I'm a beginner, and I gotta give you kudos for making options trading seem doable for the average person. Understanding how to roll options and get the trifecta - collect even more premium when you sell-to-open a new position, move the strike price in your favor, and get out of an unfavorable situation (selling or buying 100 shares when you don't want to) - sometimes blows my mind. It just seems like you have so much control when you sell options. Not only can you pick your risk tolerance (85-90% probability to profit sounds great to me), you can keep rolling out the expiration date if things don't go your way, riding out any unexpected dip or spike most of the time. OR instead of rolling the option just buy a stock that you would like to own at a strike price of your own choosing, collecting a premium for your troubles. Yikes! And sell covered calls! Thanks for making a difficult subject understandable. It helps when you show your robinhood account and do live trading sessions. The proof is in the pudding!
Few questions: 1. Does this only work on covered calls? 2. When you close your previous position, haven’t you taken the loss there before taking up a new position? Or are you just “buying to open” your old position? 3. How do you close your position without taking the loss?
Basically what you are telling first close the existing option (either put or call or spread) and reopen with a future date. It all depends right, if there is a better place to reinvest the same option for another stock especially if you are not sure of the direction of this stock unlike Tesla (for example NKE or ZM). Cheers
Sold my first Tesla options this month. Premium is nuts! 5 weeks out I got $800 for a short strangle at 400 and 900! And I've been rolling them every few days at 50% profit.
I'll have to look at the numbers and how to do a short strangle. Do you need to own the 100 shares of Tesla or is the way the option is worked you don't need to?
@@michaelmack6683 I was (mostly) covered. At the time i was able to get a decent amount for the $900C back in July. Tsla was in the mid 600s at the time. Haven't really touched tsla options since then personally. TLDR short strangle is just selling an otm put and call. If the price doesnt move or stays out of the money, the option decreases in value and you can buy back lower.
The up n out rolls r good for bullish positions assuming a continued rise. I have found that once you are 2-3 atrs above the 21-day ma, the algos often push it down so at that level, an itm sale may be a nicer move if a pullback does occur. Nice to have so many options with the options, however. Good stuff n thks.
That did work to get back out the hole and I didn’t even know what I was doing at the time, thank you Henry again, I’ll be getting with you. You could tell from his demeanor this is natural for him .. take it one move at a time and really listen to him and you will start making progress, I have I want to get STUPID RICHHHH
Why close position 1 day before expiration date? Isn't that we can close the position before the counter party exercise the option? ( for eg when market price > strike price in selling call option)
When is the best time to roll over (Sell Put contracts)? When the contract comes to 50% loss or wait till 1 or 2 days before expiry and roll it over? Will it make any difference rolling them over when the contract is at 50% loss or 500% loss?
When you roll options you collect premiums after you roll this option up for example? When I close that trade to roll up I collect the inital premium and then collect the next premium for the later date? Hope this makes sense.
How are taxes calculated? For example I STO a covered put for $100. However the strike near the last trading day is WAY ITM and about to get assigned. I BTC the option for $500. Then roll the option forward and STO for a lower strike price for $700 premium. The total premium made is $300 = (800-500) before taxes. However I used post tax money ($500) to close the initial option and I assume I'm am taxed for the $800 premium made and therefore net is much lower than $300. The question is how much lower? I have not been able to find a CPA who could tell me. If anyone could point me in the right direction I greatly appreciate it.
Do you sell a put if you are bullish and sell a call if you think the underlying will trade sideways or go down? And how is the strategy different than buying calls and puts? Thanks, Henry
I don't get how you can roll the option if the stock exceeds the strike price... As soon as that happens, the one who bought your call option would immediately exercise it, no?
but cant the buyer exercise as soon as the option is in the money? what if the price when u would be required to sell or buy the stock is not the day before expiration what if it gets to that price quicker say 2 to 3 weeks before expiration should u use this strategy as soon as the option is close to or in the money if u don't want to buy/sell the stock?
Fails to mention that when rolling a losing put option you actually are losing money. If the stock continues going down there will be a point where the premium received from rolling won't cover your losses. And just the opposite with the call. You can lose tons of money especially if you are doing this with Tesla.
He will go broke someday. I am watching these old videos and laughing. But he is probably well connected so he can have his desk back at Golden Slacks if all goes south.
He only explains the good part of the juice and never fully explains the risk. There is NO always winning situation in finance. If there is one, you think there are no smart brains out there to explore this already? You are right.
Excellent video on rolling covered calls and cash covered puts. The title to the video says about best LEAPS of TSLA but there is no mention of TSLA LEAPS in the video, Did I miss out anything while watching the video?
AWESOME 🤑 Video… I literally just started doing this on all my Covered Call & PMCC options positions last week. I banked over $2K in Premium. I was tired 😪 of getting assigned or expiring waaaaaay OTM and thought 💭, there has to be a better strategy. This video was right on point. I am looking forward to this coming trading week. Red 📉 or Green 📈… Rollin, Rollin, Rollin 💵. Thanks 🙏🏾 Bro.
When you first open your account do you like to start by selling puts or buying the stock and immediately sell covered calls? I prefer to always own the stock and try to always roll it over as opposed to having it called away. This way you get the appreciation of the stock as it rises. Selling the puts you get assigned when the stock is losing value.
@@dennisbbb The stock I like to use is MARA. I found I can buy the stock with about 30% margin so when the stock is at $35 I need about $2,900. Then I sell the call at about 5-8% above current price. If the stock goes up I get the premium plus the 5-8% upside. Selling the put I believe I need the full $3,500 in case I get assigned. If my strike is lower than the current price I do ok and get the stock at a lower price only if the price goes down. I lose out on any upside and if the stock goes above the strike price on the call I sold I usually roll it over. When the price is going up I get the benefit of the upside of the stock and growing call premiums. I am doing an experiment along with a few others of buying 100 shares of MARA with $4,000 and never putting in another penny. The stock sells for about $35-$36so I have a little extra to close an option to roll it over. Our goal is to attempt to take that $4,000 to $1,000,000 in ten years. Always rolling it over before it is called away and when we have enough extra money in our account buy 100 new shares at a time. Since MARA is a Bitcoin mining stock if Bitcoin goes up to $500,000 MARA could easily go to $400 per share. It would take 2,500 shares to get to the $1,000,000. If MARA only goes to $250 then it would take 4,000 shares. Doing it inside a Roth IRA will eliminate all taxes as well.
@@michaelmack6683 if you assume your stock keeps going up, why risk it by selling calls? I would just sit tight. But good luck with the premiums though. Sometimes you lose more trying to roll over than what you’ve collected.
@@dennisbbb I always want to sell calls on stocks that are increasing in value over the long term this way I get the increase in value of the stock price PLUS the weekly premium. I get the weekly premium every week of the year. Most years this could be double or triple the amount of money than just the appreciation in price alone. I actually believe that over a five year period you can have ten times the amount in your account by doing weekly covered calls and buying more stock thus being able to do more weekly contracts than if you just left the stock alone. Not only will you end up with many more shares of the stock but as the price per share goes up generally you will have higher premiums.
@@dennisbbb Sometimes if the stock really goes up in price i might roll it over to next week at a slightly in the money option. As you continue to do this week after week you should be able to recapture all the lost gains and some premium along the way.
Awesome video Henry. I’ve been doing it on both sides (calls & puts) with hits and misses and not knowing what it’s technically called. Excellent strategy. I’ll take it to heart. Thanks for sharing.
Can you roll an option with Just a single leg call or put option or does it have to be a covered option strategy where you own 100 shares of the underlying stock ???! Please answer my question Henry
i think other brokerages have easy one step option of selecting 'roll over' and picking future date which makes it very easy, in RH we need to do in two steps?
What about on a call that I’m down On? Shall I roll it to the cost of the actual cost of the shares! Example 5 calls nndm at 10 bucks expiring 20th aug is essentially 5000 dollars if I’m excercised. I’m down 3500 dollars 100% loss . Shall I just roll it and pay 1500 and then I’m at the cost of the shares anyway but I’m an extra 6 months or so
Serious question, why don't you just let them take the stock from you at the higher strike price, keep the premium and also keep the gain on the stock at the higher strike price they have to pay you? Then buy it back whenever you want..
I am lost… In the 2 examples, you sold a call in TSLA and sold a put in NIO, shouldn’t you be buying to close instead? How come you are showing us the sell call and sell put price?
Lol you want free advise on TH-cam? We got to chat so I understand your situation so that requires some time for me to understand your situation more. You can dm on insta if you want to book some time with me.
Awesome content as usual Henry. It's funny, got covered calls with NIO and I'm rolling them as the stock is going down and I'm making money. Then I buy the close once it hits about 80%, then roll it into a new strike price with a higher premium. I just have to watch my cause basis so I roll it before the stock gets above my strike. Selling options is awesome! You're correct I really haven't lost any money.
What's great about selling calls is not only the extra weekly money but it is also a conservative strategy to prevent downside risk. I have 3,000 shares of MARA and bring in about $3,000 to $3,500 of weekly premium and my strike price is about 5-8% above the current price. Almost every week I have enough premium to buy another 100 shares. As i buy more stock I believe from Oct 1, 2021 to Oct 1, 2022 I can average about $5,000 per week in premium. THAT"S A QUARTER MILLON IN ONE YEAR OF PREMIUM!!!
Love your page, Scenario for you. I placed a covered call for $18 on AMC and it may close higher on Friday thus me losing the stock. Now if I understand you correctly. if I roll I would have to buy back 2200 shares @ $18 then raise the strike for the next week. Correct? In order to buy back I would need the extra capital in my account?
Hi Henry, would you be able to share in what scenario would this strategy result in a loss of even more money compared to getting assigned if selling puts or getting called when selling covered calls. Thank you
When selling a put I usually prefer not to be assigned as I might have to buy the stock at a significant amount higher than it's current value. You also have no upside potential except keeping the premium. When selling a call I love it when the price of the stock rises to or above the strike price. Now I always keep the premium but also gain full value of the upside between the original stock price and the strike price. I much prefer to own a stock that is rising in price than one that just declined.
Say the put option went against you, close the option and lost some money, say $1000. Roll over with different date and price, instead of breaking even, it went against you again, lost another $1000. Now total -sum would be $2000, roll over again, and and aim to break even but again the shares went into correction and hit the strike price again.. How?
Henry you are the best! Thank You for sharing this video for us,it will make people to understand this strategy about option rolling no wonder you're so blessed😎
I’ve been listening to your videos since yesterday maybe because English is not my first language can you please clarify that rolling-options can be done when you have single naked calls and puts you were saying covered calls please answer that.thanks
such a great video. question cuz i just did this with AFRM and want to do it with AEHR with covered calls. so is there increased risk when i roll up and out....sounds like not really but the premium is getting larger athough i was able to do AFRM without a net loss (prob should have waited til next week expiration week)? also, i have a week left on sold 7$ Puts on $ANY. profitable even if i buy them back now but will prob buyback or roll down next week. i guess my question is if the theta decay in last week is worth much (doesnt seem like it) or if i think the stock could rally suddenly next week (which i think it could), i may be better off rolling it down and out now to capture the attractive Put pricing?
tesla is overvalued by 400 dollars.. is it still sensible to be bullish? it keeps going up.. i guess it doesnt really matter what its worth but what people are willing to pay based on perception.. seems like public sentiment really means a lot and possible more than the actual value..
(in covered calls sense) tesla goes to 1,000 as it did in the past weeks u buy back 670 strike but it doesnt look like you can sell something above 690 without taking a loss. so does this mean the strategy only works if its not in your favor by a few points or can this work if the stock decides to go parabolic or run a lot higher than average? to summarize if im asking correctly. how will this work if a stock goes waaay above your selling strike?
If a stock skyrockets, you won't be able to tap into that gain. It's the sacrifice you make to sell the call... the person who bought the call from you will cash in on that price move. The best you could do at this point if you wanted is buy to close at a big cost, and then write a new call to offset some of that cost. The idea (correct me if I'm wrong) is we're sacrificing the "unlimited upside" of owning the stock in exchange for a higher return if the stock moves more like we expect (ending up around the strike price when the option expires). If you nail the strike price like this, you've gotten maximum return. Keep the premium, keep the stock, and the stock has gone up.
Thanks Hanry. I'm just wondering if I've understood this correctly? I have been assigned some stock and can't get a profitable strike at the moment. Can I sell calls for a lower strike and then just roll to a higher strike if it looks like it'll hit the strike I'm not happy with selling at? Hope that makes sense? Thanks again.
Sometimes, Options may get assigned before the expiry date. That being said, u can do it... if u r willing to accept the loss if u get assigned before you roll them over.
@ Mike YY "rolling forward is just closing the old losing position and opening a new one. what do you mean by never lose exactly?" If you have a losing position on expiration day, you btc (buy to close) at a loss for that trade, BUT you then sto (sell to open) a new option with a far enough expiration date, to earn a credit that is larger than the loss you paid, so it is a net credit. Don't nit pic over the closing trade being a loss, you are still in the trade with a new expiration date for a net credit. That is what you should be doing. Never accept a net loss, when you can roll farther out for a net credit (profit). I have been selling cash secured puts and covered calls for a year, with thousands of trades, and never had a net loss. I always keep rolling for net credits until they expire worthless and I bank profits.
So if it was a call/put you bought instead of sold, you sell the current option and buy another one a week out? Is there any positive outcome for doing this or is this just for selling options? Thank you!
That is an aggressive strategy and not what is being discussed here. You would only do this if you truly feel the stock is going to have a huge jump in price. Such as a drug company getting approval of a major drug. For a Bitcoin mining stock it could mean the SEC approving ETFs for Bitcoin. It is not a strategy I would use short term. I do have some LEAPS for MARA with an expiration of June 17, 2022. I bought them when the price of BTC took a huge dump back in July. The expiring value of the time value is slow so it has plenty of time for the price of BTC to jump. If you do buy LEAPS do it only during times of extreme FUD where premiums are at their lowest
I'm a beginner, and I gotta give you kudos for making options trading seem doable for the average person. Understanding how to roll options and get the trifecta - collect even more premium when you sell-to-open a new position, move the strike price in your favor, and get out of an unfavorable situation (selling or buying 100 shares when you don't want to) - sometimes blows my mind. It just seems like you have so much control when you sell options. Not only can you pick your risk tolerance (85-90% probability to profit sounds great to me), you can keep rolling out the expiration date if things don't go your way, riding out any unexpected dip or spike most of the time. OR instead of rolling the option just buy a stock that you would like to own at a strike price of your own choosing, collecting a premium for your troubles. Yikes! And sell covered calls!
Thanks for making a difficult subject understandable. It helps when you show your robinhood account and do live trading sessions. The proof is in the pudding!
Jeff, just a question on how do you manage your trade when you are selling call but the underlying stocks prices are falling?
OMG this is literally life saving! How did I not come across this video previously??!
Don’t get too excited until you try!
Few questions:
1. Does this only work on covered calls?
2. When you close your previous position, haven’t you taken the loss there before taking up a new position? Or are you just “buying to open” your old position?
3. How do you close your position without taking the loss?
Great questions.
Everyone I'm BEGGInG you all watch this video. How did I never think to do this???
Basically what you are telling first close the existing option (either put or call or spread) and reopen with a future date. It all depends right, if there is a better place to reinvest the same option for another stock especially if you are not sure of the direction of this stock unlike Tesla (for example NKE or ZM). Cheers
Golden information your a gentleman and a scholar... Love from the UK
Listen to Henry people, this works. I've been rolling MRNA calls for months. Subscribed and liked!
Sold my first Tesla options this month. Premium is nuts! 5 weeks out I got $800 for a short strangle at 400 and 900! And I've been rolling them every few days at 50% profit.
I'll have to look at the numbers and how to do a short strangle. Do you need to own the 100 shares of Tesla or is the way the option is worked you don't need to?
@@michaelmack6683 I was (mostly) covered. At the time i was able to get a decent amount for the $900C back in July. Tsla was in the mid 600s at the time. Haven't really touched tsla options since then personally.
TLDR short strangle is just selling an otm put and call. If the price doesnt move or stays out of the money, the option decreases in value and you can buy back lower.
The up n out rolls r good for bullish positions assuming a continued rise. I have found that once you are 2-3 atrs above the 21-day ma, the algos often push it down so at that level, an itm sale may be a nicer move if a pullback does occur. Nice to have so many options with the options, however. Good stuff n thks.
That did work to get back out the hole and I didn’t even know what I was doing at the time, thank you Henry again, I’ll be getting with you. You could tell from his demeanor this is natural for him .. take it one move at a time and really listen to him and you will start making progress, I have
I want to get STUPID RICHHHH
Why close position 1 day before expiration date? Isn't that we can close the position before the counter party exercise the option? ( for eg when market price > strike price in selling call option)
When is the best time to roll over (Sell Put contracts)?
When the contract comes to 50% loss or wait till 1 or 2 days before expiry and roll it over? Will it make any difference rolling them over when the contract is at 50% loss or 500% loss?
When you roll options you collect premiums after you roll this option up for example? When I close that trade to roll up I collect the inital premium and then collect the next premium for the later date? Hope this makes sense.
I've learned so much digging myself out and rolling my wrecked options. I appreciate your enthusiasm on the subject!
It's a great still to have. Separates the men from the boys
Maybe a stupid question but does this rolling strategy work on Buying calls? Thanks for your great videos and sharing your experience
Great information but very complex for the average investor. Very easy to get confused. You do a great job of explaining. Thank you.
If we roll a losing option trade into a new one, then then wash sale rule will apply correct on the loss that we take on the position we close?
How are taxes calculated? For example I STO a covered put for $100. However the strike near the last trading day is WAY ITM and about to get assigned. I BTC the option for $500. Then roll the option forward and STO for a lower strike price for $700 premium. The total premium made is $300 = (800-500) before taxes. However I used post tax money ($500) to close the initial option and I assume I'm am taxed for the $800 premium made and therefore net is much lower than $300. The question is how much lower? I have not been able to find a CPA who could tell me. If anyone could point me in the right direction I greatly appreciate it.
What do you do when the stock crashes and you are short puts?
Do you sell a put if you are bullish and sell a call if you think the underlying will trade sideways or go down? And how is the strategy different than buying calls and puts? Thanks, Henry
Basically
Very helpful,Can you use this strategy with buy calls or puts?
Real Talk been looking for this vid since I took my first lost of credit spread last week. QQQ/SPY went crazy. Stupid Dope Video. Much Respect.
Wtf dude went from 950k in July 2021 to 1,900k in February 2023, good returns...
This is the best lesson since I lost a lot not knowing this
I don't get how you can roll the option if the stock exceeds the strike price... As soon as that happens, the one who bought your call option would immediately exercise it, no?
But what about when Tesla goes from 320 to 100. You're still rolling the options? I would think at some point you just gotta jump ship no???
but cant the buyer exercise as soon as the option is in the money? what if the price when u would be required to sell or buy the stock is not the day before expiration what if it gets to that price quicker say 2 to 3 weeks before expiration should u use this strategy as soon as the option is close to or in the money if u don't want to buy/sell the stock?
You do not have to roll according to the strike price being threaten, but instead , when the breakeven price is threaten.
Fails to mention that when rolling a losing put option you actually are losing money. If the stock continues going down there will be a point where the premium received from rolling won't cover your losses. And just the opposite with the call. You can lose tons of money especially if you are doing this with Tesla.
He will go broke someday. I am watching these old videos and laughing. But he is probably well connected so he can have his desk back at Golden Slacks if all goes south.
He only explains the good part of the juice and never fully explains the risk. There is NO always winning situation in finance. If there is one, you think there are no smart brains out there to explore this already? You are right.
Excellent video on rolling covered calls and cash covered puts. The title to the video says about best LEAPS of TSLA but there is no mention of TSLA LEAPS in the video, Did I miss out anything while watching the video?
Love that T-shirt Henry 😎
AWESOME 🤑 Video… I literally just started doing this on all my Covered Call & PMCC options positions last week. I banked over $2K in Premium. I was tired 😪 of getting assigned or expiring waaaaaay OTM and thought 💭, there has to be a better strategy. This video was right on point. I am looking forward to this coming trading week. Red 📉 or Green 📈… Rollin, Rollin, Rollin 💵. Thanks 🙏🏾 Bro.
When you first open your account do you like to start by selling puts or buying the stock and immediately sell covered calls? I prefer to always own the stock and try to always roll it over as opposed to having it called away. This way you get the appreciation of the stock as it rises. Selling the puts you get assigned when the stock is losing value.
Puts tend to have much better premiums though. And why not sell puts if you already planned to buy the underlying stock on a lower price anyway.
@@dennisbbb The stock I like to use is MARA. I found I can buy the stock with about 30% margin so when the stock is at $35 I need about $2,900. Then I sell the call at about 5-8% above current price. If the stock goes up I get the premium plus the 5-8% upside.
Selling the put I believe I need the full $3,500 in case I get assigned. If my strike is lower than the current price I do ok and get the stock at a lower price only if the price goes down.
I lose out on any upside and if the stock goes above the strike price on the call I sold I usually roll it over. When the price is going up I get the benefit of the upside of the stock and growing call premiums.
I am doing an experiment along with a few others of buying 100 shares of MARA with $4,000 and never putting in another penny. The stock sells for about $35-$36so I have a little extra to close an option to roll it over. Our goal is to attempt to take that $4,000 to $1,000,000 in ten years. Always rolling it over before it is called away and when we have enough extra money in our account buy 100 new shares at a time.
Since MARA is a Bitcoin mining stock if Bitcoin goes up to $500,000 MARA could easily go to $400 per share. It would take 2,500 shares to get to the $1,000,000. If MARA only goes to $250 then it would take 4,000 shares. Doing it inside a Roth IRA will eliminate all taxes as well.
@@michaelmack6683 if you assume your stock keeps going up, why risk it by selling calls? I would just sit tight. But good luck with the premiums though. Sometimes you lose more trying to roll over than what you’ve collected.
@@dennisbbb I always want to sell calls on stocks that are increasing in value over the long term this way I get the increase in value of the stock price PLUS the weekly premium. I get the weekly premium every week of the year. Most years this could be double or triple the amount of money than just the appreciation in price alone. I actually believe that over a five year period you can have ten times the amount in your account by doing weekly covered calls and buying more stock thus being able to do more weekly contracts than if you just left the stock alone. Not only will you end up with many more shares of the stock but as the price per share goes up generally you will have higher premiums.
@@dennisbbb Sometimes if the stock really goes up in price i might roll it over to next week at a slightly in the money option. As you continue to do this week after week you should be able to recapture all the lost gains and some premium along the way.
Imma take a leap on this youtube account. Henry your account’s gonna skyrocket if you keep putting out videos like this! good stuff 🤩
Why did I never think of this ... Great video, all option traders should see this!
You are amazing.. thank you for helping poor man & giving back.
Awesome video Henry. I’ve been doing it on both sides (calls & puts) with hits and misses and not knowing what it’s technically called. Excellent strategy. I’ll take it to heart. Thanks for sharing.
Can u tell how to do this for credit spreads..
Can you roll an option with Just a single leg call or put option or does it have to be a covered option strategy where you own 100 shares of the underlying stock ???! Please answer my question Henry
i think other brokerages have easy one step option of selecting 'roll over' and picking future date which makes it very easy, in RH we need to do in two steps?
Great video! Was wondering would you recommend doing this with credit call/put spreads as well?
What about on a call that I’m down On? Shall I roll it to the cost of the actual cost of the shares! Example 5 calls nndm at 10 bucks expiring 20th aug is essentially 5000 dollars if I’m excercised. I’m down 3500 dollars 100% loss . Shall I just roll it and pay 1500 and then I’m at the cost of the shares anyway but I’m an extra 6 months or so
Rolling... Mind blown! Thanks for sharing such valuable information Henry!
But on call option if ur in the money you can buy it if in the money I know ,, but when ur betting down or up??
Well done, on the demo Henry.
Henry I have been watching many of your options videos. How do I join?
You are my great teacher, I learned so much from this video
Thank you
Rolling options is simply locking in a loss and opening a new position with the hope of covering the loss.
The best real life options example? Subscribed
Serious question, why don't you just let them take the stock from you at the higher strike price, keep the premium and also keep the gain on the stock at the higher strike price they have to pay you? Then buy it back whenever you want..
Hi Henry, how do you close a put position?
Can you roll put credit spreads if they're not going well?
Can you make a video on rolling put spreads that had previously been sold?
Nice video. Kindly show rolling options with live example. It will be easier to understand even for non native english speakers. Thank you
Why dun u let nio share to be assign to u and then sell covered call? Any different between this method and rolling?
Hi ni Hao
I am lost… In the 2 examples, you sold a call in TSLA and sold a put in NIO, shouldn’t you be buying to close instead? How come you are showing us the sell call and sell put price?
Brilliant Henry!! Many thanks
Great info for the newer traders!!👍
Hanry I need help i have 80 contacts of nio exp date mar 2022 55$ strike price down 20000. Should I buy more? Thanks
Lol you want free advise on TH-cam? We got to chat so I understand your situation so that requires some time for me to understand your situation more. You can dm on insta if you want to book some time with me.
Henry can you be asigned (force to sell your shares) if the price gets above your strike before the exp date?
You can be assigned ANY time.
Thanks Henry…I’ve rolled options, but not in this type of situation.
Hi Henry, I’ve rolled calls before but don’t why I didn’t think that was an option with a covered call, duh! Thanks!
Can you do the same for bull credit spread?
Awesome content as usual Henry. It's funny, got covered calls with NIO and I'm rolling them as the stock is going down and I'm making money. Then I buy the close once it hits about 80%, then roll it into a new strike price with a higher premium. I just have to watch my cause basis so I roll it before the stock gets above my strike. Selling options is awesome! You're correct I really haven't lost any money.
What's great about selling calls is not only the extra weekly money but it is also a conservative strategy to prevent downside risk. I have 3,000 shares of MARA and bring in about $3,000 to $3,500 of weekly premium and my strike price is about 5-8% above the current price. Almost every week I have enough premium to buy another 100 shares.
As i buy more stock I believe from Oct 1, 2021 to Oct 1, 2022 I can average about $5,000 per week in premium. THAT"S A QUARTER MILLON IN ONE YEAR OF PREMIUM!!!
@@michaelmack6683 Interesting, so you are actually compounding this strategy uhm
L
I been waiting for this 1
You good with it !! 🏆
Love your page, Scenario for you. I placed a covered call for $18 on AMC and it may close higher on Friday thus me losing the stock. Now if I understand you correctly. if I roll I would have to buy back 2200 shares @ $18 then raise the strike for the next week. Correct? In order to buy back I would need the extra capital in my account?
when was tesla traded in this numbers? 178.00 it wasn't in history in that price?
This is the video I needed! Explained so well and answered a lot of questions thanks!
Thank you for your insight. We are on S.S. and...well you know how far that money goes when you have medical problems...
Hi Henry, would you be able to share in what scenario would this strategy result in a loss of even more money compared to getting assigned if selling puts or getting called when selling covered calls. Thank you
When selling a put I usually prefer not to be assigned as I might have to buy the stock at a significant amount higher than it's current value. You also have no upside potential except keeping the premium. When selling a call I love it when the price of the stock rises to or above the strike price. Now I always keep the premium but also gain full value of the upside between the original stock price and the strike price.
I much prefer to own a stock that is rising in price than one that just declined.
Say the put option went against you, close the option and lost some money, say $1000. Roll over with different date and price, instead of breaking even, it went against you again, lost another $1000. Now total -sum would be $2000, roll over again, and and aim to break even but again the shares went into correction and hit the strike price again.. How?
Henry you are the best! Thank You for sharing this video for us,it will make people to understand this strategy about option rolling no wonder you're so blessed😎
What about wash sale rule?
Can we roll option with multiple legs???
What is the correct way to roll a credit spread
Does this trigger the wash sale rule when rolling the options?
This applies to put credit spreads too?
The best option ever Henry. Really profitable. Thank you ❤️
Hi Henry,
Can this method be used for a Bull Credit Spread working against you?
your buying power is double my whole account size😂 love the video man keep it up
Why is there a key hanging in his door?
Does rolling spreads work the same way?
I’ve been listening to your videos since yesterday maybe because English is not my first language can you please clarify that rolling-options can be done when you have single naked calls and puts you were saying covered calls please answer that.thanks
Where did you get your shirt?
It's been a while! Amazon
such a great video. question cuz i just did this with AFRM and want to do it with AEHR with covered calls. so is there increased risk when i roll up and out....sounds like not really but the premium is getting larger athough i was able to do AFRM without a net loss (prob should have waited til next week expiration week)? also, i have a week left on sold 7$ Puts on $ANY. profitable even if i buy them back now but will prob buyback or roll down next week. i guess my question is if the theta decay in last week is worth much (doesnt seem like it) or if i think the stock could rally suddenly next week (which i think it could), i may be better off rolling it down and out now to capture the attractive Put pricing?
Hi Henry, can we roll the put spread as well? I sold TSLA $685/690 put last Fri.
you should record a video when your rolling an option then make this video so its more realtime explanation eventho it already happen.
Do you have to close your original position in order to roll?
What happens after you roll over, and the stock tanked? All that work for nothing? And you miss out on buying on the cheap.
tesla is overvalued by 400 dollars.. is it still sensible to be bullish? it keeps going up.. i guess it doesnt really matter what its worth but what people are willing to pay based on perception.. seems like public sentiment really means a lot and possible more than the actual value..
(in covered calls sense) tesla goes to 1,000 as it did in the past weeks u buy back 670 strike but it doesnt look like you can sell something above 690 without taking a loss. so does this mean the strategy only works if its not in your favor by a few points or can this work if the stock decides to go parabolic or run a lot higher than average?
to summarize if im asking correctly. how will this work if a stock goes waaay above your selling strike?
If a stock skyrockets, you won't be able to tap into that gain. It's the sacrifice you make to sell the call... the person who bought the call from you will cash in on that price move. The best you could do at this point if you wanted is buy to close at a big cost, and then write a new call to offset some of that cost.
The idea (correct me if I'm wrong) is we're sacrificing the "unlimited upside" of owning the stock in exchange for a higher return if the stock moves more like we expect (ending up around the strike price when the option expires). If you nail the strike price like this, you've gotten maximum return. Keep the premium, keep the stock, and the stock has gone up.
Thanks Hanry. I'm just wondering if I've understood this correctly? I have been assigned some stock and can't get a profitable strike at the moment. Can I sell calls for a lower strike and then just roll to a higher strike if it looks like it'll hit the strike I'm not happy with selling at? Hope that makes sense? Thanks again.
Sometimes, Options may get assigned before the expiry date.
That being said, u can do it... if u r willing to accept the loss if u get assigned before you roll them over.
rolling forward is just closing the old losing position and opening a new one. what do you mean by never lose exactly ?
@
Mike YY "rolling forward is just closing the old losing position and opening a new one. what do you mean by never lose exactly?"
If you have a losing position on expiration day, you btc (buy to close) at a loss for that trade, BUT you then sto (sell to open) a new option with a far enough expiration date, to earn a credit that is larger than the loss you paid, so it is a net credit. Don't nit pic over the closing trade being a loss, you are still in the trade with a new expiration date for a net credit.
That is what you should be doing. Never accept a net loss, when you can roll farther out for a net credit (profit).
I have been selling cash secured puts and covered calls for a year, with thousands of trades, and never had a net loss. I always keep rolling for net credits until they expire worthless and I bank profits.
@@thomasd5488 thank you for the explanation !
does any of this mess with your dividend payouts
So if it was a call/put you bought instead of sold, you sell the current option and buy another one a week out? Is there any positive outcome for doing this or is this just for selling options? Thank you!
That is an aggressive strategy and not what is being discussed here. You would only do this if you truly feel the stock is going to have a huge jump in price. Such as a drug company getting approval of a major drug. For a Bitcoin mining stock it could mean the SEC approving ETFs for Bitcoin.
It is not a strategy I would use short term. I do have some LEAPS for MARA with an expiration of June 17, 2022. I bought them when the price of BTC took a huge dump back in July. The expiring value of the time value is slow so it has plenty of time for the price of BTC to jump.
If you do buy LEAPS do it only during times of extreme FUD where premiums are at their lowest
@@michaelmack6683 OK, thank you
Fantastic video man
Love your channel, God Bless !
If i close my sell put option before expiry i will get 100 shares of nio or i will loose premium what will happen
Best video ever!
Can you only roll options with covered calls ?