Happy Tuesday! Make sure to leave your $0.02 in the comments! I’m curious to know. What do you feel is the biggest risk to selling covered. Alls and cash-secured puts. What’s holding you back from taking the next step?
I prefer JEPQ, JEPI, RYLD, QYLD, and XYLD for the covered call income plays in my portfolio. I leave the options for those who focus on them as experts. It's not for amateur hour
The point is to invest now for a much higher quarterly payment in the future due to the 5-10%+ dividend cagr. $1 million invested now will pay 33,000 in the first year and rise thereafter, hitting $60k in around ten years. This seperates schd type investments over yield traps. My portfolio is breaking $40 million this week, grew it from $1 million, real estate is next.
Thank you for your videos. I get a a lot of ideas. I can’t afford QQQ yet, but I sell 7-13 DTE TQQQ CSP’s consistently. I carry shares of PSQ as a hedge. I don’t want to own TQQQ and I was assigned fairly early about a year ago. So I don’t let them stay in the money very long. This last recent pullback, I was out as far as 145 DTE, but I rolled back in expiration and closer to the money as TQQQ price rose. And I made a few hundred on PSQ by selling a portion at what I thought was near the bottom of the pullback and then bought shares back later.
Hello Love your teaching style I have traded the QQQ's this week with 1 DTE open first one June 12 opened 460/465 put spread at 8:41 closed @ 12:14 net profit $140.00 Today June 14 opened 471/468 put spread @10:34 closed @12:14 Net profit $140.00
Information about win rate and better guidance on entry/exit seem very important. Can you please do a video in the future that outlines this strategy and ALL the details you're employing, and include a P&L for us?
Hi, thank you for your valuable contents in your video. When you talked about selling daily options, you used 1 DTE time frame and to calculate monthly return you multiplied it by 21 days. However, I noted that if you sell a 1 DTE option on Monday, you have to wait till market closes on Tuesday and next sale you can do is on Wednesday, unless you have sufficient account size available to sell another 1 DTE option on Tuesday before the option sold on Monday expires. Is my understanding correct? I have another question. What’s your view on selling 0 DTE CSP to run a daily wheel strategy?
When you are selling the options daily are you buying in the morning and at the end of that same day the contract expires? This approach does not really yield that much premium. If you are selling on say monday and then the contract expires on tuesday, the next day for trading is not until wed. This results in the ability to only sell/trade 3 times over a weeks period. Some clarity is called for here especially if the idea is to steadily make money more days than not.
@AverageJoeInvestor have you thought about creating an LLC or S-Corp and trading in there to save some money taxes? If you already do it, could you make a video on it? Thanks man love your videos, keep it up!
May be if in this video you could have shown a comparative yield returns on daily, weekly and monthly option income in a dashboard or spreadsheet that would have been awesome. This was just pure data.
I like your videos, thank you! It's not the best time to sell calls because the market is going up way faster than normal. Also, QQQM is also good to trade options.
IWM or TLT are cheaper candidates for a similar play. But neither of these will achieve the same results because the "results" presented here are unrealistic and dramatically inflated. i.e., nobody has ever achieved these results and nobody ever will.
If you had the capital available, would you buy more shares of one ETF (SPY, QQQ, IWM) to have multiple contracts to trade or have 1 contact of each ETF to trade?
Like your videos. Pls advise/make a video to explore the differences btw covered calls of QQQM vs QQQ Could it be better since it is lower priced and cheaper expense
Im so fuckin tired of prople doing math at me. Its not the math i have a problem with. Its picking the right underlying, the strike price and when to do it and for how long.
The nonchalant attitude towards thinking that every trade is going to win is what turned me off of this video and a few others of yours on option trading for income. Especially since this year is in such a bull market. For example, to sell covered calls at the money weekly for income of approx $380 in premium and thinking that will generate about 20k a year as you state means not a single call is being exercised. With the QQQ going up even 2% one of those weeks means you would get called and have to buy another 100 shares at a loss of about $500 just to exercise the same strategy. As I said with it being a bull market, you are most likely to lose money in the long run by running this strategy and you make it seem like it is easy money in my opinion. The far out of the money calls are better but the return at around 5% or less isn't really much of an income
I can appreciate where you are coming from. That being said I think there are a few things you should reconsider #1 - you say $500 loss but it’s not really a loss. It’s opportunity cost. You did not end up with less money than when you started though depending on the strategy you may experience a reduction in how many shares you control if you have to buy back in. #2 As I mentioned in the video, there are trade-offs and your priorities will dictate which strategy makes sense. You may be in a situation where cash flow is more important than capital appreciation in which case a more aggressive options strategy can lead to more income and capital potential capital appreciation. You are right that in a bull market this strategy will underperform the market BUT in all other markets it wins and it gives you a way to create income in your portfolio without having to sell shares. I appreciate you willing to weigh in. 😎👍
Extremely poor analysis. Only the tip of the iceberg is shown in the form of potential returns in % per annum, but there is no quantitative comparison of the option premium with the mathematical expectation of the historical movement of the price of a spot asset for 1 / 7 / 30 days. Not a single word about the tax obligations arising from each sale of an asset and not a single word about commissions, which also take away a significant part of profitability. All of these factors can (and in most cases will) cause the expected return on selling covered options to be negative.
@@benjamindavis2896 Based on my calculations (incl. Russian taxes 13% in case of forced sale) and historical data for TQQQ and SOXL price movements since 2010, in 90% of 1-, 2- and 3-week periods I do not sell CC because the option premium is lower than statistical expectation of the spot profit loss.
@@benjamindavis2896 Taxes and commissions are certainly a drag but they are small compared to loss of capital when the etf crashes and profits forgone when etf soars. The only way CCs actually win long-term is if the trader has good instincts about direction and timing and constantly adapts the strategy appropriately.
@@benjamindavis2896 The expected return may be positive, but the strategy will lose against buy and hold unless the trader knows how to bail out before the index crashes or at least stops selling calls before the index soars. This is proven true for CCs in general. They are good when market is in a slow and steady upward grind, otherwise they fail.
Happy Tuesday! Make sure to leave your $0.02 in the comments! I’m curious to know. What do you feel is the biggest risk to selling covered. Alls and cash-secured puts. What’s holding you back from taking the next step?
I prefer JEPQ, JEPI, RYLD, QYLD, and XYLD for the covered call income plays in my portfolio. I leave the options for those who focus on them as experts. It's not for amateur hour
You will need $2.3 million in SCHD to get $6,000 per month ($18,000 quarterly).
The point is to invest now for a much higher quarterly payment in the future due to the 5-10%+ dividend cagr. $1 million invested now will pay 33,000 in the first year and rise thereafter, hitting $60k in around ten years. This seperates schd type investments over yield traps. My portfolio is breaking $40 million this week, grew it from $1 million, real estate is next.
Congrats! are you a pro, whats your cash flow like?
No I'm not, Diana Leayani lara is behind my growth, look her up or make proper research for one who is suitable with your goals.
She's destined to be one of the best traders of her generation when compared to her peers. Great job!
What can I get for 14k?
Thank you for your videos. I get a a lot of ideas. I can’t afford QQQ yet, but I sell 7-13 DTE TQQQ CSP’s consistently. I carry shares of PSQ as a hedge. I don’t want to own TQQQ and I was assigned fairly early about a year ago. So I don’t let them stay in the money very long. This last recent pullback, I was out as far as 145 DTE, but I rolled back in expiration and closer to the money as TQQQ price rose. And I made a few hundred on PSQ by selling a portion at what I thought was near the bottom of the pullback and then bought shares back later.
Awesome!! THANK YOU for watching and leaving your $0.02 in the comments! 😎👍
Hello
Love your teaching style
I have traded the QQQ's this week with 1 DTE open first one June 12 opened 460/465 put spread at 8:41 closed @ 12:14 net profit $140.00
Today June 14 opened 471/468 put spread @10:34 closed @12:14 Net profit $140.00
Great video! The SPY one was also interesting.
Definitely waiting for the IWM video!
Information about win rate and better guidance on entry/exit seem very important.
Can you please do a video in the future that outlines this strategy and ALL the details you're employing, and include a P&L for us?
Hi, thank you for your valuable contents in your video. When you talked about selling daily options, you used 1 DTE time frame and to calculate monthly return you multiplied it by 21 days. However, I noted that if you sell a 1 DTE option on Monday, you have to wait till market closes on Tuesday and next sale you can do is on Wednesday, unless you have sufficient account size available to sell another 1 DTE option on Tuesday before the option sold on Monday expires. Is my understanding correct? I have another question. What’s your view on selling 0 DTE CSP to run a daily wheel strategy?
That's exactly what I do - sell QQQ CSP monthly
What delta are you selling QQQ CSPs at? Why not weekly or daily?
When you are selling the options daily are you buying in the morning and at the end of that same day the contract expires? This approach does not really yield that much premium. If you are selling on say monday and then the contract expires on tuesday, the next day for trading is not until wed. This results in the ability to only sell/trade 3 times over a weeks period. Some clarity is called for here especially if the idea is to steadily make money more days than not.
which broker do you use?
Thanks, I always appreciate your videos.
@AverageJoeInvestor have you thought about creating an LLC or S-Corp and trading in there to save some money taxes? If you already do it, could you make a video on it?
Thanks man love your videos, keep it up!
Very good video. Do you make in a possible market crash?
Have a great trip with the family. Did you make a library of videos to release while on the road or are you doing some "on location" shots??
May be if in this video you could have shown a comparative yield returns on daily, weekly and monthly option income in a dashboard or spreadsheet that would have been awesome. This was just pure data.
I like your videos, thank you!
It's not the best time to sell calls because the market is going up way faster than normal. Also, QQQM is also good to trade options.
have a wonderful trip!
Is there a cheaper stock/ETF that could be used to achieve similar results?
IWM or TLT are cheaper candidates for a similar play. But neither of these will achieve the same results because the "results" presented here are unrealistic and dramatically inflated. i.e., nobody has ever achieved these results and nobody ever will.
If you had the capital available, would you buy more shares of one ETF (SPY, QQQ, IWM) to have multiple contracts to trade or have 1 contact of each ETF to trade?
Like your videos.
Pls advise/make a video to explore the differences btw covered calls of
QQQM vs QQQ
Could it be better since it is lower priced and cheaper expense
Why don’t you sell cash secured puts on TQQQ?
jun 28 qqq closed 479
Thanks
How many % of your portfolio would you deploy in this strategy?
Im so fuckin tired of prople doing math at me. Its not the math i have a problem with. Its picking the right underlying, the strike price and when to do it and for how long.
You don't need 45k to sell covered calls on qqq you can just sell credit spreads
Don't you get tired of making the same video
Yes I’m so tired of making the same video. 🤪 THANK YOU for watching and for leaving your $0.02 in the comments. 😎👍
I don't get tired! He's giving out free information. No need to be negative!
The nonchalant attitude towards thinking that every trade is going to win is what turned me off of this video and a few others of yours on option trading for income. Especially since this year is in such a bull market. For example, to sell covered calls at the money weekly for income of approx $380 in premium and thinking that will generate about 20k a year as you state means not a single call is being exercised. With the QQQ going up even 2% one of those weeks means you would get called and have to buy another 100 shares at a loss of about $500 just to exercise the same strategy. As I said with it being a bull market, you are most likely to lose money in the long run by running this strategy and you make it seem like it is easy money in my opinion. The far out of the money calls are better but the return at around 5% or less isn't really much of an income
I can appreciate where you are coming from. That being said I think there are a few things you should reconsider
#1 - you say $500 loss but it’s not really a loss. It’s opportunity cost. You did not end up with less money than when you started though depending on the strategy you may experience a reduction in how many shares you control if you have to buy back in.
#2 As I mentioned in the video, there are trade-offs and your priorities will dictate which strategy makes sense. You may be in a situation where cash flow is more important than capital appreciation in which case a more aggressive options strategy can lead to more income and capital potential capital appreciation.
You are right that in a bull market this strategy will underperform the market BUT in all other markets it wins and it gives you a way to create income in your portfolio without having to sell shares.
I appreciate you willing to weigh in. 😎👍
@@AverageJoeInvestor thanks as well, I appreciate you taking the time to respond and expand further!
Extremely poor analysis. Only the tip of the iceberg is shown in the form of potential returns in % per annum, but there is no quantitative comparison of the option premium with the mathematical expectation of the historical movement of the price of a spot asset for 1 / 7 / 30 days. Not a single word about the tax obligations arising from each sale of an asset and not a single word about commissions, which also take away a significant part of profitability. All of these factors can (and in most cases will) cause the expected return on selling covered options to be negative.
Is the expected return actually negative though
@@benjamindavis2896 Based on my calculations (incl. Russian taxes 13% in case of forced sale) and historical data for TQQQ and SOXL price movements since 2010, in 90% of 1-, 2- and 3-week periods I do not sell CC because the option premium is lower than statistical expectation of the spot profit loss.
@@benjamindavis2896 Taxes and commissions are certainly a drag but they are small compared to loss of capital when the etf crashes and profits forgone when etf soars. The only way CCs actually win long-term is if the trader has good instincts about direction and timing and constantly adapts the strategy appropriately.
@@benjamindavis2896 The expected return may be positive, but the strategy will lose against buy and hold unless the trader knows how to bail out before the index crashes or at least stops selling calls before the index soars. This is proven true for CCs in general. They are good when market is in a slow and steady upward grind, otherwise they fail.
.05 % is .0005 X 45961 = 22.98