Great teachings Chris, and thank you....I have a question for you...I notice you have a tendency to repeat over and over again, about putting in stop losses when trading, but yet have I seen you execute/or show a stop loss, or express WHEN to put in a StopLoss as you have in shown in this video of how to sell a option... Why is this Chris ?
I’m confused if I sell a 4 dollar Sofi put, the price would have to drop to 4 dollars to activate the put? If it did I would have to buy the stock at 4 dollars (which I would anyway). Anything worse could happen? It’s giving me a warning.
ABSOLUTE PROPS - 5th Dimensional Mathematics being taught here! 💥💯 I've been listening to audiobooks and watching YT vids on options trading and I just couldn't get the Puts part - this video has helped tremendously! 💥❤️ The idea of only working w\stocks you WANT to buy anyway, makes the "negative" outcome more palatable, and not so much of a "loss" in that light. I'm slowing learning these concepts, thanks so much for taking your time here to teach us!
One thing I noticed is that you said that “make sure you own a minimum of 100 shares” You don’t need to own 100 or 125 shares to trade put options. You are only required to buy those 100 shares if it hits your strikeprice. You can sell put options without owning them. You only need the collateral.
We have buy and sell put options, when you are selling, look at the maximum loss you will have, it's far above the strike price, you make credit or sell, but when you are buying put options, you pay exactly the strike option multiple by 100. Try to understand both ways, the sell according to is safer but you will be required more money in your account to execute it. Because it will be the whole price multiple by 100 instead of strike price multiple by 100. Hope it shade more light to your understanding sell and buy PUT options. God bless you.
You said that you sell a put when you own a 100 shares but the correct term is selling a covered call. Also, selling options on high IV stock like SOFI is good for getting higher premium, but these stocks can easily fall 10-30% over night. Personally if you’re going for the long game you should be selling options on blue chips.
I like how you included the stop loss. Your a great profitable educational person. Can you teach people how to trail their stop loss so people can maximize their profits while learning from you it will be a great teaching
Brother in Christ! Thank you for your service in Him, helping us to learn and earn at the same time. This is a true opportunity for young and old (72) to progress financially. Im sharing your videos with my family members. Hopefully, my 20- 30 year old grandchildren will take the time to watch, listen, learn, and do it to earn. Blessings, brother Chris !
Are you required to buy the 100 shares even though you already have 125 (if the strike price is reached)? Because if you are why would you want to risk having to buy them at that strike price?
If you’re forced to buy 100 shares, what’s the next move? Do you just wait till the stock goes back up and then sell? Do you also lose the initial premium you inquired?
You need to clean this video up. The strike price on the puts you sell is the price you will buy it at. The break even is not the same as the strike price. The break even is the price minus the premium.
@@bluntv1 no we understood him correctly. He said if the price of the share hits the breakeven price, then you will be forced to buy the shares when I don’t think that’s correct either. I’m pretty sure if the share hits the strike price or below by expiration time, then you will be forced to buy the shares
Finally someone caught this, I kept thinking maybe this platform is different then Fidelity’s. Hits 7.50 , it’s yours. The 7.03 is your actual break even price meaning it’s priced into the premium you have already received. Which is important especially if you’re going to be doing the wheel strategy and selling Calls with this same stock. Otherwise you might not be making any profits for yourself only Uncle Sam with all your premiums you’re collecting, correct?
I had to watch it twice for the ones confuse you only need to have the collateral to sell puts you don't have to own it but iif it drops you would get it cheaper good play
You don’t explain it well. It’s not the “break even” price. You’ll be assigned the shares if it’s at the strike price or below. Not 7.03 in your SOFI example. But 7.5 strike price.
If you haven't acquired 100 shares yet. How do you sell a put, or is that even an option without? And your teachings have help. I'm also in the discord group.
With call options you must own 100 shares.. with put options, you must have the amount that will cover the cost of 100 shares.. so if it goes below your strike price, you have enough to exercise your OBLIGATION to buy at that strike price. You cannot use margin with put options. You must have the cash to cover 100 shares. You CAN use margin with call options.. but you must also own the stock.. so you can buy with cash or buy with margin.
@@emmanueljackson9483 One can sell-a PUT without owning any shares. One just have to enough collateral in the account to cover the transaction if the stock does not close above the strike price you sold the PUTS at. Hope this helps....Chris is a great Coach. Am very grateful :)
Hi Chris, Thank you so much for your excellent video. I went through all the comments and they are all very valuable questions/comments. I wish somebody from your team would reply to those questions/comments in the comment section. That information would benefit so many of us. Best regards, Romulo
is this a cash secured put and you need to keep the cash value of 100 shares free in case you get assigned, or are you free to use all your cash for other investments while the contract is open? Or does owning 100 shares of the stock you are selling the put in negate the necessity to secure the put with cash?
Chris , i am your fan , have been for a long time & ive listened to this video more than once , i still find it confusing , and i definitely reather learn CALLS before puts . ❤
Chris, first and foremost thank you. Second. How do we get out of a play like this? Do we have to wait for the expiration date or can we exit it at anytime?
I'm just seeing your video. This is just the information I needed and salute to you for that, I'm going to research them more but as of now Sofi is at $7.45 and SQQQ is at $8.34. They're at a good buy in price but are they still good for your sell options in your video {if you have 100-125 shares?
After acquiring the premium from the put, can you close it immediately since it hasn’t gone lower than your prediction or do you have to wait close to the time you put the contract to expire?
You can, but you won’t have all of the premium because you have to buy it back. It will show you how much you have earned when you try to close it. If you close it at expiration date and it has not dropped down to your strike price then it’s worthless and you keep the whole premium. You don’t have to pay anything to buy anything back.
New to option trading… I’m confused so when we buy a sell for Put and we instantly get the money (credit) from it. How are we making money from it?? Does it appreciate when the stock goes down? Or up? Any help/advice would be appreciated.
You make money from the premium of the contract sale. Each contract is 100 shares of the stock. If you do a put and the premium price is .10 cents you will pay $10 for the contract (10 cents times 100 shares). The premium price depends on the strike price you choose.
please research more reliable sources about selling puts, this video is totally inaccurate and he has done a horrible job of explaining how selling puts works.
Hey brother Chris, I thank you tons for this video. For the first time I feel encouraged to do my first "PUT" in moo moo :) God Help me now :) I hope it works. Don't know where else I can do that. Thanks for being in-SAIN-ly Awesome! Gil (your disciple from El Salvador) I love you maaaaaaaaaaan!
after did sell put option, if current price more than your strike price is fine but if lower than your strike price, it become you need to do sell call option, if nobody buy your stock until expire date, have to keep do sell call again and again
just FYI, you are required to buy at the strike you sold , not at break even.. this is a bit confusing to new investors.. strike sold is $7.50 that's where you would be required to buy at not at break even at $7.03.. my friend ask me what if its $7.25? i dont have to buy? lolz
not exactly right, if you sell a 7.50 put option, that means if the price is at or below 7.50 on the expiry date, you will get called to buy it at that point (not the breakeven price). The breakeven price is the effective amt you're paying, when considering the premium you got from selling the put
What website should I download to invest like this? I'm investing throughout cash app right now and I don't see the options on there for trading the way you teach in this video
no. not sure why he kept bringing up owning 125 shares in the Put example. When it comes to selling Puts, you just need to have the required collateral to set aside in case you get assigned the shares. so selling a $7.50 Put would require $750 in collateral. If you already own 100 shares of a stock, you can sell a covered call.
If Sep is historically a red month and sqqq is an inverse stock; would it be wise to sell multiple put contracts (if you can cover them) get assigned the stocks and sell days later if the price goes up seeing that the rest of the market would be down???
Right. Instead of losing money like crazy, like WallStreetBets. You make some little money here and there and add some Funds and live out of it or reinvest the proceeds is growth assets. I wish you financial success in your endeavors.
I don’t understand why you kept saying you can sell outs once you own 100 stocks. You don’t need to own any stocks to sell puts , that might confuse some people.
Because you own the shares with Call options.When selling puts, you do not own the shares. You just need to have the money available to cover 100 shares, in case the shares get assigned to you.
Like & Subscribe then please share this video with anyone you believe would benefit from learning this skill. #LetsGoooo
Great teachings Chris, and thank you....I have a question for you...I notice you have a tendency to repeat over and over again, about putting in stop losses when trading, but yet have I seen you execute/or show a stop loss, or express WHEN to put in a StopLoss as you have in shown in this video of how to sell a option... Why is this Chris ?
Why do you buy a minimum of 125 shares as opposed to 100? Just curious🤔
So this was posted 5 months ago. Now the market is up and this is DOWN TO $14.61!!! So buying NOW will almost GUARANTEE you will make money right?!
I’m confused if I sell a 4 dollar Sofi put, the price would have to drop to 4 dollars to activate the put? If it did I would have to buy the stock at 4 dollars (which I would anyway). Anything worse could happen? It’s giving me a warning.
Is it the best time to buy it now
I ain’t gone lie this was the best teaching I had, APPRECIATE THAT CHRIS!!!!!!
I like how you are teaching simple and practical
ABSOLUTE PROPS - 5th Dimensional Mathematics being taught here! 💥💯
I've been listening to audiobooks and watching YT vids on options trading and I just couldn't get the Puts part - this video has helped tremendously! 💥❤️
The idea of only working w\stocks you WANT to buy anyway, makes the "negative" outcome more palatable, and not so much of a "loss" in that light.
I'm slowing learning these concepts, thanks so much for taking your time here to teach us!
You are AMAZING at how you taught this.
Thank you
I've been looking for a video like this for a minute!
Saaame!
I never grasp the idea of selling puts, but this video was very informative. Now i have a better understanding.
One thing I noticed is that you said that “make sure you own a minimum of 100 shares” You don’t need to own 100 or 125 shares to trade put options. You are only required to buy those 100 shares if it hits your strikeprice. You can sell put options without owning them. You only need the collateral.
Same thing I was thinking. Don’t need the 100 shares, just the money available in your account to buy the 100 shares.
Me too, this really confused me.
Hes talking about two different things. When he Does buy stocks (not options) he buys 125 or more and keeps them for I think 1 to 3 years.
You didn't get his information very well. Watch it again, he gave you Two ways to make money with put options
We have buy and sell put options, when you are selling, look at the maximum loss you will have, it's far above the strike price, you make credit or sell, but when you are buying put options, you pay exactly the strike option multiple by 100. Try to understand both ways, the sell according to is safer but you will be required more money in your account to execute it. Because it will be the whole price multiple by 100 instead of strike price multiple by 100. Hope it shade more light to your understanding sell and buy PUT options. God bless you.
You said that you sell a put when you own a 100 shares but the correct term is selling a covered call.
Also, selling options on high IV stock like SOFI is good for getting higher premium, but these stocks can easily fall 10-30% over night. Personally if you’re going for the long game you should be selling options on blue chips.
You are selling out options so you need cash in case you are assigned. Selling call options is when you need to own the shares.
I didn’t realize you could set stop losses in selling puts. Nice video thanks .
Damn, you explained this like a boss. Thank you!!!!!
This was the exact video I was wanting and needing
I like how you included the stop loss. Your a great profitable educational person. Can you teach people how to trail their stop loss so people can maximize their profits while learning from you it will be a great teaching
Oh wow.....now you're showing the SELL side of options trading. I have to see this...good job.
Chris my brother? That was great information. Thanks again., you are a man and you are truly blessed!🙏🏾🙏🏾👍🏾👍🏾👏🏾👏🏾👏🏾
Listen brother I'm so glad I found you and you explained this to me the way I can understand keep up the good work Chris
I've been dreading learning about selling puts, no joke. This video is so easy. Thanks man.
Chris this is one of the best informative videos of yours ! Thank you for ALL the work you do! You are a true blessing to SO many people!
I’m a beginner. Dont any stock yet. Your explanation is very interesting and understandable ❤.
Brother in Christ! Thank you for your service in Him, helping us to learn and earn at the same time. This is a true opportunity for young and old (72) to progress financially. Im sharing your videos with my family members. Hopefully, my 20- 30 year old grandchildren will take the time to watch, listen, learn, and do it to earn. Blessings, brother Chris !
Thank you for the video. This information was very informative. I appreciate you taking the time to talk about this.
Thanks Chris, this is my first learnings on options
This has been hard for me to understand. Thanks man you helped clear some things up for me.
You are just awesome, Chris. I have just come across your channel and you are a natural!
You have got my attention, coach!
Thanks your knowledge is remarkable and willing to teach is beyond belief
Are you required to buy the 100 shares even though you already have 125 (if the strike price is reached)? Because if you are why would you want to risk having to buy them at that strike price?
Thank you Christ 🙏
I appreciate your generosity.
Many blessings!
If you’re forced to buy 100 shares, what’s the next move? Do you just wait till the stock goes back up and then sell? Do you also lose the initial premium you inquired?
No, you keep the premium and sell a call on those shares you own.
Hey man, your video really helped me get my brain around some questions I had. Thanks for the lesson. Really appreciated!
You need to clean this video up. The strike price on the puts you sell is the price you will buy it at. The break even is not the same as the strike price. The break even is the price minus the premium.
exactly, this video is simply filled with errors which is concerning considering he has 481k subscribers.
I think you're misunderstanding what he said. If you're the seller u get the premium regardless. There is no minus. It's a sell put not a buy put.
You are right it didn’t make sense to me either I thought it was the strike price not the break even price that you will have to buy the shares at
@@bluntv1 no we understood him correctly. He said if the price of the share hits the breakeven price, then you will be forced to buy the shares when I don’t think that’s correct either. I’m pretty sure if the share hits the strike price or below by expiration time, then you will be forced to buy the shares
Finally someone caught this, I kept thinking maybe this platform is different then Fidelity’s. Hits 7.50 , it’s yours. The 7.03 is your actual break even price meaning it’s priced into the premium you have already received. Which is important especially if you’re going to be doing the wheel strategy and selling Calls with this same stock. Otherwise you might not be making any profits for yourself only Uncle Sam with all your premiums you’re collecting, correct?
I had to watch it twice
for the ones confuse you only need to have the collateral to sell puts you don't have to own it but iif it drops you would get it cheaper good play
@ChrisSain1, Please also show how to sell call options on Sofi and Sqqq as well? what delta and what dte to sell calls without losing the stock?
Ty for the explanation, I appreciate it, 'Im a complete newby at options and want to ty them!
dude...best video explaining selling put options that i've seen
You don’t explain it well. It’s not the “break even” price. You’ll be assigned the shares if it’s at the strike price or below. Not 7.03 in your SOFI example. But 7.5 strike price.
Was just about to me mention this as well. Completely incorrect explanation and shows lack of understanding of selling options.
Ok...sooo wheres your videos on this?
@@oluakinswheres your videos on this
@@joquelhalyard6024 lol you replied a year later. Plenty of videos out there on options. His explanation is completely wrong about assignment.
If you haven't acquired 100 shares yet. How do you sell a put, or is that even an option without? And your teachings have help. I'm also in the discord group.
I don't believe you can sell a put unless you either own 100+ shares or you buy a put option and then sell it after
With call options you must own 100 shares.. with put options, you must have the amount that will cover the cost of 100 shares.. so if it goes below your strike price, you have enough to exercise your OBLIGATION to buy at that strike price. You cannot use margin with put options. You must have the cash to cover 100 shares. You CAN use margin with call options.. but you must also own the stock.. so you can buy with cash or buy with margin.
Wrong, I use margin all the time to sell puts…..
@@emmanueljackson9483 One can sell-a PUT without owning any shares. One just have to enough collateral in the account to cover the transaction if the stock does not close above the strike price you sold the PUTS at. Hope this helps....Chris is a great Coach. Am very grateful :)
Hi Chris,
Thank you so much for your excellent video. I went through all the comments and they are all very valuable questions/comments. I wish somebody from your team would reply to those questions/comments in the comment section. That information would benefit so many of us.
Best regards,
Romulo
Chris are you using Robinhood? Because its a bit confuing trying to follow along on a different platform....
this was very helpful i just started so im trying to get as much info as i can
is this a cash secured put and you need to keep the cash value of 100 shares free in case you get assigned, or are you free to use all your cash for other investments while the contract is open?
Or does owning 100 shares of the stock you are selling the put in negate the necessity to secure the put with cash?
You're a good man Chris
This was the easiest understanding I’ve seen in any option video 🧽🧠 Chris 🐐
This is really nice Mr Chris!
Chris , i am your fan , have been for a long time & ive listened to this video more than once , i still find it confusing , and i definitely reather learn CALLS before puts . ❤
Thank you 🙏. I understand it now after watching so many video..
Chris, first and foremost thank you. Second. How do we get out of a play like this? Do we have to wait for the expiration date or can we exit it at anytime?
I have the same question? Anybody!!
If you guys find out let me know please. I have the same question. I thought I heard him say he gets them done in 15 minutes.
Silly question- but how to I cash out on that. Do I need to do anything???...or I just let it expire and then the money will be credited?
I'm just seeing your video. This is just the information I needed and salute to you for that, I'm going to research them more but as of now Sofi is at $7.45 and SQQQ is at $8.34. They're at a good buy in price but are they still good for your sell options in your video {if you have 100-125 shares?
finally you agree to this haha , I remember back then you said they were no good which is the only thing I ever disagreed with you🤑
After acquiring the premium from the put, can you close it immediately since it hasn’t gone lower than your prediction or do you have to wait close to the time you put the contract to expire?
You can, but you won’t have all of the premium because you have to buy it back. It will show you how much you have earned when you try to close it. If you close it at expiration date and it has not dropped down to your strike price then it’s worthless and you keep the whole premium. You don’t have to pay anything to buy anything back.
He said $7.03 as the price he'd be required to buy. But he real price is $7.50 which was the strike price. $7.03 was breakeven.
New to option trading… I’m confused so when we buy a sell for Put and we instantly get the money (credit) from it. How are we making money from it?? Does it appreciate when the stock goes down? Or up? Any help/advice would be appreciated.
You make money from the premium of the contract sale. Each contract is 100 shares of the stock. If you do a put and the premium price is .10 cents you will pay $10 for the contract (10 cents times 100 shares). The premium price depends on the strike price you choose.
@@problactive285 okay, thank you!
please research more reliable sources about selling puts, this video is totally inaccurate and he has done a horrible job of explaining how selling puts works.
What will happen if the stock goes up to 8.5 instead of 7.5? Will I loose money or more money than the premium provided?
I really appreciate your videos. I have learned so much
Thank you for this !!!
Great explanation! Thank you
Appreciate your service
Thank you thank you
Thank you so much for sharing this! 🙏🏽
Shit I'd like to buy 125 shares of anything but I'm just starting. Been watching for a minute but waiting for the bread to begin
We appreciate you
Hey brother Chris,
I thank you tons for this video.
For the first time I feel encouraged to do my first "PUT" in moo moo :)
God Help me now :)
I hope it works.
Don't know where else I can do that.
Thanks for being in-SAIN-ly Awesome!
Gil (your disciple from El Salvador) I love you maaaaaaaaaaan!
Wow this is excellent SUBSCRIBED -had me at always be making money.
I've been looking for a video like this
after did sell put option, if current price more than your strike price is fine but if lower than your strike price, it become you need to do sell call option, if nobody buy your stock until expire date, have to keep do sell call again and again
just FYI, you are required to buy at the strike you sold , not at break even.. this is a bit confusing to new investors.. strike sold is $7.50 that's where you would be required to buy at not at break even at $7.03.. my friend ask me what if its $7.25? i dont have to buy? lolz
not exactly right, if you sell a 7.50 put option, that means if the price is at or below 7.50 on the expiry date, you will get called to buy it at that point (not the breakeven price). The breakeven price is the effective amt you're paying, when considering the premium you got from selling the put
What website should I download to invest like this? I'm investing throughout cash app right now and I don't see the options on there for trading the way you teach in this video
When it comes down to 7.50, not 7.03
Ima watch this a few times this some good game
@thechris394 y’all bots is crazy
So does owning 125 shares negate the $750 collateral that gets taken from your buying power?
no. not sure why he kept bringing up owning 125 shares in the Put example. When it comes to selling Puts, you just need to have the required collateral to set aside in case you get assigned the shares. so selling a $7.50 Put would require $750 in collateral.
If you already own 100 shares of a stock, you can sell a covered call.
How do you feel about NIO? Could u give your opinion on that stock
Thanks. This was very helpful
If Sep is historically a red month and sqqq is an inverse stock; would it be wise to sell multiple put contracts (if you can cover them) get assigned the stocks and sell days later if the price goes up seeing that the rest of the market would be down???
Thanks for sharing.
Thanks Chris!
Can I use Robinhood to do this Chris ?
Does selling 1 Put or Call option Subtract from one of your shares you own ?
This strategy appears to be a low-risk way to play options. It also appears to be a win-win deal if we choose the right stock.
Right. Instead of losing money like crazy, like WallStreetBets. You make some little money here and there and add some Funds and live out of it or reinvest the proceeds is growth assets.
I wish you financial success in your endeavors.
Do u sell to close or sell to open
I'm trading on cash app what app should I trade on if you don't think cash app is the best option
What do you think about SPYI? Great videos btw!
ohhhhhhh!!!!!! use the stop-loss at the same time of buy. got it. ✍🏾
If you already have 100 shares, and the put that you sold falls through. Would you still be required to purchase 100 shares?
I don’t understand why you kept saying you can sell outs once you own 100 stocks. You don’t need to own any stocks to sell puts , that might confuse some people.
If the shares don't go down, do I still have to sell the stocks in the put options or do I get to keep the stocks?
Yeah I’m wondering what happens if you just let it go past the date
thanks so much for teaching me
Are you required to buy the hundred shares at the collateral price or at the price it's at when the contract expires?
Thank you Chris!
When will u be able to sell it or you wait till the expiration date
Great example
Thank you Chris
Just another way to make money in the stock market. Thank you Chris!🙏🧞♀️🙏
I think this type of traded would work well for me
Thank you !!
Is this called cover puts ?
Do you buy it against your total shares that you are holding
splendid....
question ? if i own 100 shares of for example SOFI ; y not just sell weekly or biweekly or monthly COVERED CALLS n collect a premium?
Because you own the shares with Call options.When selling puts, you do not own the shares. You just need to have the money available to cover 100 shares, in case the shares get assigned to you.
When you sell puts and have them go for a month out can you close them earlier than a month and keep the money?
Yes
So it’s each day?? And what happens if the price rises?