Watch Millionaire Trader Sell Puts Live! (Selling put options for beginners)
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- Опубликовано: 14 июн 2024
- 🚨Get options trading coaching from me + Discord + Trades and course
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In this video, I go over selling put options for beginners, how to sell put options, technical analysis, and lastly I see how much money I can make selling put options live in under 20 minutes.
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful! gl
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Hi Henry. For Vertical Spread with SPY example Sell Put at $542 and Buy Put at $538. And is it possible that Sell Put is assigned and Buy Put is not assigned on expiration date? Strike price at $537 on expiration date.
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Impressive ! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now.
Lucia Alicia Cruz is a hot topic among financial elitist in The US. She's gained some reputation for her works during Covid. All the info. you need to set up an appointment is on her web page.
My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.
All this is really easy when you have 1.8mil to play with…
This is very true. Just keep in mind the strategy. If you can get an additional 1-2% of through these premiums per month is what you're really going for.
If you have something like a $5000 account thats going to be a $50-100 a month. But you keep adding money into your account those percentage gains are pretty good.
The issue philosophically I have with selling puts is, you might make that 1-2% in premium but you could have have 2-5% of stock growth over the month. I feel like its safe income for big accounts. Its stunted growth for smaller accounts. Even running the wheel strategy, In a smaller account I think I'd rather do 0 DTE puts rather than locking up a sizeable part of my portfolio for 1-2% for a month
Same here..
Im on his discord
And even that he reccomend not to buy calls or puts... is the only way ive been growing my portfolio
Compound Interest can really make wonders over time.. so locking 1-3% return per month will end-up creating real wealth over the long run .. I know the last several months the stocks was and still rallying hard which makes 1-3% per month look like nothing but trust me it doesn't last and in a choppy market it you will get ahead.
@Holysoldier000 exactly! That's why I am prefer to sell poor man covered calls on leaps calls over selling puts.
That's what I was thinking. I make more than that this whole week s*** this whole month. I made more than that@@Holysoldier000
The cost of living seems to be increasing every year, making it harder to keep up.
Indeed , it's becoming quite challenging to manage expenses.
I've actually managed to stay ahead of the curve. I'm even contemplating early retirement.
Impressive! How did you achieve that?
Our family got introduced to a financial consultant”DESIREE RUTH HOFFMAN .” about four years before my dad retired. That was what changed things, and I think my retirement income will be on the right track, luxury cars and trips
Absolutely, DESIREE RUTH HOFFMAN has a knack for analyzing market trends and helping clients make informed decisions.
This seems like the worst period. Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!.
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to kiana rachel
I agree just reached my goal of $500k monthly trade earnings. Setting realistic goals is an essential part of trading.
How can someone know a professional broker when legit once are hard to find this days
She's recognized as 'Mrs Kiana rachel . One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well diversified portfolio, that has experienced exponential growth. It is not about having money to invest in stocks,but also you need to be knowledgeable, persistent, and have strong hands to back it up.
It’s obviously easier to make this amount when you have a large portfolio, but in a smaller scale you can run the wheel and make $50-$200 a week with the right plays
True, Try Credit/Debit Spread, Poor Man's Covered Call for smaller amount but it comes with a risk so I prefer to do 1-3 Months or even leaps instead of weekly.
Nice amount of income! Good to keep in perspective that the collateral needed to sell those PUTS for $9,500 required $600,000 in cash or margin buying power. So the return on that was just over 1.5% on the capital.
It doesn’t require 600k but it’s definitely potentially higher risk
i like how relaxed you are. first video for me. but very calm demeanor. 👍🏼 will def keep tuning in
Well explain thank you for bringing up this video Financial education is indeed required for more than 80% of the society in the country as very few are literate on the subject. Regardless of how bad in the economy I still make 90k from my investment of 12k Thanks to Keira Watson for her helpful guides
You're absolutely right, Financial education should be enforced in every level of education.
I always wanted to trade for a long time but the volatility price has been confusing
So nice to see Keira Watson talked about here, her good works are speaking already, and like wide fire she's spreading
Is there anywhere I can get across this woman for a startup?
She's mostly Telegams, using the username below
Thank you! Great video…
You've done very well, except for AAL and now is the best time to sell puts on the stock. The stock likes to stay range-bound and will likely bounce back shortly. Your transparency is appreciated, Henry.
Thank you for your research. I find your videos are well done. Right now I'm keeping an eye on Unimantic.
Thank you Henry, I have no knowledge about option, after watching you video several times, now I traded tsla and nvda and made 7 winning trades in a short period, I had one trade of NVDA, collected 1500 in a week .
Oof dont get over confident. You may have gotten lucky but when you don't make sure u don't blow up your account
Awesome video, clear & concise. Thanks!
Hey henry, how about selling calls? I have been doing that since last month. Can you cover more vids about that. Thanks for your vids! Keep it up!!
Hello I was wondering, if this also considered for small beginners portfolio?
Agree with your premise of course, but just to put on huge plays in the sense that you could get assigned 60k or much more of stock on some of these individual plays, and you did many, so how can an investor without a large or even medium bank roll relate to this video. I mean if they get assigned 100 to 300 shares of even a double digit valued stock and the stock stays down for a year they've blown their wad. I realize it's the theory you're teaching with practical results to show how fast you can turn a buck by selling calls, but again the reality of the video is not sticky for most traders with less capital. I realize you're trying to also sell your program etc, and I don't think you're a bad guy at all, it's just a fun and games video for most viewers I believe.
I like most of his videos but this one is very misleading. He sold puts so it’s only a profit if he covers or they expire. Don’t get why he would say I just made 9k. And yes the risk is no joke.
I agree with all u said
I will be forever grateful to you, you changed my entire 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 Katherine Flores.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
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.
You trade with Katherine Flores too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Love knowing which stocks you are watching! Can you do a video on when to close long positions?
I've got long calls at a 50% gain on PLTR & NVDA. My plan was close at 50%, but I think they've both got room to run. With stocks I would've taken profits on half and left the rest to ride, but I've only got one contract on each, so it's all or nothing.
Thx, that’s much secured. I think just for disclosure you should have said the total.
Is there anywhere to see Henry’s trades?
Although you went fast, this was good. I am beginner options trader.. I was scared that my account would be in the negative when they show max lost. Definitely don't want to do this on my phone.. lol you opened my eyes to selling puts. are you using a cash account ?
Video idea: What to do if you are in a Put Credit Spread and your short put gets exercised. And you are in a small account. How to defend the worst case scenario. Thanks great content.
What about the ones that don't have millions to play with like u do what advice do u have for us
How’d those AAL puts go? Stock is $11.26. All the puts strike price you sold are way higher than this. Did you buy them back for a loss? Or did you get assigned?
@@DepthWish he sold 20 $14 puts.
@@OneStrangeJourney He sold $14.5, which is way higher than today's $11.26 price. It's deep ITM now.
@@redneck6653 did he? Then he is farther in the hole than I thought. Pretty much makes this video a lie then since it literally says he made $9k in minutes.
His video footage for AAL is older than the intro to the video. The AAL trade is from back in early May before AAL had the huge fall. He likely ended the trade before it fell. If not then he either got assigned or could Roll the option “Out and Down” to a lower strike while collecting more premium 👍🏼 He does that in all his videos btw 😏
@@myfiller269 he couldn’t roll it out and down from 11.25 to 14.5. He would have to roll it out years to break even.
Ty sir, please keep it coming.
9527 profit is assuming all expire OTM. Some will and some want. The ones that want will be assigned with stock that could potentially drop in value reducing your assumed profit of 9527 to a negative 9527 or greater.
lol yea it all fun until the market gets hammered and you don’t know how to defend your position.
AAL is currently below $12. Were you assigned on your $14.50 strike shares? Are you selling covered calls below your cost basis?
How much Premium did you received on your AAL CSP $14.5?
Selling long Covered Call might be better like Jan/17/2025 $15 +$0.40
But it all depends on if you think the AAL will go or down during the next few months.
Hope that helps :)
@@InvestWithSensei thanks for the tip! I had collected $34 in premium before getting assigned
if I roll my options out but have zero trade days left then will this break the pdt rule?
If you buy/sell to open an option position and then sell/buy that same option to close it's consider to be PDT.
How much brokerage fees do you pay per options trade? and what trading platform do you use, Uncle Henry?
If you’re worried about fees, you’re in the wrong business
@@radekwe8681 lol nah buddy not worried, just curious 😲
problem is I cannot get level 3 on Robinhood to do this
I want to see a year of statements
I wanted to ask a professional for some advice. I have an extremely high risk profile and I'm comfortable with losing my investment. I have been selling naked puts for a while. I am considering selling the $20 put for 2026. Which will allow me to make a 700% if SoFi ends above $20 in 2026. My breakeven will be around the current share price. I see the $4 TBV per share as a bottom for the stock. The risk/reward is really attractive. I'm doubting whether I should sell the $20 put for 2026 or the $5 put which only allows me to make 2x my original investment in that time but the breakeven is at $4.25 a share instead of the current share price for the $20 puts. What do you think? I'm extremely bullish. Oh yeah and I want to use the money I get to buy ITM calls expiring in 2026 as well.
I don't recommend you do that, here are few reasons in my humble opinion:
The Bid/Ask on SOFI $20 put is very wide $12.50/$15.80.
No liquidity: The Volume is 0 and the Open Interest is 7 only.
One of the main benefits of Selling Puts is to collect premium and buying the stock for cheaper.
Since you are extremely bullish, you might want to buy calls for 2026 or sell the $5 Puts for 2026 (the one you mentioned) both have better protection for you in case the stocks didn't go your way.
The $5 Put 2026 has better liquidity: Bid: $0.97 Ask: $1.00 (very close) Volume: 99 Open Interest: 28,457.
Same for the 2026 calls they have close Bid/Ask high Volume/Open Interest.
I hope that helps.. Best of Luck :)
@@InvestWithSensei I really appreciate your response. I noticed the bid/ask spread yeah so I went for the $12 ones Tuesday. Thanks for sharing your opinion with me. I’m just a very risky trader in this account and I’m not afraid to blow it if I think the chances are in my favor. 👍
@@AnthonyNoto69 Good Luck!
@@InvestWithSensei thank you
once i get to a million dollar then id be able to do this too lol. i think its not too satisfying when someone only have 10k account to sell put options because 10k is not even enough to cover the purchase of 100 shares of a stock that has nice premium once you get assigned.
If the price of the stock is above my option break even price, why am I still down on my option?
Maybe you’re looking at the cost to close your position (which shows as negative). Maybe give more detail so we can help you.
It’s probably because of theta. I’m assuming there is still time before your option expires and the stock has gone down from where you executed the put sell.
Depends lots of factors here.. could be Theta, could be the IV get crushed.
everyone clowning AAL i dont understand why? he had expiration May 10 so he didnt get assigned? can someone explain?
He sold Put 20 contracts 14.50 strike @ .17 on 5/6/24. (4DTE 5/10/24).
AAL closed @14.4 on 5/10/24. He probably get assigned.
It is a nice return, but a sizable account is necessary. Please Mention the cash requirement to make those trades - for newbies just seeing the headline, it is deceiving.
True, money makes money.. Try Credit/Debit Spread, Poor Man's Covered Call for smaller amount but it comes with it's own risk so I prefer to do 1-3 Months or even leaps instead of weekly to reduce that risk slightly.
Agreed
10:08 So when you sell a put option, you essentially want the stock to go up because you think it's at an all time low? Anyone?
That’s correct. Put BUYERS think it’s going to go even lower thus they are willing to pay a premium to sell at the strike price. You, as the seller of the put contract, think the stock price won’t go down much more thus commit to buying 100 shares at the strike price.
Would you ever sell a put option that's in the money?
How did those AAL put go?
American Airlines may sound lousy and it might go down to 10 dollars but Covid is containes, travel is decent if they can avoid a strike it should be back at 15 dollars a share soon enough
@@jeremymeyer5552 I agree and have bought AAL many times near $12 and sold closer to 14, but he sold 20 $14 puts for about a $5k+ loss. I’m sure with will come back but may be a while.
Took a big bath on those I’m sure. Why post this video with AAL so much lower than his strike prices?
@@nancymarie7733 If you have a million dollars you can make money on calls and puts but its not viable to someone who sells five at a time otherwise I would be rich. If it goes bad you have to average in on the stock and could end up all in unless you have a big bankroll.
Aal will be fine, henry will be ok with a 13 average
do u literally make the profit instantly as you show on the video or do u just add it now expecting the profit whenever the put expires?
You get the premium instantly. But you literally need tens of thousands of dollars to execute the trades he is showing. That's why spreads are better for small accounts
Bro literally lost about $5k on the AAL puts so he didn’t make anything overall. I don’t even know about the other stocks.
@OneStrangeJourney well he probably did because any shares he owns he can sell Calls. Wheel strat.
@@Eireternal I do wheel Strat often but at $14 a share even if he sells a $14 call now a $14 call 33 days out is worth $3 a contract. Not a great return. The money would make more in a savings account at that rate. I get crap happen just be cool if he made a video addressing how he will handle.
9527 profit is assuming all expire OTM. Some will and some want. The ones that want will be assigned with stock that could potentially drop in value reducing your assumed profit of 9527 to a negative 9527 or greater.
It looks like Apple and Google on point. Hey Henry, whats more profitable Selling Covered Calls or Selling Puts? Not fairly confident in Puts cause of horror stories during the Pandemic 😂
PUTS! Puts have slightly higher premium than CCs. I think it's called "put skew"
Coverd calls have more premium because you will lose your shares if the price go up or skyrocket
Oftentimes it depends on the trend of the stock price or the market. If the price is moving up Covered calls usually have better premium. If the price is stagnant or moving down selling Puts usually has more premium.
Think of it this way.... If the stock you're selling a covered call on is going UP, would you ask/demand more money (premium) from a buyer that is more likely going to get you shares, or would you ask less?
Also note, the options you sell are likely traded several times before the expiration date. Many traders scalp profits or try to daily.
The reason, premiums rise and fall for 2 primary reasons: stock direction and rate of change (implied volatility (IV)). If a stock mades a big price move interday, the IV shoots higher, increasing CC premium. As the stock settles down over the course of days, IV falls and which causes the premium, even if the stock is lightly trending upwards.e
Depends really on your situation.. if you are entering a new position start with selling cash-secured put (CSP) it has a protection for the downside since you are selling at a lower price.
If you already have the stock then selling a covered calls will generate additional income.
Weeklies are better
The only problem I see is that the smaller stocks don't have the higher premiums.
What I don't like about these selling puts videos that most people put out is that you actually don't get the money right away like youre advertising. You didn't actually make that money unless it closes above the strike price on expiration(which is a month or more out)or you only made a portion if you buy to close before expiration and the trade is in your favor. In the mean time when the stock goes up then you will be positive on the trade if it goes down you will be negative on the trade. I like to learn from seemingly successful people but I don't value this channel as much because the videos are just missing necessary,simple, and practical information.
Well said... the deal isn't done. We don't know the conclusion.... the movie just began and doesn't end until close, roll or expiration.
I love doing this with puts and covered calls to take money off the table with the swings of a stock. On red days, sell puts for couple weeks out. On the green day, buy it back sometimes even on same day. Same if I own the stock with the covered calls. Sell the call when have a pop and when it consolidates, buy the call back. I hardly ever let them expire worthless bc buying back even on 0 DTE, you can sell for the following week to get the Theda decay over the weekend days is better than getting the last $1-2 for it to expire and need to wait until Monday to make a new trade.
Dead wrong. You get the premium immediately.
It's always a honor to have you here as a mentor, I appreciate you for the time being spent to educate us financially. Regardless of how bad it gets on the economy, I still make over $28K every single week. I truly value Adelyn wesley and her helpful guides.
You just mentioned Exp. Adelyn Indeed, that woman has been an incredible mentor to me, imparting a deep understanding of the economy that I wish college had provided.
I know Adelyn, she has really set the standard for others to follow, we love her here in the UK as she has been really helpful and changed lots of lives.
My husband and I started so little with just $4,500 because I was skeptical about investing,but fortunately now I regret not starting big.
Now that bitcoin etf is approved, What is the best strategy to enter crypto trading for someone with more or less than $5,000 to invest?
As a beginner, it's essential for you to have a mentor to keep you accountable. I'm guided
by a widely known crypto consultant
Mrs Mary Patricia Hester
This is correct, Mary's strategy has normalized winning trades for me also, and it's a huge milestone for me looking back to how it all started..
Isn't she the same Mrs Mary Patricia Hester neighbors are talking about, she has to be a perfect expect for people to talk about her so well.
Her platform is wonderful, and her services are exceptional
This is coming from someone with over 1 million in buying power. This video is ONLY possible with a HUGE amount of buying power. He definitely spent over a million just in this video. The 5 contracts for Meta are 500 shares times $400, thats 200k, just on that one.
This video was clearly just to show off. Not one single person watching this can even execute 1 of these contracts for any of these trades.
Kinda, but not really. Overall, he shows numerous strategies to make great income for larger and smaller accounts alike
you could sell naked if you are okay with unlimited loss.
@@Talented3003 yeah but he did none of that on this video, sold a bunch of puts
American Airlines(AAL) IS down 25%😅😅😅😅
Yeah you don’t trade
Listen the only way you are going to learn to trade is by losing by your mistakes
Henry 😂sell his course for $1600 and to hold your hand for 1 year it’s $100000 wtf 😂😂😂
For those who are new, this strategy is flawed on so many levels. Don’t fall for it. He is trying to sell you his courses.
I just have to applaud your content man, well done. I remember having a consultation with a trade analyst last August, and it was incredibly insightful, at least $38,490 profits weekly. Can’t stress enough how helpful experts in this field are!
Please how do i go about it, am still a newbie on investment trading and how can I make profit?
Amanda Chris is a licensed broker and a FINRA AGENT in the United states 🇬🇧🇺🇸🇮🇱🇦🇮🇦🇺
YES! that's exactly her name (Amanda Chris ) I watched her interview on CNN News and so many people recommended highly about her and her trading skills, she is an expert and I'm just starting with her 😊.
Thanks
Um. You are confusing making money with collecting money. Technically you only COLLECTED money. You wont know how much you MADE until you close the position.
I've sen these hucksters come and go over the years. If they're really making millions , why would they waste time doing these videos. Beware the snake oil salesman!
How’d those AAL puts go? Stock is $11.26. All the puts strike price you sold are way higher than this. Did you buy them back for a loss? Or did you get assigned?
I was wondering the same thing. But at the current price those puts look pretty good right now!
@@sidBass63agreed…AAL is almost at a 52 week low…only problem for me with these low priced/low volatility trash stocks is that if you do get assigned at a higher price, it’s hard to sell covered calls on them…there’s no premium at his $14 and $15 strike price…he will have to go out two months and it’s only .06 - not worth it to me…
Good thing this was one of his smallest trades. Not going to take him out.
he had exiration may 10? so he didnt get assigned right?
@@sule_lol8960 He sold Put 20 contracts 14.50 strike @ .17 on 5/6/24. (4DTE 5/10/24).
AAL closed @14.4 on 5/10/24. He probably get assigned.