Put Options - How to Sell Puts for Weekly Passive Income EASY Quick Explanation
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- Опубликовано: 28 сен 2024
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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!
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor
@@harrisonjamie794 In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
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@@harrisonjamie794 She is KRISTIN GAIL CUNNINGHAM , my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
@@DavidAntony-gq7id sincerely thank you I looked her up on the internet and was awestruck by how qualified she was; I contacted her since I need all the help I can get with canning. I've just scheduled a call.
I just started doing this but only doing 90% trades. I can't believe I just learned how to do this! Easy $100-200/week.
These are my favorite videos of yours. Keep em coming, and do an options portfolio reveal video please!! Thanks for sharing all of your knowledge
More to come! Thanks! :)
CRUDE OIL PRICE WILL RISE AGAIN BECAUSE OF YEMEN INCIDENT OIL PRODUCTION IS LOW NOW IT WILL RISE AGAIN TO 100$./B.
@@dragon.fromindia3235ok bro😅
Well this video didn’t age too well. However it’s an extremely helpful video in understanding selling put options. Selling puts does make one a better investor. It forces one to be patient and instead of just setting a limit order your also collecting the premiums
Ya my guess is a lot of those "quick and easy" profits from last year will be disappearing for a lot of put sellers this year :)
well from what I can tell he did make money on PTON; it went up again, to $120+.. before now (05/2022) crashing down to $14! lol
120 days ago things felt alright, not so much now September 2022. What will January 2023 look like?
I lost everything twice
Thank you sir you are a blessing! Most try and make it sound difficult but some reason i understand you perfectly!
Really cool strategy, I have 215 shares in Tesla which I wanted to keep forever, what conservative strategy would you consider? Just wanted 1% per month so about $2000 per month. Any ideas?
Selling covered calls would probably be your best bet. And if you're worried about getting assigned and losing your shares in some cases, you can just continually roll those calls to the next expiration cycle to avoid that...and also collect more premium!
Covered calls and roll as needed
Love your content. I’m familiar with how options work. My problem is knowing which stocks to pick. Can you do a video on how to select stocks for options? Thanks.
This is simple just look in your portfolio only sell options on stocks you really want to own for the long term this way if it gets exercises you get shares you already own at a discount if it does not you keep the premium free and clear
Looks like you may be owning some square! lol. It dropped a lot today, but overall the chart shows Square consistently rising over time! Price will probably jump up a few dollars tomorrow.
We shall see
That's why the best strategy is to always go out at least one month. Gives enough time to allow the stock price to change.
Nice presentation Henry. I took the Tesla put 500 and 475 @ 2 weeks out. Basically at the daily 250 MA and just below at major support. I hope I get assigned so I can sell some covered calls while holding for a summer swing trade.
Nice work!
Awesome plan. I also want to sell puts on Tesla but waiting to transfer more cash to cover it.
Hello just need help if the stock hits below ur strike price sellin put call,does robinhood automatically buys the 100shares of stock since they held the collateral or they send u msg sayin u r assigned? My option expires on aug 20, hasnt received any msg frm . Shud I wait until Aug 20th which is tomm?
@@basantashrestha6245 u need to keep watching the stock price, if it will be near or lower than your strike price then either buy back or roll before the market close (I suggest at least 2-3 hours before to avoid any issue). Robinhood is not going to call you. They will assign 100% if stock price is equal or less than strike price.
Loving the videos but just jumping into things and trying to learn as much as possible. I guess where im slightly confused is how you are technically spending money but everytime you say you are collecting a premium back instantly? Am I missing something or is there another video I should be watching to clear this up?
Hey Henry when are you going to write a book about options. I never done it before and I feels a little nervous to that. I only have about one year trading buying low price and sell at high price. Is a little confused for me.
Soon!
You are a pro teacher bro..... PATRIOT!!!!👍😎👍
I don't understand: so why people, me including, would just but straight stock righ away?
Hey Henry, I love your videos. Great stuff and thank you for the great work. Can I ask where can I join your community? I’m a wheels strategy trader too 😊
what worries me is you are not hedged for a outlier event that might push the stock down considerably past your assignment value. Like what happens if you sell tsla puts at 875..then significant event crashes stock to 800 ...and you get stock at 875...all your gains from all this activity could be wiped out. Why not do vertical spread and buy out of the money puts as hedge?
This is exactly why I short the stock if it drops below my put strike...totally covers my obligations on the contract if I get assigned AND I would still walk away with the premium. Selling vertical spreads is also a great defense tactic in itself. You just have to make sure you do something in situations like you just described.
Pinned this video down, helped me when I started some months back but I lost money because I was gambling the market by myself but then it is the most lucrative investment I have now
Mr (Eric Arlo) a fiduciary is the man behind my success that's why I succeed at it, it's that plain maybe he could help you
Arloeric 1(a)Gmai
Lcom...Is he taking commissions for trades? Yes, he is
I rather pay a commission for expertise and profits than to loose money hopelessly gambling
Hi Henry, I did (by mistake) a Put with Buy To Close of 14 options of AAPL with premium of $2.69 - a Strike of $170 and expire in 4 days (Feb. 4). I think, to close this position, I need to do a Sell To Close. My question is what should I look for Bid and Ask - should it be higher than $2.69 so I don't lose money? Thanks a lot in advance!
I’m watching this one year later, it’s now September 1st 2022 to be exact and Peloton is now at $10.25
And Square is $62 😮
Yes. Do this. Especially toward early March. 🍿😉
Lol ya all these "passive income" put sellers are going to get crushed this year...or perhaps already have been crushed lol
@@scottreesetradinginvesting7936 yes. As expected 🤣🤣🤣 I had forgotten about this post. Glad I saw this.
Just curious.. regarding the Alibaba stock.. on May 14th it went down to 209. Did you have to purcahse the stock?
Henry!! new to your world.....wow....you are da man. Great job.
Looking forward to today, BABA is $78, SQ is $59, and PTON is $5. Your stock analysis is no better than reading tea leaves.
Thank you so much for your videos Henry😊
hi about setting STOP LOSS on options? and is it alright to to BUY BACK sold option EVERY NEXT DAY in order to keep contract expiry for ONE day ?
Do you have a weekly list to buy and sell options?
Henry, selling PUS is great, but, you need to cover the pUTS in case of assignment. You premiums look great when because you have the funds
Bingo
My first video with him. All he did was place the orders. I liked his tech analysis but the true test of him keeping any of the money has yet to be shown.
ive been selling options only problem is i dont have the capital to trade the stocks i want to
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Well in order to sell put contacts as u did in this video you have to have a decent amount of cash to cover. Broker wouldn’t allow you open the trade if u don’t have much collateral to cover that. And those who somehow able to trade sell naked pull options are sick people, who risk everything.
Sick people 🤣
i am a bit confused, you need the collateral(price of stockx100) to get the premium of x amount, does the collateral coke back or will you be losing that to gain the premium?
The collateral will be released once the trade is over IF the put option expires worthless. Otherwise, you'll be assigned 100 shares of stock, and the collateral will be used to make that purchase.
So you end up buying the shares every time? You do not tell us how to close the options.
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Can you do a video on closing options and spreads?
I did look through my option playlist
“I don’t think Alibaba can fall much more…” Glad I’m watching this in 2022.
Ya this is exactly why selling puts is a terrible idea to try and create a passive income stream for yourself. They're a great investment tool for the long-term, but making "quick and easy" profits all the time is a fantasy.
After receiving your premium can you close your "sell put" position and get your collateral back? and then sell same put again same day? If not, I don't see the benefit of locking up so much capital for so little return.
That put income comes with a big catch. If the stock price drops big, your losses will be equally big.
Yup that's exactly right. This is why you can't rely on short puts to make consistent gains or income...still a great strategy, but there's plenty of risk involved.
Thank you. I always wondered what selling options was all about.
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Do you select what delta to trade?
For short puts, I have found selling around the 30 delta has a good balance of risk to reward. About a 70% chance of profit and you still collect pretty decent premium.
Awesome video , love from India
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Hi great video however i would like to ask. Assuming you sell puts and the stock price reaches your strike and you have to buy the stocks isnt it possible to just sell your stocks back and keep your money having a slight loss compared to the premium you would’ve gotten assuming the trade went in your favour
Yeah it depends
Or sell
Covered calls
CRUDE OIL PRICE WILL RISE AGAIN BECAUSE OF YEMEN INCIDENT OIL PRODUCTION IS LOW NOW IT WILL RISE AGAIN TO 100$./B.
Great video as always Henry! Wondering about the assignment of the stock when you sell the put options. When you place the order for the put options contracts and it say the collateral amount, does the amount have to be inside your account at that moment or if you wanted to pay in case later, could you do that? Is collateral your overall portfolio? Meaning the investments that are already in the portfolio plus the cash?
The collateral as to already be in your account. Otherwise robinhood will tell you you don't have enough.
Some brokerage eg: IKBR will give you a margin amount, with t2-t4 days to settle
Easy way to remember : if you get to choose, you can pay later but if they get to choose, you have to have it already in case they do.
Each brokerage firm provides different "levels" of trading approval. If you have cash (or shares of the stock) to cover the cost of a contract assignment, that is called a "covered" contract. If you don't, that's a "naked" contract and each broker has rules and formulas to determine how much of your other owned positions can be counted as collateral against the "naked" contract if it is assigned. You have to request, and be approved, to be at either trading level -- "covered" and "naked". Note, at a naked level if you don't pony up the cash or securities in the time allotted to satisfy a contract assignment, the broker will decide which of your other assets to liquidate in order to fulfill your obligation as a seller (or "writer") of a naked contract.
Just watched this. I iw about 3000 shares of Tesla and wanted to start earning with selling cash secured puts. Say it's at 200 and I enter the strike of 150. If I don't actually want more shares can't I just put a sell in at the same price of some other shares so that if/when I get assigned these shares at 150 I can offset the asigned shares with stop.lossea of other shares I own and that way I just guarantee the premium without any concern of accumulating shares I don't actually want.
Thanks in advance
Henry, thank you for the video! What would you recommend though for someone with only a $500 account to start? I do not have the capital to put up like you do unfortunately but I will get there eventually with enough learning and practice
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Where's the reply?
great job keep it up
one thing though make the screen smaller it covers up a lot of info..
Awesome video...thank you for sharing your knowledge and experience!
BABA and SQ are trading at significantly lower prices than what you showed in this video. Time to show us the risks and how much money you lose when you are wrong about the stock direction.
Ya this is exactly why selling puts is a terrible idea to try and create a passive income stream for yourself. They're a great investment tool for the long-term, but making "quick and easy" profits all the time is a fantasy.
How much are you looking to collect per trade? 1% of stock price?
Very informative video, you just got a new subscriber!
$109,850.00 of collateral to gain a 1.6% return of premium. It is a large account for most people. It shows the fundamentals of it working. This is great to see the % of return. I think most people should focus on the returns and not the size of the account.
I would like to know how this panned out over the long term, did your options expire worthless, how many got assigned and how many were you able to write as covered calls later?
Exactly! Returns not the size of the portfolio!
He really only made $185 after all the puts expired.
What app do you use to sell options, most brokers don't let you sell options n get premium
⬆️⬆️⬆️thanks for the comment..
Contact the What'sap line above for more information, advise and consultation.
Great content. I just learned a lot.
when you sell put option does it automatically get sold if some one buy?
Yes, you cannot actually sell a put option until there is a buyer on the other side willing to purchase it from you.
love you man, thanks for helping me
Thank you!
Very nice walk through
What is your view on using TQQQ for Sell Put option weekly trading?
good idea, very profitable and not risky at all
What’s the difference between buying a put and selling a put ?
lol.
Just lost everything twice, thanks
AWESOME EXPLANATIONS!
@buharihassan2969 lol no
Thanks
I need help on how to write those sell put on. Not fully clear
Sorry how much was the collateral? Just 8k?
Options are so complicated, I don't get it at all. Something does not click with me! Still thank you for the video.
Your PIP (picture) window is covering the parts of graph you're trying to show the viewers, mate.
There's no option on cash app that u do lot of this stuff or I just don't know how
How much collateral are you locking in for 8k income per month. It’s probably hundreds of thousands right ?
Yes very high 6 figures or 7 figures.
Do you have Patreon? Any way we can see your trades in real time?
Is it possible to sell a put at market price and not limit ?
Yes but it will fill at the worse price, I prefer setting a Limit at the mid price
Ensure the stock😀I think you meant “insure”
I dislike doing Puts tbh. Unless the stock is actually going up sky high for no reason yea ill put those puts in. But they are just a bit more harder to kinda do than putting calls.
Henry, you probably won't read this, but that's ok. I'm starting to get into options. As of right now I have to own the stock.
Today I purchased 100 shares of AMC. At the time it was around $9.65/each. I then sold a call option at $9.50 strike. The premium was 0.5/share.
I did this because I'm not a huge fan of AMC as the long run and trying to work on just making a few percent each week until I get more knowledge.
So, assuming it the stock is exercised, I make a total of $35 - fees. About 3.5%. Is this a sound strategy to you? I do plan actually doing this more with stock that I like. I was just trying to learn something. I plan on looking more at puts, but just trying to get some experience.
***Yeah yeah, I know, the stock literally spiked just after I purchased the stock and sold the option. hahaha.
Yes that is a covered call and I have a video on that. Love that strategy
@@InvestwithHenry Thanks for the response sir! Just found you the other day and love your videos. Today, the price spiked. What is the chance that the buyer exercises early and will I get notified if/when that happens or do they usually just resell it to someone else?
Also, I own a good amount of QYLD. You know the great dividend stock that pays 12% ish. The options all end a few days after Ex dividend so the price will drop some. Have you heard of people that would buy a put in that situation? I know, I know, most people lose when buying. I was just wondering if that's a strategy that some people use with a high paying dividend stock.
Also, I probably just found you a week ago and love the content. Keep up the good work.
Are you selling naked puts?
How much money did you start with? You seem to have a lot to do all those crazy puts
I got a lot but if you follow my videos and learn you will to
*_Just for the fun of it?_*
For the set of sells you showed us, over what period did you collect how much for how much collateral?
What's stopping my brain is that it's a lot like counting chickens before they hatch! _(Never terrible to end up with chickens *instead of just eggs*, eh whot?_
cheers
*--ben*
BTW this is an exciting alternative / companion to trading for growth! thanks
What’s the difference with buying and selling puts?
Put buyers have the right to sell 100 shares at the strike price on or before expiration. Put sellers have the obligation to buy 100 shares at the strike price if the put buyer exercises his right to sell.
Plus when you sell a put and the option decays your making $$ if it continues to decay and options are about 90% to expire worthless
hi Harry. Great video as always, but do check your spelling more..
Great Job
4:22 did he say, "Selling a put is equivalent to shorting?"
why dont you just buy the stock?
You certainly can if you're very bullish, but the stock price must increase in order for you to make money. But when selling puts, the stock can trade sideways or even move down slightly, and you can still profit.
Very good video on options
Glad you liked it
My friend - If I sold a put of apple at $100 and it closed at $98 then I would have to sell my stock i.e. deliver 100apple shares at $100 a piece to the put buyer, I wouldn't be receiving them !!! 😭
You need lot of money to sell options right ? It may not be for all
Not a lot of money but yes you can't start with $5 and hope to make a lot of money
@@InvestwithHenry thanks for the reply … what should be required amount of money ? Because the collateral is very huge. Not all can afford that much
@@classicgd depends what your goal is. I'd say to make 2k consistent monthly on short put strategy without maximizing your risk, you'll at least need $100k
Hi Henry, if you do sell a put, is it possible to close it before expiry?
You can close it at anytime before expiry. I’ve closed contracts in less than an hour after I opened them.
Rule of thumb is close when you’re up 50%. Eg. Sell the option for $1. Buy back when it hits .50 cents
So if you doesn't sell, and the collateral hits, you're at a loss of 20k?
If at expiration, it trades below the strike price, you buy 100 shares at the strike price. Your breakeven is "Strike Price - Premium collected". Then you own the shares that you can sell anytime.
can I close a position before expiration day on a sell call option that it’s cover on webull. ??
Yes you can always close any option position before the expiration date.
Thank you
$36,750 collateral??? Super confused. I thought you're spending $630 and that's the most you can lose. ahhhhhhh😭
I wish i had that much collateral
to sell a put option do i need to have 100 shares of that company?
No. You just need the cash equivalent in your account.
Showing most of the views here selling an naked put, is not a good idea, unless you like to see carnage, most people do not have enough money to cover such a move.
I had to get a pro, Sir Eric Arlto to manage my trades as I have no skills for that, my portfolio has been growing up to 7 % daily depending on market conditions and this is the sixth month for me
Hi, what if I will like to give it a try with your pro, since you are familiar with his abilities maybe you can connect me as I haven’t made a good trade in weeks
I plan on making short term gains as a passive source soon as I get started, how much is his commission charge please
I have done very well by trading Stock options as well as using simple covered calls and married puts over the years
How about uncle henry ?
Hi, please how do I connect with your trader
13:33 - Alibaba "a very good Chinese company". LOL That statement aged well.. NOT!!
This video didn't age well with BABA
Ya this is exactly why selling puts is a terrible idea to try and create a passive income stream for yourself. They're a great investment tool for the long-term, but making "quick and easy" profits all the time is a fantasy.
This was incredibly helpful as I'm just diving into options and have a couple options trades under my belt. Subscribed and thank you!
well that was useless. Ya, you sold some puts. But you didn't show how you managed them and then got out of the position with a profit. You did make a profit, right? We'll never know because you didn't show your results. Useless.
Nobody watches the results videos. Join the private Discord if you want to see.
@@InvestwithHenry Fat chance. You put your results where everyone can see it. Not paying you any money otherwise.
out of everyone in youtube , your one of the most legit people i know that trades options and actually shows his portfolio thank you for motivating me 🙏
👎This didn't age well. Easy passive income, selling at the money puts? Are you kidding? I love writing puts but just look at what happened to some of these stocks in between when this video was filmed and now. Writing puts is a great way to make money but you have to be way more careful and very calculated about it. If you're looking for "passive income" this guy is being way too cavalier about when and how to write puts.
What happens if you don't have enough for collateral? How can some one use options to build their portfolio?
You do need some capital for this strategy
If you're selling puts why would you want to be filled at the bid price? At least start at the higher ask price and if it doesn't filled you decrease it.
Yup you're right...although you'll almost never get filled at the Ask price. I always try to set my price right in between the Bid and Ask.
I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK
How did you end up closing these options? Do you have a follow up video?
That’s what I want to know lol. Definitely not collecting just by clicking
classic case of the blind leading the blind
Good video. I liked the real time demonstrations. I would recommend bringing down your exposure quite a bit, and maybe bringing down highlights and some other tweaks in video editing to make your video look more professional.
Thanks! I need help with editing. Reach out on instagram if you are good at it.
@@InvestwithHenry Wow unbelievable....I could care less about exposure and professionalism, the content is all that matters. I wouldn't worry about it Henry.
dearest Henry, you sold options and received a profit, alright.
But the accounts must be done when all the individual options have been completed, perhaps those two operations that go out of control happen that make you lose everything you have earned and even more.
It's not that easy to make money
If the option expires on Friday and you try to sell is on Wed will it get sold