Why Selling Put Options can Generate you 5 Figures of Passive Income per Month

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  • เผยแพร่เมื่อ 8 พ.ย. 2024

ความคิดเห็น • 95

  • @CodyYeh
    @CodyYeh  ปีที่แล้ว +3

    👉 Find out how you can learn my SET-AND-DONE Hedge Fund Stock Options Strategies to earn a consistent double-digit yearly returns by spending only 5 -10 minutes or less every day ► www.codyyehvip.com/start
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  • @ethelbertt
    @ethelbertt หลายเดือนก่อน +28

    so big on stocks and it has worked well for me, i like your solid share on put options but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. Thanks for sharing.

    • @Iamjacob-x3o
      @Iamjacob-x3o หลายเดือนก่อน +1

      I love ETFs. Ended up buying QQQM in my Roth, SCHD and some individual stocks in my brokerage account. I have a considerably larger position of SCHD, which are well managed.

    • @ethelbertt
      @ethelbertt หลายเดือนก่อน

      How effective is your managed holdings with this lot and which stocks wave should I consider adding my fidelity.

    • @Iamjacob-x3o
      @Iamjacob-x3o หลายเดือนก่อน +2

      Tbh I've adhere to insights from a top performer, there are tracks for more interest. Last year, YTD interest remitted 64k in holdings passive income. Q2 this year was 27k, as it takes time and the magic of compounding. It's truly great to see steady growth.

    • @ethelbertt
      @ethelbertt หลายเดือนก่อน +1

      Cheers jacob! I'm looking to start a position in JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow over time. Okay if I ask for referral from you.

    • @Iamjacob-x3o
      @Iamjacob-x3o หลายเดือนก่อน +2

      Much better you get a direct intro, I've been participating with Margaret Ann Myatt a profound outlook on her stats. Impressive

  • @DuckUSD2012
    @DuckUSD2012 ปีที่แล้ว +22

    You are right. I have been selling put options for years. Every week, every month. Rolling options is also a nice instrument. 🙂So, have a great time with trading and earn a lot of money. Good luck.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +2

      Thanks and it seems like you know what you are doing! All the best 🔥

    • @getsugatenshoFTW
      @getsugatenshoFTW ปีที่แล้ว +2

      Rolling an option that is currently at a loss before 30 days after execution date can trigger a wash sale so be careful

    • @malcolmmitchell2131
      @malcolmmitchell2131 ปีที่แล้ว

      Go take a long dive of a short pier. Jackass

    • @uglyducklingfinance2023
      @uglyducklingfinance2023 ปีที่แล้ว +1

      Yes. Rolling options can help in a number of situations. If you are wanting to get a better price or if the the price just plummets.

  • @hannaJardin
    @hannaJardin ปีที่แล้ว +2

    I have been selling put but need more expert advices to increase my profit and this video is exactly what I need. Thank you so much

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      You are welcome! 🔥

  • @rickshady4122
    @rickshady4122 ปีที่แล้ว +2

    Heard the timthetatman music in the background, and i was sold on the video. Good info man.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      😂🥂

  • @Iftrades
    @Iftrades ปีที่แล้ว +4

    Please keep us updated when u sell/buy ur put

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +2

      Are you already selling put options?

  • @ZeusyZeus
    @ZeusyZeus ปีที่แล้ว +3

    I’m just now diving into options on a company I’m underwater on. I want to lower my average and figured selling puts is probably the best way since worse case scenario I’m forced to buy the shares and lower my average. Appreciate any thoughts.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      That could be one option but you will have to make sure that you would like to own more of this company’s stocks in the first place. Have you checked out my Set and Done strategy?

    • @ZeusyZeus
      @ZeusyZeus ปีที่แล้ว +1

      @@CodyYeh I haven’t. But long story short my average on a company currently is $63 and the company is at $26 so way down. I want to buy shares now to lower my average but figured maybe I can do this with your method of selling puts? I already sold covered calls in the meantime.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      wow, that 1/3 of the value. May I know which company that is?

    • @ZeusyZeus
      @ZeusyZeus ปีที่แล้ว +1

      @@CodyYeh Rivian… I bought at IPO and never sold like a dummy. 🤦🏻‍♂️

    • @uglyducklingfinance2023
      @uglyducklingfinance2023 ปีที่แล้ว +1

      Selling puts and covered calls will definately lower your cost basis. I would be careful with the upside just incase it sky rockets.

  • @nelliemillan4627
    @nelliemillan4627 ปีที่แล้ว +1

    Very interesting but I'm not that advanced yet & I dont know how to repeat the video .

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      Watch more of my TH-cam video or message on IGS or FB and my team can guide you more

  • @0786AHA
    @0786AHA ปีที่แล้ว +1

    Today kroger is at 45. So your option is below your strike price. Its possible it will go back up. But thats a risk.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      It’s $46 now

    • @gtrrealreels7339
      @gtrrealreels7339 ปีที่แล้ว +1

      Point is you collect premiums whether it gets back there or not. Even if it never gets back to your strike you can still be profitable from it as long as it stays relatively healthy and doesn't crash completely.

  • @TheSushiandme
    @TheSushiandme ปีที่แล้ว +2

    I understand selling cover calls you collect the premium instantly, and you can allow it to expire worthless. Is puts the same, but you get the premium after it expires? Im confused

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +2

      You collect premium upfront for both selling puts and cover calls.

    • @TheSushiandme
      @TheSushiandme ปีที่แล้ว +1

      @Cody Yeh Investing ah ok. I thought it's like put .50 = $50 minus price of stock = discount. Didn't realize we get paid upfront. Thank you for your quick response. I'll explore selling puts.

    • @petsloveonly
      @petsloveonly ปีที่แล้ว

      ​@@CodyYehsame question again....if u collect this premium upfront why are u having to wait? Or are u being paid to wait??

  • @hippomonkeybear
    @hippomonkeybear ปีที่แล้ว +11

    Stick with 1 week expirations, 1 month for this method is too far out. To find the hot stocks of the day, go to barchart and lookup naked puts. U need a paid account to set filters, but it’s worth it. So with that there will be a list of all the top naked puts currently. I sort by annual return, looking for 100% or higher. That’s not a typo, yes I’m making over 100% on my cash each year with this method. Once u find a stock, research it! There’s probably a good reason it’s on that list, just make sure bankruptcy isn’t one of them. If the company looks ok enough, check when is the next earnings call. Best to not be holding sold puts the week during an earnings call. U really don’t want the stock to tank too far down and having to pay a ton to get out of the contract. If the stock price goes up, and ur ever given the opportunity to buy for $1 per to close, then do it! Just eat the dollar and get out. Now for the most important part, which strike price to choose for best profits with the least amount of potential risk. Anything lower than 0.10 delta. An easy way to wrap ur mind around delta, even though this isn’t necessarily accurate, convert to %. A 0.10 delta is basically like saying, “we think there’s a 10% chance the stock price will drop to this strike price.” The lower the delta though, the lower the premium you’ll get. But don’t break the 0.10 delta rule! I understand that a higher premium looks attractive, but it’s not necessary in order to make 100% or better. So the next question is, what % of premium should I get compared to my cash collateral. The answer is simple, anything over 1%. If u check naked puts on barchart frequently then ur bound to fine some stocks that pay over 2% with 0.10 delta. It’s honestly wild how many of these float around and change daily. A great recent example was PACW. $1.50 strike was handing out $15 and was under 0.10 delta. 10% gains on ur cash in 1 week! Some tips, careful with ex-dividend dates, just avoid them all together to be safe. Diversify even with options. Never put all ur money in 1 stock, choose maybe 3 or 4 at least with this method every week. If I only find 1% strikes on a Monday, then maybe I just wait until Tuesday. Things change a lot and u don’t want to burn all ur cash for a 1% and then have a 3% show up next day. Last thing, never do this on margin, ever ever ever. Only play with cash that u can afford to lose. That being said, if u do this every week, and stay under that 0.10 delta, there should be 100% expectations to make positive money every week. You should be making at a minimum 50% annual . If u find ur making less than 50% annual return on ur cash then ur doing something wrong. That’s it folks, the market makers are handing out this crazy cash, go take it!

    • @mixxndj
      @mixxndj ปีที่แล้ว +4

      Thanks for taking the time to write this bro. It is interesting you say stick with 1 week options, as I was absolutely crushing the market with one week options. If you ever watch most YT channels on options, like Tasty T, they will tell you like around 45 days or something like and manage at 21 days. For me, I am too impatient but trying to do what is statistically best. One thing is spot on, is don’t put it all on one ticker. I got absolutely burned on Natural Gas.. BOIL . Premiums were fat AF, but I got burned. I own a bunch of it at like 16.00 share now it’s sitting at low 3’s. 🤦‍♂️

    • @hippomonkeybear
      @hippomonkeybear ปีที่แล้ว +1

      @@mixxndj if ur buying options then I agree, push the expiration date as far out as makes sense. But selling options, WAY too many things can change in a month. 1 week feels more predictable, especially since the stocks I'm talking about selling puts on will have super high volatility. But high volatility isn't necessarily bad, it's actually what's paying us the 2% or higher premiums and why this method works so great. But yeah haha, we've all had our own BOIL stories, so learn from our mistakes and diversify those options.

    • @jpperi548
      @jpperi548 ปีที่แล้ว

      Wow. Thanks for sharing 😊

    • @mixxndj
      @mixxndj ปีที่แล้ว

      @@hippomonkeybear agree.. yeah, I try to get between 1-2 % return of collateral per week on the high IV tickers. It’s been more difficult this year as volatility overall has been lower than previous years. I’m been messing around with Iron Condors on SPY and TSLA at 40-45 days. Again, I’m so impatient. Think I’m going back to the original plan.. naked puts.

    • @thomastsou4660
      @thomastsou4660 ปีที่แล้ว

      which company you use for stock filter

  • @abdulazeemkhan777
    @abdulazeemkhan777 ปีที่แล้ว +1

    So basically selling cash covered puts after finding a strike price that's around resistance right?

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +2

      When you sell a put option, you have to be ready to own one hundred share of the stocks

    • @uglyducklingfinance2023
      @uglyducklingfinance2023 ปีที่แล้ว

      Using Delta in the options greeks is a good way to choose a strike price too. I like to go for around .15-.20 delta depending on market conditions and how well I like the company.

  • @arlakooo
    @arlakooo 10 หลายเดือนก่อน

    So im confused , if i buy a put option for 21 days on spy just by approaching I’ll get a profit, if it passes the strike with enough time then the profit gets huge….how selling that put option will benefit me better…
    Buying a put or selling it thats my question,

  • @wumitiaierken5854
    @wumitiaierken5854 11 หลายเดือนก่อน

    what is your premium capture rate?

  • @johnsnow9232
    @johnsnow9232 9 หลายเดือนก่อน

    You misspelled dividend

  • @bcriz
    @bcriz ปีที่แล้ว +1

    So you collect the premium right away after submitting or you collect the premium after the contract has expired?

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      Right upfront

    • @petsloveonly
      @petsloveonly ปีที่แล้ว

      ​@@CodyYehso then why do u have to sit out the 52days ??? Makes no sense at all

    • @uglyducklingfinance2023
      @uglyducklingfinance2023 ปีที่แล้ว +1

      ​@@petsloveonly you collect the premium upfront and then you need to wait out the contract length for it to become worthless. You are always welcome to buy back the option before the experation date though. Options are contracts between to parties and part of the contract is a duration of time. Hope this helps.

    • @petsloveonly
      @petsloveonly ปีที่แล้ว

      @@uglyducklingfinance2023 yes I've been watching others and they mentioned the buy to close

  • @uncletan888
    @uncletan888 ปีที่แล้ว +1

    why say when price goes up or down or side way? if price goes down and below your strike price before expiry date. you will make a lose. and can be a lot of money if price goes way way down.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      Correct and do you want to own the stock for long term?

    • @QargZer
      @QargZer 10 หลายเดือนก่อน

      That's why you do NOT sell a put unless it's a good stock. If you sell a put on GameStop you're asking to go bankrupt.

  • @adityarookey1
    @adityarookey1 ปีที่แล้ว +1

    Been minting money using wheel strategy . It has worked great in bear market wherein stocks are available for cheap

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      Good for you 🔥

  • @mmmmmray
    @mmmmmray ปีที่แล้ว

    For you, how much of that 15% return do you keep at the end of the year because of taxes?

  • @kikilynn1167
    @kikilynn1167 ปีที่แล้ว +2

    You forgot to mention that you need a $1 million account to get (low) five figures. if you're good at selling options you can get about 1% of your account value per month. So with a $1 million account, you can make about $10,000 per month.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      It depends on your goal. Our Set and Done strategy is targeting 18-54% per year. More consistent cash flow. Selling put option is meant to be more mid to long term hold

  • @KosyoDimitrov
    @KosyoDimitrov ปีที่แล้ว +1

    what is the app?

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      This is IBKR brokerage account.
      You can click this link to watch my SET-AND-DONE Cash Flow Strategy TH-cam video: th-cam.com/video/TAkXRs0Muc8/w-d-xo.html
      If you want to get more details about learning my strategy, see description under the SET-AND-DONE Strategy video for ways to contact me.

  • @JL-qp8sm
    @JL-qp8sm ปีที่แล้ว

    I'm very new to trading... I have an extremely small account... how can you make 333.00 a day if you only collected 107.00 in premium for the contract and then on top of that, you have to wait till the expiration too see if you will get assigned or not?

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      with our SET-AND-DONE strategy premiums are only a small percentage of our profits.

  • @pnteo
    @pnteo หลายเดือนก่อน

    I only do Sell Put Option to gain premium as my passive income and keep do in every month

    • @CodyYeh
      @CodyYeh  หลายเดือนก่อน

      Solid 👍

  • @aplacetorelax1171
    @aplacetorelax1171 ปีที่แล้ว +1

    So you can sell a put without owning the put? 🤔

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      You just need the money to buy 100 shares when you sell a put option

    • @aplacetorelax1171
      @aplacetorelax1171 ปีที่แล้ว

      So I cannot sell anything that I do not own? and after it settles can I hold it for a long time? Can it expire without me putting an order for the put to be sold? Can you make a video explaining all types of options and what they mean? ....like Covered call, long call, cash secured put and so on? It's very confusing, it will help a lot of us that are just as confused as me.

    • @uglyducklingfinance2023
      @uglyducklingfinance2023 ปีที่แล้ว

      ​@@aplacetorelax1171 I'll answer your first question. He got it right above. You need to have enough money to buy 100 shares of the stock you are selling the put on. So, for example, you like Apple. You can sell a put at $100. So you would collect the premium upfront like he described in the video and then if the price of Apple goes below $100 before experation then you would need to purchase Apple at the price point. If the price stays above $100 then you get to collect the premium from selling the option and nothing else happens. Hope this helps.

  • @blurzy7559
    @blurzy7559 ปีที่แล้ว

    If you are forced to buy the 100 shares you get to keep the shares? If thats the case could i sell the shares back and just profit the premium? Or when you are forced to buy the 100 shares you lose out on the money and dont get to keep the shares

    • @franksanchez9355
      @franksanchez9355 ปีที่แล้ว +2

      Yes but buy the time you are forced to buy the shares the stock might be down below the strike price. Say the strike price is 20 dollars if the stock goes to 15 you’ll be forced to buy 100 shares for 20 bucks even though the market price is 15 dollars

  • @qntainmnt
    @qntainmnt 8 หลายเดือนก่อน

    im surprised you didn't emphasize the collateral, as that put option cost you $4,600 lol

  • @petsloveonly
    @petsloveonly ปีที่แล้ว

    Why choose 52days? And more importantly since u are credited $107 upfront why do u need to wait 52days? ...if u close out this position after 1 day is it not worth $107 yet??!? I don't get it??
    For Put Options u MUST wait the whole contract time otherwise if u cash it in earlier it's not possible????

    • @SteveN-gt2ur
      @SteveN-gt2ur 11 หลายเดือนก่อน +1

      Put option premium is also going up and down just like the stock price, so if you decided to close the contract, you have to be on the other side of the trade and buy the put and pay a premium.

  • @jasong3985
    @jasong3985 ปีที่แล้ว +4

    Why did i expect this video to tell me how he's earning 333 each day 😅

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +3

      Haha great questions. I make 5 figures per months so $10k is around $333 per day. Plus it’s catchy

    • @jasong3985
      @jasong3985 ปีที่แล้ว +2

      @@CodyYeh awesome. Would be great to know which stocks you sell puts for and what's the portfolio value for getting 10k per month

    • @Navarrete19
      @Navarrete19 ปีที่แล้ว

      ​@@jasong3985Probably Apple. Probably over $1,000,000

  • @Yt-user65000
    @Yt-user65000 7 หลายเดือนก่อน

    So, in all fairness your thumbnail was pretty misleading. It says “$333 a day” selling put options, but selling Kroger $1 OTM at 52DTE came out to $107 in 52 days. Correct me if I’m wrong, but that’s about $2/day. You just tied up $4600 for almost 2 months to make $2 a day…😒

    • @sigmareaver680
      @sigmareaver680 7 หลายเดือนก่อน

      To do a more capital efficient sale, do a put credit spread instead. You will collect less premium, but your capital requirement will be a lot lower.

  • @AJF66OG
    @AJF66OG ปีที่แล้ว +3

    You generated 3 figures assuming it expires worthless. To generate 5 figures per month as your title suggests, you have to sell 100 contracts (assuming you didn’t trade any other underlying stocks), and you would need, cash secured put account of 7 figures (with your example). 3 or 4 figures per month is more practical. If you trade spreads so you need smaller account, you’ll grow much slower than that.

    • @kikilynn1167
      @kikilynn1167 ปีที่แล้ว +4

      Yeah, he conveniently forgot to mention you'd need a million dollars in collateral to make low five figures.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      Love that you guys point it out :)

  • @jimhood7945
    @jimhood7945 ปีที่แล้ว +1

    What if you wake up one morning and stock is at $20? You have no downside protection w this strategy.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +2

      I agree. And how’s that different than buying the stocks outright?

    • @jimhood7945
      @jimhood7945 ปีที่แล้ว

      @@CodyYeh There is no difference but you make it sound like you can make money no matter what direction the market goes. It is a lot harder than you make it out to be.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว +1

      @@jimhood7945 for a strategy with good downside protection, it would be my SET-AND-DONE Strategy, not the strategy I am talking about in this video.

    • @TimStout71
      @TimStout71 ปีที่แล้ว +1

      @@jimhood7945 I too pretty much only sell options. It has been very profitable. There is nothing you can do if you wake up and it's at $20. You can buy back the option for a loss. I have found that you will not be put the shares unless you are very close to the expiration or at expiration. Theta decay is on the side of the option seller. Also, before selling look at the delta and try and keep it under 25. That in theory will give you a 75 % change of being out of the money at expiration. There is no sure thing when trading but I have found selling option to being pretty darn close. Good luck !!!

    • @jeremiahmiller4640
      @jeremiahmiller4640 ปีที่แล้ว +2

      @@jimhood7945 I’ve been selling options for a decade and I’ve crushed the market including last year

  • @jonahansen
    @jonahansen ปีที่แล้ว +1

    What a totally worthless video. You didn't explain anything about what the risks are, why you would choose the strike price and expiration date, or what the possible outcomes would be. The title would lead one to believe that the clip would explain why this is a good idea, but its more like a "get rich quick doing this", but devoid of any analysis, motivation, or explanation of how it works.

    • @CodyYeh
      @CodyYeh  ปีที่แล้ว

      Sounds like a worthwhile comment

  • @joesitt1
    @joesitt1 ปีที่แล้ว

    I have $5,000 in my account. Can I generate $333 per day ?

    • @ChiIeboy
      @ChiIeboy 8 หลายเดือนก่อน +2

      Yes, but if you get caught, you might catch a 10-20 year stretch in the pen.