Thanks for the generous sharing. For options, i learnt that we need to trade "popular or in demand" type of stocks like APPL or TSLA ....cannot do for those defensive ones. Also, we need to have "substantial" capital (at least 80K or more in it if we are looking at TSLA) else the firm will inform that our margin is insufficient, or we already have 100 shares of that stock on hand. However, the sharing is great, and I am working towards what you are doing. Thanks Kelvin
For those who new in options, just take note when you selling put , you need to prepare your cash on hand to prepare to buy the stock when assignment happen. Never sell naked put. It is very dangerous.
can explain why dangerous? Lets say we need cash on hand $1000 for the PUT, but we sell naked. The brokerage will lend us the $1000 on margin, then we pay back sometime later, no? Is that not the case?
@@calphak7389 I mean if you sell Tesla Put @ strike price USD800 for 1 contract. You need to have USD80,000 prepare d on hand in case your put is assigned to you. Never sell just because of the juicy premium.
@@ongbeeong I get the cash secured put part. Your original post was selling naked put was dangerous. I dont understand why dangerous, can you explain why dangerous? If dont have cash, will borrow the $80,000 on margin. Then what will happen? why dangerous?
@@calphak7389 Yes, you will get the $80,000 on margin but if the price continue to drop and soon or later you will receive a margin call from your broker to maintaining the min margin requirement.
Hi Kelvin, I have a question on rolling. Do you roll only when reaching the expiry date or reaching the strike price? What is your strategy? 1) If rolling when reaching expiry date, sometime it will be too deep into the money. 2) If rolling when reaching strike price, sometime it recover in the next few days and you have to wait longer for the option to expire. Your thoughts? Thanks
been studying this again and again. Im surprised at 6:53 the tesla call you kept selling got to a point where 2 calls earned you 16k in 1 month. That means each one earned you 8K. So these must have been IN the money as there are no monthly calls that would earn you that much money. Is this correct.
By doing the rolling , is unable to maintain 2qty with different strike price . It must to be more higher qty to cover the previous loss... Those whose rolling understanf what I saying😂
It isn't a total loss if it expires in the money though, right? Like, you still get the $$ from selling the 100 shares. And if you got those at a lower price, then you're making money either way.
Kelvin on your spreadsheet at 4:33 on 4th OCT you got assigned apple stock right? Why does it show credit 14400 and debit 14400. Im trying to create my own wheel portfolio and this is important to understand.
Hi kelvin. At 7:12 you did a 780 put and a 820 put. You closed these at a loss. Then you reopened new puts at 590 and 760. The table to the right where you made profit. The 590 put it shows 797 and the 760 put shows 4735. Are these amounts the premium your getting for selling the puts and the 590 Put was 30% below strike price ? and the 797 one was this AT THE MONEY? as you got a high 4.4 k premium. I would appreciate your help as i need to close a few options and roll them and so im trying to understand how you did it so i dont make a loss.
Csp and covered call are good if the stock aren't too volatile or best yet trade in ranges, with Tesla, you will leave lot of money on the table for the covered calls because its price can jump up a lot and the put side, you can end up buying Tesla at higher price than it could be.
Thanks, Kevin. Love your videos. Can you do a video on Tax in SG on trading? What needs to be declared and when? Considering the facts to that some of us are full time and some of us are not full time traders. This area is currently very gray and no good info available.
I envy how you have the ability to do option selling. Till date I'm still blur about this. And hope one day I have the ability to own share just as much like how you own it. Thanks for sharing. It's always nice to watch your vid
I was in your shoe 2 years ago when I started trading stocks. At first, I only knew how to buy low and sell when it move up couple of dollars. Than it got boring. And learn options. By fare, option make decent income, like a weekly paycheck without physical working 40 hrs a week. But it takes money to make money. And the Wheel is the most safest ways to do it (IMO). Also LEAP and POOR MAN COVER CALL works well too. Also, patience is a key to makings money in the stocks market.
Most professional options traders closed it out once they reached their percentage targets. I set my at 60% to 70% returns and close it out. And start a new one. Set your return relate.
Thanks very much for sharing all the info. I am new to trading and will need time to digest and learn. Your spreadsheet is great but at the moment I don't know how to use it.
if u have buy 2 option - buy 1 call and buy 1 put at the same time with a 6 month period in tesla @ $1000, is it easy and cheaper than holding on the stock
Oh shit, I left my option call over the weekend when I fall asleep on friday night after buying it ... And it wen t down like -700 dollars but when I woke up it is only -50. Do I expect more lost due to lose in time value if price for that particular stock stays the same ? Idk what to do now 😐
say my option is already in the money and it has got a week further before it expires, would it make sense to rollover the option now or wait closer to expiry?
Hi Kelvin, can you teach me how to add permission to ibkr in order to trade options? im getting this error message "The financial information, investment experience and/or investment objectives you have listed in your account profile do not meet the eligibility requirements to trade Options." when trying to add options permission. Thanks
HI kelvin the spreadsheet link do you have one blank. This one is filled in. Can i download one to use myself and on your video on that table you are doing monthly trades every week right?
Hi Kelvin, may I know what are the requirements to trade options in IBKR? I keep getting an error message whenever I try to request for option trading permissions on IBKR
if option dcay over weekend, and you're selling options be it put or calls, isn't it better to let it decay overweekend? den can buy back at lower prices? assuming there's not much movement in stock price? correct me if I'm wrong
That's certainly possible. The way I think about it is, I usually sell another new option immediately after selling. So old option decay vs new option decay doesn't make much of a difference. Another reason for closing early is to avoid sudden news that could happen over the weekend, e.g. SVB bank collapse
@@KelvinLearnsInvesting ahh make sense means u if u close on Friday on that option, usually the option have not much value left anyway, and selling another immediately doesn’t impact theta decay that much. Thanks for the prompt reply!!
Thanks for the video. On the point that options decay over weekend, wouldn't it be better to sell after the weekend for cash covered put since you can buy them back at a lower rate on Monday?
Hi Kelvin, I'm new to Options. As my understanding, when I sell a put option, I will received the premium immediately but in your video you mentioned you can close after one week and received parts of the premium. (e.g. when you sell put, you receive $400 but after one week you close and receive $300). Possible to explain how it exactly works?
Hello Kelvin! Thank u for youtubes.. i love listening to u . I am a noob trying to learn investing.i read options stuff till blur.. people use words like long short ..long a call.. can u pls use yr interesting way of explaining to teach. Long is buy, but why people dont use buy ah. Blur sia
Oh, i help my family manage their investments, so i have enough shares to sell calls. For put, i have warchest money on the sidelines, so if i got assigned i can transfer the money in
Thanks Kevin. Any reason why you avoid TD(TOS) for your option trades? Also, Can i start with CSP or CC? because, if i start with CSP and if TSLA goes up continuously, i have to top up my capital also continuously. so how do i manage the capital Vs premium?
Hi Kelvin, you mentioned for the Wheel Strategy, you sold 2 calls on NIO and your assigned price is $52, now NIO is at $22.10. Now did you collect $180/month? What price did you sell your call at to collect $180/month???
thanks for being so transparent. I tried wheel with LMND and was happily making a few hundreds in the first few trades (guess u know what happened next) 10:11 you mean you rollover on friday so you can collect extra option premium for the coming weekend? 11:50 do you subscribe to market data? Mine is always lagged by 15mins. Instead of choosing Market Order, i keep changing the price for the Limit Order until it gets executed. I had bad experience with Market Order as the spread was huge for a trade I closed (the market was unusually volatile).
Awesome video, can ask how do you separate your Long term TSLA portfolio and Wheel TSLA portfolio in IBKR? Does IBKR allow create 2 portfolios? Or do you do it mentally in your head?
So what do you do for your NIO? It keep dropping then, then you will be assigned the stock. At most you can do 1-2 covered call, the next covered call strike price will be below your assigned price. Is it then bo bian you become owner of NIO and have to start fresh another 100 stocks?
@@KelvinLearnsInvesting Thanks. But how tsla in your wheel porfoilo. If after you been assigned and it keep falling. At a certain point, you will sell CC below assigned price? Or you need to have capital to hold that 100 shares of Tsla. So as to start fresh with new 100 share
Miss those days of side ways movement last year where every week premiums were 1K+. How do you still sell puts and covered calls on TSLA these past 3 months of crash?
Hi Kelvin, i am using moomoo. Can u advise if this work. I sell a put option and unfortunately it hits below my strike price, and i am assigned the 100 shares. Can i use this 100 shares to sell as covered call next? And keep repeating until it called away.
Hi Kelvin great sharing. May I check your setup and rolling strategy for selling an option for income strategy or wheel that you hope will not be assigned. Is it better to sell OTM strike price near current stock price to get most premium and roll when it gets ITM? Or better to see sell option far OTM? If price goes ITM , do you roll before expiry?
Tks for the video. But I realised that selling calls may not always work well , especially if your cost is way above the current market price (50% down). If you chose to sell calls 30% higher than market price, you will be making a loss if the market price hits your Strike Price. Selling SP 30% will also gives very low premium. This is not ideal way to get returns.
Hi Kelvin, thank you for your sharing. Understand most of the content apart from closing options. Say I sell cash covered put, the options expired because it didn't hit the strike price, do I close it? And how do I close it?
Hi Kelvin, quick question. Have you tried Poor Man Covered Calls on IBKR? I've seen ton of videos on doing Options using Robin Hood but not many using IBKR especially using their mobile platform (Probably due to their mobile platform had a really bad user interface). For PMCC, if the short calls expired worthless, does this mean you can immediately sell another shorts calls? and what if it's expired, does IBKR automatically exercised the long calls? or IBKR will asked you to pay upfront to cover your naked calls?
Instead buying 100 shares. You can buy a 1 to 2 years Leap with .90+ Delta. It would cost 2/3 of the 100 shares price. After that, you can monthly Sell Call against it to make money.
Thanks for the video. On IBKR, I have a trading account (not a margin account). do I need to hold the entire cash balance required if the put option I sold is exercised or I'm allow to hold just the margin?
hi bro im trying to understand how you got out the 16k loss. On 25th Oct 2021 you sell 2x Call option. You recieved $4500 premium. (total premium or each). Anyway You close this option as the share price was higher then 1010. So you Close option at 16k Loss. You then on 26th Nov 2021 then do another x 2 Call option at 1090 Strikeprice. IS this AT THE MONEY. You recieved 16K premium for this on a 30 day call option? How did you manage to get 16k on a 30day call option mate? Because at the money is usually 6k per option. or did you just choose a strike price that covered your loss? which in this case was 1090 and hoped it didnt get excercised also did you let it expire ? or close it while you were still 16k in profit because im not sure how you closed it because if you close it early you wouldnt collect the full 16k premium.
When you sell options, you are running negative gamma n positive theta, so being away from strike and running down the time is actually in your favor as a seller.
so to be clear, your strategy to not get assigned those TSLA shares is to take the loss and roll the option out cos there's not enough $ in the brokerage am i right? Then why did you end up getting assigned for NIO?
Strategy is not to get assigned as much as possible. But in worse case, I can topup money to buy. For NIO, it dropped to much and i ended up getting assigned
Wheel sounds great but when i try to read up online there's research saying there's no evidence of wheel outperforming buy&hold, in fact it often underperforms. If you don't care about the extra income and just want to increase your wealth then don't waste time with options
100% agree with that, buy and hold is better. That's why i use options as a secondary strategy. Planning to convert my wheel portfolio into long term portfolio soon
thats bullshit on a sideways market. in 2 months i made 18k while the share price is still at the same price so my portfolio still have the same amount of shares but i have 18k extra cash along with it. As long as you keep your shares its good for the extra cash
Bang how you pay back margin? I mean you use margin to buy option then once expired do you pay back the margin? Margin is scary. Hope you can share on this. Thanks
great content, I am learning a lot from your videos. One question that I have is about the debit column. What do you mean by the amount you have to pay to close the position? Also you mentioned that when u were doing weekly options, you had to log in every week to close the option. Don't the options close automatically when they expire worthless? I would assume if I sold an option and expires out of the money then I won't have to do anything
Hi Kelvin, on selling put option, may I know how to manage the risk if let say the share continue to go downward month on month on month, e.g. Nio dropped from $55 in July 2021 to as low as $13 in March 2022. Until which point you would not rollover and realizing the loss?
That's why option is a secondary strategy. The more important thing is, are you ok with owning the stock with unrealized loss. For NIO, i intend to let it get called away cos i didn't like the stock.
Hey Kelvin, thanks for this video. I see that you are using Tiger brokers. Currently Tiger Brokers has a "Combo" for Covered calls. However, when I try to sell cash covered puts, it still eats into my Margin eventhough I've already called TB to activate cash covered puts. Do you have any wisdom on this?
@@KelvinLearnsInvesting do u often read up on what the community's consesus are about that company and what they are up to in order to get a feel of their stock potential?
Nice content Kelvin and good job 👏 as always. I’m curious do you just keep rolling the options (no matter loss/profit) one month out no matter the market sentiments? Or do you pick the “right” time to sell the options? Thank you.
@@KelvinLearnsInvesting sell call when market going up? You mean when market peak? Because if you sell call when market going up means your share price might go higher then strike price and you have to sell shares
Hi Kelvin! I am using moomoo. I accidentally do a sell call on a stocks. When I buy back the sell call, it doesn’t get realised. Am I doing anything wrong..?
Thanks for this video. I really need it. Rolling over my put that I sold soon. Question : Do you roll at the same strike price or ITM, OTM or something that can cover the loss you will get from buying back early?
@@KelvinLearnsInvesting if you had done sell call for tesla, even if it is OTM. I assume is covered call or naked call? As tesla had sky rocket recently
Hard to say. Tesla may very well go to $1.5k by next week and you would miss all the gains. I can't advice whether your 900 put is good or not. But if you really want to sell put to get it back, i recommend sell deep in the money put.
do you short put on red days and short calls on green days for more premium? I see that you're using market order, will that cause you to transact at a disadvantageous price since the spread for some tickers are quite wide due to open interest.
@@KelvinLearnsInvesting do you have any hard and fast rule for closing for profits (tastytrade method of 50%) and rolling (once delta exceeds 0.3 or 21 DTE)?
Im happy you did it with ikbr. Is that the phone app? I been using client portal. The price of put you choose is 30% ? So does that mean 30% less then current share price. Is that same as 0.3 delta? So its best to Look for strike prices with 0.3 delta?
30% price distance not same as 0.3 delta. I chose 30% distance for Tesla cos Tesla can move alot in 1 month. For normal stocks that don't move much, people recommend 0.3 delta. But you can adjust to your preference
@@KelvinLearnsInvesting Do you think SPY is better to sell put? In general, SPY is always go up. If 30% can be a lot for SPY which might pull back soon. Unless market really crash. If get assigned, I believe can be recovered in less than 5 years:)
Boss Kelvin, I think a lot of people with smaller accounts will not able to do CC or CSP on Tesla. Understand got a lot of stocks with lower price like PLTR, NIO, BAC, RBLX but as you said, rule no.1 is to sell options of companies you dont mind owning. Any strategies for smaller account you recommend? Like Poor Man Covered Call?
I don't like PMCC because the LEAP may expire worthless in a flat/down market. If you don't have much capital, can check out those bull call spreads, bear put spreads kind of strategy
Thanks for the generous sharing. For options, i learnt that we need to trade "popular or in demand" type of stocks like APPL or TSLA ....cannot do for those defensive ones. Also, we need to have "substantial" capital (at least 80K or more in it if we are looking at TSLA) else the firm will inform that our margin is insufficient, or we already have 100 shares of that stock on hand. However, the sharing is great, and I am working towards what you are doing. Thanks Kelvin
For those who new in options, just take note when you selling put , you need to prepare your cash on hand to prepare to buy the stock when assignment happen. Never sell naked put. It is very dangerous.
can explain why dangerous? Lets say we need cash on hand $1000 for the PUT, but we sell naked. The brokerage will lend us the $1000 on margin, then we pay back sometime later, no? Is that not the case?
@@calphak7389 I mean if you sell Tesla Put @ strike price USD800 for 1 contract. You need to have USD80,000 prepare d on hand in case your put is assigned to you.
Never sell just because of the juicy premium.
@@ongbeeong I get the cash secured put part. Your original post was selling naked put was dangerous. I dont understand why dangerous, can you explain why dangerous? If dont have cash, will borrow the $80,000 on margin. Then what will happen? why dangerous?
@@calphak7389 Yes, you will get the $80,000 on margin but if the price continue to drop and soon or later you will receive a margin call from your broker to maintaining the min margin requirement.
@@AaronAwChannel whats wrong with margin call? Can use cash to cover it, no?
Hi Kelvin,
I have a question on rolling. Do you roll only when reaching the expiry date or reaching the strike price? What is your strategy?
1) If rolling when reaching expiry date, sometime it will be too deep into the money.
2) If rolling when reaching strike price, sometime it recover in the next few days and you have to wait longer for the option to expire.
Your thoughts?
Thanks
been studying this again and again. Im surprised at 6:53 the tesla call you kept selling got to a point where 2 calls earned you 16k in 1 month. That means each one earned you 8K. So these must have been IN the money as there are no monthly calls that would earn you that much money. Is this correct.
By doing the rolling , is unable to maintain 2qty with different strike price . It must to be more higher qty to cover the previous loss... Those whose rolling understanf what I saying😂
It isn't a total loss if it expires in the money though, right? Like, you still get the $$ from selling the 100 shares. And if you got those at a lower price, then you're making money either way.
Kelvin on your spreadsheet at 4:33 on 4th OCT you got assigned apple stock right? Why does it show credit 14400 and debit 14400. Im trying to create my own wheel portfolio and this is important to understand.
Hi kelvin, can you make a video on how to use moo moo to roll an option step by step?
Errr, i think what you said and what your video displayed is contradictory at 3:12. I think what is displayed is the correct meaning?
Hi kelvin. At 7:12 you did a 780 put and a 820 put. You closed these at a loss. Then you reopened new puts at 590 and 760. The table to the right where you made profit. The 590 put it shows 797 and the 760 put shows 4735. Are these amounts the premium your getting for selling the puts and the 590 Put was 30% below strike price ? and the 797 one was this AT THE MONEY? as you got a high 4.4 k premium. I would appreciate your help as i need to close a few options and roll them and so im trying to understand how you did it so i dont make a loss.
Csp and covered call are good if the stock aren't too volatile or best yet trade in ranges, with Tesla, you will leave lot of money on the table for the covered calls because its price can jump up a lot and the put side, you can end up buying Tesla at higher price than it could be.
8:35 What's the reason for selling put at 0.2 delta?
Kelvin, please recommend how and where to setup and try using live demo account? Thx
good videos, need more example on how it is done in IBKR web or pc app. How to close Coverd call, close the option or buy the shareS??
Just discovered your channel. Appreciate your work and then sharing with us.
What is column 6? For example, what do you mean by receiving $4500? And what is the $1010?
Hello Kelvin
How do we calculate how much buying power we need to sell an option?
Do we need have enough to afford 100 shares at the price we sell?
Search up a poor mans covered call. This should answer your question. Otherwise you should have enough for 100 shares
Hi kelvin are we able to do a combo of buying 1 ATM call and sell 1 ATM put (same strike) on tiger broker? Thanks
strike price 30% below and above, the options are just for few cents leh... not even more than $10. what kind of strike price do you use now?
Very nice Kevin.. you gave some great percentage and delta qualifiers. Love it. The hard part is remembering the rules on each trade.
Thanks, Kevin. Love your videos. Can you do a video on Tax in SG on trading? What needs to be declared and when? Considering the facts to that some of us are full time and some of us are not full time traders. This area is currently very gray and no good info available.
I envy how you have the ability to do option selling. Till date I'm still blur about this. And hope one day I have the ability to own share just as much like how you own it. Thanks for sharing. It's always nice to watch your vid
I was in your shoe 2 years ago when I started trading stocks. At first, I only knew how to buy low and sell when it move up couple of dollars. Than it got boring. And learn options. By fare, option make decent income, like a weekly paycheck without physical working 40 hrs a week. But it takes money to make money. And the Wheel is the most safest ways to do it (IMO). Also LEAP and POOR MAN COVER CALL works well too. Also, patience is a key to makings money in the stocks market.
@@doright8355 :) thanks for being inspiring. I'll definitely be doing options one day 😊
I sold a put option..and it is out of the money still.. Is it OK to let it expire worthless or do I need to buy back the put option to close?
Most professional options traders closed it out once they reached their percentage targets.
I set my at 60% to 70% returns and close it out. And start a new one. Set your return relate.
ALSO looking at the screen i see later on you stopped selling the arrk/sq puts/calls and stayed with tesla. Was there any reason for this bro?
Hi kelvin im still trying to undertand how you get 16k on a 1090 28day call option you did. I need to make 16k myself for similar situation.
Thanks very much for sharing all the info. I am new to trading and will need time to digest and learn. Your spreadsheet is great but at the moment I don't know how to use it.
why you dont let Sell Put expire worthless?
Kelvin whats the pros and cons of selling options weekly vs 4 weeks in your opinion?
Kelvin! Awesome transparencies! Can we have a guide on how to start on options?
if u have buy 2 option - buy 1 call and buy 1 put at the same time with a 6 month period in tesla @ $1000, is it easy and cheaper than holding on the stock
Oh shit, I left my option call over the weekend when I fall asleep on friday night after buying it ... And it wen
t down like -700 dollars but when I woke up it is only -50. Do I expect more lost due to lose in time value if price for that particular stock stays the same ? Idk what to do now 😐
you bought or sold option call?
say my option is already in the money and it has got a week further before it expires, would it make sense to rollover the option now or wait closer to expiry?
Hi Kelvin, can you teach me how to add permission to ibkr in order to trade options? im getting this error message "The financial information, investment experience and/or investment objectives you have listed in your account profile do not meet the eligibility requirements to trade Options." when trying to add options permission. Thanks
HI kelvin the spreadsheet link do you have one blank. This one is filled in. Can i download one to use myself and on your video on that table you are doing monthly trades every week right?
Hi Kelvin, may I know what are the requirements to trade options in IBKR? I keep getting an error message whenever I try to request for option trading permissions on IBKR
@@blakemark7428 Thank you for your reply Blake. I will try submitting a request. Hopefully it works out.
Which brokerage firm do options?
if option dcay over weekend, and you're selling options be it put or calls, isn't it better to let it decay overweekend? den can buy back at lower prices? assuming there's not much movement in stock price? correct me if I'm wrong
That's certainly possible. The way I think about it is, I usually sell another new option immediately after selling. So old option decay vs new option decay doesn't make much of a difference.
Another reason for closing early is to avoid sudden news that could happen over the weekend, e.g. SVB bank collapse
@@KelvinLearnsInvesting ahh make sense means u if u close on Friday on that option, usually the option have not much value left anyway, and selling another immediately doesn’t impact theta decay that much. Thanks for the prompt reply!!
Thanks for the video. On the point that options decay over weekend, wouldn't it be better to sell after the weekend for cash covered put since you can buy them back at a lower rate on Monday?
Hm? I dont understand what u mean? If i sell on monday, when will i buy back at a lower rate?
I like it that you are very frank. You stated it openly that you are not a GURU (those who ask for people's money for their courses)
Hi Kelvin, I'm new to Options. As my understanding, when I sell a put option, I will received the premium immediately but in your video you mentioned you can close after one week and received parts of the premium. (e.g. when you sell put, you receive $400 but after one week you close and receive $300). Possible to explain how it exactly works?
Hello Kelvin! Thank u for youtubes.. i love listening to u . I am a noob trying to learn investing.i read options stuff till blur.. people use words like long short ..long a call.. can u pls use yr interesting way of explaining to teach. Long is buy, but why people dont use buy ah. Blur sia
can dbs vickers be used for options trading?
Hi Kelvin, Thanks for the video. Would like to ask, if you have tried other advanced strategies and which broker app allows for it in Spore. Thanks!
Good video Kevin. Question, do you stay up until US markets open to place your calls on IBKR or how do you handle the time difference?
Thanks for the video Kelvin, as always !
if you have 218 tesla shares how comes your selling 4 puts. 3 calls. 4 puts assigned = 400 shares 3 calls = 300 shares. margin play?
Oh, i help my family manage their investments, so i have enough shares to sell calls. For put, i have warchest money on the sidelines, so if i got assigned i can transfer the money in
@@KelvinLearnsInvesting oh very good. Please try answer my question on your puts play for 16k
Thanks Kevin. Any reason why you avoid TD(TOS) for your option trades? Also, Can i start with CSP or CC? because, if i start with CSP and if TSLA goes up continuously, i have to top up my capital also continuously. so how do i manage the capital Vs premium?
because tos do not have referral reward
Do you use TOS? I find the interface very old and dated, do you feel the same?
Are you trading option with delayed option chain prices with IBKR? or does it matter if your option expiry is 30-45 days expiry.
Hi Kelvin, you mentioned for the Wheel Strategy, you sold 2 calls on NIO and your assigned price is $52, now NIO is at $22.10. Now did you collect $180/month? What price did you sell your call at to collect $180/month???
thanks for being so transparent. I tried wheel with LMND and was happily making a few hundreds in the first few trades (guess u know what happened next)
10:11 you mean you rollover on friday so you can collect extra option premium for the coming weekend?
11:50 do you subscribe to market data? Mine is always lagged by 15mins. Instead of choosing Market Order, i keep changing the price for the Limit Order until it gets executed. I had bad experience with Market Order as the spread was huge for a trade I closed (the market was unusually volatile).
Ya i rollover on friday to collect extra premium. I don't subscribe to market data, what i do is open Tiger Brokers to check live prices (LOL)
Hi Kevin, how can I PM you directly?
Thanks for the sharing, Kelvin.
Awesome video, can ask how do you separate your Long term TSLA portfolio and Wheel TSLA portfolio in IBKR? Does IBKR allow create 2 portfolios? Or do you do it mentally in your head?
Can you explain Delta? I think 0.2 delta does not mean 20% away from market price?
So what do you do for your NIO? It keep dropping then, then you will be assigned the stock. At most you can do 1-2 covered call, the next covered call strike price will be below your assigned price. Is it then bo bian you become owner of NIO and have to start fresh another 100 stocks?
I'm already assigned 200 stocks :( Now just selling CC below assigned price, i'm ok with letting it go cos i don't like the stock
@@KelvinLearnsInvesting Thanks. But how tsla in your wheel porfoilo. If after you been assigned and it keep falling. At a certain point, you will sell CC below assigned price? Or you need to have capital to hold that 100 shares of Tsla. So as to start fresh with new 100 share
Kelvin gor gor can teach options?
May I make a suggestion to mention how much is your total capital used in return for your total profits.
:)
Second and good morning. Im gona huat big big from options. Great videoo!
Good morning!
Kelvin, how do you decide on the delta and also the strike price? Do you use 2 factors together or just 1 of them?
Thanks for the explanation 👍
Miss those days of side ways movement last year where every week premiums were 1K+. How do you still sell puts and covered calls on TSLA these past 3 months of crash?
Still the usual 30% price distance
hi Kelvin, i don’t see you mentioning IV, Open interest, etc. do u not look at those when u trade options?
Ah i'm not selling because of iv, open interest etc. I'm only selling options cos i own the stocks
singapore chicken just quitted his youtube channel are a friend of him in person? pls tell him I miss him like everybody
I never met him in person yet. Will definitely miss his videos sia
Hi Kelvin, i am using moomoo. Can u advise if this work. I sell a put option and unfortunately it hits below my strike price, and i am assigned the 100 shares. Can i use this 100 shares to sell as covered call next? And keep repeating until it called away.
Super solid video... super solid topic ... super useful
Hi Kelvin great sharing. May I check your setup and rolling strategy for selling an option for income strategy or wheel that you hope will not be assigned. Is it better to sell OTM strike price near current stock price to get most premium and roll when it gets ITM? Or better to see sell option far OTM? If price goes ITM , do you roll before expiry?
Kelvin. I have some qns.
1. Which platform you use to trading tesla option.
2. Which app to download
Thanks
Tks for the video. But I realised that selling calls may not always work well , especially if your cost is way above the current market price (50% down). If you chose to sell calls 30% higher than market price, you will be making a loss if the market price hits your Strike Price. Selling SP 30% will also gives very low premium. This is not ideal way to get returns.
Yea, there's the risk. Got 2 ways to reduce it:
- sell even further than 30%
- if stock goes within 10% range, start rolling to avoid ITM
Hi Kelvin, thank you for your sharing. Understand most of the content apart from closing options. Say I sell cash covered put, the options expired because it didn't hit the strike price, do I close it? And how do I close it?
You can either:
- let it expire by doing nothing
- close it by tapping on the option, then click buy, the idea is to make the position become zero
Thanks Kelvin. Was studying your spreadsheet. Do you still think nio is a good stock for wheel strategy? Looking back like very volatile.
Hi Kelvin. Is there a requirement for enabling option trading in IBKR? Do i need a minimum deposit or something?
Hi Kelvin, quick question. Have you tried Poor Man Covered Calls on IBKR? I've seen ton of videos on doing Options using Robin Hood but not many using IBKR especially using their mobile platform (Probably due to their mobile platform had a really bad user interface). For PMCC, if the short calls expired worthless, does this mean you can immediately sell another shorts calls? and what if it's expired, does IBKR automatically exercised the long calls? or IBKR will asked you to pay upfront to cover your naked calls?
Hi Kelvin, one question. I see that u do not own 100 shares of sq n arkk n arkg, so how are u able to sell calls on them?
Oh, i add up together with my family got 100 share
@@KelvinLearnsInvesting i see. thanks!
Instead buying 100 shares. You can buy a 1 to 2 years Leap with .90+ Delta. It would cost 2/3 of the 100 shares price. After that, you can monthly Sell Call against it to make money.
Thanks for the video. On IBKR, I have a trading account (not a margin account). do I need to hold the entire cash balance required if the put option I sold is exercised or I'm allow to hold just the margin?
hi bro im trying to understand how you got out the 16k loss. On 25th Oct 2021 you sell 2x Call option. You recieved $4500 premium. (total premium or each).
Anyway You close this option as the share price was higher then 1010. So you Close option at 16k Loss.
You then on 26th Nov 2021 then do another x 2 Call option at 1090 Strikeprice. IS this AT THE MONEY. You recieved 16K premium for this on a 30 day call option? How did you manage to get 16k on a 30day call option mate?
Because at the money is usually 6k per option. or did you just choose a strike price that covered your loss? which in this case was 1090 and hoped it didnt get excercised
also did you let it expire ? or close it while you were still 16k in profit because im not sure how you closed it because if you close it early you wouldnt collect the full 16k premium.
When you sell options, you are running negative gamma n positive theta, so being away from strike and running down the time is actually in your favor as a seller.
so to be clear, your strategy to not get assigned those TSLA shares is to take the loss and roll the option out cos there's not enough $ in the brokerage am i right?
Then why did you end up getting assigned for NIO?
Strategy is not to get assigned as much as possible. But in worse case, I can topup money to buy. For NIO, it dropped to much and i ended up getting assigned
Wheel sounds great but when i try to read up online there's research saying there's no evidence of wheel outperforming buy&hold, in fact it often underperforms. If you don't care about the extra income and just want to increase your wealth then don't waste time with options
100% agree with that, buy and hold is better. That's why i use options as a secondary strategy. Planning to convert my wheel portfolio into long term portfolio soon
thats bullshit on a sideways market. in 2 months i made 18k while the share price is still at the same price so my portfolio still have the same amount of shares but i have 18k extra cash along with it. As long as you keep your shares its good for the extra cash
Hello Kelvin, may i know what platform do you use to trade option just started to watch your video
I’m using ibkr
Bang how you pay back margin? I mean you use margin to buy option then once expired do you pay back the margin? Margin is scary. Hope you can share on this. Thanks
If i ever use margin, the USD amount will go negative. To pay back, I'll just need to topup more USD to make it positive
@@KelvinLearnsInvesting so do you use margin? Thanks 🥰
@@mzamilbr Yea, i use margin as collateral to sell puts. But i rarely use margin to buy stocks.
@@KelvinLearnsInvesting thank 🥰
Kelvin, do you sell options based on IV ?
great content, I am learning a lot from your videos.
One question that I have is about the debit column. What do you mean by the amount you have to pay to close the position?
Also you mentioned that when u were doing weekly options, you had to log in every week to close the option.
Don't the options close automatically when they expire worthless? I would assume if I sold an option and expires out of the money then I won't have to do anything
Any plans to update your Options Income experience for 2023/2024? I am just starting
At 11.22 you are showing options that have $12 left .. what is that column showing. Are these your current options you have open,?
The $12 is the current premium of the option. So if i close that option, i will have to pay $12 to buy back to close
@@KelvinLearnsInvesting hi kelvin. Is that $12 x 100 still?
@@chilledgamezone4950 It's $0.12 x 100
Hi Kelvin, on selling put option, may I know how to manage the risk if let say the share continue to go downward month on month on month, e.g. Nio dropped from $55 in July 2021 to as low as $13 in March 2022. Until which point you would not rollover and realizing the loss?
That's why option is a secondary strategy. The more important thing is, are you ok with owning the stock with unrealized loss. For NIO, i intend to let it get called away cos i didn't like the stock.
Hey Kelvin, thanks for this video. I see that you are using Tiger brokers. Currently Tiger Brokers has a "Combo" for Covered calls. However, when I try to sell cash covered puts, it still eats into my Margin eventhough I've already called TB to activate cash covered puts. Do you have any wisdom on this?
Are you able to do this if you are from the philippines? Or only applicable in Singapore only?
Able to do as long as the broker supports options
u said u cn roll the options but for arkk and sq u said if it shoots up u would have to sell the stock, why not just roll those options too?
There's a risk of the stock coming back down. So it depends whether you feel the stock can continue going up or not
@@KelvinLearnsInvesting do u often read up on what the community's consesus are about that company and what they are up to in order to get a feel of their stock potential?
Nice content Kelvin and good job 👏 as always. I’m curious do you just keep rolling the options (no matter loss/profit) one month out no matter the market sentiments? Or do you pick the “right” time to sell the options? Thank you.
The perfect strategy is sell call when market up, sell put when market red. But i'm too lazy to do that for all 10+ options haha
@@KelvinLearnsInvesting Haha, that’s good
@@KelvinLearnsInvesting sell call when market going up? You mean when market peak? Because if you sell call when market going up means your share price might go higher then strike price and you have to sell shares
Hi Kelvin! I am using moomoo. I accidentally do a sell call on a stocks. When I buy back the sell call, it doesn’t get realised. Am I doing anything wrong..?
Eh? By right it should show 0 position. What does yours show?
@@KelvinLearnsInvesting it’s shows submitting last night. I will try again when the market opens again later..
Oh manage to buy back. By the way, where can I find your spreadsheet for the option journal?
Good will try it out. Thx for the idea
Hi Kelvin, are both of your account under TD or in diff platforms? Was wondering if TD allow us to run diff account simultaneously.
Thanks for this video. I really need it. Rolling over my put that I sold soon. Question : Do you roll at the same strike price or ITM, OTM or something that can cover the loss you will get from buying back early?
Your google sheet, did not keep record of the tesla transaction leh
That’s for sharing, i dont update that spreadsheet
@@KelvinLearnsInvesting if you had done sell call for tesla, even if it is OTM. I assume is covered call or naked call? As tesla had sky rocket recently
Definitely covered. Naked too risky
@@KelvinLearnsInvesting thank you
Does moomoo allow these call option strategies with a low capital margin account?
To get a margin account, it requires to have minimum of 2k.
mine got called away recently at 850. Thinking of selling 900 puts. 4 weeks to expiry. slowly inch up to get them back. will it work ?
Hard to say. Tesla may very well go to $1.5k by next week and you would miss all the gains. I can't advice whether your 900 put is good or not. But if you really want to sell put to get it back, i recommend sell deep in the money put.
Kelvin do u have a course i can attend on options?
I don't have, not an options guru :o
do you short put on red days and short calls on green days for more premium? I see that you're using market order, will that cause you to transact at a disadvantageous price since the spread for some tickers are quite wide due to open interest.
Your method is the most optimum way to do it. But im too lazy to use it cos i have like 10 plus options to keep track of.
@@KelvinLearnsInvesting do you have any hard and fast rule for closing for profits (tastytrade method of 50%) and rolling (once delta exceeds 0.3 or 21 DTE)?
how is this not gambling as well? u also have to poh heng suay on ur options leh
Yup, it's definitely gambling, there's no way to deny it haha. Most people will be better off without doing options
Stocks and options trading is a safe gamble compared to casino.
Stick to solid company. Inflation will always go up, so does the stocks market.
Im happy you did it with ikbr. Is that the phone app? I been using client portal.
The price of put you choose is 30% ? So does that mean 30% less then current share price. Is that same as 0.3 delta?
So its best to Look for strike prices with 0.3 delta?
30% price distance not same as 0.3 delta. I chose 30% distance for Tesla cos Tesla can move alot in 1 month. For normal stocks that don't move much, people recommend 0.3 delta. But you can adjust to your preference
@@KelvinLearnsInvesting Do you think SPY is better to sell put? In general, SPY is always go up. If 30% can be a lot for SPY which might pull back soon. Unless market really crash. If get assigned, I believe can be recovered in less than 5 years:)
Boss Kelvin, I think a lot of people with smaller accounts will not able to do CC or CSP on Tesla. Understand got a lot of stocks with lower price like PLTR, NIO, BAC, RBLX but as you said, rule no.1 is to sell options of companies you dont mind owning. Any strategies for smaller account you recommend? Like Poor Man Covered Call?
I don't like PMCC because the LEAP may expire worthless in a flat/down market. If you don't have much capital, can check out those bull call spreads, bear put spreads kind of strategy