Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Since I don't have enough time to pick the strike price and don't want to deploy so much capital I use the following covered call ETFs JEPI and JEPQ for the S&P 500 and the NASDAQ 100. I also use Global X's covered call ETFs for the Dow Jones Industrial Average, the Russell 2000, the financial sector, healthcare, technology sector covered call ETFs.
For those of us who don’t have time or knowledge to risk option calls would you please do video on ETFs that do the options for us, like JEPI, DIVO, SPYI, OMLF a set it and forget it dividend portfolio and/or a set it and forget it covered call ETF (with dividends and growth would be ideal) 😊 tall order but I trust you can rise to challenge and point us in correct direction. Thank you
After shares got called away, used the cash for a cash secured put on IWM to open a wheel strategy. If it works out over time, I may use leverage selling naked calls as to not sell not sell any of the portfolio.
But would you REALLY sell a covered call ATM? Or are you selling at a certain Delta? OR a certain number of strikes out of the money? If you don't want to see your ETFs called away half the time, then maybe the chosen strike to sell would be farther away? Maybe a delta of 20? Or perhaps the ETF being called away isn't a concern, and is part of the strategy?
46 Delta... as in 46% chance of opt. being in the money? What happens during those hits? How does that affect return? Are the annual projections iginoring trades that go bad? Or did I just miss something? Somehow I'm finding 50% ROI hard to believe?
Hi Donald! I think APPL is a good dividend stock for writing covered calls. TESLA and ARK are not dividend stocks AND are very volatile. My concern would be IF the prices drop significantly and I have to hold a stock with no dividend. Just my $0.02 though. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hi David, I do not have any regional banks currently in the portfolio BUT I am not opposed to rolling down covered calls when the markets go down to capture more premium. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
GREAT QUESTION CARL! Options are generally not called away early because the option buyer can generally get the exact same benefit by just selling the option contract to somebody else and capturing the gain in the value of the option contract. Actually getting assigned doesn’t add any benefit to the owner of the contract that CANNOT be achieved by just selling the contract for a profit. The only caveat would be to be an owner by the ex-dividend date of a dividend stock. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Hey Joe, Should I roll or leave it? I have 1 contract call option on NVDA at $260 expires 6/21/24, my cost based at $180, current price at high. Huge loss. Does it make sense to roll, Just don't know what to do?
Hi Joe - Great video as ever. For smaller accounts, like my own, it is worth looking at SPLG and QQQM. SPLG is a cheaper alternative to SPY it has the same holdings etc but is a US$50 ETF rather than US$410. QQQM is a mini QQQ. It is a US$132 ETF rather than US$320. The one drawback with these smaller ETFs is they don't have daily/weekly option chains but the monthly s are fairly liquid. Quick question have you ever been tempted to sell strangles i.e. sell put and call rather than just do covered calls? Keep up the good work.
Have you ever had trouble selling calls on QQQM? I noticed that the option volumes for it are super low-- from 0 to 3. I was led to believe that the volume of an option should be around 100.
@@michaelpettitt8824 Yes I have. Unfortunately for good liquidity you need QQQ but that required a lot more buying power. It is a similar problem with SPLG (smaller SPY ETF) versus SPY.
I think you did have a few videos on option based ETFs, that does options for you, for those of us who are not knowledgeable, willing or able to do options on our own. Understanding that they have a lower return and higher management fee.
Hey Joe, faced with a dilemma. Thinking about moving from XOM to BP. About 60% cheaper, that will move me into Covered Calls sooner. What's your 2 cents?
ARKK is a very accessible ETF to get into at $34.84/share (today’s closing price) and the weekly option premiums are fantastic! The innovation-focused ETF is now trading at support, so it’s a great time to enter with a cash secured put. Top holdings include TSLA, ZOOM, ROKU, COIN, SQ, SHOP, and TDOC.
Support is a price that the stock or ETF holds and will typical bounce to the upside. In contrast, there’s resistance where a stock or ETF price will struggle to break through and typical results in a pullback. The levels are drawn by looking at various time frames on a chart for a specific stock or ETF. The more times a price validates support or resistance over time the more reliable it is as a tool for trading. So “trading at support” refers to the idea that historically the price has respected that level and will likely bounce to the upside, basically a good buy opportunity.
I know the option premium is great but I have a really tough time getting on board with 3X leveraged ETF's. Too much risk for me personally UNLESS I kept it a VERY SMALL portion of my portfolio, say < 3-5%. Just my $0.02 though. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I would not do CC's on any of these. You have to put up way too much money to have even a small and meaningful # of contracts. I personally sell CC's on AMD however much my buys were in the $50s vs. the current $118. My point is you can put up much less cash in one stock, get more contracts and still make good money. Yes premiums are less of course.
You can own covered call ETFs for all 4 US Stock Market indexes. Global X' has them all but I prefer JEPI and JEPQ because they are out of the money covered calls on about 50% of the S&P 500 and the NASDAQ 100
I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.>
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Since I don't have enough time to pick the strike price and don't want to deploy so much capital I use the following covered call ETFs JEPI and JEPQ for the S&P 500 and the NASDAQ 100. I also use Global X's covered call ETFs for the Dow Jones Industrial Average, the Russell 2000, the financial sector, healthcare, technology sector covered call ETFs.
Outstanding Commentary!!! Priceless!!!! Thank You!!!
For those of us who don’t have time or knowledge to risk option calls would you please do video on ETFs that do the options for us, like JEPI, DIVO, SPYI, OMLF
a set it and forget it dividend portfolio and/or a set it and forget it covered call ETF (with dividends and growth would be ideal) 😊 tall order but I trust you can rise to challenge and point us in correct direction. Thank you
I would love to see your ultimate set it and forget it dividend portfolio
I like that idea! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Ultimate set it and forget it?
100% SCHD 🤣
How you handle CCs if the ETF goes down from purchase price
Thanks for the review. I don`t do options therefore I own some JEPI, JEPQ, DIVO and RYLD. I let them handle all the options.
Me too 😄
Hello. Why you are ignoring the assignment? Below the great premium, the great risk of assignment and potential lost is hidden.
After shares got called away, used the cash for a cash secured put on IWM to open a wheel strategy. If it works out over time, I may use leverage selling naked calls as to not sell not sell any of the portfolio.
I like it Dan! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
But would you REALLY sell a covered call ATM? Or are you selling at a certain Delta? OR a certain number of strikes out of the money? If you don't want to see your ETFs called away half the time, then maybe the chosen strike to sell would be farther away? Maybe a delta of 20?
Or perhaps the ETF being called away isn't a concern, and is part of the strategy?
46 Delta... as in 46% chance of opt. being in the money? What happens during those hits? How does that affect return? Are the annual projections iginoring trades that go bad? Or did I just miss something? Somehow I'm finding 50% ROI hard to believe?
Joe what do you think of the high yield for apple, Tesla, and ark yield max ETFs. I bought aply
Hi Donald! I think APPL is a good dividend stock for writing covered calls. TESLA and ARK are not dividend stocks AND are very volatile. My concern would be IF the prices drop significantly and I have to hold a stock with no dividend. Just my $0.02 though. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Cool, but aply is a high income ETF from yeid max
Do you typically write your calls at such high deltas? Are you okay getting assigned, or do you roll up/out to avoid assignment?
You rolling them regional bank covered calls down?
Hi David, I do not have any regional banks currently in the portfolio BUT I am not opposed to rolling down covered calls when the markets go down to capture more premium. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
AMZN is actually a great stock to sell CSP and CC on getting more premium for the same about of capital of 1 contract of SPY or QQQ
What option platform where you using in this vid?
What site are you using for your option pricing info? Thxs
I was wondering the same thing watching the video..
How is it that selling a call "In the money" doesn't get the option "called" away immediately?
GREAT QUESTION CARL! Options are generally not called away early because the option buyer can generally get the exact same benefit by just selling the option contract to somebody else and capturing the gain in the value of the option contract. Actually getting assigned doesn’t add any benefit to the owner of the contract that CANNOT be achieved by just selling the contract for a profit. The only caveat would be to be an owner by the ex-dividend date of a dividend stock. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
@@AverageJoeInvestor So it's uncommon to actually get assigned the moment the option goes ITM?
Outstanding explanation as always thank you
Hey Joe,
Should I roll or leave it?
I have 1 contract call option on NVDA at $260 expires 6/21/24, my cost based at $180, current price at high. Huge loss. Does it make sense to roll, Just don't know what to do?
Hi Joe - Great video as ever. For smaller accounts, like my own, it is worth looking at SPLG and QQQM. SPLG is a cheaper alternative to SPY it has the same holdings etc but is a US$50 ETF rather than US$410. QQQM is a mini QQQ. It is a US$132 ETF rather than US$320. The one drawback with these smaller ETFs is they don't have daily/weekly option chains but the monthly s are fairly liquid. Quick question have you ever been tempted to sell strangles i.e. sell put and call rather than just do covered calls? Keep up the good work.
Have you ever had trouble selling calls on QQQM? I noticed that the option volumes for it are super low-- from 0 to 3. I was led to believe that the volume of an option should be around 100.
@@michaelpettitt8824 Yes I have. Unfortunately for good liquidity you need QQQ but that required a lot more buying power. It is a similar problem with SPLG (smaller SPY ETF) versus SPY.
I choose VGT VOO for investing/Swing Trading in indexes due to lower management fees. What are your thoughts on this strategy?
can you run covered calls on JEPI what kind of return would that produce?
Jepi is a covered call ETF
Fantastic clarification😊
What about arkk ?
Congratulations, Joe. You've calmed down a lot and are no longer blabbering frantically. Your on-camera delivery is greatly improved :)
Thank you. I was trying to work this out for myself this morning, when I happened upon this video. IWM it is, for now.
I think you did have a few videos on option based ETFs, that does options for you, for those of us who are not knowledgeable, willing or able to do options on our own. Understanding that they have a lower return and higher management fee.
Hey Joe, faced with a dilemma. Thinking about moving from XOM to BP. About 60% cheaper, that will move me into Covered Calls sooner. What's your 2 cents?
Isn’t selling that close to the money risky and risks you being assigned every week?
outstanding Commentary!!!! Priceless!!! Thank You!!!
Thanks
ARKK is a very accessible ETF to get into at $34.84/share (today’s closing price) and the weekly option premiums are fantastic! The innovation-focused ETF is now trading at support, so it’s a great time to enter with a cash secured put. Top holdings include TSLA, ZOOM, ROKU, COIN, SQ, SHOP, and TDOC.
Thanks for the tip--I'll definitely look into this one. One question, though: what does "trading at support" mean?
Support is a price that the stock or ETF holds and will typical bounce to the upside. In contrast, there’s resistance where a stock or ETF price will struggle to break through and typical results in a pullback. The levels are drawn by looking at various time frames on a chart for a specific stock or ETF. The more times a price validates support or resistance over time the more reliable it is as a tool for trading. So “trading at support” refers to the idea that historically the price has respected that level and will likely bounce to the upside, basically a good buy opportunity.
Thank you!👍
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
What are the TAX consequences? Which account do you use to do the trading? Thank you.
Unbelievable! Thank you
Is Russell 200o. Reviewed clearing out replacing like sp 500?
Hey Joe. What do you think about TQQQ? At the money covered calls would be a 120% annual return.
I've been killing it with my TQQQ options!
I know the option premium is great but I have a really tough time getting on board with 3X leveraged ETF's. Too much risk for me personally UNLESS I kept it a VERY SMALL portion of my portfolio, say < 3-5%. Just my $0.02 though. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I would not do CC's on any of these. You have to put up way too much money to have even a small and meaningful # of contracts. I personally sell CC's on AMD however much my buys were in the $50s vs. the current $118. My point is you can put up much less cash in one stock, get more contracts and still make good money. Yes premiums are less of course.
Ty.
Who wants a etf that cost 400 bucks?
selling covered calls is for people who can consistently time the market!!!!!!!!!!!!!!!!!!
thank you 😀
lol those 3 ETFs are expensive. for 100 shares each
You can own covered call ETFs for all 4 US Stock Market indexes. Global X' has them all but I prefer JEPI and JEPQ because they are out of the money covered calls on about 50% of the S&P 500 and the NASDAQ 100
BOOOORIIIING 😂
Lol, THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
You need over $50,000 to sell one covered call of SPY.
THINK your advice is for Billioners. SPY is 512. A THOUSAND SHARES WOULD COST 512,000!!!
I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.>
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
Pls who is this coach that guides you? I’m in dire need of one
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
I Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds soon. Thanks
Thank you!!