Create $200+ Every Month with a Small Portfolio!
ฝัง
- เผยแพร่เมื่อ 1 เม.ย. 2024
- In this video we are taking a look at a portfolio income strategy that allows the Average Joe Investor to create income in their small portfolio with as little as $4,400 utilizing the Poor Mans Covered Call Strategy (PMCC). This Poor Mans Covered Call Income Strategy is GREAT for creating income in a small portfolio!
Work with Joe 1 ON 1!
➡ / averagejoeinvestor
WANT ACCESS TO ALL OF MY SPREADSHEETS I USE ON THE CHANNEL ALONG WITH THE MONTHLY DIVIDEND STOCK SPREADSHEET AND INSTANT AWARENESS OF CHANGES TO MY PORTFOLIO? JOIN THE PATREON COMMUNITY!
➡ / averagejoeinvestor
Need a GREAT Dividend Tracker for your portfolio? Here is what I use and it is EXCELLENT:
The Dividend Tracker: thedividendtracker.com/?ref=l...
This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles. - แนวปฏิบัติและการใช้ชีวิต
![[FULL EP.14] เซียนหรั่ง สอน มาร์ชจุ จับปูนา ฮากระจาย | เฮ็ดอย่างเซียนหรั่ง | One Playground](http://i.ytimg.com/vi/M8mPjd_T2lo/mqdefault.jpg)
Probably the best comprehensive explanation I’ve seen out there of this strategy. I’m personally not using it and sticking to a wheel, but great for learning.
This is the first time I've actually understood this strategy and I've watched multiple videos. Thank you!
This is GREAT to hear!! THANK YOU for watching and for leaving your $0.02 in the comments! =)
Thanks for the detail. I'm Looking forward to seeing the actual trades in the Discord so i can follow and see it in action
Very energetic and enthusiastic explanation of PMCC. Even being quite familiar with the strategy I watched it till the end just to enjoy a teaching aspect of this presentation. Well done, thank you!
There is 0 volume and 0 open interest on that contract 😅
That’s why people trade 70-80 delta, and around 60 DTE
Loved it! Very well explained.
good stuff there Joe. this video answered a lot of questions in my head and gave me some good ideas.
I think you are wrong at 18:26 - you say that you have a $44,500 obligation, but that's not true, you have a 100 share obligation, and you are owed $44,500 for this (you even change to say this later in the video) - if someone exercises their 445 call that you are short you owe them 100 shares, they owe you $44,500. If you buy at market price and the position is flat then you are are out the difference in what you had to purchase those shares for, in your example 200 or 500 dollars. But your worst case of if the brokerage forces you to exercise your 365 strike call would not be an 8k loss. If you chose to exercise this to aquire 100 shares, then you are required to pay 36,500. So you are not obligated to pay out of pocket 8k, you actually earn 8k. Where this would fail is what you pay for the LEAP should cost you more than that 8K, which you noted earlier at 9:38, where it costs 10k to purchase the position. So you would only be out 2K in your scenario at 18:26. Still bad, but not as bad as noted, and the problem really is that your incorrectly teaching the math behind what would happen.
Wow! Best explanation I've heard...love the channel;)
Wow, thanks! THANK YOU for watching and for leaving your $0.02 in the comments!! 👍😎
Thanks for the detailed vid, can you make a vid when you use this strategy live or just explain on the history you already did
Another amazing video from Joe!!
ill stick with the wheel, feel like it has less risk than this strat
And you can do it on RH without trying to get level 3 options. You'd have better luck finding a unicorn than getting them to tell you their requirements for level 3.
@michaelpettitt8824 you had a hard time getting level 3 with RH? I had no issue with them, but different story with fidelity.
@@frozenyetimug Yeah, I still can't get it. All it says is that I'm not eligible due to my investor profile...no specifics. I did see something on their website that says you need a margin account to get approved, but I don't know what the connection could be.
Thank you, thank you, thank you, thank you. This video helped me a lot.
Awesome!! THANK YOU for watching and for leaving your $0.02 in the comments!! 👍😎
Hi, Joe, got a question for you. When you do PMCC, does the brokerage require you put have more money or margin as collateral since there is price gap between the LEAP call price and the cover call price? If they do, then the annual return is much lower since you actually used more money than on paper. Thanks
❤👍🍀 Thank you very much for the time and effort put into this excellent explanatory video. I especially appreciate the detailed explanation of long calls and short calls during different market phases. This concept was previously unclear to me, and I have never seen it presented so thoroughly and understandably anywhere on TH-cam. A very special heartfelt thanks for that.
Well done video. I did want to mention that the process of assignment is carried out automatically by the broker.
Of course, it is probably better to avoid assignment when possible.
What % of stop loss do you use on the leaps or equivalently what portfolio risk %)?
This strategy sounds very interesting, where can I find courses on hot to utilize it and learn it properly before actually starting to do it? How to pick the right stocks etc. I need more information before starting please🙏
You can buy an ATM put for the same expiration as the deep in the money call to further protect yourself
Joe - I've watched a lot of these PMCC videos. It seems that everyone taunts the leveraged gains of the covered call premiums, but not much attention to the added benefit of the long call position. It's really a double income strategy right? especially if you take profits and roll the long position every 2-4 months. Is my thinking correct?
Your videos never include brokerage fee's. Thats the biggest killer of options strategies when you are talking about small accounts. If you have to pay 10 dollars to open the position, and another 10 dollars to close the position.. you need to earn 20 dollars before you break even for just opening the position.
How to buy a poor man option call, if you don’t own 100 shares they won’t allow. It’ll be rejected, what you got do to go through??? Is there a special request from the broker??
A small comment about the assignment. If you receive 445 per share and your broker triggers assignment of the leaps you only pay the deep in the money strike price which is much less.
You can still lose if the stock shoots way past your short call. But the trade off is lower capital. I would probably leg in, never over buy leaps. Maybe 5-10% capital usage
If your concern is for the markets to go down, why would you want a high delta. That would correlated your option price with the markets downtrend more accurately. Would you not want a delta as close to 0 as you can get, so that the market has very little correlation with the underlying value of the stock?
He tells everyone to ask questions but I see minimal responses to all of the questions that have been asked!....most were 3 weeks ago!
Nice and informative video, thank you. But this is not for me. I will stick with safe covered calls and cash covered puts for fun and to make a little cash.
No put 50,000 in T-Bill or Sweep account and wait for the recession. Buy cheap.
What exactly is the purpose of the one Year LEAP option? If I get assigned on my covered call I need to meet my obligation, with or without this LEAP option. What does it mean to "control" 100 shares? Because even if I buy the LEAP option I still do not own 100 shares, right? So how can this LEAP option help me to meet my obligation, if I get assigned on my covered call?
1. You can buy a call option
2. You can buy the stock and then sell the call the call option( this is a covered call)
3. Lastly, you could sell a call option, this is shorting. If the price moves against you, you will receive a margin call. Has limited upside and unlimited downside.
Basically, you don’t need to own the shares to the sell the contract. But not buying before hand or “controlling “ the shares will provide the highest risk
Who can afford the risks?
The bots are strong here.
I know... ugh. I do my best to remove them but they keep coming back like weeds. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
this is a very risky strategy ! When the stock drops 10% your deep in the money call will loose alot of value. And as the call option should never get assigned you must go far out of the money. So you will not make lots of money. It's not worth it !
Completely agree. It only works if the market moves slowly and consistently. Markets don't do that often. Not saying it is a bad strategy, but if you don't know the risks you should not be doing it. The biggest risk was not even mentioned.
Capital risk here is stupid one or two assignments and your down 10-20% easily.
Will stil pay more then a svol and alot of older etf”s and stop blaming the stocks when the whole market go down 😒
He lost me.
Bummer… that’s on me. Feel free to leave any additional questions or follow ups where I lost you and I’m happy to make a follow-up video. THANK YOU for watching and for leaving your $0.02 in the comments!! 👍😎
@@AverageJoeInvestor Can you help me grow my money? My husband and I are separated, and he blew through his (our) entire lump sum retirement in less than 2 years, before he even retired. I was naive to sign over my portion and let him roll it over into his 401k, unaware that he was planning on bolting.
He recently filed bankruptcy when his car died (couldn't afford a car payment, along with his debt consolidation payment), and he is the one I must rely on to supplement my SSD.
Last year he decided to stop mowing an acre of hills and valleys (so I can't mow myself and must hire), and now he is removing me from his cell phone plan. Currently, I'm covered under his medical, but I suspect a Medicare supplement that I must pay is in the offing by year's end, as he plans to retire at the end of the year, in spite of this mess.
I do have some money, but not enough for an amateur to play with. I have always been the saver. I'm making some interest, but that's not enough to keep up with inflation. I'm too scared to try this or traditional covered calls on my own with the little I have.
Also, how complicated are taxes when you utilize covered calls? I know there is a form that everyone dreads, but I'm not sure if covered calls are what triggers this form. Please help. I don't want to lose my house, and he's no desire to reconcile, which means when he runs into problems, so do I. Please help. tailzzz24 ymail.
Wish this guy would tell us in the VIDEO TITLE that he's gonna talk about options, calls etc.... bye bye
thx Joe, great video. where to join your discord group? thx
I believe this is the tactic that the yield.max etfs do. And yes it is quite risky