Thanks for sharing. If we are bullish on TSLA and need the cash to cover Selling the Put, why wouldn't we just execute a Covered Call? Just trying to understand why we would sell the Put before selling the Call given we need the underlying cash / margin. Thanks!
selling the put generates income if the stock goes up, and allows you to buy tesla at a lower price if it goes down while collecting a premium from the covered call. That's what I think.
Thanks for the reply - I guess where I struggle is that you do get the stock at a discount with a covered call (cost basis = stock buy price - call premium collected) and are still locked in from a capital allocation perspective with either having to hold the cash / margin (sell put) or stock (sell call). Just trying to see how best to allocate my portfolio capital and the tradeoffs are not clear. @OptionsWithRyan - could you do a video to look at a comparison? As I have traded, the portfolio management seems to be the next biggest hurdle versus individual trades.
In order to execute the covered call, you would need to own 100 shares. Thats why I enter the trade via cash secured put first to get assigned 100 shares, then sell the Covered Call. Hopefully I understood you right.
The problem with this approach - although solid- is as the price go higher you will be able to sell less and less puts and calls. So premium goes down overall. Tsla has a tendency to make wild moves as you know 😂
Hey I appreciate your opinion, but if you are going to say that there is "problems" with a strategy, please provide your solutions. I'm here to provide solutions to people's problems...so I encourage my audience to do the same.
@rpuggal then wouldn't we just do the same thing we do when any stock gets too high to run the wheel on, and move to a cheaper stock? And wouldn't we get higher premiums for each option as the price goes up, so that you would need to sell less options for more premium? I'm new at this, so I'm trying to learn.
@@donnyh3497 depends on the stock but yeah in general it gets more capital intensive as the stock moves higher. I mean look at tsla go for double in a few months. That would put the brakes on any strategy or maybe sell less puts and calls ? Idk premium is a percentage of stock price aka expected return
It’s Wednesday and I never received your email. Which I never do, despite my many attempts at trying. Either I’m doing something wrong, or you just don’t send them out.
I am loving your video's! Keep up the good work👍
Glad you like them! I appreciate the support!
Fed cut rates,, are the stock goin to bearish? Thaanks
bullish
Thanks for sharing. If we are bullish on TSLA and need the cash to cover Selling the Put, why wouldn't we just execute a Covered Call? Just trying to understand why we would sell the Put before selling the Call given we need the underlying cash / margin. Thanks!
selling the put generates income if the stock goes up, and allows you to buy tesla at a lower price if it goes down while collecting a premium from the covered call. That's what I think.
Exactly, like that,
Also, you may want to be assigned the shares if you care for the underlying.
Or get out of your position as well
Thanks for the reply - I guess where I struggle is that you do get the stock at a discount with a covered call (cost basis = stock buy price - call premium collected) and are still locked in from a capital allocation perspective with either having to hold the cash / margin (sell put) or stock (sell call). Just trying to see how best to allocate my portfolio capital and the tradeoffs are not clear. @OptionsWithRyan - could you do a video to look at a comparison? As I have traded, the portfolio management seems to be the next biggest hurdle versus individual trades.
In order to execute the covered call, you would need to own 100 shares. Thats why I enter the trade via cash secured put first to get assigned 100 shares, then sell the Covered Call. Hopefully I understood you right.
When you sell a call or put do you get the full premium credited to you account instantly?
Yes at the moment you got filled
No exceptions
yes immediately
You won’t immediately get Assigned if the price hits your strike point, normally until contract expired.
correct!
Pullback today. Selling another CSP?
Going to wait until tomorrow for further dump
The problem with this approach - although solid- is as the price go higher you will be able to sell less and less puts and calls. So premium goes down overall. Tsla has a tendency to make wild moves as you know 😂
Hey I appreciate your opinion, but if you are going to say that there is "problems" with a strategy, please provide your solutions.
I'm here to provide solutions to people's problems...so I encourage my audience to do the same.
@rpuggal then wouldn't we just do the same thing we do when any stock gets too high to run the wheel on, and move to a cheaper stock? And wouldn't we get higher premiums for each option as the price goes up, so that you would need to sell less options for more premium? I'm new at this, so I'm trying to learn.
@@donnyh3497 depends on the stock but yeah in general it gets more capital intensive as the stock moves higher. I mean look at tsla go for double in a few months. That would put the brakes on any strategy or maybe sell less puts and calls ? Idk premium is a percentage of stock price aka expected return
I have a small account. Less than 10K. Any educational information.
Make mo monay lol
Yes, did you find the Vertical Spreads tutorial on my channel? th-cam.com/video/Zd9Du2D_fzA/w-d-xo.htmlsi=giIAwD2oE6CmANof
If less than 10 k to trade TSLA ,why don't you try TSLL, a TSLA 2xETF @33.55.
Tou forgot to mention to sell call on green day only😁
Tsla is a meme stock,period
meme like potential + fundamentals = the perfect mix...kind of like Palantir
@ I agree, I do invest in tsla . Great channel by the way.
It’s Wednesday and I never received your email. Which I never do, despite my many attempts at trying. Either I’m doing something wrong, or you just don’t send them out.
I send them out Mon, Wed, Friday around 1pm. Please check your junk folder and make sure to star my email
Hang on for the ride. down.
you put tesla in a video I leave it
great!
Wel markets dead
lol they back now