Our Free Stock Options Videos: Options For Beginners (The Complete Guide): th-cam.com/video/NW1ziUDjB7w/w-d-xo.html Call Options Explained: th-cam.com/video/kC28MuQPyu8/w-d-xo.html Put Options Explained: th-cam.com/video/tlcCPX4t9y0/w-d-xo.html Covered Calls Explained: th-cam.com/video/D5Rjx_7XG2U/w-d-xo.html Cash-Secured Puts Explained: th-cam.com/video/YfC7DYri4co/w-d-xo.html Free Beginners Guide to Stock Options on our Website: clearvalueinvesting.com/education/options-and-trading/ GET up to 14 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax
Saw the title and automatically screamed "YOU'RE THE MAN!" I see people doing this and have no idea what they are talking about but I will like to learn.
On another note regards to Stock Options, you can only trade options in group of 100 shares. Each option is controlling 100 shares of stock, in regards to the video above if a stock cost $100 a share. You would have to have 100 shares of the stock for 1 option trade. So, you would have to have 10k dollars worth of stock and if you received $2 for each share it'll be $200 for 1 option. Which is 2% return for a 10k investment for one month. If you done this every month at the end of 12 months you'll have $2,400 or 24% return if the stock never gets assigned. You would of doubled the S&P for a one year period. Remember investing in the stock market you can make or lose money, always paper trade before using real money. Another Great Video!
Hi, so if you invested your money in a high yield saving say about 26k wouldn’t you be making more in interest a month! Wouldn’t it be about 80 a month and you would risk losing your money wouldn’t that be better?
This is what I do with my stocks. I invest in the actual stock and then sell covered calls on them every week to two weeks. It is great passive income. I use the proceeds to buy more shares and do more coveted calls. I have doubled my money doing this:). It is very safe and a good way to make money!! Very well explained!
If anyone is interested, the method that he's performing is known as "the wheel". It's basically "Selling a Put" with cash that you have and collecting the premium. And if you get assigned, you now own the underlying stock. Then what you do with those stocks is "Sell the covered Call". You collect the premium using the method Brian explained and hopefully, you set the call option at a strike price HIGHER than for how much you bought it for. It's basically a win-win situation assuming the stock continues to go up and if you had sold it for higher than when you bought it for. Thank you for the explanation, Brian! I just discovered this recently and am glad you made a video about it just to confirm what I learned.
"I'm gonna be speaking to you as is you know nothing about call options or covered calls." That's perfect, because that's literally me. The only thing I know about them is from preliminarily reading the comments is that you can get severely burned by them if you aren't careful.
Really well explained. You do a great job of simplifying this, breaking it down, and explaining the pros and cons from both sides. To all of the new investors, keep in mind that for many people this is going to turn into nothing more than betting. Don't make bets with your money. Focus on investing instead of gambling!
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
It's not difficult, but you have to learn and handle. Another thing is that if you can't manage your home, maybe you shouldn't invest on your own. If so, you should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
@@devereauxjnr true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@Petroguest-i4g I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "NICOLE DESIREE SIMON" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
Me This week: We’re getting fancy! Watch out Webull, here I come! Me next week: lost all my money; please provide a stimulus check update, kinda need it, lol
You should do a video expanding on this and tying it into the wheel strategy. Specifically, I wanna know WHEN we should be selling covered calls and cash secured puts if we're using the wheel. The strategy is great, timing option assignments is tough right now Thanks, love the channel!
Ive been studying options for awhile. Never really "hoped over that understanding silver line". You simplified it for me and made everything "click". THANK YOU BRIAN!
Very informative video, I first started out trading options buying puts in March 2020 which turned out to be great as the market came down a lot. I was always stuck on the sidelines playing it safe, only buying stocks. It's good to have a portfolio for long term investing, but option trading can make you money right away if you learn how to do it correctly.
Please remember me. When I get my inheritance, your going to be my first call and I'm going to listen with both ears. Your a good human being and I'm confident your the guy for me.
You are the first person who explained this in a way I could understand. I now fully understand it. The other thing is that mu understanding is that the option contract must be 100 stocks?
Thank you for breaking this information into very understandable language. I have conversed with several retirees who use covered call ETFs to supplement their social security benefits and also have an annuity for life time payments. When they discuss covered calls I get very confused. Great educational video for us uneducated people.
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.
90% of traders lose money! Be careful, don’t chase your losses and it’s a lot easier in a bull market, wait for inflation to get to 2% - the feel good factor will return. It was easy to double or treble your money after a massive crash like the covid crash. Just as many people lost money in the crash though
Thanks Brian from CVT ,I'm out of work because my unsafe work environment told me to come back or I lose my job and I chose the latter. I need things like this to help me through these rocky times.
@ClearValueTax I appreciate this video Brian and would encourage more of the same. Very precise and easy to understand. Thank You. I can not say I know nothing about calls. In 1980-81 I taught classes to an incarcerated society (kind of a captive audience if you know what I mean) on Building Wealth Through Stock Market Investing and covered both Options and Futures. As a group we kept daily records on as many as 80-100 stocks through a typical class of 12 weeks. Since then I have been investing since 1983, however I have never traded Options nor Futures myself which is why I enjoyed the video. I've watched the video twice and it is informative and very easy to follow. But, if I might help with a suggestion, you could point out that trading options are only allowed in round lots. Remember your audience is just starting and even if they have the $500 portfolio they only have 1 share 2 companies. And, they might not even know what a round lot is! Just a suggestion, take it as you will. When's the next video for this series? You covered the intention of it but if I'm on Robinhood or TD how would I go about it? And, how did you come up with the $2? I subscribed to your newsletter but haven't heard anything yet. Guess I'll just sit here and wait.
thank you you are the first to explain it to understand - except that if i am right it is not 2.00 that you are referring to your monthly gain but $200.oo as the options strategy is sold by 100 x 2 = $200.00
I am loving this education. I saw the thumbnail with the whiteboard and thought uh-oh...breakin out the whiteboard now what is Brian gonna teach me tonight??? Just love it all. And loving that I understand what is being taught.
I am a swing trader buying naked call options for 1 or 2 years until expiration When the stock market goes up rapidly one day I sell my calls for a 20-50% profit of the call option bought I usually hold my calls for 1 month then sell then buy the dip a week later do it again
I just started following this guy. He's brilliant. I have a trading background but it's been a minute haha Will you or have you shown how to trade crypto or Bitcoin? I'm SO CONFUSED BUT SERIOUSLY INTERESTED Thank you for taking your time to help others 👏🏻👏🏻
The first thing I thought of when you explained call optioning..is why would I buy the stock for 105 when it sells for 100..but you did sort of explain that.I do understand the general concept of purchasing an option to buy for 2 $ within a set amount of time howerver....I am about as amateur as you can get about investing in the market so excuse me if my comment seems dumb.Wow.a.very creative way to make money all in all though.
Thank you J. Trade Forex, Inc.! 2006 nice!!! They've made options trading easier and easier these days. Must have been a different story back 14 years ago.
@@clearvaluetax9382 to be honest making money back then to me was much easier. But that's just me I've moved on to Forex. 5 trillion traded daily... 😎😎💵💵💵💵💵💵💵💵💵💵💵💵💵
I sold my first covered calls this week. WFC and APLE. Looks like they are going to expire without hitting the strike price. Extra $12 in my pocket! Very interested in making extra income off this strategy of selling calls and puts
Hey there! Feedback and some questions (if you don’t mind): This video was a little more confusing than some of your other beginner tutorials because I feel like I was getting confused on which role you were assuming in some of the scenarios of being JPM/being the investor. In regard to the actual technique of generating passive income - it was a bit hard to follow what the bottom line strategy was. Overall, maybe I just didn’t fully quite catch the right details to understand how to do this. Additionally, it seems there’s a lot of concern for new investors coming from the users in the comments section. Would you possibly be up to follow up on how to do this - as safely as possible - and how to read the stocks for risks/red flags? Any tips are appreciated. Thanks for all you do!
From my experience, pick a good stable company that pays dividends that you want to invest in, buy 100 shares of that stock at a price you’re willing to pay (e.g. $100). If you’re new and want to limit risk, wait for the stock price to go above your cost basis to sell covered calls and collect the extra credit/premiums. If the price trades above your strike at expiration, your 100 shares will get exercised and you will lose those shares but you gain the difference between $100 cost and what you sold to for. Hope that makes sense
don't know if this is still useful or not but the bottom line strategy for a covered call is to limit the risk involved in buying a stock or any underlying asset. The premium shrinks your downside losses. For example, if you buy XYZ stock at $20 and short a call for $2. If the stock goes down to $0, you would have lost $18 on the downside as opposed to losing $20, if short 2 calls, your loses would have been further reduced, however this also reduces the profit on the upside. A Covered call is like an insurance for your asset.
That’s so awesome that you guys are showing your long term short term investments, it’s genius, and This is how we can grow together. I’m not going to say it but you know what I mean motley.
I love all your vid bro. Only thing I would mention to beginners is a call or put option is that each option is 100 Shares worth being bought or shorted should be noted.
An options contract is a legal purchase agreement of shares that can gouge either way depending on market price fluctuation in a 30-day period and the premium owed the optioner. Got it.
So just to make sure I understand.... As a buyer wanting to make money, I would buy an option predicting that the stock will exceed expectations so that if it does and the stock is worth more, I would have the option to buy it at a lower price, in which in turn I can then sell the stock for a profit. So in other words, one would have to really predict well that the stock will go up or lose money. Feels like the one selling the option is in a better position overall.
@@clearvaluetax9382 You said it the other day, not me, I have proof!! Haha I'll help with your campaign and rallies. Keep up the great content, seriously makes my day!!
This is a great video explaining covered calls to beginners. You go slowly enough that viewers can absorb this complicated strategy. I'm going to have two of my friends watch it.
Get video!! From your example in addition to having 100 shares to write your contract, I always tell my students to have 10 to 20 shares on the side that way you can ride that stock up from $100 to $120 without missing out!!!!
Hello. Good work out there explaining to newbies like me. Can you please explain the difference and where to purchase when you say "buying from me" and "buying from the stock market"? I am confused on where to purchase, from a broker or? Appreciated. Thank you.
I'm trying to rationalize it, but what would you do as the investor if the stock price is above the strike price but still down after the contract price (.i. e. $106 in this example)? Would you sell the call option or let it be exercised?
If the price goes to $106, the option will be exercised by the buyer. When you short a call you are obligated to deliver if the long decides to exercise.
Thank u for going s l ow.... appreciate your efforts sir.. This was the BEST description but the only thing u did not say..... Who cares if u lost the stock u made $7.00 go and re buy it😊😊😊😊😊😊😊😊😊😊😊 Thanks again i am subscribed and liked!
Hello, thanks for your videos I’m fairly new, but I have a question. If you wanted to invest but only wanted to start with 500-1,000, what is the best way to get started?
Are there 3 options to go from the call going up for us and you? So example 1 strike 105 jpm 120 i buy at 120 then give em back at 105 pocket the rest. 2. Sell the option (if thats better for you or if me closing instead of selling is better i dont know if you can refuse and cancel it and still make premium) 3. ur fked u just sold ur shares at 105. 3. I also want to know if the market is bullish is it better to sell puts so you hold onto your shares? Would be apreciated if you or someone can answer. Thank you in advance
EXCELLENT EXPLANATION👍 PEASE DO MORE VIDS LIKE THIS EXPLAINING...OPTIONS, CALLS, PUTS, MARRIED CALLS/PUTS, LIMIT ORDERS, SAFELY SHORT TRADING, NAKED SHORTS & NAKED LADIES👀...ETC...LOL.😅
Our Free Stock Options Videos:
Options For Beginners (The Complete Guide): th-cam.com/video/NW1ziUDjB7w/w-d-xo.html
Call Options Explained: th-cam.com/video/kC28MuQPyu8/w-d-xo.html
Put Options Explained: th-cam.com/video/tlcCPX4t9y0/w-d-xo.html
Covered Calls Explained: th-cam.com/video/D5Rjx_7XG2U/w-d-xo.html
Cash-Secured Puts Explained: th-cam.com/video/YfC7DYri4co/w-d-xo.html
Free Beginners Guide to Stock Options on our Website: clearvalueinvesting.com/education/options-and-trading/
GET up to 14 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax
Really bad focus. Please remove cinematic mode
Saw the title and automatically screamed "YOU'RE THE MAN!" I see people doing this and have no idea what they are talking about but I will like to learn.
Same! I see calls puts dates cents they might as well be speaking French.
Just be careful. A lot of people start betting/gambling with these and lose money.
On another note regards to Stock Options, you can only trade options in group of 100 shares. Each option is controlling 100 shares of stock, in regards to the video above if a stock cost $100 a share. You would have to have 100 shares of the stock for 1 option trade. So, you would have to have 10k dollars worth of stock and if you received $2 for each share it'll be $200 for 1 option. Which is 2% return for a 10k investment for one month. If you done this every month at the end of 12 months you'll have $2,400 or 24% return if the stock never gets assigned. You would of doubled the S&P for a one year period. Remember investing in the stock market you can make or lose money, always paper trade before using real money. Another Great Video!
Hi, so if you invested your money in a high yield saving say about 26k wouldn’t you be making more in interest a month! Wouldn’t it be about 80 a month and you would risk losing your money wouldn’t that be better?
This is what I do with my stocks. I invest in the actual stock and then sell covered calls on them every week to two weeks. It is great passive income. I use the proceeds to buy more shares and do more coveted calls. I have doubled my money doing this:). It is very safe and a good way to make money!! Very well explained!
Even when its volatile?
How long did it take you to double your money?
great ideas do you do it with high price stocks or low price stocks?
If anyone is interested, the method that he's performing is known as "the wheel". It's basically "Selling a Put" with cash that you have and collecting the premium. And if you get assigned, you now own the underlying stock. Then what you do with those stocks is "Sell the covered Call". You collect the premium using the method Brian explained and hopefully, you set the call option at a strike price HIGHER than for how much you bought it for. It's basically a win-win situation assuming the stock continues to go up and if you had sold it for higher than when you bought it for.
Thank you for the explanation, Brian! I just discovered this recently and am glad you made a video about it just to confirm what I learned.
"I'm gonna be speaking to you as is you know nothing about call options or covered calls." That's perfect, because that's literally me. The only thing I know about them is from preliminarily reading the comments is that you can get severely burned by them if you aren't careful.
Really well explained. You do a great job of simplifying this, breaking it down, and explaining the pros and cons from both sides. To all of the new investors, keep in mind that for many people this is going to turn into nothing more than betting. Don't make bets with your money. Focus on investing instead of gambling!
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
It's not difficult, but you have to learn and handle. Another thing is that if you can't manage your home, maybe you shouldn't invest on your own. If so, you should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
@@devereauxjnr true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@Petroguest-i4g I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "NICOLE DESIREE SIMON" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
@@devereauxjnrwhy would I hire someone that can’t manage their own house
Out of all the “covered calls 101” videos…this is the best one.
Me This week: We’re getting fancy! Watch out Webull, here I come!
Me next week: lost all my money; please provide a stimulus check update, kinda need it, lol
LOL Steve. And thanks for that Coca Cola video, I enjoyed it hahahahaha
🤦🏾♀️😂
Now this is what I'm talking about!
Hi Mike! I hope this video is helpful!
You should do a video expanding on this and tying it into the wheel strategy. Specifically, I wanna know WHEN we should be selling covered calls and cash secured puts if we're using the wheel. The strategy is great, timing option assignments is tough right now Thanks, love the channel!
THANK YOU SO MUCH!!! The way you break down concepts that use to seem too complicated grasp is AMAZING!!! So glad I found you!!
Ive been studying options for awhile. Never really "hoped over that understanding silver line".
You simplified it for me and made everything "click".
THANK YOU BRIAN!
Very informative video, I first started out trading options buying puts in March 2020 which turned out to be great as the market came down a lot. I was always stuck on the sidelines playing it safe, only buying stocks. It's good to have a portfolio for long term investing, but option trading can make you money right away if you learn how to do it correctly.
Speaking to me as if I no nothing about call options, which I didnt! Thanks!
Please remember me. When I get my inheritance, your going to be my first call and I'm going to listen with both ears. Your a good human being and I'm confident your the guy for me.
Options make my heart race! 😲
you can either have a very bad day or have a very good day when playing options 🤑
Naked options is gambling. This is really a boring way to make consistent $$$
This is so timely, I've been thinking about covered calls for weeks and just wrote my first on this last Friday!
You are the first person who explained this in a way I could understand. I now fully understand it. The other thing is that mu understanding is that the option contract must be 100 stocks?
Correct, 1 contract equals 100 shares.
Finally someone who explains everything perfectly thank you 🙏
That's the most simple and intelligible explanation of options I have ever seen
I’ve been using Robinhood for small dividends for a year and haven’t touched options because I didn’t know where to start, thanks so much for this
Dividends are a great way to earn passive income. For most people, options turns into a lot of gambling and many people lose money that way.
Thank you for breaking this information into very understandable language. I have conversed with several retirees who use covered call ETFs to supplement their social security benefits and also have an annuity for life time payments. When they discuss covered calls I get very confused. Great educational video for us uneducated people.
Thanks a lot. I've been trying to figure this out for a while. That explains it very well. Love your channel.
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.
Investing in stocks is a good idea, a good trading system would puts you through many days of success
90% of traders lose money! Be careful, don’t chase your losses and it’s a lot easier in a bull market, wait for inflation to get to 2% - the feel good factor will return. It was easy to double or treble your money after a massive crash like the covid crash. Just as many people lost money in the crash though
Yes! I Needed something outside stimulus check content in my life! Great video!
LOL I'm glad you enjoyed Demetri!
Thanks Brian from CVT ,I'm out of work because my unsafe work environment told me to come back or I lose my job and I chose the latter. I need things like this to help me through these rocky times.
In the middle of watching it but needed to comment before I forget. This is an awesome educational video. Low vix, sell calls for premiums 👍
@ClearValueTax I appreciate this video Brian and would encourage more of the same. Very precise and easy to understand. Thank You. I can not say I know nothing about calls. In 1980-81 I taught classes to an incarcerated society (kind of a captive audience if you know what I mean) on Building Wealth Through Stock Market Investing and covered both Options and Futures. As a group we kept daily records on as many as 80-100 stocks through a typical class of 12 weeks. Since then I have been investing since 1983, however I have never traded Options nor Futures myself which is why I enjoyed the video. I've watched the video twice and it is informative and very easy to follow. But, if I might help with a suggestion, you could point out that trading options are only allowed in round lots. Remember your audience is just starting and even if they have the $500 portfolio they only have 1 share 2 companies. And, they might not even know what a round lot is! Just a suggestion, take it as you will. When's the next video for this series? You covered the intention of it but if I'm on Robinhood or TD how would I go about it? And, how did you come up with the $2? I subscribed to your newsletter but haven't heard anything yet. Guess I'll just sit here and wait.
I've been, with no success been able to explain to my friends about the rewards of selling puts. Please make that video if you haven't already
thank you you are the first to explain it to understand - except that if i am right it is not 2.00 that you are referring to your monthly gain but $200.oo as the options strategy is sold by 100 x 2 = $200.00
I watched this like 8 time back to back to finally get it . I'm grateful thank you
He has to be the best stock talk person to explaining things about investing love this guy
I am loving this education. I saw the thumbnail with the whiteboard and thought uh-oh...breakin out the whiteboard now what is Brian gonna teach me tonight??? Just love it all. And loving that I understand what is being taught.
So when your in the green and up on a option should you sell it early or exercise it???
It’s your choice to take profits or let it expire or risk it going in the red
I am a swing trader buying naked call options for 1 or 2 years until expiration
When the stock market goes up rapidly one day I sell my calls for a 20-50% profit of the call option bought
I usually hold my calls for 1 month then sell then buy the dip a week later do it again
I just started following this guy. He's brilliant. I have a trading background but it's been a minute haha
Will you or have you shown how to trade crypto or Bitcoin? I'm SO CONFUSED BUT SERIOUSLY INTERESTED
Thank you for taking your time to help others 👏🏻👏🏻
i like the emotion expressed in the video, like the sighs before a bad situation
Remember. The ones that got rich during the gold rush were the ones selling the shovels. Great stuff.
Nahh
yeah because even selling a million shovels equates to a ton of gold... logic
What a deep and true statement David.
@@wintagestudios they all got rich?
That is the best explanation possible. Bingo! Thank you and safe trades.
The first thing I thought of when you explained call optioning..is why would I buy the stock for 105 when it sells for 100..but you did sort of explain that.I do understand the general concept of purchasing an option to buy for 2 $ within a set amount of time howerver....I am about as amateur as you can get about investing in the market so excuse me if my comment seems dumb.Wow.a.very creative way to make money all in all though.
THANK YOU!!! I finally understood this option call business. Love your videos.
Man you are a beast. I understood 100% of everything you explained. Wow. Thank you!
That was the simplest explanation I've seen yet. You're awesome.
Hey Brian!! This is cool. Keep teach the masses bro! Much respect. I started trading options in 2006. This is way cool 😎. Keep up the good work!
Thank you J. Trade Forex, Inc.! 2006 nice!!! They've made options trading easier and easier these days. Must have been a different story back 14 years ago.
@@clearvaluetax9382 to be honest making money back then to me was much easier. But that's just me I've moved on to Forex. 5 trillion traded daily... 😎😎💵💵💵💵💵💵💵💵💵💵💵💵💵
I've been doing covered calls and loving it.
Brian showing the masses the door to the most dangerous casino in the world!
What could go wrong? 🙈
STONKS only go up!
Hahaha, I was just thinking the very same thing!
@Dennis Durkop that statement ..... doesn't seem right.... hahaha
@Dennis Durkop so I should be a gay bear then?!
Covered calls aren't that risky, I think like 90% expire worthless
Finally someone explains it where I can understand
Thank you. Love the simplicity of the whiteboard. Very easy to understand!
Great explanation, but too many people who made comments below didn't bother to actually watch it, or at least couldn't digest it.
I sold my first covered calls this week. WFC and APLE. Looks like they are going to expire without hitting the strike price. Extra $12 in my pocket! Very interested in making extra income off this strategy of selling calls and puts
Picking up pennies in front of a steamroller...,
This is hands down the best video I've seen so far. Thank you Brian!
Hey there! Feedback and some questions (if you don’t mind): This video was a little more confusing than some of your other beginner tutorials because I feel like I was getting confused on which role you were assuming in some of the scenarios of being JPM/being the investor. In regard to the actual technique of generating passive income - it was a bit hard to follow what the bottom line strategy was. Overall, maybe I just didn’t fully quite catch the right details to understand how to do this. Additionally, it seems there’s a lot of concern for new investors coming from the users in the comments section. Would you possibly be up to follow up on how to do this - as safely as possible - and how to read the stocks for risks/red flags? Any tips are appreciated. Thanks for all you do!
From my experience, pick a good stable company that pays dividends that you want to invest in, buy 100 shares of that stock at a price you’re willing to pay (e.g. $100). If you’re new and want to limit risk, wait for the stock price to go above your cost basis to sell covered calls and collect the extra credit/premiums. If the price trades above your strike at expiration, your 100 shares will get exercised and you will lose those shares but you gain the difference between $100 cost and what you sold to for. Hope that makes sense
don't know if this is still useful or not but the bottom line strategy for a covered call is to limit the risk involved in buying a stock or any underlying asset. The premium shrinks your downside losses. For example, if you buy XYZ stock at $20 and short a call for $2. If the stock goes down to $0, you would have lost $18 on the downside as opposed to losing $20, if short 2 calls, your loses would have been further reduced, however this also reduces the profit on the upside. A Covered call is like an insurance for your asset.
Making something is better than nothing.
Thanks for the wisdom.
Thanks for your knowledge you absolutely RULE.
Thank you Peter!
Thanks so much! Starting tomorriw I get pen and paper start with the first investment video. Awesome teacher, this is what I have needing.
Thanks. I've had a hard time understanding covered calls. Not any more!
Yep, I get that, pretty clear cut: Of course I will have to replay it over again till it sinks in, but fundamentally I understand. Thx !
That’s so awesome that you guys are showing your long term short term investments, it’s genius, and This is how we can grow together. I’m not going to say it but you know what I mean motley.
I love all your vid bro. Only thing I would mention to beginners is a call or put option is that each option is 100 Shares worth being bought or shorted should be noted.
An options contract is a legal purchase agreement of shares that can gouge either way depending on market price fluctuation in a 30-day period and the premium owed the optioner. Got it.
I really love these videos even though this one wasn't perfectly scripted It's so interesting to watch and learn thank you very very much
Gaining wisdom with numbers thanks to Brian!!!! 🎉🎊🙌✨🌟💫🎊💫🎉🙌🌟✨🙌🎊💫✨😌
That is so awesome to hear Cucu Bee Cucu Bee! Thank you for sharing that, it means a lot to me! And thank you for all those emojis!
ClearValue Tax 📣📣Brian can you hear me???? You are most welcomed!!!!!!📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣
@@cucubee444 make sure you invest
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@@cucubee444 bill_biker20 on IG
So just to make sure I understand....
As a buyer wanting to make money, I would buy an option predicting that the stock will exceed expectations so that if it does and the stock is worth more, I would have the option to buy it at a lower price, in which in turn I can then sell the stock for a profit.
So in other words, one would have to really predict well that the stock will go up or lose money. Feels like the one selling the option is in a better position overall.
Wow. That was incredibly easy to follow. Best explanation I’ve seen. Thank you!
love this! Very informative and so easy to understand! Thank you.
Love it man! Got my money in webull and robinhood, let's do this! Brian Kim for prez 2032!!!!
LOL 2032... you just cracked me up hahaha.
@@clearvaluetax9382 You said it the other day, not me, I have proof!! Haha I'll help with your campaign and rallies. Keep up the great content, seriously makes my day!!
@@chadcarlson8311 lol
Make sure you invest
@@chadcarlson8311 invest $500 and get $5k under 24 hours
@@chadcarlson8311 message. Bill_biker20 on Instagram
Excellent ,simplistic explanation. That clarified a often misunderstood strategy.
Thanks for the video just be clear if my call expires worthless or OTM then all I paid is the premium in this case the $2.00 correct?
Great content. Much appreciated
I've added this channel to my youtube portfolio
Awesome! Thank you Justin, I appreciate your support a LOT!
Great video as always. Ebay is so useless btw. Tried to find a lighter, but instead of that I get 39,000 matches
LOL Fadi... what happened? Are you serious?
@@clearvaluetax9382 LMBO yeppers
Is this different than call girl options?
I believe that is correct.
outstanding. best explanation of call options I've seen.
Thank you for explaining it in plain English.
This was explained to us like we are Micheal Scott learning about what a surplus is
This is a great video explaining covered calls to beginners. You go slowly enough that viewers can absorb this complicated strategy. I'm going to have two of my friends watch it.
This was good. So can you confirm that if stock had gone down to 90, yhe seller/writer would still keep the stock and the premium (2$)
Get video!! From your example in addition to having 100 shares to write your contract, I always tell my students to have 10 to 20 shares on the side that way you can ride that stock up from $100 to $120 without missing out!!!!
Excellent description, I understand it entirely now, thank you so much
Wow! well explained. i'm a newby and know very little. so a newby question: the $2 in your example, that is per share correct?
You made it real easy to finally understand. Thanks so much.
Glad it helped! Thank you M Beezy for all your support!
Great tutorial! Thanks ClearValue Tax for always looking out for us! Really appreciate your channel!!
I am caught off guard in the best way!
This was helpful, the only video I've seen that I actually understand. 👌
Hello. Good work out there explaining to newbies like me. Can you please explain the difference and where to purchase when you say "buying from me" and "buying from the stock market"? I am confused on where to purchase, from a broker or? Appreciated. Thank you.
I'm trying to rationalize it, but what would you do as the investor if the stock price is above the strike price but still down after the contract price (.i. e. $106 in this example)? Would you sell the call option or let it be exercised?
If the price goes to $106, the option will be exercised by the buyer. When you short a call you are obligated to deliver if the long decides to exercise.
Thank u for going s l ow.... appreciate your efforts sir.. This was the BEST description but the only thing u did not say..... Who cares if u lost the stock u made $7.00 go and re buy it😊😊😊😊😊😊😊😊😊😊😊 Thanks again i am subscribed and liked!
Thank u for all ur videos. Is the call options tax are the same as regular stock tax? Thank you in advance.
So far this is my favorite instructional video for trading options. Thank you for being so clear and taking your time.
Paying attention, in the front row with my hand raised. 👋
🙄 Already?! Put yo hand down😝
Amazing job. Thanks for simplifying. Extremely informative for us.
This is a great informative video and thank you Brian. This channel since I have discovered it has become one of my favorite TH-cam channels.
Hello, thanks for your videos I’m fairly new, but I have a question. If you wanted to invest but only wanted to start with 500-1,000, what is the best way to get started?
In the last example, I can sell my contract BEFORE it gets to the $105 - is that worth while to do ?
Are there 3 options to go from the call going up for us and you? So example 1 strike 105 jpm 120 i buy at 120 then give em back at 105 pocket the rest. 2. Sell the option (if thats better for you or if me closing instead of selling is better i dont know if you can refuse and cancel it and still make premium) 3. ur fked u just sold ur shares at 105.
3. I also want to know if the market is bullish is it better to sell puts so you hold onto your shares? Would be apreciated if you or someone can answer. Thank you in advance
EXCELLENT EXPLANATION👍
PEASE DO MORE VIDS LIKE THIS EXPLAINING...OPTIONS, CALLS, PUTS, MARRIED CALLS/PUTS, LIMIT ORDERS, SAFELY SHORT TRADING, NAKED SHORTS & NAKED LADIES👀...ETC...LOL.😅
You have truly helped me out so much ! Thank you so much! May God bless you !
Great video. I would’ve also thrown in the buyers break even point of 107. Premium paid + strike price