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Adam - thanks for this awesome presentation! I personally use call options to generate 90% of my retirement income. This DIY investor achieves 20% annual ROI on my stock portfolio, which is far higher than the golden 4% rule that the gurus evangelize. Plus there is the built in hedge factor for downside risk management as your guests have noted.
Very interesting. I'd like to see that calculus equation solved! :-) Seriously, thank you for this introduction to a complex topic I've always wondered about. Would love to see more videos like this, such as a deep dive into short selling, its pros and cons and the procedure for doing it. Thank you, Adam!
Had this in the queue for a while to be able to watch with focus and took notes. Great primer, would be great to see some more videos on the topic going forward!
I usually listen to the podcasts but knew that this was one that I needed to watch and I wasn’t disappointed. This was fantastic and so informational. I’d definitely be interested in more educational videos like this. Thank you all.
Superb presentation. A master class in instruction from two highly skilled and experienced financial advisors. Thank you. Practical and unbiased discussions are the Hallmark of this topline you tube channel. I look forward to more such excellent discussions.
What are the fees involved in this type of trading. Is it expensive and added on top of my 1.5% AUM fee ? I'm going to wait until November and then seriously reconsider.
I can attest to having tried the collar approach that these guys describe and it worked very nicely for me. You do have to watch your account a little more closely when options are in play.
For a LEAP, it seems you’d be exchanging a high price because of the high time value versus the cost of trading shorter-term options more frequently. How do you balance one against the other?
Unfortunately, the time decay often makes options a rather expensive way to insure against portfolio value losses. It can demolish returns and compounding. The organizations selling/buying options (market makers and hedge funds) and earning money in the long run only do so, because that money was surrendered by the opposite side of their contracts.
@@SG-jd5hy Sure. Are you feeling lucky? :D Seriously, there is no way to (reliably) predict, how far the fed and the US government are willing to go in order to keep this bizarre market going. It would be like betting on their sanity, which I'm not sure still exists anymore. :)
Would be interesting to review the packaged products like JEPI, JEPY, JPEQ, etc even Max Yield products. How to choose from among them given one's chosen risk and timing objectives.
It's insane we are here but after the events of this week do we need a video on how markets have formed under autocratic systems and what strategies we might want/need to consider.
There have been many videos on this channel about trend towards Industrial Policy in the West. The English guest from Singapore's Rabdobank (sic) is a good subject matter expert.
Me thinketh yep thanks guys however who was it that said., little knowledge is.......dangerous!@?😜😉 And yet definitely worthwhile to learn the basics!!😅
Thanks for the video but it would be helpful to have real life examples, with dollar figutrs attached, to explain how using options offers any benefit over simply adjusting position sizing and using stop losses.
Appreciate the great tutorial, but a little bit disappoint that it's just an intro overview to how options work, rather than actual strategies around when to purchase options, how to pick strike prices and expiry dates, expected returns of buying options vs. just hold stocks vs. selling off some positions ahead of volatile events, or any quantitative backtested data.
If you do another video on this topic I would prefer to see examples without all the graphs and lists .... just identify the stock symbol and the current price, how much you expect the stock to move, what time frame, what is your objective as an investor for that specific trade, show how you enter the trade on several platforms like thinkorswim or yahoo etc ..... and what you do after entering into the contract. Adam seemed to like the presentation but I found it useless. Only saying this to suggest an alternate style of presentation that newbies like me might be able to absorb. Also, much less screen content so the font can be about 20 times bigger and legible on a phone or tablet.
Look into rolling over some of your 401k into either a traditional or Roth IRA. Then you could buy T bills inside your IRA to wait out the crash. Your work 401k would still collect the regular weekly investment from your paycheck.
@@chadlehman2599 when the company owns it and you still work there THEY give you the options (no pun intended) to whet your can invest in aka I have small, Med or Large caps as options
You should have a cash option available in your 401k to essentially give you risk off but still collect minimal interest. That’s where I’m sitting now.
SUBSCRIBE TO OUR FREE NEWSLETTER at adamtaggart.substack.com (or upgrade to premium to receive our "Adam's Notes" summaries to this interview & all others on this channel, plus the new MacroPass service)
Thanks much Mike, John and Adam, for this useful tutorial !
Adam - thanks for this awesome presentation! I personally use call options to generate 90% of my retirement income. This DIY investor achieves 20% annual ROI on my stock portfolio, which is far higher than the golden 4% rule that the gurus evangelize. Plus there is the built in hedge factor for downside risk management as your guests have noted.
Covered calls on stocks you own?
@user-tr2ux8si7j yes, covered calls on stock I own.
Good Value! Interest in more in-depth options topics. Thanks
Very interesting. I'd like to see that calculus equation solved! :-) Seriously, thank you for this introduction to a complex topic I've always wondered about. Would love to see more videos like this, such as a deep dive into short selling, its pros and cons and the procedure for doing it. Thank you, Adam!
Had this in the queue for a while to be able to watch with focus and took notes. Great primer, would be great to see some more videos on the topic going forward!
Great video! Please make more content like this. Please teach us more about using Technical Analysis and what to look for. 🙏
YES!
I found this highly valuable
Thank you
I usually listen to the podcasts but knew that this was one that I needed to watch and I wasn’t disappointed. This was fantastic and so informational. I’d definitely be interested in more educational videos like this. Thank you all.
Great video. Please put a video on chart reading- resistance and support etc.
Thank you so much for this video. It was very helpful on selling options. I have always been hesitant to sell options but this explanation helped
Good information! Would love to hear more about options strategies
Learned more useful info here than 4 years in college.
Excellent alpha. Many thanks
Superb presentation.
A master class in instruction from two highly skilled and experienced financial advisors. Thank you.
Practical and unbiased discussions are the Hallmark of this topline you tube channel.
I look forward to more such excellent discussions.
Definitely interested in more detailed hedging strategies
This is a good introduction. I would show more about how to read the tables of contracts. Show a real purchase in a trading system.
Useful introduction.
thanks Adam - yes highly valuable keep'em comin'!
What are the fees involved in this type of trading. Is it expensive and added on top of my 1.5% AUM fee ?
I'm going to wait until November and then seriously reconsider.
I can attest to having tried the collar approach that these guys describe and it worked very nicely for me. You do have to watch your account a little more closely when options are in play.
Brilliant presentation with two of the best
Thank you for finally explaining options to me !!
Brilliant!
Explain why we should use XSP rather than SPY?
Great video. Thanks very much.. I've been using options but still learned something from this beginner video
Loved this. Would love to see more options strategy videos.
definitely needs a part 2
For a LEAP, it seems you’d be exchanging a high price because of the high time value versus the cost of trading shorter-term options more frequently. How do you balance one against the other?
Very informative video. Thanks guys
Please discuss tax difference between ndx and spx vs qqq and spy. Also rolling and when. Thank you for this video
Unfortunately, the time decay often makes options a rather expensive way to insure against portfolio value losses. It can demolish returns and compounding.
The organizations selling/buying options (market makers and hedge funds) and earning money in the long run only do so, because that money was surrendered by the opposite side of their contracts.
In meltups, like we are in now, puts are on sale.
@@SG-jd5hy Sure. Are you feeling lucky? :D
Seriously, there is no way to (reliably) predict, how far the fed and the US government are willing to go in order to keep this bizarre market going. It would be like betting on their sanity, which I'm not sure still exists anymore. :)
Would be interesting to review the packaged products like JEPI, JEPY, JPEQ, etc even Max Yield products. How to choose from among them given one's chosen risk and timing objectives.
It's insane we are here but after the events of this week do we need a video on how markets have formed under autocratic systems and what strategies we might want/need to consider.
There have been many videos on this channel about trend towards Industrial Policy in the West. The English guest from Singapore's Rabdobank (sic) is a good subject matter expert.
Me thinketh yep thanks guys however who was it that said., little knowledge is.......dangerous!@?😜😉
And yet definitely worthwhile to learn the basics!!😅
LEST GOO!.
Thanks for the video but it would be helpful to have real life examples, with dollar figutrs attached, to explain how using options offers any benefit over simply adjusting position sizing and using stop losses.
I definitely want to know more about market mechanics, and how to protect your trades etc
How do you choose the time to expiration for Put options? Do you ever buy LEAPS?
Economic investigator Frank G Melbourne Australia is still following this very informative content cheers Frank 😊
Appreciate the great tutorial, but a little bit disappoint that it's just an intro overview to how options work, rather than actual strategies around when to purchase options, how to pick strike prices and expiry dates, expected returns of buying options vs. just hold stocks vs. selling off some positions ahead of volatile events, or any quantitative backtested data.
Neglected a key point that one must own 100 shares of the underlying asset to hedge the position with options.
If you do another video on this topic I would prefer to see examples without all the graphs and lists .... just identify the stock symbol and the current price, how much you expect the stock to move, what time frame, what is your objective as an investor for that specific trade, show how you enter the trade on several platforms like thinkorswim or yahoo etc ..... and what you do after entering into the contract. Adam seemed to like the presentation but I found it useless. Only saying this to suggest an alternate style of presentation that newbies like me might be able to absorb. Also, much less screen content so the font can be about 20 times bigger and legible on a phone or tablet.
This its not how much money you make that matters its how much you keep! Being a on paper millionaire means nothing
VIX?
1st, 2 July 2024
I made 4.3 million in 2021 trading options...in 2022 i loset4.6 million
Well great I am locked in a work 401 k and are desperate to miss the coming crash 😢😢😢😢
It's a tough spot to be in.
Why can't you just sell part or all of your position?
Look into rolling over some of your 401k into either a traditional or Roth IRA. Then you could buy T bills inside your IRA to wait out the crash. Your work 401k would still collect the regular weekly investment from your paycheck.
@@chadlehman2599 when the company owns it and you still work there THEY give you the options (no pun intended) to whet your can invest in aka I have small, Med or Large caps as options
You should have a cash option available in your 401k to essentially give you risk off but still collect minimal interest. That’s where I’m sitting now.