I think the general presentation was very good. Alas, choosing NVDA for your example is just using such a performance outlier, it distorts the reality of typical trade results. I'll withdraw my concern . . . if you will tell me what the NVDA-like performer for '25 will be.
well it s convinient to give examples when stocks rally 1200 percent :) Fact of the matter you still deal with time decay and stocks still need to go up as well as increase in vol significantly to be making money
I would love to hear a discussion on using this strategy for futures options vs equity options, with a comparison between capital efficiency. Thank you!
What do you think about doing this on the IBIT Bitcoin ETF that recently became options friendly? If Bitcoin more than doubles this year as many Bitcoin fans hope it seems like a good place to be using long calls.
Tony, As always nice presentation. I am a newbie. I have just been running wheel strategies so far. Question: If the goal is to Sell Call Option Contracts to earn premium, on a deep ITM Long Call Option, I am not sure if a wheel strategy would be a better choice. Can you please help educate by doing a pros and cons of both this "Fig Leaf" and the Wheel strategy? That would be an eye opener if we can look at the data to see which strategy is better for which type of situation.
I would not recommend selling a deep ITM call 😂. Deep ITM calls, while they move 80% with the stock up. They also go down the same amount. Buy the 45 delta and let the stock roll Into your strike. If you underlying doesn’t perform as expected you only lose 1/2 compared to an 80 delta.
@colinm1502 I think I did not phrase my question correctly. If I am buying the 45 delta call option why would I allow the stock to roll down to my strike price? The whole idea of buying the Deep ITM call option is when you expect the stock price to shoot up. That way you get to exercise the call option to own the underlying at the strike price the call contract was bought and eventually sell the stocks to make your profits. if the underlying doesn't move up, but moves below the strike price at which the ITM call option was bought then you loose the money paid for buying the Deep ITM call option. So, buying the Deep ITM call option is suitable for scenarios where the stock is "expected" to shoot up in a year or two which is the whole reason for choosing an expiry date that far out. - Bullish scenario.
If you have a price target of + 50% over 1 year would you still go deep in the money at an 80 delta or maybe go for an at the money with a 60ish delta? Thank you for the video.
Do you know when an option premium is going to be the highest based on volatility? Would you say right at the open? I’m thinking it would be nice to sell a 20 Delta and get the highest premium possible.
Implied Volatility is the measure of how high an options premium is. Generally we do not see a trend intraday that suggests open or close is better to be a seller if your holding period is a few weeks.
@@OptionsPlay I have been watching your videos as well as Tom Sosnoff's videos. He had some nice slides put together for about 15 years worth of data. From what I understood, to sell at open is ideal with a holding period of 21 Days (Optimal).
Hi.. Okay so I have one long dated call option for palantier @ a $40 strike that expires in June of 2025. Would this be something I should sell a covered call on? The call option is currently up 1137% I only have one contract
You can’t sell a covered call on a call option…You could exercise your call option to buy the shares at the 40$ price and then sell a covered call on those shares though.
Virgo, don't sell a CC against that long call option. PLTR keeps jumping up at alarming rates and I have already lost a few hundred shares (at a nice profit, but nowhere near the profit I would have had if I had just held the stock), and had to buy back 1 contract at a loss to keep my PLTR leaps option. If PLTR finally levels off for a month or so, then you can start selling CCs against your LEAPS option. But until then, you can make way more by just holding your leaps.
@@virgo5960 No dashable, I roll out options all the time. When an underlying spikes up super fast, it can easily make it so that you would have to roll out 4 months or so just to not lose money, and in those 4 months a stock like PLTR will blow past that new, higher strike price so fast that you would have to roll out to January 2026 to keep up with it. I'm not that new to this.
I just have to applaud your content man, well done. Long term investors know that the market and economy will recover eventually, and investors should be positioned for such a rebound. I gained $180k from bitcoin in 2021 before the market crash and now I'm buying again, adding more at a time. Having a good financial advisor like Florence Monroe, it will add to your success in the crypto market.
Wow. I'm surprised seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA agent in the United States.
@OptionsPlay right, but if our strategy is based on taking advantage of Theta, wouldn't we want to maximize that advantage by buying 1-2 yrs out? Assuming you have a larger account, wouldn't these LEAPS make more sense?
What do you think about buying 1 year out on leap then after 6 months roll out to another full year. Theta decay kept low and perhaps offset by market increase over that time. I would do shorts weekly.
Call Options inherently protect you from the downside, we also will be apply stops to this strategy to. However, longer term bearish markets allow for asset prices to reset and for us to buy calls on stocks at a lower price and valuation in the long run.
This video is about the well chosen example. If we knew in advance what stock was going to go parabolic we would all be enjoying martinis (or LIITs) on our yachts in Bahamas. Avoid
@dpstrial That is what we think it does not come out that way. Just going long and not selling anything against it will make you more money. I guess you did all that work for less profit. The DTE 45days gives the most profit. longer cost you money. Beating buy and hold is very difficult.
Selling 'poor man's covered calls' against a deep ITM long LEAPS call option can be very expensive, if you are assigned. You will lose all the extrinsic value of the long call.
@@klister The long LEAPS call is probably sound on bullish ETFs because of its leverage (and defined loss). It should be sold well before expiration, however.
I just learned that there are levels for options that the broker puts you at and this level determines what strategies or things you are allowed to do. I'm a level 0 with charels schwab. What level do you need to be at to implement this strategy?
Buying a naked call (or put) just requires level 1. Spreads need level 2. Selling naked options usually requires level 3 or 4, and you have to pass an options test to qualify
@@Nathan00at78Uuiu Increasing to level 3 is quite easy with Schwab. You can find more info under "options and margin". or something like that, on their website. Depending on your acct type, you may either applying online, or download paper application. They increased my level from 0 to 3 after my initial application for trading spreads and naked ( i did say i had years of option trading experience. no one questioned me), but rejected level 4 and said i could apply for it in 6 months. level 3 lets me sell spreads and naked puts, but not naked calls. Hope this helps.
This is going to be a different bull market. With XAI240K coming to scene. Ben basing off previous speculative markets. I can see 300,000 next bull run.🎉🎉🎉🎉🎉
Depends on your finances . 1000$ in XAI240K is 4000 XAI240K if it goes to 50% of ath in 2024 thats a 600% gain. If it goes equal to ath . Its a 1200% gain.
Yup i put it all in XAI240K, literally more money i thought i even had 💀, i seen people sell their car put it all on XAI240K and double their money. Scared money dont make no money 😤
Just swapped all of my last ETH and swapped it into XAI240K. Already up a little bit. Unfortunately I have some other junk staked which won’t free up for a while. Still now I am on the train!
Don't let Elons's XAI240K pass you by. This is a monumental moment in history, and you don't want to be left out of the loop. Get in on the ground floor now!
I think the general presentation was very good. Alas, choosing NVDA for your example is just using such a performance outlier, it distorts the reality of typical trade results. I'll withdraw my concern . . . if you will tell me what the NVDA-like performer for '25 will be.
well it s convinient to give examples when stocks rally 1200 percent :) Fact of the matter you still deal with time decay and stocks still need to go up as well as increase in vol significantly to be making money
hmm does not seem like the type of video I want to spend an hour on
I would love to hear a discussion on using this strategy for futures options vs equity options, with a comparison between capital efficiency. Thank you!
You can't buy single stock options on futures so there isn't much to compare unfortunately.
@@OptionsPlayyou can buy options on futures actually. Both mini and micro.
FANTASTIC video. Truly, a great video.
What do you think about doing this on the IBIT Bitcoin ETF that recently became options friendly? If Bitcoin more than doubles this year as many Bitcoin fans hope it seems like a good place to be using long calls.
Thanks for another helpful video! How do you approach pre-market gap-ups through your pivot? Do you avoid such setups?
Hey guys. Im just signing up and love the longer term investing. Where can i find the information about this fund
Where can I find it?
This is a trading signals service offered by OptionsPlay, you can find it at optionesplay.com/signup but it is not a fund.
@@OptionsPlay that link does not work...
@@blakehoran9629 It looks like it was spelled wrong in the link. There should not be an "e" in the word options
Tony, As always nice presentation.
I am a newbie. I have just been running wheel strategies so far.
Question:
If the goal is to Sell Call Option Contracts to earn premium, on a deep ITM Long Call Option, I am not sure if a wheel strategy would be a better choice.
Can you please help educate by doing a pros and cons of both this "Fig Leaf" and the Wheel strategy?
That would be an eye opener if we can look at the data to see which strategy is better for which type of situation.
I would not recommend selling a deep ITM call 😂.
Deep ITM calls, while they move 80% with the stock up. They also go down the same amount. Buy the 45 delta and let the stock roll
Into your strike. If you underlying doesn’t perform as expected you only lose 1/2 compared to an 80 delta.
@colinm1502 I think I did not phrase my question correctly.
If I am buying the 45 delta call option why would I allow the stock to roll down to my strike price?
The whole idea of buying the Deep ITM call option is when you expect the stock price to shoot up. That way you get to exercise the call option to own the underlying at the strike price the call contract was bought and eventually sell the stocks to make your profits.
if the underlying doesn't move up, but moves below the strike price at which the ITM call option was bought then you loose the money paid for buying the Deep ITM call option.
So, buying the Deep ITM call option is suitable for scenarios where the stock is "expected" to shoot up in a year or two which is the whole reason for choosing an expiry date that far out. - Bullish scenario.
If you have a price target of + 50% over 1 year would you still go deep in the money at an 80 delta or maybe go for an at the money with a 60ish delta? Thank you for the video.
I'm wondering about, would it make sense to buy a cheap out of the money put just as some insurance?
The biggest issue with this strategy is if the stock tanks you would be losing a lot for a meagre CC premium
Do you know when an option premium is going to be the highest based on volatility? Would you say right at the open? I’m thinking it would be nice to sell a 20 Delta and get the highest premium possible.
Implied Volatility is the measure of how high an options premium is. Generally we do not see a trend intraday that suggests open or close is better to be a seller if your holding period is a few weeks.
@@OptionsPlay I have been watching your videos as well as Tom Sosnoff's videos. He had some nice slides put together for about 15 years worth of data.
From what I understood, to sell at open is ideal with a holding period of 21 Days (Optimal).
Hi.. Okay so I have one long dated call option for palantier @ a $40 strike that expires in June of 2025. Would this be something I should sell a covered call on? The call option is currently up 1137% I only have one contract
You can’t sell a covered call on a call option…You could exercise your call option to buy the shares at the 40$ price and then sell a covered call on those shares though.
Yes, way out the money if you don't want to lose your option
@@connorcaba2492 does it matter that I own it but in my long-term port..not wanting anymore shares
Virgo, don't sell a CC against that long call option. PLTR keeps jumping up at alarming rates and I have already lost a few hundred shares (at a nice profit, but nowhere near the profit I would have had if I had just held the stock), and had to buy back 1 contract at a loss to keep my PLTR leaps option. If PLTR finally levels off for a month or so, then you can start selling CCs against your LEAPS option. But until then, you can make way more by just holding your leaps.
@@virgo5960 No dashable, I roll out options all the time. When an underlying spikes up super fast, it can easily make it so that you would have to roll out 4 months or so just to not lose money, and in those 4 months a stock like PLTR will blow past that new, higher strike price so fast that you would have to roll out to January 2026 to keep up with it. I'm not that new to this.
what time of the day do you have your classes
yes. how about a few sessions on futures options pleaser
Isn't this strategy simply a PMCC?
Yes it is!
Hey guys.. having a problem signing up. Im in canada not sure if that is the problem or not. Is there a help line?
could yu please link me for buying the opton book.
I just have to applaud your content man, well done. Long term investors know that the market and economy will recover eventually, and investors should be positioned for such a rebound. I gained $180k from bitcoin in 2021 before the market crash and now I'm buying again, adding more at a time. Having a good financial advisor like Florence Monroe, it will add to your success in the crypto market.
Wow. I'm surprised seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA agent in the United States.
You trade with Florence Monroe too? Wow that woman has been a blessing to me and my family.
please I'm new at this, how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
I would love to see this on OEX
Really great presentation
Thank you kindly!
Couldn’t agree more with the concept of using options to mimic stocks without the huge capital outlay! 💸 Is it really as safe as it sounds though?
How about a ZEBRA for more capital efficiency?
Why 6 months instead of more than a year?
Less expensive
It's long enough where the time decay per day is low, but not too expensive such as options that are longer than 1 year from expiry.
@OptionsPlay right, but if our strategy is based on taking advantage of Theta, wouldn't we want to maximize that advantage by buying 1-2 yrs out? Assuming you have a larger account, wouldn't these LEAPS make more sense?
What do you think about buying 1 year out on leap then after 6 months roll out to another full year. Theta decay kept low and perhaps offset by market increase over that time. I would do shorts weekly.
tony te market is in bullish mode what yor stategu woukd do wen market is in bearish mode?
Call Options inherently protect you from the downside, we also will be apply stops to this strategy to. However, longer term bearish markets allow for asset prices to reset and for us to buy calls on stocks at a lower price and valuation in the long run.
This video is about the well chosen example. If we knew in advance what stock was going to go parabolic we would all be enjoying martinis (or LIITs) on our yachts in Bahamas. Avoid
The truth of the matter is 45dte gives the most profit and highest result. Do not sell any call against it.
In short calls over 45 DTE the expected move is bigger than the realised move, and so it makes sense to go over 45 DTE.
@dpstrial That is what we think it does not come out that way. Just going long and not selling anything against it will make you more money. I guess you did all that work for less profit. The DTE 45days gives the most profit. longer cost you money. Beating buy and hold is very difficult.
@gobele1 And do you hold that till expiration or do you exit early on that 45 DTE?
@@linmk541 I exit early at 21dte. It is Tasty mechanics. Let me try it without exiting.
Bots!
XPAY does a DITM long call on s&P500 dist. 20% yr (monthly) income like clock work!
ez
Edit out pauses 👍🏼
Yes community driven project like XAI240K
Selling 'poor man's covered calls' against a deep ITM long LEAPS call option can be very expensive, if you are assigned. You will lose all the extrinsic value of the long call.
I just cover the short position/buy stock while selling a new call. The long dated call is never exercised in my account.
@@klister The long LEAPS call is probably sound on bullish ETFs because of its leverage (and defined loss). It should be sold well before expiration, however.
27:40
XAI240K gonna print green god candles this bull run!!! 🚀🚀🚀
googles since the chrome incident, everyone was calling for $200..
Who knows what will happen six month to risk
I heard he sold to buy XAI240K
Always interesting analysis. But I am DCAing into my XAI240K alts anyway
Why is XAI240K doing so well? That is concerning to me.
297th like🥳🥳✌️✌️
Thank you!
Is there a customer service number or email?
I just learned that there are levels for options that the broker puts you at and this level determines what strategies or things you are allowed to do. I'm a level 0 with charels schwab. What level do you need to be at to implement this strategy?
Buying a naked call (or put) just requires level 1.
Spreads need level 2. Selling naked options usually requires level 3 or 4, and you have to pass an options test to qualify
You would need to have the level at Schwab to trade spreads on margin to execute this strategy.
@@OptionsPlaythank you. Looking at the levels that is a level 3 with Charles Schwab. Any advice what to do for level 0 investors?
@@eugenepark9665looks like options play responded with the clearance for spreads which is level 3.
@@Nathan00at78Uuiu Increasing to level 3 is quite easy with Schwab. You can find more info under "options and margin". or something like that, on their website. Depending on your acct type, you may either applying online, or download paper application. They increased my level from 0 to 3 after my initial application for trading spreads and naked ( i did say i had years of option trading experience. no one questioned me), but rejected level 4 and said i could apply for it in 6 months. level 3 lets me sell spreads and naked puts, but not naked calls. Hope this helps.
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