Collect $50+ from Your Portfolio EVERY. SINGLE. DAY.
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- เผยแพร่เมื่อ 3 ต.ค. 2024
- In this video we are talking about how you can generate Cash Flow every day from a small $20,000 Portfolio. We are talking specifically about the Russell 2000 ETF (IWM) which just recently transitioned to daily option expirations which allows you to sell an option contract of IWM every day with only $20,000 capital as opposed to SPY which requires over $50,000 and QQQ which requires over $45,000. We will talk about selling options on IWM, selling covered calls on IWM, selling cash-secured puts on IWM and running the wheel strategy on IWM.
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#coveredcalls #dailyoptions #sellingoptions
Happy Tuesday! Make sure to leave your $0.02 in the comments! THANK YOU for watching!
You don't understand how long I've been waiting on this.
Awesome! THANK YOU for watching and for leaving your $0.02 in the comments! =)
really like that you're teaching individuals how to fish lately instead of pushing the high yield etf's that are losing people money. keep up the great work!
I appreciate that feedback! Every investor is different and I want to provide multiple avenues to the goal. =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
WoW!!! This is truly a game changer for someone with a smaller account. Thank you so very much Joe for the fantastic information!!!!
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! =)
Of course you will have assignment and that will limit your invesments and you will probably keep rolling which will bite into your profits a little bit. But I have been doing this with IWM for several months. Nice to see it has gone daily instead 3 times a week. Great video man
Yes, this is true. The market will not always cooperate and you will have to adjust your strategy from time to time. THANK YOU for watching and for leaving your $0.02 in the comments! =)
My .02 is the you’re the best! Thanks so much for the amazing content!
Glad you enjoy it and THANK YOU for the feedback! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I really appreciate all the recent videos and different perspectives you’ve demonstrated concerning options trading. I’ve dragged my feet in making the transition from JEPI & etc to doing it myself, but I’ve finally made the jump into IWM. Thanks for this info and previous info!
Great to hear that IWM switched to daily options. Much more within my reach than something like QQQ.
Agreed! Happy to see that as well. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Good video Joe!!! The only thing you forgot to mention is stock appreciation in the case of selling covered calls. Which of course is impossible to calculate.
This is true. THANK YOU for watching and for leaving your $0.02 in the comments! =)
@@AverageJoeInvestor I like your content. Keep it coming. 🙂. Are you in Sacramento area?
Thanks. This video answered a lot of questions I had. I have one weekday off per week from work, so I'm thinking I'll do the Wheel strategy on a once a week basis.
Awesome! THANK YOU for watching and for leaving your $0.02 in the comments! =)
Very good strategies but don't forget about the government being your 30% partner😂😂😂😂❤
Touche! But at least you're making money! THANK YOU for watching and for leaving your $0.02 in the comments! =)
You don't not trade because of taxes. If you do, you won't have any taxes, but you won't have any gains either.
Good video, hope to be doing the Wheel Strategy on IWM soon.
Awesome!! THANK YOU for watching and for leaving your $0.02 in the comments! =)
Last year I was, I feel, very successful in selling CSP/CC three times a week. I was being very conservative and making about $90 a week. Love IWM options.
LOVE THIS! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I have been doing weekly cc on IWM and averaged about $100 per week per contract. That is aboutv$5000 per year or 25% return. Will try to do daily CC now to possibly increase premium to maybe about $150 per week. IWM took a dive from 210 to 190 last week but has recovered to 198 now.
AWESOME! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I just started learning about CCs and CSPs, and began selling them last month on some things I have in my portfolio. So far I've made about $150 doing this. Seems like easy extra income so fa when selling semi-far OTM options.
Agreed Kyle! THANK YOU for watching and for leaving your $0.02 in the comments! =)
Hey Joe, thanks for the tips on covered calls and cash sec. puts. Having fun and success with the daily puts on IWM this week at 1% below market. In my experience, if I wait till about an hour into each trading day to place the puts, I get a good feel of the direction that The entire market is headed that day. The challenge that I run into with puts and calls is avoiding assignment. Can you please make a video on your strategies and thoughts on best practices for rolling techniques? What I run into is that in order to not give back all my upfront premium when rolling, I usually end up rolling as much as a month out, then missing out on a significant amount of trading days. Help
Thank you! Great video, it has encouraged me to start using this strategy. Starting next week. What are the advantages/disadvantages, pros/cons of daily vs weekly options for this strategy?
what would you do if you get assigned and IWM drops and keeps dropping? If your cost basis is $230 ,what would you do if its trading at $199. not much premium there..
Yes, the obvious issue with these strategies is that you can’t sell calls at a strike at or above your cost if the stock is trading materially below your cost. Or at least you’ll only be able to get minimal premium.
@@YIWOTYonly trade those you don’t mind holding should be lesson 1
@@YIWOTY doesn't matter- you wanted to hold them anyway, right, ? If they get called away below your cost you buy them back immediately. Not sure why people think you can't write calls below your cost basis.
Great explanation Joe.
With AMZN currently trading at 180 - A covered call at a .3444 delta currently yields 3.69 premium - less work for more $$$
Thanks for the cool videos. 2 cents for the youtube algorithm... Do i see that correctly: daily premium to chase is 28 to 70 USD when selling a csd, about 70 USD when selling a cc, but the daily price change here on this day has been 3,89 USD per Unit, so 389 USD... Exactly using the wheel seems quite dangerous to me if not using adjustments like rolling options, especially puts... Do you do this really daily without paying attention which market seems to be in place? and no adjustments? on a hard day, the "wheel" might get blocked by a harder market down turn after your first csp for days, weeks, months or even years as there might be no cc out of the money or in the money possible... for example starting in nov 2021 you would wait till today to be able to sell such an ATM or OTM call. However i like that it is based on ETFs, so a falling to 0 of the underlying seems not to be probable. ;)
The question. Are earnings paid to shareholders just as dividends are?
I just saw that transition to daily strikes the other day. Seemed like they left out Thursdays. Maybe I have that wrong. Thought I was imagining things 😅
At first they didn't show Thursdays but now they do. =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
Can i do this working a 9-5 job
to sell daily, you would need to sell on the day of expiration ( 0 DTE= a bit less premium), otherwise, it won´t let you sell before they free up your collateral which is not until the next day, you end up losing one day in between sells. am I right?
Great Question! You can roll the contract when it has little to no value left and do that daily NEAR the end of day when the existing option LIKELY will have lost all it's value. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Great video. May I ask you a quick question? for a daily trade, when do you sell a covered call? in the morning to expired at the end of the day and do you do the same the next day? if so at what time in the morning? Thanks
Thank you 🙏🏼
What would be the best brokers for this?
There are so many options out there (pun intended). I personally use Fidelity and others use Schwab, Robinhood, ThinkorSwim. THANK YOU for watching and for leaving your $0.02 in the comments! =)
I'm not getting $50 a day on IWM right now, more like $20-$30, but I'll take it. I started on Tuesday this week and have made $90 this week. That still works out to a 22% annual return on my initial investment of $20,700 if I can keep that up.
Its not a great time to be selling premium.
When did IWM move to daily?
I think it just started trading daily, as of 4-22-24
Agreed. It just recently occurred. THANK YOU for watching and for leaving your $0.02 in the comments! =)
When selling daily do u pick a time of they and roll them over at that time no matter what or do wait till the next day after it expired worthless?
Great Question! I will usually roll them near end of day OR close them early in the day if they have lost all their value and wait until the end of day to write the new contract. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Do you sell CC’s below your cost basis ?
Yes that's why all my money is gone
I do BUT I will write those more conservatively and roll my position to avoid assignment. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Investors may need to account for brokerage commissions for these investing strategies.
This is true. I pay $0.65 per contract. THANK YOU for watching and for leaving your $0.02 in the comments! =)
What about the settlement time. As you do not wait for settlement, you are borrowing continuously at 18 to 24%. You have to account for that.
I don’t think this is an issue in a margin account. I don’t trade zero DTE but I average 5-10 option trades a day and have never run into frequent trading causing margin balances while trades are waiting to settle.
@@YIWOTY Ok, but in a margin account every time your money has not yet settled, you are borrowing from the broker at a daily rate, do you account for that? It is like fees, if you do 10 trades per day and each trade costs you $1 then you are paying $10 per day. When you are doing your profit/loss account you have to account for that.
Don't sell covered calls on the day CPI is announced. Unless you want a higher chance of getting assigned. That was a fun time
Agreed OR you can just write more conservatively on those days along with Fed announcements and GDP. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Beware, he only gives you the perfect scenario, most the time the market goes the opposite you wish, there's times you'll be way underwater on your shares and the premium will be horrible, times your money will unusable in the T + 1 etc...
The market will not go against you most of the time- its roughly 50-50 - agree though, he paints a rather rosy picture. Usually nowhere near that premium, and I don't like being so close to the money (I can buy a crappy etf that loses me money doing this exact thing, and I don't have to lift a finger) .
If the market starts to drop like a rock, you will be left holding the stock from cash secured put with no idea what to do next.
You can roll your position down with it AND choose to only write conservatively and collect less premium. At times you COULD get assigned but then again, are we otherwise just holding cash in our bank account and doing nothing. Investing at times will result in paper losses. =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
But you wanted to get assigned. Or why are we doing this? Sell spreads if you don't want to tie up capital, or risk capital. Don't get stuck just listening to one guy on the tubes.
IF options goes against u and say are assigned 3 x a week, wouldn't u need 60,000 capital then?
Depends on the contracts but ya it would be a high dollar amount.
Which scenario are you talking about? If you’re assigning on a call, your shares will be called away and you can start over at a higher strike. If you’re assigned on a put, you now own the shares and can hopefully sell calls at a strike at or above your cost.
Huh?
What are the cheapest stocks to do this with. I want to start doing this with $1000,-
NIO, SOFI, TSLL are good for the Wheel Strategy.
Alot of talk about how much income is possible, but so far you are assuming every option you sell, you pick the right direction and you have no losers. Not very realistic because you are going to have losses and a lot of losses.
😂 te ganas 15k si y solo si el IWM se queda exactamente en la misma posición, si el precio baja a $180, y tienes unas acciones a $199 es imposible que puedas vender la opción ATM, por lo que tú ganancia bajaria muchísimo sin contar los $1900 del valor de la acción...😅 Solo funciona en mercados que hagan velas doji y planas todos los días
Very unrealistic, try it for a year and get bsck to us? 😂
I agree.
I love you content... usually.... but your strategies are getting more and more flawed. You have to see that these hypotheticals won't work the way you describe.
Gotta find me 20k
you can get siri stock thats little over 3 a share so 315 for 100 shares and you can do weekly calls on it.
@@bunkeyscow True. Gotta start somewhere.
@@kornx10 don't start investing by selling premium on shite stocks!
You will NEVER collect premium every day because if the market tanks your ETF will loose 3, 5 or 10% of value........this is pure BS !!!
That's literally one of the best things to happen if your selling calls 😂 but I understand your point
You can literally still collect premium even if the market tanks, it’s just that you will loose money on paper. You can minimize your losses if you sell puts but you can still collect premiums.
Your definition of premium is not the same as what the technical definition is. Therefore you can collect premium every day, but not every day will be profitable. Think of premium as an insurance premium on the price of your stocks.
Premium is money paid to you to provide the contract. If the market tanks, you will retain the premium while the contract expires worthless. Then, you either have to decide whether to take far less premium on the next contact and try to sell at the same level as before, or risk having your shares called away by selling a contract at a lower strike price. But, you would always be collecting a premium.