Henry, as a professional options trader, I will say that you are grossly understating the risks and probabilities associated with the wheel strategy. And since you are suggesting to use the SPY, I suggest you look at the volatility of the S&P 500. To obtain the type of premium you are suggesting is available from the wheel strategy would require selling puts that are within the daily ATR (average true range) of the index. Delta is NOT a probability measure; despite what some will tell you. Those who suggest that it is don't actual understand what delta measures and how it is calculated. A 20 delta does not mean a 1 in 5 chance of occurring. In a down trending market, the index can move down quickly resulting in a significant loss on the put. Anyone using this strategy on the SPY during the period of July '21 to Aug '22 would have suffered significant losses. If someone did this while the S&P was sitting in the range 4300 to 4700, they would still be trying to recover from their losses. Also, doing this on the SPY would not be tax efficient. All would be taxed as short term gains. A much better tax strategy would be to use options on Futures such as the /ES (S&P 500 Future). The tax is split between long term and short term gains when using Futures. If you insist on using the wheel, you need to consider hedging the risk by doing it as a vertical spread rather than a straight naked put. It will decrease your premium but help prevent a significant loss.
finally somebody pointed out all of the flaws in this video. there are a lot of things incorrect in this video but the one that i was stuck on is his claim of huge premiums, not at a delta of 20 like he claimed... not to mention he's ignoring the significant capital tied up in the cash secured puts.
I think the key here is if you are using the wheel, you need to view it as though you are investing in that much stock -- instead of thinking of it as an option trading strategy. A financial advisor wouldn't blink an eye at taking a large investment in the S&P 500 index for your 401K.... but for some reason selling a cash secured put with the same notional risk freaks people out. I implemented the wheel on SPY (and IWM) during July '21 to Aug '22 and suffered no losses. How? When I was assigned the stock, I never sold it. I just kept selling calls against it. And now, between the premiums taken in and the dividends, I've made decent money on it. Just takes PATIENCE though. Which is something most people lack.
Woah for real? I'm super excited. juliana strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started
I'm new here and really want to know some important things about her . Does she also offer mentorship, lectures and tutorials? How do I reach her please?
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@AnnelieseGretel The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
It would have been awesome if you use SPY in your example, I see high chance of lower price stock falling and staying down for longer periods of time, I think it is much safer to use as high as price you can or even ETF's. Some stock drop and stay down too long for someone trying to make income. It is fine if only using a small portion of your portfolio.
when you sell cash covered put, what protects you is the support level, below which price will not normally go, You saying resistance is not correct. Title of the video is how to retire on $197,000 and you talked about palentir and did not show any example of that level investment of SPY.
I retired with about 250k and fortunately, I recently learned options. I bring in between 11-13k per month and am living really good abroad. Selling options for premium is really the only way to consistently win in these markets.
I’ve been only doing covered calls right at the money. I want to get assigned and collect a few bucks + a huge premium. I’ve been extremely consistent. Yeah you miss out on the upside potential but I need weekly income to pay my bills. Edit: I was able to retire from my job in law enforcement and live off fully just the premiums
Most of us tend to pay more attention to the shiniest position in the market to the cost of proper diversification, Picking the best stock requires a lot factors and seems daunting for beginners like myself, From my own point of view, you need to invest smartly, if you need the good things in life. I made over $19,000 from my portfolio strategy weekly, mutual funds takes long time but investing smartly is the key for short term, My advised to get affiliated to a financial advisor. If you simply want a referral my mail is above my comment for referral...
I appreciate your little time by putting this down. I will be dropping a mail to you for a referral because with what you've stated here I guess this is an awesome investment opportunity to recover my loses which I lost few thousand dollars last month. Thanks Mr Marcel.
Sex and when you get all your money, you can always wait until the market goes down to buy in for more shares on the ETF spy and resell for a higher price weekly or daily
I'm a professional derivatives trader. You are doing your viewers a disservice by understating the risks, especially on a symbol like PLTR. The worst case isn't that you end up owning the stock, the worst case is you are assigned the stock after an adverse event occurs and it goes to zero and you take the max loss less the premium you collected. You should only trade the wheel strategy on quality companies, of which PLTR isn't one.
Being a "professional derivatives trader" doesn't guarantee that you've researched the stock as thoroughly as Henry did before he suggested it. "Palantir Technologies Inc. PLTR Palantir Technologies saw a 6.02% increase, closing at $17.61 after reaching an intraday high of $17.83 and a low of $16.22. The company’s 52-week performance ranged from a high of $20.24 to a low of $5.92. Amid the Middle East conflict, there was a heightened focus on security and surveillance, leading to increased demand for Palantir’s products."
@@njiuma Henry understates the risk of being assigned shares in garbage companies, which could result having to hold them for years tying up capital while collecting garbage premium to recoup the loss. Rather than watch youtube videos of someone who understates the risk of a strategy, I'd recommend you go and read some books by actual professionals who have long term numbers on the board, and who don't sell a trading course. I'd suggest something like: Option Volatility and Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg. Anyone who sells a trading course isn't a successful trader.
These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the knowledge embedded in it. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I've got $150k set aside to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession-influenced market, but to the best of my knowledge, it was through an F.A `
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of investors raking in 6 to 7 digits in a space of months. So, I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and the least I returned was $95k ROI, and this does not include capital gain.
Stacie Lynn Winson, is my Advisor, she is a consultation-free expert. She has her clients best interest at heart. I have been working with her since covid period. Though she's a very busy woman but she can offer you assistance if you reach out.
Stacie appears to be a true authority in this field. I looked her up on the net because I really need this, and found her website, went through her profile and I can say she's superb. Dropped a message hoping it gets replied.
I appreciate the content a lot, But I gotta ask... Facebook stock turned to META like... a long time ago.... are these super old screenshots that your sharing on your account? The swing date in our corporate action tool is saying that it changed names from Facebook to Meta on 11/01/2021. Not sure how it's possible for you to have FB in your account in 2023... I'm like... 1,000,000% sure that it isn't possible for you to have FB stock and Open Options contracts. Care to explain?
I generally like Henry, but the screenshots are way off and I am suspecting the legitimacy too, historically when would SPY $420 put, 4/14 expiration, 14 sells, to make 68%, I am not seeing a possibility, even going back historically to 2021. Spy hit 420 on May 28th 2021, but the option is expiring on 4/14 :(
@@ccstarz19 What if it takes 5 years for the stock to recover? This is a loss of working capital. There are much more efficient systems compared to the traditional options trade systems and structures.
He is not… SPY is not volatile enough to pick up 5% in premium if you sell CSP at 20 delta… I believe on avg. SPY implied volatility under 20%. His strategy won’t work with a SPY
Can't lose? Famous last words. Just because you want to own something at $X, doesn't mean you're not stupid. If it tanks low enough, the covered calls won't cover your cost basis.
Options premium on ETFs is generally much lower than premium on stocks due to the safety of the basket of stocks in the ETF. I prefer more premium, so I prefer short puts, and covered calls on stocks, and I handle the risk by averaging down on the stock typically by selling another put ATM (first strike below stock price, which has a high delta because it often closes ITM), and that's fine with me. After the stock is averaged down, it's easier to write a covered call with more premium.
Hope ain't going to work in the markets. It is a guaranteed stressed situation with huge losses at some point in the future. You might get away with it 99 out of 100 times but when that mega hit comes it will wash you away. It is very distressing. I will never do it again. If I start to feel that feeling of "this is out of control" I just get out and re-try later in time.
Hi Henry, Thanks for sharing this information however most of us watching this video do not have close to $200,000. Could you upload a video trading the wheel strategy for a $50k account instead ?
Medium account strategy video Wheel and credit spreads I think he had call and put credit spreads in that video I think the title was 4x your portfolio 25k to 100k
During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?.
This doesn’t work for small accounts either. You’re basically screwed unless you have thousands of dollars or you’re already a highly skilled trader that can turn a grand into 50k In a week.
This is an excellent strategy for big accounts but for small account holders there are safe stocks out there that have decent premium around 3% of cost
@@carriepinter7847 this is just my personal opinion and I have a few of these in my portfolio as well, Under $10k account AMD, DIS, AMZN and under $5k account TDOC, LI, DKNG and there’s also safe stocks for Under $2k account 🤫
Everyone with smaller accounts want that instant gratification by taking bigger risks and then they lose all their money. Trading is a marathon not a sprint. The market is truly taking money from the impatient and giving it to the patient
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
You didn't provide detailed information about your portfolio makeup. However, I recommend seeking guidance from a financial advisor for a well-informed portfolio restructuring.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
I’ve been doing this with a diversified portfolio of companies that pay a minimum of 2% dividend. I want that extra dividend. I keep it extremely diversified and sell very close to the money weekly options or (if I think it will pullback) I sell slightly in the money calls. I don’t really sell puts. I completely agree with the idea, but just haven’t done it yet. I think I’m going to add that strategy. This is a good channel and is full of good advice that will not get new traders hurt.
@@JohnSmith-dv6vo you’re correct, at the money won’t always expire worthless. Pay attention to your ex dividend date (usually quarterly) and make sure the amount of the dividend is not more than the extrinsic value of the contract you sell because the buyer of that contract may choose to exercise if the dividend pays more than the extrinsic value left in the contract. It actually doesn’t matter too much if they do exercise early because that extrinsic value will usually be about as much as the dividend as long as it is at the money, but does depend on the date of expiration and date of ex dividend. As long as that extrinsic value (time value/any amount of premium not in the money) is more than the dividend then it is very unlikely they exercise. If they do, thank them. They paid you more than the dividend. Hope that helps
I agree. Here we are 9 months later SPY and QQQ are at record prices and implied volatility is very low. Not a lot of premium to be had. Also, many stocks are way overbought. Things feel a bit dicey at the moment. Would love to see a healthy pullback.
Spy today 0.2 delta strike 388 for 7days out (Apr 3rd) is $1.21 ask, (let say you get it at ask), then for $200k you get 5 contracts so you get around $600 per week, which is $2400 per month which is 1.2% per month. Not bad, but not close to 3%. Today was an up day, quote for a put probably higher on a down day, but still a bit low..
exactly correct SPY premium is very low and thats because its considered a safer ETF than others, but if you want to use the wheel strategy to grow your portfolio I think there's higher paying premium safe stocks out there
@@Bert-hj5gr If you do it daily, you'll have to see the premium of the .2 delta on the day itself. I suspect it will not be that much. Still won't be close to 3%.
For those selling puts on individual stocks and you are worried about it falling 20% simply make sure the stock you pick has good dividends such as KO or F this way you can collect 4 % dividends while waiting on it to come back up. Cheers
This combined with Socrates will work well, it's time I started writing instead of buying although my uranium calls are doing very well, already well ITM with Jan expiry. Planning to assign my UUUU calls expiring soon and use them to write puts.
so the headline was SPY and you hardly mentioned it. An example of what strikes you'd be using to initiate and then what would happen if you were actually assigned SPY . So how many contracts would you sell puts on for SPY and what would the monthly income be for those sales. Some people need 250k to retire others would be happy with a safe 65k. How often are 80 delta SPY puts hit ? Backtesting ?
Don’t even bother use that strategy Bc you can’t pick up 5% weekly in premium on SPY by going out at 20 delta as he recommends. What he explained would work maybe on some volatile stock but not SPY
I do believe he said in the video that he sell CSP at 20 delta… that far OTM put, which means there is 20% chance you ll get assigned . Answer to your question , 80 delta that’s 80% of the time you ll be assigned SPY … I hope you have 40k plus in cash to cover that unless you trade on margin
Great video on the mechanics of it but terrible at expected return because the 5-7% return is annualized and not every time you implement the strategy.
If we are interested in the stock or etf we are selling a PUT for, why not choose an expiry further out than a week. Like maybe 5 or 6 months out for the same strike price. We will get more premium for the same strike price and further out expiration. If we don't get assigned, we can keep rolling for the same period every week. If we do get assigned, even better. Is there anything wrong with this approach ?
Well yeah but sometimes unless one want to be stuck in something they have to have short term trading going on. I like to trade over months but that can't work out for everyone.
This is one of my main strategies 👍🏻 You can always close the trade early to free up capital if needed or close it close to expiration if the trade isn’t going your way!
How do you make 3% per month if you are dollar cost averaging? If you are dollar cost averaging then your capital is under allocated to make 3% per month.
Hello Henry, just wanted to thank you for your willingness to share the gift of teaching others how to invest in the stock market also wanted to ask if you would clarify on those videos the levels on which they can be executed, I am a level 2 option trader and because of my small account and I am unable to execute these strategies. Thank you in advance
try using Robinhood - I am doing wheel trades with only 1100 in my account (granted I'm picking cheap stocks like NIO) but it's good to start super small and get the mechanics down
The title of the video is retire by trading SPY by using wheel strategy….. SPY implied volatility on average lower then 20% dude. So your strategy won’t work. I would have to sell ATM CSP and maybe pick up 1% In premium and that’s easy will be 48 delta …… If you post video with title like that stick to the story
In your video 'I Made $31,000 in a Week with the Wheel Strategy... here's how (Options Trading)' you've stated that technical analysis does not work on ETFs, yet in this one you mention TA on SPY to increase your changes of winning - which one is it?
On one cash-secured put that I sold, it closed (barely) ITM on expiry Friday, so I was put the stock on Saturday, and then the stock price gapped up over the weekend, so I was able to sell it for more profit on Monday! lol Serendipity.
I was also a bit surprised that Henry didn't use the example that he mentioned in the title and intro in the video. I presume that when he made the video, $197k could give you enough buying power for 500 shares of SPY. A weekly option close to ATM put at $407 strike 7 DTE right now (5/2/23) is about $250 - so that would be $1000 per month. $1000/month x 5 contracts = $5000.
Uncle Henry! Recently subscribed. Are there any books that you recommend for learning and mastering options? I am a visual learner. Any help would be much appreciated.
Big shifts in stock price is the risk. You sell a put at $90 on a $100 stock and then it drops to $70. You get the shares put to you at $90 now when you go to sell a covered call the premium will be so low if you sell it at $90 (in order to break even on capital) or if you want premium you have to sell at $80… if the stock recovers and your shares get called away at $80 you’ve now realized a $10 loss or $1,000 per contract (less whatever premiums you’ve collected). Rolling your positions as they start to get ATM or ITM rather than waiting until they get buried is key to avoid that. Also, avoiding positions near earning reports or other big news can also reduce these swings.
The wheel strategy is as dangerous as just buying the stock outright, if it plummets you’ll have a large unrealized loss. Best way to avoid this is to pick reliable stocks/etfs
@@InvestwithHenry I'm 33 and only got 80k, is buying spy and selling covered call options better than investing in TQQQ long term by DCAing with the wheel strategy?
Hey Sony with what I've learnt over a decade investing, giving enough time solid investment have the potential to double the initial principle amount, but many investors are instead attracted to the lure of high yields in short period of time despite the possibility of unattractive losses before even getting out. So thee onus is on newbies to beware. Big thanks to Mr Michael. I'm not bothered with how bad the market is because my assets are well insured due your wonderful advice and I still receive my profit, from $25k to $80k, what a mind blowing turnaround for me. Above this comment is my mail for referral..
Mr Marcel after months i came across your comment I was able to make over 20k that same week I knew Mr Michael and now I'm still sky rocketing with over $79k by month end you have done well cause you introduced a lot of students to him, I'm really marved.
I’m afraid the title is just clickbait. Lucky to get .5% return on margin at 20 delta. Hopefully we get a correction, if you’re lucky enough not to be holding a lot of stock. Crazy environment at the moment.
Yes. How many suckers are making money selling otm puts and calls right now, and then are going to get greedy and overleverage, only to take a huge hit on the inevitable correction? @@jzgtr100
What's up with the fugazi prices? That's not a current PLTR option chain? What the? This is not as safe as he claims. The only ones who win are the MMs. 🍷😉
if it was that easy everybody would do it, now pltr is 7$, and now you can sell crappy calls for 10$ premium while sitting on a massive loss not even talking about it going to 0 still a possibility
Whoa how old is this robinhood screen shot from? Amazon put for $2700. Facebook ticker is still FB and not Meta. You might wanna point this out for future references bc i got way to confused for a moment 😂
NO. You can sell a PUT option on any stock you want to own, you just need to make sure you have enough capital to cover 100 shares of that stock incase you are PUT the shares. Example: Say the stock price is $70.00 You sell a PUT option on that stock by setting your STRIKE PRICE just below the current price, @ a price you are comfortable owning it at. Say $65.00! You will need at least $6,500.00 in your account to cover this PUT contract 👍🏻
Bc that strategy won’t work on SPY…. SPY volatility on average maybe 18% or so… if you follow his instructions and sell CSP at 20 delta with let’s say 2 weeks out , you ll be lucky pick up maybe 0.25% or so… Not 5% as he says lol
‘Only’ means one. I think it can be used in circumstances like 100 but seems like it means ONE. What does “only 197000” imply? Merely? A meager? Grammarians are rarely appreciated
The key is having the diversity because one stock or sector can have a really bad week or month. You can also trade around it by having small size to begin with and always having capital to deploy.
Thought this was supposed to be a wheel strategy on SPY - all he talked about was PLTR with a few words about SPY at the beginning. 22 minutes 😮 and barely any SPY😝
![[LIVE] : ONE ลุมพินี 91 | คู่เอก "คมอาวุธ vs อเล็กเซย์"](http://i.ytimg.com/vi/V0RkEfYFsgM/mqdefault.jpg)
Henry, as a professional options trader, I will say that you are grossly understating the risks and probabilities associated with the wheel strategy. And since you are suggesting to use the SPY, I suggest you look at the volatility of the S&P 500. To obtain the type of premium you are suggesting is available from the wheel strategy would require selling puts that are within the daily ATR (average true range) of the index. Delta is NOT a probability measure; despite what some will tell you. Those who suggest that it is don't actual understand what delta measures and how it is calculated. A 20 delta does not mean a 1 in 5 chance of occurring. In a down trending market, the index can move down quickly resulting in a significant loss on the put. Anyone using this strategy on the SPY during the period of July '21 to Aug '22 would have suffered significant losses. If someone did this while the S&P was sitting in the range 4300 to 4700, they would still be trying to recover from their losses. Also, doing this on the SPY would not be tax efficient. All would be taxed as short term gains. A much better tax strategy would be to use options on Futures such as the /ES (S&P 500 Future). The tax is split between long term and short term gains when using Futures. If you insist on using the wheel, you need to consider hedging the risk by doing it as a vertical spread rather than a straight naked put. It will decrease your premium but help prevent a significant loss.
Yea, I was worried even if I do beat S&P average but would my tax obligations bring me back to average
Guess you need real estate for depreciation write offs
finally somebody pointed out all of the flaws in this video. there are a lot of things incorrect in this video but the one that i was stuck on is his claim of huge premiums, not at a delta of 20 like he claimed... not to mention he's ignoring the significant capital tied up in the cash secured puts.
So do you dabble more in defined risk strategies on futures then?
I think the key here is if you are using the wheel, you need to view it as though you are investing in that much stock -- instead of thinking of it as an option trading strategy. A financial advisor wouldn't blink an eye at taking a large investment in the S&P 500 index for your 401K.... but for some reason selling a cash secured put with the same notional risk freaks people out. I implemented the wheel on SPY (and IWM) during July '21 to Aug '22 and suffered no losses. How? When I was assigned the stock, I never sold it. I just kept selling calls against it. And now, between the premiums taken in and the dividends, I've made decent money on it. Just takes PATIENCE though. Which is something most people lack.
Reached 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024
I'm 37 and have been looking for ways to be successful, please how??
Woah for real? I'm super excited. juliana strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started
Though I started with as low as $6,200 AUD actually because it was my first time and it was successful, She's is a great personality in Australia
She's recognized as 'Mrs Juliana heidi, one of the finest portfolio managers in the field and widely recognized; you should take a look at her work.
I'm new here and really want to know some important things about her . Does she also offer mentorship, lectures and tutorials? How do I reach her please?
your videos are gold. I have been following since 2020 and have made tons of money from your videos.
Hi Bryan! What strategy are you using?
Are you his business partner? 😮😂
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@AnnelieseGretel That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@queenidowu13 My advisor is Alice Marie Coraggio;
You can look her up online
@@AnnelieseGretel The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
It would have been awesome if you use SPY in your example, I see high chance of lower price stock falling and staying down for longer periods of time, I think it is much safer to use as high as price you can or even ETF's. Some stock drop and stay down too long for someone trying to make income. It is fine if only using a small portion of your portfolio.
when you sell cash covered put, what protects you is the support level, below which price will not normally go, You saying resistance is not correct.
Title of the video is how to retire on $197,000 and you talked about palentir and did not show any example of that level investment of SPY.
I retired with about 250k and fortunately, I recently learned options. I bring in between 11-13k per month and am living really good abroad. Selling options for premium is really the only way to consistently win in these markets.
I’ve been only doing covered calls right at the money. I want to get assigned and collect a few bucks + a huge premium. I’ve been extremely consistent. Yeah you miss out on the upside potential but I need weekly income to pay my bills.
Edit: I was able to retire from my job in law enforcement and live off fully just the premiums
Most of us tend to pay more attention to the shiniest position in the market to the cost of proper diversification, Picking the best stock requires a lot factors and seems daunting for beginners like myself, From my own point of view, you need to invest smartly, if you need the good things in life. I made over $19,000 from my portfolio strategy weekly, mutual funds takes long time but investing smartly is the key for short term, My advised to get affiliated to a financial advisor. If you simply want a referral my mail is above my comment for referral...
I appreciate your little time by putting this down. I will be dropping a mail to you for a referral because with what you've stated here I guess this is an awesome investment opportunity to recover my loses which I lost few thousand dollars last month.
Thanks Mr Marcel.
Sex and when you get all your money, you can always wait until the market goes down to buy in for more shares on the ETF spy and resell for a higher price weekly or daily
what stocks have you been doing it on bro
Lol you doylem
The Wheel Works : ) Keep it rolling. Should've learned this when I was 15!!
The problem with doing a CSP on SPY is that it takes up a lot of capital that is reserved until expiration or assignment. The dailies are nice though.
Most brokerages are paying close to 5% on cash in a money market
I'm a professional derivatives trader. You are doing your viewers a disservice by understating the risks, especially on a symbol like PLTR. The worst case isn't that you end up owning the stock, the worst case is you are assigned the stock after an adverse event occurs and it goes to zero and you take the max loss less the premium you collected. You should only trade the wheel strategy on quality companies, of which PLTR isn't one.
Being a "professional derivatives trader" doesn't guarantee that you've researched the stock as thoroughly as Henry did before he suggested it.
"Palantir Technologies Inc. PLTR
Palantir Technologies saw a 6.02% increase, closing at $17.61 after reaching an intraday high of $17.83 and a low of $16.22. The company’s 52-week performance ranged from a high of $20.24 to a low of $5.92. Amid the Middle East conflict, there was a heightened focus on security and surveillance, leading to increased demand for Palantir’s products."
@@njiuma Henry understates the risk of being assigned shares in garbage companies, which could result having to hold them for years tying up capital while collecting garbage premium to recoup the loss.
Rather than watch youtube videos of someone who understates the risk of a strategy, I'd recommend you go and read some books by actual professionals who have long term numbers on the board, and who don't sell a trading course. I'd suggest something like: Option Volatility and Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg.
Anyone who sells a trading course isn't a successful trader.
clearly not a professional
This aged well 😂😂😂
The worst case scenario is the US crumbles like the USSR. What’s the likely worst case scenario for PLTR?
These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the knowledge embedded in it. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I've got $150k set aside to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession-influenced market, but to the best of my knowledge, it was through an F.A `
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of investors raking in 6 to 7 digits in a space of months. So, I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and the least I returned was $95k ROI, and this does not include capital gain.
Stacie Lynn Winson, is my Advisor, she is a consultation-free expert. She has her clients best interest at heart. I have been working with her since covid period. Though she's a very busy woman but she can offer you assistance if you reach out.
Stacie appears to be a true authority in this field. I looked her up on the net because I really need this, and found her website, went through her profile and I can say she's superb. Dropped a message hoping it gets replied.
Don’t listen to these bot accounts that this “advisor Stacie” is running😂😂 scams
I appreciate the content a lot, But I gotta ask... Facebook stock turned to META like... a long time ago.... are these super old screenshots that your sharing on your account? The swing date in our corporate action tool is saying that it changed names from Facebook to Meta on 11/01/2021. Not sure how it's possible for you to have FB in your account in 2023... I'm like... 1,000,000% sure that it isn't possible for you to have FB stock and Open Options contracts. Care to explain?
I generally like Henry, but the screenshots are way off and I am suspecting the legitimacy too, historically when would SPY $420 put, 4/14 expiration, 14 sells, to make 68%, I am not seeing a possibility, even going back historically to 2021. Spy hit 420 on May 28th 2021, but the option is expiring on 4/14 :(
What happens if the stock goes down 55% like 2008 and takes over 5 years to recover? How do you make 3% per month?
Maybe he sells covered calls even below his break even. If the stock rises quick, he can roll it up and out.
@@ccstarz19 He would then take losses as the stock rose and raise his break even.It would be an uphill battle.
Right. Assuming he gets assigned on the way up. Not ideal and patience would ultimately Winn
@@ccstarz19 What if it takes 5 years for the stock to recover? This is a loss of working capital. There are much more efficient systems compared to the traditional options trade systems and structures.
This video is BS
These prices must be from march of last year. PLTR hasn't been back up to 12.5 since last april 2022.
I agree 😂 I was confused too for a second
yea same with amazon lol this was before the stock split
Recycling videos 🤦🏽♂️
What are you living in the past
Facebook? lol
I have a question when i calculate 0.2 delta one month premiums on SPY it is only 2.7%. So where are you getting 5% from?
He is not… SPY is not volatile enough to pick up 5% in premium if you sell CSP at 20 delta… I believe on avg. SPY implied volatility under 20%. His strategy won’t work with a SPY
Can't lose? Famous last words. Just because you want to own something at $X, doesn't mean you're not stupid. If it tanks low enough, the covered calls won't cover your cost basis.
Options premium on ETFs is generally much lower than premium on stocks due to the safety of the basket of stocks in the ETF. I prefer more premium, so I prefer short puts, and covered calls on stocks, and I handle the risk by averaging down on the stock typically by selling another put ATM (first strike below stock price, which has a high delta because it often closes ITM), and that's fine with me. After the stock is averaged down, it's easier to write a covered call with more premium.
Hope ain't going to work in the markets. It is a guaranteed stressed situation with huge losses at some point in the future. You might get away with it 99 out of 100 times but when that mega hit comes it will wash you away. It is very distressing. I will never do it again. If I start to feel that feeling of "this is out of control" I just get out and re-try later in time.
Hi Henry, Thanks for sharing this information however most of us watching this video do not have close to $200,000. Could you upload a video trading the wheel strategy for a $50k account instead ?
Medium account strategy video
Wheel and credit spreads
I think he had call and put credit spreads in that video
I think the title was 4x your portfolio
25k to 100k
During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?.
Thank you, i copied and pasted her name on web browser and sent a mail waiting reply.
Spy makes sense to me but I can't grasp QQQ. Would you be able to do a video on QQQ?
This doesn’t work for small accounts either. You’re basically screwed unless you have thousands of dollars or you’re already a highly skilled trader that can turn a grand into 50k In a week.
Try using MES FUTURES to get the same results with a small account! 😊
This is an excellent strategy for big accounts but for small account holders there are safe stocks out there that have decent premium around 3% of cost
Do you have some favorites?
@@carriepinter7847 this is just my personal opinion and I have a few of these in my portfolio as well, Under $10k account AMD, DIS, AMZN and under $5k account TDOC, LI, DKNG and there’s also safe stocks for Under $2k account 🤫
@@investmentgains Thanks for sharing!
Everyone with smaller accounts want that instant gratification by taking bigger risks and then they lose all their money. Trading is a marathon not a sprint. The market is truly taking money from the impatient and giving it to the patient
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
You didn't provide detailed information about your portfolio makeup. However, I recommend seeking guidance from a financial advisor for a well-informed portfolio restructuring.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
This is very insightful. Hope you don't mind me asking you to recommend your advisor?
'Melissa Elise Robinson' is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I’ve been doing this with a diversified portfolio of companies that pay a minimum of 2% dividend. I want that extra dividend. I keep it extremely diversified and sell very close to the money weekly options or (if I think it will pullback) I sell slightly in the money calls. I don’t really sell puts. I completely agree with the idea, but just haven’t done it yet. I think I’m going to add that strategy. This is a good channel and is full of good advice that will not get new traders hurt.
How do you collect dividends if you’re selling so quickly… near the money calls prob has .45 delta that’s not gonna expire worthless every week
@@JohnSmith-dv6vo you’re correct, at the money won’t always expire worthless. Pay attention to your ex dividend date (usually quarterly) and make sure the amount of the dividend is not more than the extrinsic value of the contract you sell because the buyer of that contract may choose to exercise if the dividend pays more than the extrinsic value left in the contract. It actually doesn’t matter too much if they do exercise early because that extrinsic value will usually be about as much as the dividend as long as it is at the money, but does depend on the date of expiration and date of ex dividend. As long as that extrinsic value (time value/any amount of premium not in the money) is more than the dividend then it is very unlikely they exercise. If they do, thank them. They paid you more than the dividend. Hope that helps
Great video! Any chance we can get a video on how to get $197,000?
ditto 😂
Wheeling works great until the stock goes down, then you lose money.
Where is Henry coming up with 3%/month = $5019? The SPY option chain doesn't have premiums even close to that #
I agree. Here we are 9 months later SPY and QQQ are at record prices and implied volatility is very low. Not a lot of premium to be had. Also, many stocks are way overbought. Things feel a bit dicey at the moment. Would love to see a healthy pullback.
What about the qqq's? Can you make a video on how to wheel the qqq?
Hi Henry, what happens if the SPY is trading too high now? What do we do?
Keep selling puts
Just joined your Discord group for the year looking forward to learning and investing in my future with your team
Welcome aboard!
How do I join discord?
@@QuangLy-qg9kh I am also looking for it
Any updates?
Spy today 0.2 delta strike 388 for 7days out (Apr 3rd) is $1.21 ask, (let say you get it at ask), then for $200k you get 5 contracts so you get around $600 per week, which is $2400 per month which is 1.2% per month. Not bad, but not close to 3%. Today was an up day, quote for a put probably higher on a down day, but still a bit low..
You are right, I didn’t figure it out how he calculated to 5 k a month
exactly correct SPY premium is very low and thats because its considered a safer ETF than others, but if you want to use the wheel strategy to grow your portfolio I think there's higher paying premium safe stocks out there
Run it daily …March 29 $392 strike is just over .2 delta …$78 per x 5 is $390 per day …$1950 per week
@@Bert-hj5gr If you do it daily, you'll have to see the premium of the .2 delta on the day itself. I suspect it will not be that much. Still won't be close to 3%.
@@darickyeo603 I just literally explained to u in detail how it works using exact #s from when I posted …and u still find a way to doubt it
For those selling puts on individual stocks and you are worried about it falling 20% simply make sure the stock you pick has good dividends such as KO or F this way you can collect 4 % dividends while waiting on it to come back up. Cheers
Still waiting on zoom to come back :)
I think you mean support for selling puts not resistance. Resistance is on the upside when selling a call. I know what you meant though
That's exactly what I said, it's called a support area on the way down...🙂
That's so crazy, it just might work! If only I understood it.
How does the $197k fit into this? What would your monthly income be with that amount?
This combined with Socrates will work well, it's time I started writing instead of buying although my uranium calls are doing very well, already well ITM with Jan expiry. Planning to assign my UUUU calls expiring soon and use them to write puts.
How does this affect the wash sale rule? If you collect premium and decided to sell at a smaller profit?
so the headline was SPY and you hardly mentioned it. An example of what strikes you'd be using to initiate and then what would happen if you were actually assigned SPY . So how many contracts would you sell puts on for SPY and what would the monthly income be for those sales. Some people need 250k to retire others would be happy with a safe 65k. How often are 80 delta SPY puts hit ? Backtesting ?
Don’t even bother use that strategy Bc you can’t pick up 5% weekly in premium on SPY by going out at 20 delta as he recommends. What he explained would work maybe on some volatile stock but not SPY
I do believe he said in the video that he sell CSP at 20 delta… that far OTM put, which means there is 20% chance you ll get assigned . Answer to your question , 80 delta that’s 80% of the time you ll be assigned SPY … I hope you have 40k plus in cash to cover that unless you trade on margin
no. problemo thanks@@andriystockoptions6087
Great video on the mechanics of it but terrible at expected return because the 5-7% return is annualized and not every time you implement the strategy.
If we are interested in the stock or etf we are selling a PUT for, why not choose an expiry further out than a week. Like maybe 5 or 6 months out for the same strike price. We will get more premium for the same strike price and further out expiration. If we don't get assigned, we can keep rolling for the same period every week. If we do get assigned, even better. Is there anything wrong with this approach ?
Well yeah but sometimes unless one want to be stuck in something they have to have short term trading going on. I like to trade over months but that can't work out for everyone.
This is one of my main strategies 👍🏻 You can always close the trade early to free up capital if needed or close it close to expiration if the trade isn’t going your way!
What are you using to find the delta? I'm not finding it on my brokerage or even on the web
So wheel 5 contracts at .20 delta with SPY everyday / weekly?
How do you make 3% per month if you are dollar cost averaging? If you are dollar cost averaging then your capital is under allocated to make 3% per month.
For more information I'm happy to eduicate you on a call calendly.com/invest-with-henry/option-income-academy
Hello Henry, just wanted to thank you for your willingness to share the gift of teaching others how to invest in the stock market also wanted to ask if you would clarify on those videos the levels on which they can be executed, I am a level 2 option trader and because of my small account and I am unable to execute these strategies. Thank you in advance
try using Robinhood - I am doing wheel trades with only 1100 in my account (granted I'm picking cheap stocks like NIO) but it's good to start super small and get the mechanics down
Would it be a bad idea to use margin when doing this?
Yes use your own $$ I own sell covered call
Only sell cover called
Thanks you so much. This is the best video, covered a lot of info.
Good job, more small market vids please
The title of the video is retire by trading SPY by using wheel strategy….. SPY implied volatility on average lower then 20% dude. So your strategy won’t work. I would have to sell ATM CSP and maybe pick up 1% In premium and that’s easy will be 48 delta …… If you post video with title like that stick to the story
Thoughts on options trading daily on the QQQ? It has a lower bar of entry and covered calls pay about the same in premium.
Okay genius. I'm taking notes. I have 197k in my Robinhood account.
In your video 'I Made $31,000 in a Week with the Wheel Strategy... here's how (Options Trading)' you've stated that technical analysis does not work on ETFs, yet in this one you mention TA on SPY to increase your changes of winning - which one is it?
On one cash-secured put that I sold, it closed (barely) ITM on expiry Friday, so I was put the stock on Saturday, and then the stock price gapped up over the weekend, so I was able to sell it for more profit on Monday! lol Serendipity.
Selling naked puts at the money? What could go wrong?
If it's not exactly .20 Delta is it better to pick like .195 over .217 to not get assigned ?
the lower delta would have a higher probability of not being assigned so 0.195 in your case
I think you need to explain that selling naked puts requires Level 4 Options approval. Otherwise the math is totally different.
why are you selling naked puts?
I was hoping to see trades on SPY and also where the $197,000 came into play.
I was also a bit surprised that Henry didn't use the example that he mentioned in the title and intro in the video. I presume that when he made the video, $197k could give you enough buying power for 500 shares of SPY. A weekly option close to ATM put at $407 strike 7 DTE right now (5/2/23) is about $250 - so that would be $1000 per month. $1000/month x 5 contracts = $5000.
Also why is he saying you can trade spy options every day they don't expire every day?
@@rtrt2224 SPY has expirations Monday thru Friday now
How old is this video? That is AMZN pre stock split price .
thats exactly what i was thninking this video is from like april of 2022 amzn split
Uncle Henry!
Recently subscribed.
Are there any books that you recommend for learning and mastering options?
I am a visual learner.
Any help would be much appreciated.
How are you making money selling SPY 420 PUTS?
There are a lot of videos that say the wheel strategy is dangerous. Can you make a video that focuses on the risks and what to do?
Big shifts in stock price is the risk. You sell a put at $90 on a $100 stock and then it drops to $70.
You get the shares put to you at $90 now when you go to sell a covered call the premium will be so low if you sell it at $90 (in order to break even on capital) or if you want premium you have to sell at $80… if the stock recovers and your shares get called away at $80 you’ve now realized a $10 loss or $1,000 per contract (less whatever premiums you’ve collected).
Rolling your positions as they start to get ATM or ITM rather than waiting until they get buried is key to avoid that. Also, avoiding positions near earning reports or other big news can also reduce these swings.
The wheel strategy is as dangerous as just buying the stock outright, if it plummets you’ll have a large unrealized loss. Best way to avoid this is to pick reliable stocks/etfs
Love the title ,,, thanks for the information!
Would you do this with 50% portfolio in TQQQ
no
@@InvestwithHenry I'm 33 and only got 80k, is buying spy and selling covered call options better than investing in TQQQ long term by DCAing with the wheel strategy?
Hey Sony with what I've learnt over a decade investing, giving enough time solid investment have the potential to double the initial principle amount, but many investors are instead attracted to the lure of high yields in short period of time despite the possibility of unattractive losses before even getting out. So thee onus is on newbies to beware.
Big thanks to Mr Michael. I'm not bothered with how bad the market is because my assets are well insured due your wonderful advice and I still receive my profit, from $25k to $80k, what a mind blowing turnaround for me. Above this comment is my mail for referral..
Mr Marcel after months i came across your comment I was able to make over 20k that same week I knew Mr Michael and now I'm still sky rocketing with over $79k by month end you have done well cause you introduced a lot of students to him, I'm really marved.
the wheel really does feel like a cheat code !! thanks Henry
How could you be up on selling 420 puts early April when SPY at that time was BELOW 412???
What year is this video from ?
great video henry! I was wondering, do you have a spreadsheet or tracker you can share for the wheel strategy?
EVIDENCE that one can earn 3 percent a month on exactly 197K? Or were these numbers just pulled out of thin air?
I’m afraid the title is just clickbait. Lucky to get .5% return on margin at 20 delta. Hopefully we get a correction, if you’re lucky enough not to be holding a lot of stock. Crazy environment at the moment.
Yes. How many suckers are making money selling otm puts and calls right now, and then are going to get greedy and overleverage, only to take a huge hit on the inevitable correction? @@jzgtr100
Can you do it on Tesla please since it always has great premium.
tesla need high margin !if you sell one contract need about fifty thousands dollars
Five thousand
Are you selling daily's on the SPY?
Sometimes but more weekly
@@InvestwithHenry Got it. I did the math on daily's and it came out to around $5900 a month a the 20 delta. Thanks for the quick response.
What's up with the fugazi prices? That's not a current PLTR option chain? What the? This is not as safe as he claims. The only ones who win are the MMs. 🍷😉
if it was that easy everybody would do it, now pltr is 7$, and now you can sell crappy calls for 10$ premium while sitting on a massive loss not even talking about it going to 0 still a possibility
So why is everyone not doing this? Are people just stupid?
Actually not a lot of people know about options and don’t do the research
You need a lot of capital , most people don’t have $25-50k to start and the will to learn lying around
Step 1: get $197,000
😂
You are NEVER EVER going to return 5% per month selling puts on SPY at a 20-30 delta! You would be lucky to return .5% at that delta!
Doing this strategy in this market, will it still work?
Whoa how old is this robinhood screen shot from? Amazon put for $2700. Facebook ticker is still FB and not Meta. You might wanna point this out for future references bc i got way to confused for a moment 😂
hahaha actually it's a new video I recorded with some old examples in the middle because I explained them so well from an older video.
Sold 14 contracts @420 on SPY? How is that trade working out for you? Did you get assigned the shares? Just Wanna know how you’re managing that trade.
He opened that trade???
That footage is one year old. Tesla and Amazon prices are pre-split
@@Brayness 👍
XYLD
Is that the same thing
I thought you have to already own the stock before your broker allows you to sell puts or calls against it?
NO. You can sell a PUT option on any stock you want to own, you just need to make sure you have enough capital to cover 100 shares of that stock incase you are PUT the shares. Example: Say the stock price is $70.00 You sell a PUT option on that stock by setting your STRIKE PRICE just below the current price, @ a price you are comfortable owning it at. Say $65.00! You will need at least $6,500.00 in your account to cover this PUT contract 👍🏻
You only sell CALLs on the stocks you already OWN! You must own no less than 100 shares to sell a CALL 👍🏻
rare cases...yeah right
That video is old right ? Last year ?
No one in their right mind would have a portfolio with only one position, regardless if it is considered "diversified".
"You really can't lose on the wheel"
Yes
You can.
I have $1006 so I'll watch this once I geto $197,000
Hey there Henry!
You did not use SPY, even though the title of the vid is using SPY.
Bc that strategy won’t work on SPY…. SPY volatility on average maybe 18% or so… if you follow his instructions and sell CSP at 20 delta with let’s say 2 weeks out , you ll be lucky pick up maybe 0.25% or so… Not 5% as he says lol
@@andriystockoptions6087 So this is all a bunch of crap! What a tool this guy is!
this guy is dangerous. Beware
‘Only’ means one. I think it can be used in circumstances like 100 but seems like it means ONE. What does “only 197000” imply? Merely? A meager? Grammarians are rarely appreciated
The key is having the diversity because one stock or sector can have a really bad week or month. You can also trade around it by having small size to begin with and always having capital to deploy.
Why are you using Robinhood footage that's one year old?
Can you do live example so we can see it
A question is everything OK in your account now in April 2023? I’ll be hearing the news a lot of bad
What’s the discord?? I’m looking to Join!
Very good video thank you
This video is old fb is meta now is this still a valuable strategy
youre not retired if you have to do this much work.
Thought this was supposed to be a wheel strategy on SPY - all he talked about was PLTR with a few words about SPY at the beginning. 22 minutes 😮 and barely any SPY😝
@_InvestHenry14 people dumb enough to fall for this🤣🤣🤣 scammy scammer. FBI calling you right now. 🤣