►► AVAILABLE NOW! Limited to the FIRST 100 people, get my brand new online Option Trading course (Intermediate option trading) for $497. Regular price is $997. Here is the link to check it out: mylifeoflearning-randy.mykajabi.com/offers/EgeavtWJ 💰 Join my Patreon to get access to my all my Stock & Option Trades, Open Orders and Weekly Top 5 Stocks: www.patreon.com/mylifeoflearning 🔔 Subscribe to this Channel: th-cam.com/users/MyLifeofLearning 📕 New Beginnings: The Option Trading Story amzn.to/2OgXx58 📈 Purchase My Spreadsheets (as seen in my videos): etsy.me/3HHq5ge Website: mylifeoflearning.com/index.html
I made the mistake of looking too short term this week, got bit on call spreads, need to refocus and think long-term again as you present in this video. Great specific example Randy, thank you for sharing all your knowledge & experience explained in a quick clear manner!
Nice day in the life video Randy! Seems like you have really refined your process over the years. What's the next big refinement/update to your routines that you're working on/contemplating? Also, wondering how you handle the following... You write a monthly covered call. Stock shoots way past your strike after a week and looks to keep going higher. When do you let it ride or buy back or roll. If you roll, what do you roll to? Or when do you do something else, which is? Thanks!
Hey Chris I’d like to completely automate potential trade alerts instead of manually having to do them. I’ve written several hundred trading programs in the past but I never could get the computer to see what my eyes see. I’m sure it was me, the programmer. I’m talking to various programmers to try to work on the issue but as of now, it’s still something that is on my wish list to accomplish in the next five years. The second question you asked, is a really involved question because there are so many variables. I’ve made several videos on the subject. Here are some of the links: th-cam.com/video/aK-nPXZ1hAA/w-d-xo.html and th-cam.com/video/cwoqR5fNHkA/w-d-xo.html and th-cam.com/video/7s4iakIyDNQ/w-d-xo.html
Question: What's the risk of selling DITM naked puts on a stock you really want to own? Doesn't the premium more than make up for risk of assignment? Take MU, for example. The 2024 85 put fetches $22.82. If it's assigned at 85, your break-even would be $62.18, and then you can sell covered calls, so why not do this all the time? Even if you are assigned, you're still doing great.
Thank you for the great question! I’m not sure if you’re referring to a naked put (a situation in which you do not have enough money to cover the full position) or a cash secured put position (a situation where you do have enough cash to cover the puts if they were assigned to you). I believe you’re referring to selling a DITM cash secured put. What you’d want to look at is how much time value you’re receiving for that put option. When you sell a DITM put option, it will mostly be made up of intrinsic value or how much the option is in the money. The extrinsic value portion of the put option is the time value portion. That’s really what we like to maximize. That will go to $0 by expiration. Then it’s just a matter of how much intrinsic value will still remain in the put option that you sold. You could definitely do the strategy you mentioned in MU. You could sell LEAPS put options against stocks. Generally though, you’re able to achieve a higher annualized return by selling nearer term put options. That’s why we prefer to sell put options that are between 20 and 45 days out from expiration. However, there are some advantages to selling LEAPS put options as compared to options that have around 30 days left until expiration. if you’d like to look into selling LEAPS or longer-term cash secured put options, I think you’ll find this video helpful: th-cam.com/video/E47DYu6DLkI/w-d-xo.html
My stock picking strategy is very similar to yours. What doesn't make sense to me is your position sizing part of the video. 30k in a 1mil account seems very small. What is the rest of the account doing (surely it's not cash, maybe index funds or ETFs). Even if you had funds in total stock market or high Div ETF's, wouldn't you at least want to sell OTM covered calls and then sell puts to regain those positions if called away?
We generally have on around 30 to 40 positions in that account. As such, we are pretty much always fully invested if 100% of our positions were assigned to us.
@@StockandOptionMyLifeOfLearning I guess I misunderstood the video. I thought you were saying max risk selling puts of 5% if they are exercised when you seem to be saying 5% risk max on each 30 - 40 position.
Have you ever mentioned your options trading costs? Per option? For trades that were assigned? Or the broker you use? I use Canadian broker but trade predominantly US options since the options market in Canada is pretty pathetic. Not much interest. Sometimes I think the only one making a great profit is my broker... commissions without any RISK!
There are a few brokers that don't charge trade commissions, but that have a little bit more spread between the buy and sell. I use Firstrade and it's commission free
Hey Randy do you use any scanners? Or do you just only trade on the 200 stocks that you mentioned? Do you have a scanner for those stocks? Say for example if MRK goes below 50MA you get an alert. I"m just wondering how to decrease the number of stocks to trade in when you are fairly newer to options trading. I look forward to your patreon content!
The only scanner I’m currently using at times is one in which I’ve put my weekly picks in ETrade. It then scans for the highest returning strike put options on those potential positions. In the past, I have written trading programs to alert me when stocks were at key technical locations however it didn’t work nearly as good as my visual inspection so for now, I’m still doing visual inspections.
Randy, what is your thought on doing wheel strategy on QQQ? I got burned pretty bad by growth stocks. My current thought is to protect my remaining capital.
I’d be all right with doing the wheel strategy on QQQ. The returns wouldn’t be as good as if you picked individual stocks if you we’re going to do the wheel nonstop. One reason is that you wouldn’t be able to pick opportunistic declines if you were trying to stay in QQQ all the time. However, if you’re good with all that, then it could be a good way to trade. It will help you avoid the risk of individual positions.
@@StockandOptionMyLifeOfLearning yes Randy it’s true the returns will be very less compared to stocks. I’m thinking the lesser return will be a kind of insurance for the my peace of mind I’m getting and to protect my downside to some extent. Some of the stocks on which I’m running wheel reduced 70% and it may even go down to $0. With QQQ that will not be the case. I think if I beat the index by 4 to 5% it’s good.
I think that’s very wise of you to pick something that makes you feel comfortable. I think it’s always a mistake to trade in a way that makes you feel uncomfortable so if trading QQQ will help your comfort level, I think it’s absolutely worth giving up some return for that.
You might also consider paper trading some more stable stocks to replace ones that experience such great volatility and see how you feel about their movement. Usually companies that are mature, solid and have been around for a long time, even though they will decline some, you don’t have to worry about them going to zero. Those are the type of companies I like to trade in. It just makes me feel better putting my capital in them.
@@StockandOptionMyLifeOfLearning thanks for taking time and responding to my questions. Your responses and your videos are full of information and help us gain years of trading experience. While doing qqq, I’ll definitely keep Paper trading top 15 S&P stocks. This is best TH-cam channel on option trading/ wheel strategy. My go to channel 😊👍
At this time, they’re not companies I feel comfortable trading in. They just don’t fit the parameters I have set for companies I like to trade in. If you’d more information on the companies we like to trade in here are two videos you might like to check out: th-cam.com/video/Q_Fl1K0-1G0/w-d-xo.html and th-cam.com/video/2X_72td-hMc/w-d-xo.html
Do you have a video showing exactly what subscriptions you offer? What you provide with each? What do I get daily, weekly, etc. Any real time alerts? Options can trade and change pretty quickly so getting them too late may not provide the best experience. Any trial subscriptions available? I'd really like to see what I can expect before I commit. I am sure others feel the same way. Do you make your list of stocks available? If so, where can I get. It's of limited value since it is your technical analysis and "ratings" that I would be most interested in. That being said, I would want to review the list to determine how many and which ones I would be comfortable owning should they get assigned.
On Patreon I give details of exactly what each tier offers. There is no trial period. However all tiers are month to month so you can cancel without penalty at any time. (th-cam.com/video/Ve_P62GhX1M/w-d-xo.html) My stock list is fluid so it changes (although not by much) sometimes weekly. The list I showed on this video was my working list as of the date I filmed the video.
On Patreon I give details of exactly what each tier offers. There is no trial period. However all tiers are month to month so you can cancel without penalty at any time. My stock list is fluid so it changes (although not by much) sometimes weekly. The list I showed on this video was my working list as of the date I filmed the video.
Hi Randy, thanks for this video and all your others, you are very knowledgeable and I'm learning a lot. What level of your Patreon would I need to subscribe to in order to see what monthly option positions you are in as soon as you get into them so that I might be able to get into them as close as possible to when you do?
Hey Matthew thank you so much for that and for your support! 😊 At the live alerts tier, I send out a notice to all those patrons as soon as I know a trade has gone through. At that tier, you can access to those live alerts as well as everything that the lower tiers get. Let me know if you have any other questions.(th-cam.com/video/Ve_P62GhX1M/w-d-xo.html)
@@StockandOptionMyLifeOfLearning Ahh I see, thank you for that, I do have one more question. Do you put on any trades (like a short put for example) that can be done with small account? Like for example with a 2k to 5k account?
Yes. One of the accounts I have is a $30,000 account. The lowest dollar stock we are currently trading in there is a $20 cash secured put option. It was a retirement account that I start a couple years ago and I had been buying stocks out right in it. However, once it started getting close to $30,000, I liquidated most of the stocks with the plan to liquidate the rest of them in the coming weeks and I’ve solely been trading options in it. It’s one of the accounts that I share all my trades with my Patrons.
Thank you so much Randy. Quick follow up question, for the 2-3% rule, is that per position. For example, can you sell different options for same stock at different expiration date and price point. I learn so much from this channel, keep up the good work.
Are you concerned at all, when choosing stocks, that the TA you did is due to beta (market volatility), rather than being based on the individual stock?
I have found that more times than not, technical analysis works. I’m actually still amazed how well it works. It does not work 100% of the time, however, it definitely works good enough to give us a consistent edge. Volatility plays a role in the option premium we receive. However, technical analysis helps us to see where traders and even automated computer systems tend to buy and sell stocks at. That helps us make better trading decisions with our outright stock purchases and in our option trading.
Got lucky this week fixing a losing Nio trade. Sold September puts and purchased back the next day for a $330 profit. Is this a good strategy? Sell leap puts on very red days and buy back cheaper a.s.a.p? I know Nio isn't the best stock to trade, but I have limited funds at the moment.
I normally don’t flip LEAPS that quick but that doesn’t mean it’s a bad way to trade. LEAPS are affected by volatility so when there’s a volatility spike, it could be a good time to sell them. Here is a video I made on selling LEAPS puts if you’d like to check it out: th-cam.com/video/E47DYu6DLkI/w-d-xo.html
One of the potential pitfalls that really is not that rare, and for which many traders are not aware ... a swift market downturn makes all of your sold puts get assigned to you. Now you have little or no cash on the sidelines to purchase additional shares ... and you probably purchased shares at a price in excess of what you could pay for it today. That in itself could easily negate months and months of options premiums. Not to mention hours and hours of your efforts. Conversely, I just had quite a few stocks get called away this past week with the recent market uptick. Not such a big deal as they were all profitable and will most likely just be redeployed during the next pullback this coming week.
But not being in the market also has risk. I have a friend that has $700,000 cash sitting on the sidelines. They lost $50,000 this year because of inflation plus whatever they would’ve made if they had been in the market.
Agreed. I am certainly not advocating keeping money on the side. My entire life I've redeployed cash as soon possible. Habitually. Perhaps why I have an 8 figure net worth now.😉 In fact, I use leverage judiciously so any cash sitting on the sidelines does in fact cost me, but it won't be there for long. When Mar 2020 came along, we backed up the truck with leveraged money owing to the fact that I dont keep spare cash. Not recommended for the faint of heart or I experienced. For my options that got called, some I will buy back in the coming days, and probably at a better price. Or weeks at most. One, however, probably got away from me and I didn't catch it in time. So may have to swap it with something else. Pity to have lost that one.
Thank you for sharing your personal story! As much as we may want them to, we can’t always have all them go our way. In any market crash or downturn, we will have some and possibly quite a few go against us. But I believe it’s how we respond to those positions that go against us that really determines our ultimate success or failure. Thank you so much for sharing and for your success story!
Hey Michael I plan to make a video on the different patron tiers that I’ll put out in the month of April. However, if you want some potential option trade ideas, you’d want to look at the top three tiers. (th-cam.com/video/Ve_P62GhX1M/w-d-xo.html) Then is just a matter of how fast you want to get alerted of our trades. Let me know if you have any other questions.
In the long run, picking winners will be a lot more profitable. By selling options on losers, you can eventually turn them into the winners. However, if you’re able to sell options in positions that win faster, then you can roll that money faster and thus drastically improve your return!
Thank you for the suggestion! Those shares were actually assigned to us several months back as a result of a cash secured put option we had sold. I showed that position on the screen, the stock ownership and the covered call that went along with it as well as the current cash secured put we have.
![How to ROLL OVER PUT OPTIONS (for a Living) [How to ROLL a DEEP IN THE MONEY PUT OPTION]](http://i.ytimg.com/vi/8bhzg6eZFhQ/mqdefault.jpg)
►► AVAILABLE NOW! Limited to the FIRST 100 people, get my brand new online Option Trading course (Intermediate option trading) for $497. Regular price is $997. Here is the link to check it out: mylifeoflearning-randy.mykajabi.com/offers/EgeavtWJ
💰 Join my Patreon to get access to my all my Stock & Option Trades, Open Orders and Weekly Top 5 Stocks: www.patreon.com/mylifeoflearning
🔔 Subscribe to this Channel: th-cam.com/users/MyLifeofLearning
📕 New Beginnings: The Option Trading Story amzn.to/2OgXx58
📈 Purchase My Spreadsheets (as seen in my videos): etsy.me/3HHq5ge
Website: mylifeoflearning.com/index.html
I made the mistake of looking too short term this week, got bit on call spreads, need to refocus and think long-term again as you present in this video. Great specific example Randy, thank you for sharing all your knowledge & experience explained in a quick clear manner!
Thank you for sharing and for your support! I really appreciate it!
I’m on the same boat. Market pullback hurt a bit of my account and CALLs burnt it.
Thank you for sharing.
GOOD SHOW, YO.. One of the best out there in You Tube world
Thank you so much for that Dave! I really appreciate your support!
I sold $50 VZ 4/1 puts two days before this video. I'm looking to capture the divy, so no biggie on the downturn. 🤷♂️
Nice day in the life video Randy! Seems like you have really refined your process over the years. What's the next big refinement/update to your routines that you're working on/contemplating?
Also, wondering how you handle the following... You write a monthly covered call. Stock shoots way past your strike after a week and looks to keep going higher. When do you let it ride or buy back or roll. If you roll, what do you roll to? Or when do you do something else, which is?
Thanks!
Hey Chris I’d like to completely automate potential trade alerts instead of manually having to do them. I’ve written several hundred trading programs in the past but I never could get the computer to see what my eyes see. I’m sure it was me, the programmer. I’m talking to various programmers to try to work on the issue but as of now, it’s still something that is on my wish list to accomplish in the next five years.
The second question you asked, is a really involved question because there are so many variables. I’ve made several videos on the subject. Here are some of the links: th-cam.com/video/aK-nPXZ1hAA/w-d-xo.html and th-cam.com/video/cwoqR5fNHkA/w-d-xo.html and th-cam.com/video/7s4iakIyDNQ/w-d-xo.html
I like your flexible way in managing your positions/options. I'm adapting the same style, thanks a lot
Thank you for your support! 👏
Question: What's the risk of selling DITM naked puts on a stock you really want to own? Doesn't the premium more than make up for risk of assignment? Take MU, for example. The 2024 85 put fetches $22.82. If it's assigned at 85, your break-even would be $62.18, and then you can sell covered calls, so why not do this all the time? Even if you are assigned, you're still doing great.
Thank you for the great question! I’m not sure if you’re referring to a naked put (a situation in which you do not have enough money to cover the full position) or a cash secured put position (a situation where you do have enough cash to cover the puts if they were assigned to you). I believe you’re referring to selling a DITM cash secured put.
What you’d want to look at is how much time value you’re receiving for that put option. When you sell a DITM put option, it will mostly be made up of intrinsic value or how much the option is in the money. The extrinsic value portion of the put option is the time value portion. That’s really what we like to maximize. That will go to $0 by expiration. Then it’s just a matter of how much intrinsic value will still remain in the put option that you sold.
You could definitely do the strategy you mentioned in MU. You could sell LEAPS put options against stocks. Generally though, you’re able to achieve a higher annualized return by selling nearer term put options. That’s why we prefer to sell put options that are between 20 and 45 days out from expiration.
However, there are some advantages to selling LEAPS put options as compared to options that have around 30 days left until expiration. if you’d like to look into selling LEAPS or longer-term cash secured put options, I think you’ll find this video helpful: th-cam.com/video/E47DYu6DLkI/w-d-xo.html
Hi Randy.How do you get the coloured channel on your charts.I use interactive brokers.
It’s a setting you can choose in Interactive brokers. If you Google colorcode in the money options you should find information on how to set it up.
My stock picking strategy is very similar to yours. What doesn't make sense to me is your position sizing part of the video. 30k in a 1mil account seems very small. What is the rest of the account doing (surely it's not cash, maybe index funds or ETFs). Even if you had funds in total stock market or high Div ETF's, wouldn't you at least want to sell OTM covered calls and then sell puts to regain those positions if called away?
We generally have on around 30 to 40 positions in that account. As such, we are pretty much always fully invested if 100% of our positions were assigned to us.
@@StockandOptionMyLifeOfLearning I guess I misunderstood the video. I thought you were saying max risk selling puts of 5% if they are exercised when you seem to be saying 5% risk max on each 30 - 40 position.
Yes up to 5% per position. Some are very small like
Awesome content as usual!
Thank you so much for your support! I really appreciate you! 👏
Have you ever mentioned your options trading costs? Per option? For trades that were assigned? Or the broker you use? I use Canadian broker but trade predominantly US options since the options market in Canada is pretty pathetic. Not much interest.
Sometimes I think the only one making a great profit is my broker... commissions without any RISK!
There are a few brokers that don't charge trade commissions, but that have a little bit more spread between the buy and sell. I use Firstrade and it's commission free
Hey Randy do you use any scanners? Or do you just only trade on the 200 stocks that you mentioned? Do you have a scanner for those stocks? Say for example if MRK goes below 50MA you get an alert. I"m just wondering how to decrease the number of stocks to trade in when you are fairly newer to options trading. I look forward to your patreon content!
The only scanner I’m currently using at times is one in which I’ve put my weekly picks in ETrade. It then scans for the highest returning strike put options on those potential positions.
In the past, I have written trading programs to alert me when stocks were at key technical locations however it didn’t work nearly as good as my visual inspection so for now, I’m still doing visual inspections.
thanks
Randy, what is your thought on doing wheel strategy on QQQ?
I got burned pretty bad by growth stocks. My current thought is to protect my remaining capital.
I’d be all right with doing the wheel strategy on QQQ. The returns wouldn’t be as good as if you picked individual stocks if you we’re going to do the wheel nonstop. One reason is that you wouldn’t be able to pick opportunistic declines if you were trying to stay in QQQ all the time. However, if you’re good with all that, then it could be a good way to trade. It will help you avoid the risk of individual positions.
@@StockandOptionMyLifeOfLearning yes Randy it’s true the returns will be very less compared to stocks. I’m thinking the lesser return will be a kind of insurance for the my peace of mind I’m getting and to protect my downside to some extent. Some of the stocks on which I’m running wheel reduced 70% and it may even go down to $0. With QQQ that will not be the case. I think if I beat the index by 4 to 5% it’s good.
I think that’s very wise of you to pick something that makes you feel comfortable. I think it’s always a mistake to trade in a way that makes you feel uncomfortable so if trading QQQ will help your comfort level, I think it’s absolutely worth giving up some return for that.
You might also consider paper trading some more stable stocks to replace ones that experience such great volatility and see how you feel about their movement. Usually companies that are mature, solid and have been around for a long time, even though they will decline some, you don’t have to worry about them going to zero. Those are the type of companies I like to trade in. It just makes me feel better putting my capital in them.
@@StockandOptionMyLifeOfLearning thanks for taking time and responding to my questions. Your responses and your videos are full of information and help us gain years of trading experience. While doing qqq, I’ll definitely keep Paper trading top 15 S&P stocks.
This is best TH-cam channel on option trading/ wheel strategy. My go to channel 😊👍
How do you feel about Nio or Mara?
At this time, they’re not companies I feel comfortable trading in. They just don’t fit the parameters I have set for companies I like to trade in.
If you’d more information on the companies we like to trade in here are two videos you might like to check out: th-cam.com/video/Q_Fl1K0-1G0/w-d-xo.html and th-cam.com/video/2X_72td-hMc/w-d-xo.html
Do you have a video showing exactly what subscriptions you offer? What you provide with each? What do I get daily, weekly, etc. Any real time alerts? Options can trade and change pretty quickly so getting them too late may not provide the best experience.
Any trial subscriptions available? I'd really like to see what I can expect before I commit. I am sure others feel the same way.
Do you make your list of stocks available? If so, where can I get. It's of limited value since it is your technical analysis and "ratings" that I would be most interested in. That being said, I would want to review the list to determine how many and which ones I would be comfortable owning should they get assigned.
On Patreon I give details of exactly what each tier offers. There is no trial period. However all tiers are month to month so you can cancel without penalty at any time. (th-cam.com/video/Ve_P62GhX1M/w-d-xo.html)
My stock list is fluid so it changes (although not by much) sometimes weekly. The list I showed on this video was my working list as of the date I filmed the video.
On Patreon I give details of exactly what each tier offers. There is no trial period. However all tiers are month to month so you can cancel without penalty at any time.
My stock list is fluid so it changes (although not by much) sometimes weekly. The list I showed on this video was my working list as of the date I filmed the video.
@@StockandOptionMyLifeOfLearning thank you very much for taking the time to respond to my questions. I will check Patreon out and who knows...
So you are looking at SMA of 50 and 250 weeks instead of days?
I like to use the 50 and 200 SMA and EMA. I do that with every time frame but predominately, daily and weekly timeframes.
Hi Randy, thanks for this video and all your others, you are very knowledgeable and I'm learning a lot. What level of your Patreon would I need to subscribe to in order to see what monthly option positions you are in as soon as you get into them so that I might be able to get into them as close as possible to when you do?
Hey Matthew thank you so much for that and for your support! 😊 At the live alerts tier, I send out a notice to all those patrons as soon as I know a trade has gone through. At that tier, you can access to those live alerts as well as everything that the lower tiers get. Let me know if you have any other questions.(th-cam.com/video/Ve_P62GhX1M/w-d-xo.html)
@@StockandOptionMyLifeOfLearning Ahh I see, thank you for that, I do have one more question. Do you put on any trades (like a short put for example) that can be done with small account? Like for example with a 2k to 5k account?
Yes. One of the accounts I have is a $30,000 account. The lowest dollar stock we are currently trading in there is a $20 cash secured put option. It was a retirement account that I start a couple years ago and I had been buying stocks out right in it. However, once it started getting close to $30,000, I liquidated most of the stocks with the plan to liquidate the rest of them in the coming weeks and I’ve solely been trading options in it. It’s one of the accounts that I share all my trades with my Patrons.
Thank you for the video. For the position size, does the 2-3% apply to the margin requirements or the total stock price if assigned.
Thank you for your support! I figure it based on not using margin and the total stock price if assigned.
Thank you so much Randy. Quick follow up question, for the 2-3% rule, is that per position. For example, can you sell different options for same stock at different expiration date and price point. I learn so much from this channel, keep up the good work.
I’ll look at it per ticker symbol. All of the short put options or covered calls combined.
Is .50 one standard deviation? .50 is really seductive to play but the market is nutz
The dollar figure that goes along with one standard deviation varies depending on the volatility of each stock.
Are you concerned at all, when choosing stocks, that the TA you did is due to beta (market volatility), rather than being based on the individual stock?
I have found that more times than not, technical analysis works. I’m actually still amazed how well it works. It does not work 100% of the time, however, it definitely works good enough to give us a consistent edge.
Volatility plays a role in the option premium we receive. However, technical analysis helps us to see where traders and even automated computer systems tend to buy and sell stocks at. That helps us make better trading decisions with our outright stock purchases and in our option trading.
Got lucky this week fixing a losing Nio trade. Sold September puts and purchased back the next day for a $330 profit. Is this a good strategy? Sell leap puts on very red days and buy back cheaper a.s.a.p? I know Nio isn't the best stock to trade, but I have limited funds at the moment.
I normally don’t flip LEAPS that quick but that doesn’t mean it’s a bad way to trade. LEAPS are affected by volatility so when there’s a volatility spike, it could be a good time to sell them. Here is a video I made on selling LEAPS puts if you’d like to check it out: th-cam.com/video/E47DYu6DLkI/w-d-xo.html
One of the potential pitfalls that really is not that rare, and for which many traders are not aware ... a swift market downturn makes all of your sold puts get assigned to you. Now you have little or no cash on the sidelines to purchase additional shares ... and you probably purchased shares at a price in excess of what you could pay for it today. That in itself could easily negate months and months of options premiums. Not to mention hours and hours of your efforts.
Conversely, I just had quite a few stocks get called away this past week with the recent market uptick. Not such a big deal as they were all profitable and will most likely just be redeployed during the next pullback this coming week.
But not being in the market also has risk. I have a friend that has $700,000 cash sitting on the sidelines. They lost $50,000 this year because of inflation plus whatever they would’ve made if they had been in the market.
Agreed. I am certainly not advocating keeping money on the side. My entire life I've redeployed cash as soon possible. Habitually. Perhaps why I have an 8 figure net worth now.😉 In fact, I use leverage judiciously so any cash sitting on the sidelines does in fact cost me, but it won't be there for long. When Mar 2020 came along, we backed up the truck with leveraged money owing to the fact that I dont keep spare cash. Not recommended for the faint of heart or I experienced. For my options that got called, some I will buy back in the coming days, and probably at a better price. Or weeks at most. One, however, probably got away from me and I didn't catch it in time. So may have to swap it with something else. Pity to have lost that one.
Thank you for sharing your personal story! As much as we may want them to, we can’t always have all them go our way. In any market crash or downturn, we will have some and possibly quite a few go against us. But I believe it’s how we respond to those positions that go against us that really determines our ultimate success or failure. Thank you so much for sharing and for your success story!
I am signing up for Randy’s membership. Does anyone have a recommendation of which is best for options/swing trader $200k. Thanks guys.
Hey Michael I plan to make a video on the different patron tiers that I’ll put out in the month of April. However, if you want some potential option trade ideas, you’d want to look at the top three tiers. (th-cam.com/video/Ve_P62GhX1M/w-d-xo.html) Then is just a matter of how fast you want to get alerted of our trades. Let me know if you have any other questions.
The strategy is so powerful that even picking the wrong stocks you made money for years. So what’s the difference?
In the long run, picking winners will be a lot more profitable. By selling options on losers, you can eventually turn them into the winners. However, if you’re able to sell options in positions that win faster, then you can roll that money faster and thus drastically improve your return!
@@StockandOptionMyLifeOfLearning 👍🏻👍🏻👍🏻
If you sold a covered call on AMGN, that implies that you bought the underlying shares. It would be helpful if you pointed that out in the video.
Thank you for the suggestion! Those shares were actually assigned to us several months back as a result of a cash secured put option we had sold. I showed that position on the screen, the stock ownership and the covered call that went along with it as well as the current cash secured put we have.