any questions - Tony
Aloha Jessica and Tony great educational presentation! As a member, I have had limited time to review all of OP's resources. Mahalo Jeff
Loved this, Thank you
Great session!! 🙌
excellent tutorial 👏🏻
This was excellent. Love the deep dive. Looking forward to more sessions.
Thank you for watching, Judy!
Absolutely great webinar. Thank you ! Will try platform. Is it possible to draw option pain chart for the expiration time ? (2 options open interest lines for puts and calls to see where is maximum pain for both sides )
If you're willing to get assigned, is it better to choose the shorter expiration? Am i missing something?
Great question, you can choose shorter expirations. However, you will receive less premium and will require more portfolio management. 30-45 DTE is optimal from a yield perspective based on back testing S&P 500 securities.
Just started with the Wheel Strategy and this video was fantastic! Also this question and answer where perfect, thanks for asking and thanks for the answer!!!
What are some good go to stocks or this strategy?
Very interesting video - with a special thanks to Jessica. I noted that most of your videos assume that the option trader wants to buy or sell stock. I am predominantly trading options for income, without any specific interest of owning the stock. I would appreciate your advice on how to position trades with income in mind rather than owning stock. Thanks you.
If you just want income... u can get it with a high probability if u sell a cash secured put at .10 Delta. ............. but there is a 10% chance the stock could get assigned to you(u'd own the stock).................and with a .10 DELTA cash secured put... u'd not be collecting much income.
The wheel strategy is intended to utilize the obligation of short puts to purchase stocks/ETFs and the obligation of short calls to sell stocks/ETFs - the intent is to welcome assignment. However, one can avoid assignment by not holding an option until expiration.
Additionally, check out Tony’s video on credit spreads that focuses on income generating strategies without owning the underlying. Link: ruclips.net/video/BPVGBJhYjX0/видео.html
Thanks for this video, I've never been able to figure out the best way to go about setting up a covered call. I know you mentioned going out 30-45 days But I have a question on monthly vs weekly strikes? I see there is more liquidity with monthly expiration compared to weekly experirations and therefore easier to enter and exit and trade. Would you use monthly expirations only?
We recommend 30-45 DTE as this is optimal from a back testing perspective. Theta increases drastically at the end of expiration, the longer dated options allow you to capitalize on the theta decay (which benefits the premium seller). Additionally, selling weekly options decreases your premium, requires more position management and you are more likely to be assigned.
also found that with 45 days it is easier to roll the option with net gain at about 20-25 days if you feel the need
I am new to the options.
Any suggestions on learning real world application, I have downloaded thinkorswim paper trading platform, there are so many buttons and charts which can be overwhelming.
I do know the basics, but not professional on this.
I am interested of understanding and implementing the wheel strategy.
If I am bullish, I want to call the put. Which means I am collecting premiums for buying puts?
If I am bearish, I want to short the put. Which means I am collecting premiums for selling puts?
Thank you in advance!
I heard in minute 11 this strategy can be used in my Retirement account. I didn't think that was in possible. I am in Canada and we have RRSPs. Is it different here than in the USA
Love the video, thanks for the depth of information. Am I safe to assume that your service is purely knowledge based and not an intermediary/broker like tasty works?
I am going to be honest, the reason I want to learn options is because I would like to have exposure to an asset that I cant afford to purchase enough shares to make it worth while eg. $AMZN , $TSLA even $AMD. I blew up my td account not knowing what i was doing. Apprec the education. Tony I appreciate your knowledge and patience, love your segments on Options Action. Jessica I am going to give u advice.. use real eg. trade them ... tell us a story.... challenge us.. thanks
If you can’t afford to buy the stock then the wheel strategy isn’t for you
Thanks. How to manage when cash secured put goes deep ITM?
Thank you for the question! A cash secured put is deep in the money when the underlying drops considerably below the strike price. Remember, this strategy is a bullish strategy focused on utilizing the obligations inherit with options to establish entry and exit points - the cash covered put being your entry. If you are still bullish on the stock you can allow assignment, or roll down to collect additional premium (to a lower strike farther expiration date). If you are not bullish on the stock, you can buy to close the option to remove the risk of assignment. Essentially you should ask yourself if you would like to own the underlying security and re-evaluate your sentiment.
@@OptionsPlay Thanks much Sir.
When you sell a covered call or a cash secured put, do you collect the premium up front? Or do you have to wait till expiration? Thank you.
Up front
@@GPx1 thats not true
@@dennisdeltoro5800 It's credited to the seller account as soon as the put is purchased, so it's paid upfront. If the option expires worthless the seller keeps the premium already in his account
It's credited to the seller account as soon as the put is purchased, so it's paid upfront. If the option expires worthless the seller keeps the premium already in his account
Do you manage money for individuals?
you wrote 14:09 "what is a Cash Covered Put?"
isnt that the same as a Cash Secured Put? did you just write it worded differently? or is it different than CSP?
Same thing. Just different people using different terminology...
guys great video please forgive me if what im about to say is dum i am new to the market. so i like lcid for the long haul so what i am doing is selling weekly in the money puts at different strike levels i usually sell at least 1 point itm and go up to 4 points itm i am in the mind set that as the stock goes up i could buy back the lower strike and sell a higher one up the chain and so on and if i get assigned its ok with me ill just sell some calls or sell the stock and start over again or just hold the stock till it recovers i am yet to see a video on this so please tell me if its a dum strategy its just something i came up with i am far far from a pro i came to the market at the start of covid but did not sell options till last May i like selling a lot more then buying options so let me know what you guys think thanks and great video
I think you are ''rolling'' your options. Great way to make $$ with options. But instead of selling puts, they bought CALLS on stocks they are bullish on. I think you are doing the same thing by selling puts on stocks you're bullish on. I don't know about your strike prices though. The nice thing about buying naked calls/puts is you can only lose the premium you pay. They were buying ATM calls though. Don't know why. Maybe they move more on a percentage basis than ITM calls. More Beta? Better odds of being ITM/ increasing in value I imagine. Batting for singles, not home runs I think. ITM calls and puts are more expensive, that's for sure. Maybe you can take the extra you pay or receive in premiums for ITM and BUY/SELL more ATM CALLS/PUTS in that order. I see the Najarian brothers use this option strategy. But If what you're doing is working, keep it up. Best of luck!
someone please answer my question, since we need to own/ buy a 100 stock , how much capital do I need to have to trade wheel strategy? is $10,000 enough? I know penny stock is not a good choice for this.
You can trade the wheel strategy with 3k-5k. This is not advice and I am not a financial advisor. You can trade any stock that is optional but we are sure and follow all the rules they discuss. The strategy works better after doing your research for which stock and where it is in technical. Is it near the ceiling or the floor? Do research on volume and volatility. The service Optionplay provides will give you great stock picks based on how much premium per stock price is available. Paper trade and do lots of research.
@@MrChampmoney Thanks
So I’ve been doing the wheel strategy, but now I $237,000 in the hole. I can still salvage these positions (like FedEx and Intel), right? Please advise.
i am familiar with a CASH SECURED PUT. Is that the same as what you call the CASH COVERED PUT? Terminology?
Yes, those are the same strategies with different names.
What Greeks needs to considered for selling a call.
The new lady talks in circle…. Tony please step in your education style is much simpler 🙏🙏🙏
But she’s prettier 😅
How did you get so smart
35:45
Here’s a thought say you sold the $50 on a good company and bought the $48 for protection and still collected .50 credit. Let’s say the stock drops the $35 before expiration Say you collected 200 on csp your cost basis is 48 on a 35 stock $1300 unrealized loss. On the one that’s protected ur cost basis is $37. Imagine what you’d make the next week if the stock went back to $45. $850. If the $50 put expires worthless. You still collected $50. 1 percent. Not bad
Hey everyone! Comment below your questions from today's session.
⚙Access our full 𝙒𝙝𝙚𝙚𝙡 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮 course: www.optionsplay.com/wheelstrategy-youtube/
Annoying she's always asking us to refer to other videos or send the questions, Tony would take 10 seconds to go over the concepts as a refresher, ie Extrinsic value, cost vs tax basis, etc.
Duly noted Fernando 😀👍
can we connect over email or WhatsApp plz?