5 CSPs at $505 premium: $505 x 5 = $2525 (not $3600). 5 csp contracts at $13,800 = $69000. $2525 / $69000 = 0.036 x 100 = 3.6% 3.6% is the coc return on the CSP trades. The $3600 figure is 3.6% of the 100k account total. (not the trade) I welcome correction if I am mistaken.
Great strategies and it works until it doesn't. you will win 8 out of 10 trades, but couple of times, you will have 700 shares and NVDA may continue the downward spiral. Market gurus say it will go to the moon, but I have seen so many times how any good company will reverse.. it's how much you handle to hold to the stock until it recovers is the challenge. NVDA has a unique advantage for atleast couple of years though.. only time will tell!
if you are running this strategy on the magnificent seven companies it's safe to say the probability of those stocks going into a downward spiral it isn't likely they go so far out you are unlikely to sell calls if assigned provided you have done your research properly. The wheel is the most basic and safest strategy but not in the hands of an idiot.
U forgot to add that shares dont expire.. u can also dca to bring ur avg down while still selling covered calls ... or just buy shares at all time highs... or buy options that will expire if it goes down... this is a max profit better way to trade and invest
Agreed! I have gotten crushed selling options on tickers that did plummet - things like FB and PayPal - even AMZN at one point - sometimes it takes a few weeks or months to get enough premium from writing cc. Other times - like with PYPL - I’m still bag holding - and I’m earning nothing on that capital and it’s just a waiting game.
There's always investors out there who will buy the blood on undervalued stocks. This happened to NVDA back in August. Crashed 30%...I was assigned on 1000 shares...then had my best month in September because all my shares got called away 20% higher. If a company has flat financials then yes, you should reconsider how much you allocate. I would love for you to state a specific stock example that didn't work well for you, so we can all learn!
This strategy worked phenomenally well in 2024. In the next semi/general bear market you get left holding a bag of NVDA around $135 or there abouts and get to watch as your covered call premium decreases month after month. Its fine, but before entering this trade you have to ask yourself "Am I comfortable holding NVDA for up to 5 or more years and being able to generate little or no premium against my position in a worst case scenario"
great analysis Jim! Please watch my bear market masterclass video on my channel as I go over what you would need to do with your current "Wheel" positions when we enter a bear market.
Aren't Bollinger Bands "after the fact"? They're not predictive... you might have tight Bollinger bands today... and tommorrow a breakout with make them expand... just because a stock touches the top or bottom band... does not mean it has to reverse... it could break out... so what exactly is the value of Bollinger Bands?
Most indicators are lagging. Thats why you never use them as the end all be all. Only use technical indicators as a supplement to your overall analysis and conviction.
On the cc puts.. If the stock price raises significantly in the first 3 days or so and you've made 40%-60% of that premium by closing early, do you roll it into another 30 delta put? Or recommend waiting the entire 30 or so days to expiration? You have a process on this? Thanks.. Great content.
Wonderful if have 100k , but if not , what can we do ? My personal experiece is to trade NVDX and NVDL , expecially trade in the money covered call and in the money covered put , and don't be afraid of 2x or 3x , because the premium sold is also 2x and 3x. Then in longer term , if NVDA goes up ,NVDX and NVDL go up ( in a bull market ).
csp collect 500*5= 2500 plus 1600 on the 2 cc. So isn´t the result 4K instead of 5.2K? wouldn´t be safer to diversify across stocks and weeks whenever there are good stocks at a discount? anyway...
Don't forget about the shares getting called away, gotta add in that profit as well. You could definitely diversify. Im just talking about NVDA in this particular video because people like the stock!
@@OptionsWithRyan Just trying to get the math right (great trading idea regardless ty!) but I think @jose included the appreciation in the 1600 (800 cc premium + 800 stock appreciation) + 2500 (5 * 500) = $4k I believe. (I've been trying to calculate the numbers for myself and keep coming up short!)
Great question! With NVDA I prefer to hold the shares as its a higher risk position and if I get assigned, im okay holding. Also I already have a bunch of PLTR LEAPS that make up 10% of the portfolio so I don't feel comfortable owning any more LEAPS due to Theta Decay.
I don't believe in 2% allocation per position. I do closer to 10-12%. The way I diversify is I have 25%-50% tied up in QQQ to even out the volatility of my portfolio. Currently 25% because I believe individual stocks will outperform in 2025.
Well if it crashes like in 2020....it rebounds in 35 days so you can just hold your position. If you want a bear market tutorial, go search for it on my channel. I went over the exact strategy!
Life is full of risk. You ve got to prepare yourself and mind for that. Otherwise you should not be trading and keep 9-5 job at the same time, and company can fold up too. People get laid off.
On your chart, July 15th is when the stock first hits the bottom of the Bollinger band. If you entered the wheel then, the stock kept going down. Once we get to a 'green bar' around August, then it goes up. Do you recommend waiting for it to touch the bottom but also have a 'green bar'? A similar thing happened in early December. Also, it doesn't look like the stock goes below the middle of the band monthly, so the return won't repeat every month?
The thing most miss is that ur giving a safer strategy and waiting for a ideal entry at the same time making premiums.. everyone is so fast to say if the stick falls or goes down not realizing thst ur entry on under the middel band on daily would have to be after a nice pull back then the premiums protect u incase of another pull back.. they are small minded... they rsther buy at the current price makes no sense
Hi Ryan, can I urge you to try and select a font in your videos as well as the back ground color to help enhance the contrast and make your material produced far more easily visible. Your camera focus seems to be a little too distant compared to hundreds of other TH-cam video productions if you objectively observe them. I respect your knowledge and strategies considerably, but often times struggle to even find the cursor on your screen during your explanation, or during moments of your attempts to draw attention to certain sections on the graphs or other indicator lines. 1) Font weightage ! 2) Closer camera focus from a viewer’s perspective ( not just your perspective) I would deeply appreciate it if you could make the viewing experience far more easier to see on the mobile devices. I have the latest iPhone with a substantially larger screen , yet your video production is the only one, I struggle with to view with ease. I am truly your fan and appreciate the knowledge you provide on TH-cam, please do consider my quality of user experience at your channel. Find out for yourself the extremely high % of viewership on mobile devices who maybe under going a similar predicament and just summarily by-passing your very knowledgeable and informative channel.
You can do this for six months or so and keep feeding the money back into it to lower your cost basis, then start taking income or keep throwing it back until you can retire....
Seems like a great strategy... if the stock is on the kind of upswing Nvidia has been on since Oct. of 2022... so how do you know when it's going to level off... or worse yet... the AI Bubble bursts... and we enter another AI Winter? Some say we are in an "Everything Bubble"... and we just had major administration changes on Capital Hill... what is everyone doing to hedge and protect against a possible bubble burst or Black Swan on Nvidia... or any other stocks/ETFs for that matter?
I made a Bear Market Masterclass video on my channel just for you. Please just type in "bear market" on the search tab of my channel. It will pop up! I go over in depth strategies on how to protect yourself and profit!
This is true. Video was filmed on Nov 29th and at that time this was a good strategy. Right now the price is in the middle of the Bollinger band so it could go down. To his credit it did go up like he predicted.
Sergio, read the title again...it says 50k trading Nvidia, once per month. $50k for the year brother. I'm sorry you got confused...will specify better next time.
Cash Secured Puts may be "Guaranteed Income"... but if the price drops enough... it's not "Guaranteed Profit". Folks talk about Wheel Strategy like nothing ever goes wrong... Granted on something like SPY you can make the argument that total market always returns... if you wait long enough... But Nvidia is a single issue.
ur missing the whole concept. Alot of people just go buy shares this method is WAITING on the best time to sell the csp which is on a sell off using the daily.. so it males the style safer to get paid on buying the shares cheaper than nust going out and buying them at the top.. the whole concept is to wait for entries.. also.. even if he gets assigend at say 136 and stock drops to 120.. he will dca down at 120.. bringing his avg down and still selling covered calls anove his new avg.. bottom line it's a safer strategy...
@@entertainmentinternational1087 I'm not missing it... I understand the idea of timing the puts and calls... that's pretty much intrinsic to the Wheel Strategy... point is... it can still blow up in our faces. Taking a page from gambling math... I'd say we don't have a first $1 of income until we have twice our maximum bankroll drawdown... Plus $1... that way draw downs never touch our initial bankroll ever again. But I defy anyone to define the Mathematical Expectation of any market strategy as tightly and correctly as roulette or dice... As they say... markets can stay irrational longer than we have capital, LOL! So my main point is... it's still basically a gambling strategy and you cannot think of it like a paycheck.
What is the time range you are seeing for Bollinger band.. Mine is for 3 months time frame to see 1 day chart on Robin Hood and I see Bollinger bond range is completely different.. please let me know..
Why spread the negative comment. Ryan please don’t pay him any heed. The more videos the better, most are here to learn and study, the more reps and learning that better , even if it’s review or a new theme on an old concept. You don’t like it just don’t watch
This math doesn't add up. Selling 5 cash secured puts and two covered calls weekly over a month does not come up to anywhere close to 50k/month. The most I can come up with is about $6400 per month.
its per year...i should have made the title $50k/yr trading NVDA once per month...my bad. Also you have to factor in the shares getting called away. That is profit as well. Happened to me in September and made over $50k in just that month alone.
Some of these YT videos are very helpful for general knowledge. The guy is not wrong but I wouldn’t run a wheel on NVDA or TSLA because of high volatility and uncertainty
@ because you were giving that example in the video. When you insinuate something like that people will think thats what your promoting. Which in your video it looks that way
Understanding the strategy is more profitable rather than looking for tiny fault in the video. Welldone Ryan n thanks
5 CSPs at $505 premium: $505 x 5 = $2525 (not $3600).
5 csp contracts at $13,800 = $69000.
$2525 / $69000 = 0.036 x 100 = 3.6%
3.6% is the coc return on the CSP trades.
The $3600 figure is 3.6% of the 100k account total. (not the trade)
I welcome correction if I am mistaken.
I think you're right, one of my viewers messaged me on IG about it. Math might have been off. Thank you for the feedback.
I really enjoy your channel, thankyou for your videos....
I appreciate the support!
Love the watch! Thank you for sharing your knowledge and experience. Earned a new sub from me 👍
I appreciate you Derrick! It's the dream watch for sure
Great strategies and it works until it doesn't. you will win 8 out of 10 trades, but couple of times, you will have 700 shares and NVDA may continue the downward spiral. Market gurus say it will go to the moon, but I have seen so many times how any good company will reverse.. it's how much you handle to hold to the stock until it recovers is the challenge. NVDA has a unique advantage for atleast couple of years though.. only time will tell!
if you are running this strategy on the magnificent seven companies it's safe to say the probability of those stocks going into a downward spiral it isn't likely they go so far out you are unlikely to sell calls if assigned provided you have done your research properly. The wheel is the most basic and safest strategy but not in the hands of an idiot.
U forgot to add that shares dont expire.. u can also dca to bring ur avg down while still selling covered calls ... or just buy shares at all time highs... or buy options that will expire if it goes down... this is a max profit better way to trade and invest
agree, and at least in theory it is less than 80% win rate as we are getting very high deltas, right?
Agreed! I have gotten crushed selling options on tickers that did plummet - things like FB and PayPal - even AMZN at one point - sometimes it takes a few weeks or months to get enough premium from writing cc. Other times - like with PYPL - I’m still bag holding - and I’m earning nothing on that capital and it’s just a waiting game.
There's always investors out there who will buy the blood on undervalued stocks. This happened to NVDA back in August. Crashed 30%...I was assigned on 1000 shares...then had my best month in September because all my shares got called away 20% higher.
If a company has flat financials then yes, you should reconsider how much you allocate.
I would love for you to state a specific stock example that didn't work well for you, so we can all learn!
Could you please explain how a $3600 sell put is calculated? Thanks.
This strategy worked phenomenally well in 2024. In the next semi/general bear market you get left holding a bag of NVDA around $135 or there abouts and get to watch as your covered call premium decreases month after month. Its fine, but before entering this trade you have to ask yourself "Am I comfortable holding NVDA for up to 5 or more years and being able to generate little or no premium against my position in a worst case scenario"
great analysis Jim! Please watch my bear market masterclass video on my channel as I go over what you would need to do with your current "Wheel" positions when we enter a bear market.
Aren't Bollinger Bands "after the fact"? They're not predictive... you might have tight Bollinger bands today... and tommorrow a breakout with make them expand... just because a stock touches the top or bottom band... does not mean it has to reverse... it could break out... so what exactly is the value of Bollinger Bands?
TA may or may not have merit vs FA
Most indicators are lagging. Thats why you never use them as the end all be all. Only use technical indicators as a supplement to your overall analysis and conviction.
On the cc puts.. If the stock price raises significantly in the first 3 days or so and you've made 40%-60% of that premium by closing early, do you roll it into another 30 delta put? Or recommend waiting the entire 30 or so days to expiration? You have a process on this? Thanks.. Great content.
Wonderful if have 100k , but if not , what can we do ? My personal experiece is to trade NVDX and NVDL , expecially trade in the money covered call and in the money covered put , and don't be afraid of 2x or 3x , because the premium sold is also 2x and 3x. Then in longer term , if NVDA goes up ,NVDX and NVDL go up ( in a bull market ).
The strategy you are doing seems like it works great! Keep going.
Also, you will have 100k soon, just keep up the trading. Patience is key.
csp collect 500*5= 2500 plus 1600 on the 2 cc. So isn´t the result 4K instead of 5.2K? wouldn´t be safer to diversify across stocks and weeks whenever there are good stocks at a discount? anyway...
Don't forget about the shares getting called away, gotta add in that profit as well.
You could definitely diversify. Im just talking about NVDA in this particular video because people like the stock!
@@OptionsWithRyan Just trying to get the math right (great trading idea regardless ty!) but I think @jose included the appreciation in the 1600 (800 cc premium + 800 stock appreciation) + 2500 (5 * 500) = $4k I believe. (I've been trying to calculate the numbers for myself and keep coming up short!)
Nice strategy Ryan!
Thanks PapaSharoke! I appreciate you being here
Why not just buy leaps and sell covered calls against them?
Poor man strategy is good if you don't have enough cash.
Leaps still decay.. if u have $$$ buying shaees is safer
Great question! With NVDA I prefer to hold the shares as its a higher risk position and if I get assigned, im okay holding.
Also I already have a bunch of PLTR LEAPS that make up 10% of the portfolio so I don't feel comfortable owning any more LEAPS due to Theta Decay.
@OptionsWithRyan why don't you sell CSPs to make some premium and probably get some shares
In a single position of NVDA, you have 100k?
What's happened to risking two percent of your portfolio? Also opinion on diversification
I don't believe in 2% allocation per position. I do closer to 10-12%. The way I diversify is I have 25%-50% tied up in QQQ to even out the volatility of my portfolio. Currently 25% because I believe individual stocks will outperform in 2025.
what happens if the market crashes?
Well if it crashes like in 2020....it rebounds in 35 days so you can just hold your position.
If you want a bear market tutorial, go search for it on my channel. I went over the exact strategy!
Life is full of risk. You ve got to prepare yourself and mind for that. Otherwise you should not be trading and keep 9-5 job at the same time, and company can fold up too. People get laid off.
Great video. Learning a lot from you. Thanks.
Thanks for watching! I appreciate you being here!
On your chart, July 15th is when the stock first hits the bottom of the Bollinger band. If you entered the wheel then, the stock kept going down. Once we get to a 'green bar' around August, then it goes up. Do you recommend waiting for it to touch the bottom but also have a 'green bar'? A similar thing happened in early December. Also, it doesn't look like the stock goes below the middle of the band monthly, so the return won't repeat every month?
The thing most miss is that ur giving a safer strategy and waiting for a ideal entry at the same time making premiums.. everyone is so fast to say if the stick falls or goes down not realizing thst ur entry on under the middel band on daily would have to be after a nice pull back then the premiums protect u incase of another pull back.. they are small minded... they rsther buy at the current price makes no sense
Thank You! You get it...i don't know why most people don't just do this strategy. At least we are DCA'ing at a discount instead of at a premium.
How did he get 3600$ in cash secured put???
I went over all calculations towards the end of the video
Hi Ryan, can I urge you to try and select a font in your videos as well as the back ground color to help enhance the contrast and make your material produced far more easily visible.
Your camera focus seems to be a little too distant compared to hundreds of other TH-cam video productions if you objectively observe them.
I respect your knowledge and strategies considerably, but often times struggle to even find the cursor on your screen during your explanation, or during moments of your attempts to draw attention to certain sections on the graphs or other indicator lines.
1) Font weightage !
2) Closer camera focus from a viewer’s perspective ( not just your perspective)
I would deeply appreciate it if you could make the viewing experience far more easier to see on the mobile devices.
I have the latest iPhone with a substantially larger screen , yet your video production is the only one, I struggle with to view with ease.
I am truly your fan and appreciate the knowledge you provide on TH-cam, please do consider my quality of user experience at your channel.
Find out for yourself the extremely high % of viewership on mobile devices who maybe under going a similar predicament and just summarily by-passing your very knowledgeable and informative channel.
Yes will give this feedback to my editor. I appreciate you!
You can do this for six months or so and keep feeding the money back into it to lower your cost basis, then start taking income or keep throwing it back until you can retire....
yup!
Seems like a great strategy... if the stock is on the kind of upswing Nvidia has been on since Oct. of 2022... so how do you know when it's going to level off... or worse yet... the AI Bubble bursts... and we enter another AI Winter?
Some say we are in an "Everything Bubble"... and we just had major administration changes on Capital Hill... what is everyone doing to hedge and protect against a possible bubble burst or Black Swan on Nvidia... or any other stocks/ETFs for that matter?
I made a Bear Market Masterclass video on my channel just for you. Please just type in "bear market" on the search tab of my channel. It will pop up!
I go over in depth strategies on how to protect yourself and profit!
Great info, but video is late. Price is no longer 138.
I believe it still applies, just using the updated prices.
It's a strategy for the long term, current Nvidia price isn't relevant.
This is true. Video was filmed on Nov 29th and at that time this was a good strategy. Right now the price is in the middle of the Bollinger band so it could go down. To his credit it did go up like he predicted.
Hi Pureheart, the strategy still applies...just wait for optimal entry like today!
wrong title dude, is 50K per year. title says per month. 15 minutes I will never get back. misleading title, click bait
Sergio, read the title again...it says 50k trading Nvidia, once per month. $50k for the year brother. I'm sorry you got confused...will specify better next time.
Cash Secured Puts may be "Guaranteed Income"... but if the price drops enough... it's not "Guaranteed Profit".
Folks talk about Wheel Strategy like nothing ever goes wrong...
Granted on something like SPY you can make the argument that total market always returns... if you wait long enough... But Nvidia is a single issue.
You can still sell covered calls against the assigned shares until the stock recovers
ur missing the whole concept. Alot of people just go buy shares this method is WAITING on the best time to sell the csp which is on a sell off using the daily.. so it males the style safer to get paid on buying the shares cheaper than nust going out and buying them at the top.. the whole concept is to wait for entries.. also.. even if he gets assigend at say 136 and stock drops to 120.. he will dca down at 120.. bringing his avg down and still selling covered calls anove his new avg.. bottom line it's a safer strategy...
@@ahmeds1683 It's still a loss if the market tanks... people end up unemployed and have to liquidate to keep a roof over.
@@entertainmentinternational1087 I'm not missing it... I understand the idea of timing the puts and calls... that's pretty much intrinsic to the Wheel Strategy... point is... it can still blow up in our faces.
Taking a page from gambling math... I'd say we don't have a first $1 of income until we have twice our maximum bankroll drawdown... Plus $1... that way draw downs never touch our initial bankroll ever again.
But I defy anyone to define the Mathematical Expectation of any market strategy as tightly and correctly as roulette or dice...
As they say... markets can stay irrational longer than we have capital, LOL!
So my main point is... it's still basically a gambling strategy and you cannot think of it like a paycheck.
@flmason everything involves a risk factor within. This is part of the game
What is the time range you are seeing for Bollinger band.. Mine is for 3 months time frame to see 1 day chart on Robin Hood and I see Bollinger bond range is completely different.. please let me know..
You may need to check the "standard deviations" setting on the bollinger bands. Always make sure its set to 2 standard deviations.
How many times are you going to post the same type of video?
I like it.
Why spread the negative comment. Ryan please don’t pay him any heed. The more videos the better, most are here to learn and study, the more reps and learning that better , even if it’s review or a new theme on an old concept. You don’t like it just don’t watch
I have the best audience! Lets keep up the positivity guys. There's already enough BS in the world for us to worry about.
This math doesn't add up. Selling 5 cash secured puts and two covered calls weekly over a month does not come up to anywhere close to 50k/month. The most I can come up with is about $6400 per month.
It’s per year
Little confusing title lol but yeah it's per year still that's basically most people's average salary.
How did he get 3600 $ in cash puts??
its per year...i should have made the title $50k/yr trading NVDA once per month...my bad.
Also you have to factor in the shares getting called away. That is profit as well. Happened to me in September and made over $50k in just that month alone.
If I had 100k I wouldn’t be searching for YT videos on daytrading lol
You still would
Not true bro. Plenty of folks do that. 100k its not a lot for a lot of people. Same goes the the other way. Welcome to America.
Ud be surprised how much these videos help... if u follow what some are doing and back test it.. ud be surprised how beneficial it is
Some of these YT videos are very helpful for general knowledge. The guy is not wrong but I wouldn’t run a wheel on NVDA or TSLA because of high volatility and uncertainty
daytrading lol...did he just say daytrading??
You loose your shirt
my shirt remains intact
Yeah if you are using almost all of your capital on one company and one trade you are going to fail.
When did I ever say to use all of your capital on one position?
@ because you were giving that example in the video. When you insinuate something like that people will think thats what your promoting. Which in your video it looks that way