Cash Secured Puts Explained: Options Trading for Beginners

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  • เผยแพร่เมื่อ 15 ต.ค. 2024

ความคิดเห็น • 190

  • @clearvaluetax9382
    @clearvaluetax9382  ปีที่แล้ว +20

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  • @alenbabakhanians5864
    @alenbabakhanians5864 ปีที่แล้ว +48

    Great explanation! One thing I would add regarding the con is the potential loss of income if SIRI were to, let's say, reach 7, 8, or 9 dollars. Your gain would be limited to only $0.32.

  • @bahrambj
    @bahrambj ปีที่แล้ว +23

    Great explanation! I would've mention that $450 will be needed in the account and will be locked until the expiration.

    • @frankkoempel7701
      @frankkoempel7701 8 หลายเดือนก่อน +3

      I feel this should have been necessary, some may not have known.

    • @tamaica7770
      @tamaica7770 7 หลายเดือนก่อน

      Good point. But i wonder if you only had $200 in account and the broker allowed you to sell that put as in the example above. When the expiration comes, how are you gonna pay or I don’t get this part.

    • @ggmanatee
      @ggmanatee 6 หลายเดือนก่อน

      @@tamaica7770 They wouldn't allow you to do so, it's cash-secured, so you need that as collateral, effectively.

  • @edwarddiaz1130
    @edwarddiaz1130 ปีที่แล้ว +26

    YOU SIR ARE A GENTLEMAN AND A SCHOLAR!!! Awesome info!!

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      Thank you Edward! I appreciate the support and wish you a great day!

  • @matthewcruze3060
    @matthewcruze3060 9 หลายเดือนก่อน +4

    Great explanation! Can you provide the link to the video on how to shop around for good deals on Cash Secured Puts?

  • @scarlotraven6193
    @scarlotraven6193 5 หลายเดือนก่อน +4

    Thank you for explaining this so clearly. I’ve been studying options for 3 years and still haven’t started. I’m waiting until I feel comfortable in my ability.

  • @timothyy7
    @timothyy7 ปีที่แล้ว +6

    im preparing to deploy a cash secured put on an etf, but you should also mention that having the necessary funds is needed ahead of time. so if you're buying SIRI at $4.18 then you will need to have $418 ready to be assigned assuming assignment.

  • @allenh7835
    @allenh7835 ปีที่แล้ว +4

    THANK YOU ! You explain it in a way the average person can comprehend it.

  • @ThePimpedOutPlatypus
    @ThePimpedOutPlatypus ปีที่แล้ว +5

    Thank you for the Smooth-Brain explanation. Made it much easier to understand

  • @crystaljones3844
    @crystaljones3844 ปีที่แล้ว +13

    Thank you sir for always sharing such valuable information with us peons

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +8

      Hi Crystal, it's my pleasure and we're not peons! We're all great and just need an opportunity to shine.

  • @briangammage5351
    @briangammage5351 ปีที่แล้ว +4

    Thank you so much for unveiling the mystery of the stock market!! It is so intimidating with the fancy words and procedures, but your video makes it so clear!!!! Thank you and God bless your ventures!!!!

  • @kevinnoel4647
    @kevinnoel4647 4 หลายเดือนก่อน +5

    Best options explanations serie on TH-cam !

  • @cynthiaking4437
    @cynthiaking4437 ปีที่แล้ว

    Brian, what an American treasure. Thanks Brian, if I die poorly it’s not for your lack of knowledge, talent, and effort.

  • @psha8178
    @psha8178 9 วันที่ผ่านมา

    Thanks for the clear & concise explanation. Do these always have to be as cash and not in margin account?

  • @Killmonger23363
    @Killmonger23363 ปีที่แล้ว +4

    This is what we need more of create a playlist ! Please more on trading education thanks !

  • @da_cryptoguy7744
    @da_cryptoguy7744 ปีที่แล้ว +2

    please do more videos of investing. You explain everything better than the fake guru out there. Love your contents.

  • @gratefulbrad
    @gratefulbrad 8 หลายเดือนก่อน

    I like your style of presentation, animation with clear voice, excellent subject matter, jah

  • @fabiGBOtown
    @fabiGBOtown ปีที่แล้ว

    Outstanding, I can't wait to watch your video on theta decay, when to buy to close, etc.. this is your strength, I think I've said it before

  • @bisimj
    @bisimj ปีที่แล้ว

    Best put option explaination on TH-cam. Thank you very much

  • @utkbyuca89
    @utkbyuca89 ปีที่แล้ว +3

    You’re best Brian ! Love your clear explanation .

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      Thank you for that feedback and all the support!

  • @rosebloom2518
    @rosebloom2518 ปีที่แล้ว +5

    Happy Tuesday Brian! Have a fabulous day!💗☀️

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +2

      Happy Tuesday Rose Bloom! I hope you have a fabulous day as well!

  • @Slaphappy-_-
    @Slaphappy-_- ปีที่แล้ว +3

    Thanks Brian for getting back to to what we like!

  • @danielberitu2489
    @danielberitu2489 11 หลายเดือนก่อน

    you put hard work and effort on your videos to clarify everything .Thank you !

  • @Chinny_Winny
    @Chinny_Winny ปีที่แล้ว

    Thx B! Cant wait to learn more on calls and put options. im too unconfident to try it yet.

  • @SuperKarthick12345
    @SuperKarthick12345 6 หลายเดือนก่อน

    Great explanation..but quick query ..if stock goes down the underlying put contract value will also increase ..how do we manage that loss?

  • @desiexpat7
    @desiexpat7 7 หลายเดือนก่อน

    Really helpful and well explained. THANKS!!

  • @joseacevedo9117
    @joseacevedo9117 2 หลายเดือนก่อน

    Great explanation, i will definitely be using this strategy to expand my portfolio and income.

  • @brogetsrich
    @brogetsrich 10 หลายเดือนก่อน

    Very great analogy in the beginning. Love it.

  • @nicolapansini5656
    @nicolapansini5656 ปีที่แล้ว +3

    Great explanation as always, this video is perfect for whoever is learning how to sell options.
    I use csp and cc to improve my P&L ratio in one of my positions that I am currently in the red.

  • @Trade2Invest-
    @Trade2Invest- ปีที่แล้ว +1

    Very well PUTS video. Thank you for your hard work.

  • @rockfordfos1
    @rockfordfos1 ปีที่แล้ว +1

    What brokerage do you recommend for a starter?

  • @melissah3069
    @melissah3069 ปีที่แล้ว +3

    Hey Brian 👋🏼 could you do a video on money market accounts? From what I understand, that can be an account that keeps your cash liquid and can also have a high yield!!

  • @douglasbrownfield2771
    @douglasbrownfield2771 ปีที่แล้ว

    Brian cover the UAW contract expiring and what it could mean if they go on strike. Work at a parts plant and I used to work at ford. I’d love to hear your opinion on the contract the workers. The company and anything in between and what it should be!

  • @Gwillis7
    @Gwillis7 ปีที่แล้ว +114

    Brian looks full today, that’s cuz he ate @RJTalksTV lunch yesterday 😂😂

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +29

      Hi Gwillis! It's always great to see you! Thanks for that commenting, if they want to bring, I hope they can take it.

    • @IROCZSPEED
      @IROCZSPEED ปีที่แล้ว +4

      Waiting for Brian to comment on Reventure Consulting, lol

    • @MinoyHoiMi
      @MinoyHoiMi ปีที่แล้ว +1

      Lmao 🎉😂

    • @katv3116
      @katv3116 ปีที่แล้ว +1

      Brilliant 😂

    • @dannyfinanzas3064
      @dannyfinanzas3064 ปีที่แล้ว

      @@clearvaluetax9382well said

  • @lakshmimathangikuppuswamy5111
    @lakshmimathangikuppuswamy5111 7 หลายเดือนก่อน

    Excellent video, thanks for this one.. pls share how do you look out for good deals on cash secured puts pls

  • @Tellinhowitis121
    @Tellinhowitis121 ปีที่แล้ว

    Good explanation Brian. Look forward to your future videos.

  • @redloh8845
    @redloh8845 11 หลายเดือนก่อน

    TYFYS Brian! As always, excellent content.

  • @goforitsystems1890
    @goforitsystems1890 2 หลายเดือนก่อน

    I love you guys. You explain everything so good

  • @christopherfanara2593
    @christopherfanara2593 ปีที่แล้ว +1

    Thank you for your service and time.

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      It's my pleasure Christopher. Thank you for all the support!

  • @rlin656
    @rlin656 ปีที่แล้ว

    This is exactly what I use! Perfect for this market!

  • @pikaaacz
    @pikaaacz ปีที่แล้ว

    I thank you for your videos, please publish more, and I wish you a very nice day, take care

  • @riseofkilling7248
    @riseofkilling7248 ปีที่แล้ว

    do you have any videos about investing into a Roth IRA and how to take out money from it? Thank you!!

  • @jv-king
    @jv-king 5 หลายเดือนก่อน

    thank you for this awesome content. I learnt so much.

  • @vrindakaushik2141
    @vrindakaushik2141 3 หลายเดือนก่อน

    Can you also clarify the premium calculation and effect on purchase as when the price moves in the direction premium increase I mean I wonder about unlimited loss scenario when selling ?

  • @吳家任-y1o
    @吳家任-y1o 11 หลายเดือนก่อน +1

    Another risk is if the stock skyrockets before the expiration date.
    For example, if SIRI goes from $4.89 to $6 before the expiration date, you could've made $1.11 if you had just bought the stock. Instead you only make 32 cents from the CSP.

  • @mbg9650
    @mbg9650 ปีที่แล้ว

    With 22 DTE, are you more exposed to Gamma vs taking position at 45 DTE & closing position at 21 DTE?

  • @TheJ0Lim
    @TheJ0Lim 9 หลายเดือนก่อน

    Is the price based of the closing price or is it within the trading day. IE the stock went to 4.20 but then closed at 4.51. Would that put be exercised??

  • @linabellegarcia6158
    @linabellegarcia6158 ปีที่แล้ว +3

    Hi Brian.
    Thanks so much. I want to start investing. I wish you could be my accountant

  • @Minhnguyen-tf8ps
    @Minhnguyen-tf8ps ปีที่แล้ว

    Thanks, Brian...give a deal so I can try . This is my 1st learning

  • @HHuynh-rs8gj
    @HHuynh-rs8gj 4 หลายเดือนก่อน

    Thank you Brian, you are the best

  • @a1isrising
    @a1isrising ปีที่แล้ว +2

    Great explanation thanks

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      Thank you for that feedback and all the support!

  • @ddude27
    @ddude27 ปีที่แล้ว

    Does timing also matter when you create a contract and it gets agreed upon? I'm assuming the advantage of buying a stock outright is the freedom of when to buy and sell as opposed to cash secured puts. Unless I have it misunderstood.

  • @psharp2468
    @psharp2468 ปีที่แล้ว

    Great video Brian! I’m glad to know that you are a part of team theta!

  • @brianlb78
    @brianlb78 7 หลายเดือนก่อน

    When u sell the put you're basically shoring it. Do you have to buy the put back at anytime or do u let it expire? I'm guessing u do t have to and if u do you basically cancel the trade and don't have to buy the stock if It falls to or below the price?

  • @prashantsoni3170
    @prashantsoni3170 ปีที่แล้ว

    Thanks buddy, great video as always

  • @ArunKLogan
    @ArunKLogan หลายเดือนก่อน

    I did CSP on NVDA for 5$ for this Friday expiry, but don't see credit added to my buying power. when does the CR get added? Stock is down 10$ and I am down 500$, but I am expecting my account portfolio chart remains the same value because my CR 5$ and loss 5$ are equalized, but I am down 500$ and dont see that CR anywhere.Thoughts pls!

  • @pegazuz1977
    @pegazuz1977 11 หลายเดือนก่อน

    Awesome explanation - why would anyone take the other side of that bet? Seems unbalanced.

  • @heinzyketchupy4175
    @heinzyketchupy4175 ปีที่แล้ว +2

    So basically sell puts on companies you like? And only ones you like, bc the benefit of owning it or not is good either way?

    • @joseheredia9275
      @joseheredia9275 23 วันที่ผ่านมา

      Also you need to have enough cash to buy $100 shares in cases it goes below strike price

  • @thebrilliancyofreality4408
    @thebrilliancyofreality4408 5 หลายเดือนก่อน

    Does it get sold automatically after the expiration or do we have to sell to close?

  • @titaniumsandwedge
    @titaniumsandwedge ปีที่แล้ว +2

    This video explains cash secured puts very well. But puts can be used in more ways than shown. Example: Some stocks have weekly options. It is more profitable to sell weeklies as the time obligation is much shorter than monthly options. Dividend stocks can be played to harvest the dividend and option premiums. It starts with a short put position that is assigned causing the investor to own the stock. With the stock, a call can be sold against the position to gain more premium. It is vital that the stock be kept through the ex dividend date so the dividend is harvested. The daddy of all plays with puts is to use margin secured puts. As it sounds, an account with margin can use it to secure a put position. The magic of this is that no interest accrues on the margin that secures the put. But a margin secured put can go bad if the price drops forcing the investor to buy the stock.

    • @ashleykim6432
      @ashleykim6432 ปีที่แล้ว

      How did you learn how to trade options

    • @titaniumsandwedge
      @titaniumsandwedge ปีที่แล้ว +1

      @@ashleykim6432 Just by trading options. They are confusing for the newbie.

  • @beccasmom
    @beccasmom ปีที่แล้ว +3

    Thank you so much!

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      It's my pleasure, thank you for all the support Becca's Mom!

  • @sithlordbilly4206
    @sithlordbilly4206 ปีที่แล้ว +1

    Hello, Brian how is the weather in Chicago?

  • @zebholt03
    @zebholt03 ปีที่แล้ว

    so 1 put is 100 shares, and you buy the contract for .32, does that mean you are always expected to lose or gain $32? or does it depend on how many shares are actually bought or sold?

  • @clairewyndham1971
    @clairewyndham1971 ปีที่แล้ว

    Brian- do I have to buy 100 of any stock that I choose to create a account? What if I can't afford 100 shares?

    • @utkbyuca89
      @utkbyuca89 ปีที่แล้ว

      Yes, you do. If you don’t have enough $ in your account, brokerage will Not execute your trade. ‘Cash Secured’ put. Find a cheaper stock you can afford to buy 100 shares.

  • @TraderChick
    @TraderChick ปีที่แล้ว

    Thank you been waiting for this one 🙏🏻❤

  • @SLIP.Active
    @SLIP.Active 6 หลายเดือนก่อน

    One thing I don't understand is why you can't set up an automatic sell position on the underlying stock at $4.18. That way if it falls to $1, you would still be net $0 as the sell position negates the losses of the put.

  • @dharam4u2
    @dharam4u2 หลายเดือนก่อน +1

    Question: If SIRI goes below $4.50 on 6-August and then rises to $5.00 on 18-August, does the contract gets executed?

    • @Luis-nj8yh
      @Luis-nj8yh หลายเดือนก่อน

      it can get executed if the contract hasn't expired

  • @mikeb5030
    @mikeb5030 2 หลายเดือนก่อน +3

    I think you missed an important part of selling CS puts is to having the cash amount at hand incase the option gets exercised. Otherwise, going naked is very risky.

    • @IsaacC20
      @IsaacC20 2 หลายเดือนก่อน +1

      Hence "cash-secured"

    • @Luis-nj8yh
      @Luis-nj8yh หลายเดือนก่อน

      @@IsaacC20 💀😂

    • @vitorfranco7123
      @vitorfranco7123 7 วันที่ผ่านมา

      Naked is nice, if she's good looking 😅

  • @mrlion2022
    @mrlion2022 ปีที่แล้ว +4

    Brian makes it too easy

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      Thank your for that feedback and the support Mr. Lion!

    • @mrlion2022
      @mrlion2022 ปีที่แล้ว

      @clearvaluetax9382
      You're welcome. I appreciate hard work and honesty.

  • @edreygarcia2189
    @edreygarcia2189 ปีที่แล้ว

    Awesome, we need more of this videos

  • @jrraven3230
    @jrraven3230 ปีที่แล้ว +1

    Thanks Brian 😊 😊

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว

      THank you JR Raven for all the support, it's always so great to see you!

  • @brendank4927
    @brendank4927 ปีที่แล้ว

    My favorite strategy

  • @samvader9678
    @samvader9678 ปีที่แล้ว

    Awesome video! Are premiums taxed at short-term or long-term?

    • @TheShadowxRiPPeR
      @TheShadowxRiPPeR ปีที่แล้ว +1

      short

    • @Answers721
      @Answers721 ปีที่แล้ว +1

      "Awesome video! Are premiums taxed at short-term or long-term?"
      An option can be for over a year, although that is probably more usual for institutional investors that are math geniuses. So most of the time you would be charged for short-term gains of less than a year.

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      It'll be short Sam.

    • @psharp2468
      @psharp2468 ปีที่แล้ว +1

      The only exception: you can usually do these cash secured puts in an IRA (tax advantaged accounts).
      In those, you won’t worry about taxes until you pull funds from the account.

  • @Pandadadp
    @Pandadadp ปีที่แล้ว +1

    Thank you

  • @clrushing12
    @clrushing12 หลายเดือนก่อน

    So I'll just own the stock if it falls rather than really losing?

    • @Luis-nj8yh
      @Luis-nj8yh หลายเดือนก่อน

      you'd own the stock at 4.50, if the price of that stock never goes above 4.50 again you'd lose out there.

  • @ondrey95
    @ondrey95 ปีที่แล้ว

    This guy hasn't missed, it's actually insane

  • @Freesmoketvv
    @Freesmoketvv ปีที่แล้ว

    Do u have an options course ?

  • @luisfranco5396
    @luisfranco5396 หลายเดือนก่อน

    Where can l find stocks for cash secured puts?

  • @scorpionking9925
    @scorpionking9925 4 หลายเดือนก่อน

    Is that different from put option

  • @stamatiskourtis9653
    @stamatiskourtis9653 4 หลายเดือนก่อน

    Great gob man!!!

  • @clairewyndham1971
    @clairewyndham1971 ปีที่แล้ว

    Can I do this for Berkshire Hathaway?

  • @imhiLARRYous
    @imhiLARRYous ปีที่แล้ว

    I got absolutely destroyed selling puts on AMC before the reverse stock split news. It was $5.26 at the close before the news came out. Currently trading at 70-80c split adjusted 🤦‍♂️ down 80%+ just like that on the assigned shares

  • @stephenrogers4537
    @stephenrogers4537 ปีที่แล้ว +1

    Good afternoon, Brian. I hope everything's going well for you today, BROTHER !
    BRIAN THE PODCAST🦁 LION (the Walter Cronkite of podcasts 🏆)

  • @Maximo21akuma
    @Maximo21akuma ปีที่แล้ว

    I love this guy. I always feel like I’m gonna die when I watch his videos. Let me get my coffee this one sounds juicy. LOL

  • @melzdesign
    @melzdesign ปีที่แล้ว

    It's all sounding wonderful, until it's actually time to pick the right stock. more often than not the premiums are low. and more often than not the stock price actually falls.
    Highest premium will happen only when stock price is at (Resistance) while selecting ATM strike price.
    and that's a great way to watch the price fall below strike and get assigned.
    if you choose below current stock price ATM, the premium will go down by a lot and it won't be worth it.
    if you choose a higher stock price, the premium will be amazing, but you gotta be super bullish for it to go higher by expiration.
    can't wait to see your next video on how you pick the right stock! and hopefully it's not a small cap companies.

    • @firsthello7618
      @firsthello7618 ปีที่แล้ว

      He reiterated the point that you actually would want to hold the stock.

  • @landofgoshenstudios6402
    @landofgoshenstudios6402 ปีที่แล้ว +2

    This is freaking cool🎉

  • @albrio5749
    @albrio5749 ปีที่แล้ว +1

    can you do a video on how to do ur own covered call?

    • @clearvaluetax9382
      @clearvaluetax9382  ปีที่แล้ว +1

      Yes, I've created that video a little while back.

    • @qdood
      @qdood ปีที่แล้ว

      th-cam.com/video/D5Rjx_7XG2U/w-d-xo.htmlsi=yLEYrKFxPXGtqGM5

  • @ongaga9
    @ongaga9 ปีที่แล้ว +2

    Love this

  • @Livy-Bop
    @Livy-Bop ปีที่แล้ว

    Do u need to have the 100 shares before you do this?

    • @miguelmoreno543
      @miguelmoreno543 11 หลายเดือนก่อน +1

      No you do not. When you’re selling the put, you’re taking on the obligation to buy 100 shares of stock at the strike price you chose. If and when assigned, you’ll be long 100 shares. You just need to make sure you have the capital available.

  • @zmoney100
    @zmoney100 ปีที่แล้ว

    great video

  • @JakeTheStockGuy
    @JakeTheStockGuy 11 หลายเดือนก่อน

    Your also missing the other scenario as in SIRI goes to 20 and you missed that gains of the shares which is 300% for some premium you sold

  • @chewie1355
    @chewie1355 ปีที่แล้ว

    Thanks

  • @michellejackson7293
    @michellejackson7293 ปีที่แล้ว +1

    This is so hard to get I ready want to learn this

  • @josephtriplett6753
    @josephtriplett6753 ปีที่แล้ว +1

    You keep saying, “Siri” and my damn phone keeps trying to talk to me 😂😂 great video though

  • @jjbern000
    @jjbern000 ปีที่แล้ว

    Great video as always :)

  • @LARealEstateChannel
    @LARealEstateChannel 10 หลายเดือนก่อน

    Thank you.

  • @chillbillch
    @chillbillch ปีที่แล้ว +1

    Can you get out early?

  • @RubberCityRebel
    @RubberCityRebel ปีที่แล้ว

    I did that when it was called shorting puts

  • @arrey11
    @arrey11 ปีที่แล้ว

    Wonderful 😊

  • @konanahoussou4779
    @konanahoussou4779 ปีที่แล้ว

    Thx