I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this ..
It is surprising to see that many people don't know that you don't pay interest on margin used as collateral. You only pay if you actually use it to pay for something.
Great idea that I had not even thought about. Selling low delta puts on margin. No margin interest as long as there is no assignment. Thanks for helping me add another revenue stream!
Great vid! I'm always selling cash-secured puts. If I'm doing it on a stock where I'm fine with getting assigned, I pick a more aggressive delta. If I get assigned, then I wheel it with covered calls (though honestly, I prefer puts). And yes, ALWAYS on margin. The brokerage reserves cash to support your option strategies. When done on margin, the amount reserved is only a percentage of the amount actually needed, so you're tying up even less. Start small, get to know how they work, the risks involved, and your tolerance for it. Learn, learn, learn! Always!
@@deeptoot1453 "Cash Secured" is just the term used. It means that I'm holding enough cash (or margin) to cover the purchase of the shares were they to be assigned to me. The reason I specify margin (vs. cash) on the trade ticket is that my brokerage sets aside a certain amount of my total margin capability as reserve to cover the option strategy. While this amount does decrease my total margin available, I am NOT charged margin interest for this set-aside. In other words, I'm "covering" the sale of this put with an interest-free margin loan. If I get assigned and I use margin dollars to make the purchase, at that point I would start to accrue margin interest on that amount, but not before. Nor am I tying up available cash to cover the option strategy. Hope this helps!
Yeah, Sell Leaps "Far Out" and in any black swan event (that is around the corner) lose you account and you home and good luck trying to get refund from this "advisor"..
Not sure about using margin on options. Here is what RH replied today: "Options themselves are a non-marginable security, so there wouldn't have been a change in the marginability on those. We require 100% of the requirement for Short Puts on the account for those."
The Tesla thing with your parents rang true - same with the Ameritrade to Schwab transition. A couple years ago I made a lot of money and then lost all the gains and a little bit more due to Tesla while I was in gambling mode. After a two year hiatus I'm finally back in the game and doing well. I could do better though. This provides food for thought - thanks again!
No you are looking at around 13 percent, and it goes down as you take on more debt. But nowhere as low as 5-8. I have no trading experience. Work for etrade though. I am going to try to get into trading but only allowed to do covered calls because of my lack of experience. But maybe my company has high margin. Maybe Robinhood is a lot lower.
Thanks mate, although I don't know if pltr is a good stock, in theory you have always been crisp and clear. Helped me do some options that I could have not done otherwise without a few like you on yourube
Your broker charges you interest on margin you sell, I only pay interest on margin I borrow to buy securities? I would call my broker and get a break form the margin rate also, I called and got somewhere between 6-7%.
soo i new and wont do this stuff until i get paper trading down lol but can you on RH buy a stock of 100 shares at a lower price using a buy call and exercise the contract (getting the shares) then can you sell a put with the stock at a higher amount and exercise that contract or am i tripping im neww and still have not started just doing paper trading thanks and love your vids
What you were saying about Schwab and margin for sold puts. I have noticed an improvement on available margin for options since my account got switched. does anyone else concur?
There are cash-secured puts, that is Selling Puts using your cash but no such thing as margin-secured puts. What am I missing here? Margin is only provided for buying stocks. For example, if you have $50,000 in cash, Robinhood might give you an additional $50,000 in margin, charging 8% interest on the borrowed amount.
@@Jepi369 You can. I could have a zero cash or even negative cash balance but 50k worth of stock. I can sell puts against the value of the stock to raise cash.
Seriously lol. What are the odds of PLTR going under $20? Like 40% it happens within a week. Maybe he likes PLTR I would certainly do this with stocks I like and at prices I like. Love NVDA not so much at $1100 though. Maybe a NKE $70 or AMD $100-120
nahh take advantage of CSP on margin.. 1 year of using 50K margin, i think i paid less than $100. where on earth can you borrow 50K and paid pennies on interest..?
Honestly, this is the first time i heard about selling leaps put options. It seems you guys are pro, so go elsewhere for more advanced stuff, as simple as that.
if you are using your cash as collateral to be on hold for a year to collect few hundreds is not worth it.. might as well just open a CD.. no risk of any assignments.
I do something different... pull up a 4 hour chart... with Bollinger bands.. i use tesla... on a 4 hour closing candle well under the lower bb line... i sell a 30 day put with a 20 delta and win ... well.. everytime. I buy to close as soon as it hits the middle bb line. 30 to 60% wins.. i do this with 10 contracts at a time. Pull up a chart 😊
Selling a leap put with a .045 theta is an excruciating way to make a few bucks. Yes it may have a high probability of success but a lot can happen in that time and you’re making only Pennie’s every day on a very low theta decay. I think it’s smarter to sell shorter DTE PUTS with much higher theta decay.
If you Sold TSLA leap Puts and it touched the 150$ would you not automatically been assigned and IF not then why would you not have chosen to buy the TSLA shares at 150$ which is the main rational you gave as 'the worse case scenario' ??
but i got a question, can your strategy constantly beat the market? We know there is a lot of strategies suitable for different kind of risk / gain preference, but I found it really hard to find a strategy that can actually constantly beat the market
Anyone notice that Henry was talking a little quicker than normal during this video…hmmm…sounded more ‘confident’ than last time I tuned into his channel…just saying.
I honestly don't understand why you're discussing these dubious schemes. There are plenty of options like Eledator and similar ones that are fast and profitable.
Yeah but your money is tied up in collateral for the entire duration. I feel that tied up $ could be better utilized in the short term. However if you have 100's of thousands of dollars I guess it works just fine
He said around 3:16 that margin is an important topic and he closes his laptop to discuss. But the rest of the video he goes in so many tangents about LEAPS, dropping hints that he has multi million portfolios on Robinhood and Schwabb and finishes with a sales pitch for coaching. I watched a few other videos but they all end up like this. Very little actionable information. Lot of word salad. Very disappointing channel.
Using margin as collateral on Robinhood does not incur interest charges. Only if you are assigned shares do you actually pay interest. I am doing it now and it works.
How much money you can LOSE!!! At these Nose Bleed Levels, there is a Greater Likelihood that the Markets might Correct to the Downside ... You are Much Better Selling the Call Leaps, since the Market Can Go Way Down, but it is NOT Likely to Go Up by another 20% ... Even Goldman SUCKS thinks the next 10 years the S&P may only go up 4% per year at most
I believe Tom Lee, head of research at Fundstrat. Ed Yardeni at Yardeni research. Teams of researchers using cutting edge software to guide investment decisions. I'm staying on the bull and always keeping some dry powder for opportunities. Good luck!
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this ..
That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.
I've heard a lot about her. Please how do I contact Louise O'Brien?
I'm happy to see Mrs Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing.
I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much
SHE IS ON TELE GRAM.
It is surprising to see that many people don't know that you don't pay interest on margin used as collateral. You only pay if you actually use it to pay for something.
Great idea that I had not even thought about. Selling low delta puts on margin. No margin interest as long as there is no assignment. Thanks for helping me add another revenue stream!
Great vid!
I'm always selling cash-secured puts. If I'm doing it on a stock where I'm fine with getting assigned, I pick a more aggressive delta. If I get assigned, then I wheel it with covered calls (though honestly, I prefer puts).
And yes, ALWAYS on margin. The brokerage reserves cash to support your option strategies. When done on margin, the amount reserved is only a percentage of the amount actually needed, so you're tying up even less. Start small, get to know how they work, the risks involved, and your tolerance for it. Learn, learn, learn! Always!
Mara
You just said they were cash-secured, how is that margin
@@deeptoot1453 "Cash Secured" is just the term used. It means that I'm holding enough cash (or margin) to cover the purchase of the shares were they to be assigned to me.
The reason I specify margin (vs. cash) on the trade ticket is that my brokerage sets aside a certain amount of my total margin capability as reserve to cover the option strategy. While this amount does decrease my total margin available, I am NOT charged margin interest for this set-aside. In other words, I'm "covering" the sale of this put with an interest-free margin loan.
If I get assigned and I use margin dollars to make the purchase, at that point I would start to accrue margin interest on that amount, but not before. Nor am I tying up available cash to cover the option strategy.
Hope this helps!
7:00 Slight correction. 3% per month is not 36% per year. It is 42.6% per year. 1.03^12 = 1.42576
Yeah, Sell Leaps "Far Out" and in any black swan event (that is around the corner) lose you account and you home and good luck trying to get refund from this "advisor"..
That assumes reinvestment of the capital and obtaining the same return each time.
Yes but calculating that on the spot is very hard
Another thing to mention about LEAP Puts is that you can make money by reinvesting your premium.
Henry, this video is eye opening. Thanks for this advice.
The way you present yourself and your videos put one at ease . Thank you
Definitely the most phenomenal and most right minded mentor on web
Not sure about using margin on options. Here is what RH replied today: "Options themselves are a non-marginable security, so there wouldn't have been a change in the marginability on those. We require 100% of the requirement for Short Puts on the account for those."
The Tesla thing with your parents rang true - same with the Ameritrade to Schwab transition. A couple years ago I made a lot of money and then lost all the gains and a little bit more due to Tesla while I was in gambling mode. After a two year hiatus I'm finally back in the game and doing well. I could do better though. This provides food for thought - thanks again!
correct me if im wrong but on margin...aren't you paying 5-8% to borrow the money for margin to sell the put options?
No you are looking at around 13 percent, and it goes down as you take on more debt. But nowhere as low as 5-8. I have no trading experience. Work for etrade though. I am going to try to get into trading but only allowed to do covered calls because of my lack of experience. But maybe my company has high margin. Maybe Robinhood is a lot lower.
Lol clueless
but you don't buy until you are assigned. you SELL a put.
6% a year on Robinhood
Only on negative cash balance, at least on IBKR
Where do you get no interest margin?
Enjoyed the gun show but, Imma need a double bicep pose for the next video❤😂😂😂. Also, good advice on puts as well.
This is one of your best videos.I appreciate you being so transparent...
Thanks mate, although I don't know if pltr is a good stock, in theory you have always been crisp and clear. Helped me do some options that I could have not done otherwise without a few like you on yourube
Margin isn't free? Even on Robinhhood it's over 6% I believe. Please correct me if I'm wrong.
you don't get charged for margin when used as collateral. Only if you get assigned and margin is used to pay for the shares.
What margin account are you using where you are not paying monthly interest on the outstanding balance?
You don't pay anything if the margin is used as collateral. Only when you actually use it (buy stocks with it).
@@patboy01 So if I take out margin, and only use it as collateral, I will not pay interest. Do I have this correct? Sorry English not my language
@@jason-dn3hy Yes, that is correct.
i love selling put leaps and forget it
What a nugget Henry. You talk about having an impact. Mission accomplished with me. Thanks again!
It'd be nice if he would show us his overall performance since he began trading and then monthly or quarterly performance.
what about the interest you would pay on the margin ?
Margin rates are very high right now. Selling leaps on margin now is a fool's errand.
Your broker charges you interest on margin you sell, I only pay interest on margin I borrow to buy securities? I would call my broker and get a break form the margin rate also, I called and got somewhere between 6-7%.
you dont pay interest selling puts if you dont have a negative cash balance. You only pay interest on the lack of cash not the sold put.
I like the title of the vid. Great work, keep it up ❤🎉
Is there a word for just buying calls and buying puts?
The word is 'Sucker"
Can you do an update of your AAL holding?
Assigned ..no doubt. That thing dropped like a rock overnight. Sighhhhh
Make a video about selling puts on margin! NOW!
soo i new and wont do this stuff until i get paper trading down lol but can you on RH buy a stock of 100 shares at a lower price using a buy call and exercise the contract (getting the shares) then can you sell a put with the stock at a higher amount and exercise that contract or am i tripping im neww and still have not started just doing paper trading thanks and love your vids
Can you recommend some good books on options trading?
UNDERSTANDING OPTIONS by Michael Sincere
good content, thanks !
Can I sell against a leap in a small cash account on Robin Hood? I have tried with no success? Incorrect delta picked maybe?
So you guys don’t have to pay interest on puts if it never gets assigned? Is that across all brokerage accounts
Yes
@@steve99912 no, Robinhood charges you
Wouldn’t the margin interest you’re paying be higher than the 3% you’ll get from selling the AAPL LEAP?
The problem with long term Put options is that you have be cash secured so that cash has to be sitting around doing nothing correct?
if you had calls on Henrys biceps, youd be deep in the money 💪🏼😂 health and wealth lfg Henry
Thanks. Long calls on biceps :)
@@InvestwithHenry dare we say LEAP calls? 🤔 jk thanks for what you do for all of us Henry
What you were saying about Schwab and margin for sold puts. I have noticed an improvement on available margin for options since my account got switched. does anyone else concur?
Henry flexing on em!!
Wouldn't the potential premium be locked up until you close or get assigned though? So if you needed steady income this wouldn't be good
Using margin, not paying interest? 5% a year is actually lower than all the available margin rates out there.
There's no interest if you sell options because you haven't actually borrowed any money until if and when you're assigned.
@@CapAnson12345 Robinhood they charge you interest
Who's willing to take the LEAP?? 😊
Ha this guy
There are cash-secured puts, that is Selling Puts using your cash but no such thing as margin-secured puts. What am I missing here? Margin is only provided for buying stocks. For example, if you have $50,000 in cash, Robinhood might give you an additional $50,000 in margin, charging 8% interest on the borrowed amount.
yes, Robinhood charging interest on margin... now they lowered to 6.55%.
@@Dotasmgmt that’s beside the point, you cant get margin to sell puts
@@Jepi369 You can. I could have a zero cash or even negative cash balance but 50k worth of stock. I can sell puts against the value of the stock to raise cash.
Yes you can.
@@JeffreyReed-p2o try it, you cant
LEAPs?
Man, you really gotta talk more about the risks when you suggest selling $20 puts on a stock that was $7 a year ago.
Seriously lol. What are the odds of PLTR going under $20? Like 40% it happens within a week. Maybe he likes PLTR I would certainly do this with stocks I like and at prices I like. Love NVDA not so much at $1100 though. Maybe a NKE $70 or AMD $100-120
@@jeffgoggin1394 "Stocks only go up" according to this guy
I always thought you had to pay interest on margin regardless of what it's being used for (buying stock vs selling puts
nahh take advantage of CSP on margin.. 1 year of using 50K margin, i think i paid less than $100. where on earth can you borrow 50K and paid pennies on interest..?
A game changer
Robinhood won't let me sell options on margin they only use my cash position😢
These clickbait titles are getting old, rehashed info over and over again....
agree
Same stuff over and over again man. This dude is either putting no effort to this channel or just doesn't know anything else
@BobBob-ey5br i think he doesn't like making TH-cam videos anymore. He dreads it so he can recruit people in his community and make money.
Honestly, this is the first time i heard about selling leaps put options. It seems you guys are pro, so go elsewhere for more advanced stuff, as simple as that.
As usual selling "my clients" subs just like all TH-camrs.
if you are using your cash as collateral to be on hold for a year to collect few hundreds is not worth it.. might as well just open a CD.. no risk of any assignments.
In his example with PLTR is almost getting 13% interest in your 2000 collateral. Way more than a CD
I do something different... pull up a 4 hour chart... with Bollinger bands.. i use tesla... on a 4 hour closing candle well under the lower bb line... i sell a 30 day put with a 20 delta and win ... well.. everytime. I buy to close as soon as it hits the middle bb line. 30 to 60% wins.. i do this with 10 contracts at a time. Pull up a chart 😊
I might be stupid, but I think you can't sell puts on margin in Robinhood.
SPY is $600 ,is there a less costly ETF that covers the 500 and has decent volume?
how do you not pay interest on margin, cost is crazy high and eats up all your gains
but you pay interest for the margin used
Easy come easy go
Aal is a good idea for this currently
wait, no interest on margin? I thought robin hood charged 6% interest.
you do pay interest on margin though
Retired bc you make $$$$ selling courses
too busy to answer any real questions that aren't from a fanboy.
Maybe try some of what he's talking about...
Henry these long ads are killin me
Top 5 Stocks for LEAPs
Selling a leap put with a .045 theta is an excruciating way to make a few bucks. Yes it may have a high probability of success but a lot can happen in that time and you’re making only Pennie’s every day on a very low theta decay. I think it’s smarter to sell shorter DTE PUTS with much higher theta decay.
If you Sold TSLA leap Puts and it touched the 150$ would you not automatically been assigned and IF not then why would you not have chosen to buy the TSLA shares at 150$ which is the main rational you gave as 'the worse case scenario' ??
Selling PLTR, "5 private clients" urgency 😂
Henry your videos are literally gold mines!!!
Thank you!
Legend leaps. Selling puts
but i got a question, can your strategy constantly beat the market? We know there is a lot of strategies suitable for different kind of risk / gain preference, but I found it really hard to find a strategy that can actually constantly beat the market
Anyone notice that Henry was talking a little quicker than normal during this video…hmmm…sounded more ‘confident’ than last time I tuned into his channel…just saying.
Stock trading now 71 dollars means you make money on selling a put option very nice
lol please don’t go full mcgregor on us when the net worth and muscles are way up 😂
I honestly don't understand why you're discussing these dubious schemes. There are plenty of options like Eledator and similar ones that are fast and profitable.
Damn palantir was just $20 7 months ago now it's at $80 😂
I was moved to Schwab and found it to be cumbersome and not investor friendly… Moved to IBKR… very satisfied
No offense but this video was all over the place and the was no educational value concerning entry/exit of the LEAP, what it’s main purpose is etc.
Yeah but your money is tied up in collateral for the entire duration. I feel that tied up $ could be better utilized in the short term. However if you have 100's of thousands of dollars I guess it works just fine
I’m not sure about leaps, but Henry is trippin…
LEAPS, not LEAP, Henry!
He said around 3:16 that margin is an important topic and he closes his laptop to discuss. But the rest of the video he goes in so many tangents about LEAPS, dropping hints that he has multi million portfolios on Robinhood and Schwabb and finishes with a sales pitch for coaching. I watched a few other videos but they all end up like this. Very little actionable information. Lot of word salad. Very disappointing channel.
You SOLD Put at 3 and collected 300$ in premiums. At the expiration date, it's at 5. How did you make money then? You lost
should have done this on Tesla because could have made a buck if I did it at the right time lol.
Margin interest is not free!!!
Using margin as collateral on Robinhood does not incur interest charges. Only if you are assigned shares do you actually pay interest. I am doing it now and it works.
LEAP = Long Term Option
Selling Leaps Y? chump change. Tie up your money for BS change. And still exposed to risk. Better buy 1-3 month TBills.
How much money you can LOSE!!! At these Nose Bleed Levels, there is a Greater Likelihood that the Markets might Correct to the Downside ... You are Much Better Selling the Call Leaps, since the Market Can Go Way Down, but it is NOT Likely to Go Up by another 20% ... Even Goldman SUCKS thinks the next 10 years the S&P may only go up 4% per year at most
I believe Tom Lee, head of research at Fundstrat. Ed Yardeni at Yardeni research. Teams of researchers using cutting edge software to guide investment decisions. I'm staying on the bull and always keeping some dry powder for opportunities. Good luck!