Margin Trading Options Safely For Free Passive Income (Part 1)
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- เผยแพร่เมื่อ 31 ก.ค. 2024
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Margin Trading
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!
Thanks for the video! Brokers usually don't allow margin on securities/etfs below a particular amount like $5 - Fidelity needs it to be above $3. Etrade is above $2 but its 75% until you get to $3. It is there to protect themselves for when a stock or ETF is racing towards zero - like SIVB. Same reason why NYSE needs any company's stock to be above $1 in order to maintain its listing.
Thank you so much for doing the margin video!!!
I like the long thought process and long vids
Great Video Henry Thank you very Much
Do you know a timeline for part 2? This first part was really informative and Id like to know all I can from you before I touch margin trading
Great video Henry
Yeah the way you explain it is how you use margin to sell the puts. And if you are assigned then you would pay interest. And that it is a good strategy to use because you make money off it even though you are not paying on it. But robinhood is not letting me do that. I have the buying power to buy the shares. But then if I go to the options. It takes away the margin and only let's me use what I have in cash available
Henry your my dude. Every time I have a question about the stock market you already have a video from a year ago about it. I appreciate you brother.
I know they don’t charge margin interest on selling puts but can anyone advise on spreads? Will I be charged Interest on spreads ?
Was part 2 ever released? Thanks again for all you do.
Great vids as always Henry but I do agree with the comment of long intro . Your videos are always insightful and full of great content you explain it well . Thank you
The margin on a stock is usually decided on by the market capitalization. 500 million and under usually gets 100%.
This answered questions I didn’t even know I had about margin.
Good information, as always. I've been trading multiple accounts (HSA, Roth, Traditional IRA, and brokerage account), primary focus selling Puts on SPY/QQQ/IWM, but occasionally run the wheel. My portfolio is $1.1M, but I'm ultra cautious in my brokerage account (selling .03 to .05 Deltas), to avoid having to close a position at any loss and trigger a 30-day Wash Sale issue. Can you do a video that covers the Wash Sale Rules when it comes to options - specifically how it affects rolls and various legs/spreads. There is a lot of conflicting information regarding tax opinion and the loss of an option position and/or leg. Is it better to LLC and apply for Mark to Market? Maybe touch on how you're set up for trading to avoid those tax concerns. Thanks again!!
Agreed - this would be a great video. Thanks Henry
Hey. Thanks for the great video.
Thank you so much!!
Thanks for the video! Just started a margin account recently. I am a little confused by what it means to "Initial Margin", "Maintenance Margin" and "Buying Power". I am concerned about getting margin call when trading on margin.
This is one of your best videos!!! I’m ready to join the discord!!! Talking to the wife right now.
I gotta say I’m a bit confused. I have $60k of available margin on my main screen, but I can only purchase stock with that. If I select to sell a put in the options screen, my buying power is now limited to exactly what I have in my account of my own money. If I buy the shares, I guess I could sell covered calls against the margin purchased shares, but I will be accruing daily interest. So I’m not seeing what you mean by free margin?
What do you think about using margin for selling very conservative credit spreads like 99% chance of profit?
Great video! Yes please do more of these margin videos
Is there a part 2 ? I couldn't find it.
Using the wheel strategy on margin has been great for me!
Appreciate you!
I don’t think I will ever use it but it’s still good hear about how it should be used. Thanks.
Thank you!
best channel on youtube!
When can we get part 2? Thanks 🙏🏿
I have margin enabled and I see it reflected in my buying power (robinhood) but when I go to sell puts, it only shows my cash as buying power, no margin.
How can I make it so that I can use margin to sell puts?
Selling puts require 100% equity. The margins is used for buying stocks
Love the video. All of them actually. Thanks for sharing the knowledge.
I have a question. Most of my money is in TD which is where I do most of my puts/ calls. I also use Robin Hood for spreads but I was wondering if I should just switch all my money to one account. Any input?
I’ve tried 4 brokers. Just switch to Robinhood . It is by far the best and easiest to use.
I know Robinhood has a horrible amateur hour stigma to it but it is literally the best for trading options easily. I’m embarrassed to tell people I use it but who cares. I’m printing money with it from options
I appreciate the detailed explanations, thank you! 👍
Excellent video. I can't find part 2.
Thanks Henry! Can't wait for pt 2!
Yes! Where is part #2??? I am very happy to have seen that you made this video, but now, I've watched it several times for the,"TH-cam algorithm" but I am desperate for the rest, like apparently are so many others. Thanks again for all your videos and insights.
Still waiting?
@@EJL045 part 2 is sell put on low delta
Henry, there’s a section in robinhood you can look at all ur holdings and margins used. Don’t need to go thru the headaches and math
True
Where is part 2? Loved part one and want to learn more!
Great video! Where is part 2?
So you don’t pay interest until you are assigned for puts sold on margin ? If it’s expires worthless then you keep the premium and your margin collateral is released right ?
Yes
Cool! So basically you sell a put on a good stock and if you get a margin call you buy the shares and sell another put at a lower price to cover the interest. Right?
Does Robin charge interest on spreads and condors if they expire worthless? Assuming it does I get to keep the premium. Robinhood says I can margin 86k right now.
Please post part 2
it’s hereeeeee
What I've doing is holding dividend stocks while selling put options with margin. I don't pay interest when margin is held as collateral.
Same
Watch ALL of Henry’s videos. These options strategies really do pay 2% a week. Forget the dividend stocks
Awesome video
Part 2 pleae
How do you get Margin enabled on robinhood? I’ve tried and it says contact customer support
You can do it all online. Just answer the questions and say you have margin and options experience
Part 2 please
Hi I’ve watched all your videoes and I have a put credit spread on Tesla threw Webull. My max loss was 200 but I think I got assigned and now owe 17k!!? Trying to find out how to close this position but Webull is very confusing PLEASE HELP!
If you got assigned start selling calls. Run the wheel
You can sell the shares you were assigned for the current price (165 today) and lose $500 or wait until Tesla comes back above $170 and then sell.
You’ve had some great videos but this one wasn’t one of them. You spent 15 minutes talking about what you were gonna cover and didn’t cover any of it. It was huge let down. 🤷♂️
Got it I won't do this style again
@@InvestwithHenry Henry don’t let the comments get you down. Please do this style again
@@shill1103 the comments were constructive.
@@InvestwithHenryignore him all your content is a blessing.
Oh nice. Thank you for saving me time
Люблю тебя, дядя Генри!
First Like & comment!
Another great video, but where is Part 2?? Too much vacationing
How do I join your discord?
calendly.com/invest-with-henry/option-income-academy
I like selling puts on margin. Been doing it since 2020. I'm not making no $200k in 3 months though😞
Lol
What stocks you selling puts on?
I like how this is EXACTLY what I have currently been doing. It’s low risk and consistent
what happens when you get assigned on selling put with margin? thanks
@@user-zb6if3xb9t I usually don’t let it come to that unless it’s a stock I would like to own, like Coca Cola. In that case, I would do the wheel strategy and start selling in the money covered calls for a premium
@@its9333 Oh gotcha. So getting assigned it is not the worst thing that happens to you unless the stock tanks. But the best thing is to avoid getting assigned ? thanks for your comment/reply.
@@user-zb6if3xb9t getting assigned isn’t, you can use a stop-loss or take profit limit order after you place the option if you don’t want to get assigned though. I recommend options on stable companies like coke, because even on their worst day they don’t go down quickly
@@its9333 i totally agree with your concept. I sell credit spreads they are way profitable but if you are on the wrong side of the trade it can burn you quickly. Just wanted to get exposure to margin but i always hear people saying stay away from it. thanks for your time.
So part 2 tomorrow orrrrr?
Where’s part 2
Imo never use margin unless ur doing wheel safe otm.. people will use margin and play options and yolo
I have margin and it says I have buying power. But when go to sell a put. It says i don't have enough cash. It won't let me use the margin selling puts
Selling puts requires 100% equity
How is he selling puts on margin in this video ? I'm confused how he is using margin.
@@brandonlane1683 he is using margin on other positions in his portfolio. But selling puts specifically requires 100% equity for those specific positions. So in totality he is using lots of margin but just not on the puts
How is he able to do this without paying interest?
Selling puts at least on robinhood will require half of your margin . Example I have 20k in margin I can only sell a put on anything 10k or under.
11:00 minutes in and I'm losing interest because you haven't started the video
Sorry this one I tried to give as much background as possible and make it a longer episode. If you guys don't like I won't give any details on thoguht process. WIll keep this in mind.
Unfortunately I have to agree. The latest videos have so much fluff these days and don't have much as much substance per minute of actual video time
Love all the videos and all the background research you do !! Thanks for another great video uncle Henry !!
Exactly! This was a boring one. He likes to talk about his account though. 🥱
thanks so much for your videos when i was younger in 2020 I gambled on the market and lost 20k ive been in debt since thanks for helping out
This is dangerous and Henry is crazy. J/K!
Will we ever see part 2? ....
Part 2????
You can see how much margin you’re using in the settings. Why are you even doing math?😅
Brother can you make 1 video someday where you don’t plug yourself half the video
Damn man :D really love your vods, but it took you over 1 year now for part 2. what happened? Just found you like 1 week ago and consumed your content like crazy.
I am not sure if it was mentioned, how do you avoid paying the standard margin interest rate of 11.5% and a margin interest rate of 7.5% from Robinhood? I know when you're using margin, most brokerage apply daily margin fees.
"Robinhood Financial charges a standard margin interest rate of 11.5% and a margin interest rate of 7.5% for customers who subscribe to Gold"
If you sell a put, it is only a promise to purchase shares of it drops below the strike price so technically, although margin is "allocated", it isn't being consumed and therefore, no margin percentage. If you had to buy shares, it would be on margin though.
Honestly who cares what the margin rate is. These options strategies pay 2% a week. Do the math …..
@@JosefTorkelsen Thanks. I am a beginner. Are you saying that Margin interest rate only can be triggered when the put option become In The Money? So, as long as the stock is up over the strike price, it's no margin interest rate? Does it apply to any broker?
Robinhood doesn't work outside USA 😊
Too much verbage. Had to quit watching. Great topic. Redo it please. 10 minutes max.
Your impatience is very foolish. This info is priceless and isn’t taught in college
Too much yapping, and information it’s pretty generic
Lol this guy has quite the ego
You have a lot to learn
@@shill1103 don't we all
Must be click bait 10 min lost so far