I Learned A SIMPLE Passive Income Trading Strategy from This Millionaire Trader
ฝัง
- เผยแพร่เมื่อ 28 พ.ค. 2024
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How do stock traders improve their profitability using option trading? Option trading is certainly not a new concept. However, it does feel like a whole new world out there for stock traders who only trade shares, including myself.
Today, we are going to learn from a full-time option trader who makes 7-figures with his monthly passive income strategy.
@CodyYeh
00:57 How do profitable option traders make money?
12:00 Strategy Tutorial & How to analyze options
32:23 How to manage risk in option trading
38:27 How can stock traders maximize profits using options
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#tradingstrategy #stockmarket #optionstrading #optionselling #passive income #smartmoneyconcept #daytrading #humbledtrader #stocks #livetrading #algotrading #priceaction #scalping #traderpsychology
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Comment your questions for Cody down below! 😁
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Thank you, Humbled Trader. Thank you, Cody! Question for Cody on SPX Spreads:
Typically we're taught to target 1 to 2 ratio on risk to reward, but what is your opinion on swing trading way OTM SPX spreads that have a wide spread, like 20-30 points, after confirming daily price action to your favor? While it's true you would have a good chance of success on it, going even a week out, the reality is that you would get paid roughly $400 to take on a total risk (if you held it without ever closing - even if it went fully against you) of $2,600 ($3,000 spread minus premium of $400), so then the reality of this position is that you're risking $2,600 to earn $400. Is this completely backwards? Bad idea? Or do you have some thoughts on that for us?
This, so so on radsw u
please translate in hindi audio AI. tool
@@owningyourfinances Great question, big spreads could actually reduce the overall risk.
Shae, that was not only a fun little demo, but that was also THE BEST intel/explanation on HOW TO execute this trading strategy. This was great! Just started learning this strategy about 3 weeks ago, this was the most informative. Thank You Shae, Thank You Cody! - BC
2:50 Options selling 5:00
8:30 Started in 2011; Engineer
12:00 Selling puts-AAPL example
17:30 Delta
30:50 18-54% yearly; larger account
34:10 Technical analysis
39:00 Covered calls
45:30 Controlling 100 shares using ITM options
48:50 Contrarian view
49:30 45-60 DTE
I learned about trading from Elon Musk, and now I'm making $30,000 a month. 🤑
Appreciate that
52:52
Starting capital $5000-$8000, it's recommended $20000 to cope with the miscellaneous broker feez
Yes, that's right.
A question: Can you recommend a good AI for trading?
Selling options premium is the way. You can be wrong about direction, and still make money. Slow and steady is the game.
thanks!
- when everyone isrealy greedy, he puts on less position
- when everyone is really afraid, that is when volatility is really high and he puts on more position. less chance that the stock will drop more because a lot of sellers already sold
I'm a trading novice and eager to learn. Do you have any course or resource suggestions? I'm currently a GPTrader user.
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 she helped a lot to grow my reserve notwithstanding inflation, from $275k to approx $850k
Thank you for this
Studying options from books and TH-cam videos is one thing but one needs to put it into practice often. The knowledge and skillset will be learned from trial and error and most importantly the losses will teach you many lessons and about yourself. Trading psychology and mindset are to me more important to master first before the technical knowledge. When trades go against you, how do you react, how do you defend your losing position and what are the available options to take. Also equally important is risk management. Manage to keep your losses small so that you can stay and play this game longer and to preserve your capital so you can live to fight another day. In my 2 and half year of trading options fulltime, I have paid a lot of market tuitions and have experienced mental depression because this type of derivative trading instrument is not for the faint of heart. But if this is your passion and you truly enjoy investing and trading, keep working hard at it every day and eventually you will succeed. Remember trading time for money for the rest of your life will not make you a happy and fulfilled person. Learn to have money going to work for you is the way to go in order to get out of the corporate rat race.
thank you! i have been trying to understand this for a looong time!
Let's go!
Thank s for sharing
Many thanks Shay for this amazing series of interview videos, very much appreciated!!!
My pleasure! More to come!
Thank you for the wonderful episode 🙏
Cheers! 💪
Best interview yet. Funny, tinder swipe. Got a tiny bit offended that 30min was full time. Not his strategy but a 10% stock move can be a 100% move on option. Like that he uses team approach with advisors, multiple minds.
I love this series. This is just the info I was looking for.
Buzz
Absolutely right!
You're unique. The wait will be well worth it.
Yes, friend!
Link :)
Love getting strategy breakdowns from pod guests like this!
🙌
Absolutely!
You're extraordinary. Success is just around the corner.
Absolutely!
You're extraordinary. Success is just around the corner.
Very well explained!
Cheers! 💥
thank you both for the video i really learned a lot.🙏
very informative and taught very nicely (with demo) 😊😊😊😊😊😊
Glad you liked it!
Really needed this video. Tks
Glad it was helpful!
Cheers 🔥
I haven't considered options yet, but will have to a take a closer look at this. Great guest - will be checking out his videos as well. This guy is just so "chill" - I don't think I can ever be that way with my income until the base is so large it doesn't matter.
Donate for a Dream
You might be on your way but your mentality might be there! Let's go! 👊
Thanks to your content I'm beginning to grasp calls and puts options!! Cheers
Very interesting, I was looking for something like this. More option trading video plz🎉
I think Shay is seeing the potential in options as well. Perhaps, there could be a part 2 where I share my set-and-done strategy.
Thank you very much❤❤❤
Great breakdown and explination, cheers Shay/Cody
Cheers! 💥
Shay been dropping! 💎 💪🏾 fire 🔥 video
Shay is great in asking the right questions for sure!!! ✅
Very good interview
thank you
I like this trader.
Great video thanks shay, I subscribed to you Cody, your cool, I’ve been scared to enter the opinion selling space, but gonna try to get into it. Thanks
Kudos to you Jim!! 🔥
Tnx, Cody
Thanks for this video . I am a fairly conservative investor, and I am interested in learning about options . This was fairly easy to follow, and I am seeking passive income . I just subscribed to your channel , I enjoy your content!!! Hopefully you will have more videos for conservative investors 😊😊😊
🙌
Dont do it. Especially if you are conservatie. Nothing better then Good solid stocks.
Absolutely!
You're extraordinary. Success is just around the corner.
Swinging Options works more for my lifestyle more than daytrading. I trade 30 min a day tops. Then go about my day and im good with 5% a month with no stress. Futures trading is what im learning next.
5 percent crap when you have a small account
Good to hear these tips from one that has business.
Glad you enjoyed it! 💪
I like actual demos like this
This is what I’ve been doing and have been consistently making monthly income. Slow and steady ❤
I am very new to the trading scene, watched an almost 2 hour tutorial on how to use the Tradingview but I still don't really get it. I really want to learn how to properly do it and you seem so good at it. I dont understand these charts. Do you ever manage portfolios? I'm interested. I have about $110k set aside to test the financiaI market waters.
The strategies are sometimes seen as rigorous for the regular-Joe. Matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
I assumed I had a hang of the market at first, I gained $49k one year and I was super elated, until I started having losses. But then I stumbled upon a portfolio-advisr whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I nettd a whooping $572K during this dip, that made it clear there's more to the market that we avg joes don't know
@josephbush That's impressive! I could really use the expertise of this advsors. Please how can i get to your advsor?
The adviser I'm in touch with is “HEATHER LEE LARIONI” for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
@josephbush I Found her online page by searching her full name, I wrote her a mail to schedule a session, hopefully she responds. Thanks a lot
Thanks
Selling options is better than buying in terms of lowering your risk however it comes with a BIG downside. You have to have a large account in order for this to work. This is especially true if you want to be in multiple positions or make enough premium to be worth while. The barrier to entry is much higher than buying when you can do so with a much smaller amount.
Risk management is always the first thing to master in both selling and buying options.🙂
Thank you for sharing your strategy for binary options trading with. It's inspiring to hear that you've been able to achieve a daily income of $300 as a beginner. Your success is a testament to the effectiveness of your strategy, and I'm sure it will be helpful to many others who are just starting out in binary options trading. Thank you again for sharing your knowledge, and I hope you continue to see great results!
Through closely monitoring the performance of my portfolio, have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently
I love the comment about Cashflow problem :)
Cash flow gives you control!
Just so you know some of your equipment is having feed back. Great interview!
The AI sector stocks Surging to Begin Nov and Fill the Oct Dips. * SOUN.. 9 % Rise.. SoundHound. 42 % Revenue growth 2nd qt with 3rd qt results due Nov 9 th...* PLTR Up 16 %.. Palantir...* GFAI Up 19 %.. Guardforce AI... * BFRG Up 7 %...* CXAI Up 5 % and more. Thumbs Up video / comments... Thanks.
this guy is great I do exact same stratergy, i sell put option and call option on Australian shares and sell call option on stocks that hit resistence for cash flow
amazing
Hi thanks for sharing. Which broker you are using for Australian option trading?
I expect it as easy as like Super Simple Songs..lol..great video, thanks.
Shae, that was not only a fun little demo, but that was also THE BEST intel/explanation on HOW TO execute this trading strategy. This was great! Just started learning this strategy about 3 weeks ago, this was the most informative. Thank You Shae, Thank You Cody! - BC
I learned about trading from Elon Musk, and now I'm making $30,000 a month. 🤑
Strong opinion if you just learned this strategy 3 weeks ago... Best of luck though 🤙
May be you can explain this strategy to me. You put down 17000 (in 1 out of 4 cases in his example you will need to execute on that), for almost $200 (lets say you can do this 4 times until you have to execute on the option with his delta, meaning you make 800), and then your money just sit and wait, as long as it takes, potentially for up to a year (if you bought those options in august 2022, for example) or longer. And you have to do this every single time, with a potential for your entire portfolio being locked in an underwater stock.
Exactly, my friend.
One inquiry: Do you know of any reliable AI for trading purposes?
Finally, my kind of guy. I do the same. Option writer for the win! Theta decay!
Awesome 👏
👊
Selling options is a great way to generate enough income to meet my Required Minimum Distribution in my IRA.
When a trade goes against me I usually roll out, or run the Wheel strategy if I take the shares.
In this past year I made 18% trading 1/3 of my acct.
You can also trade options on other investments like commodities, futures, etc.
Sounds like you have a plan!
@@CodyYeh Options premiums are low at the moment. Not worth the risk. But,
already locked in profits for December.
Thanks Shay @HumbledTrader for this insightful video! Love the series.
Can you do a video on analyzing quarterly and annual statements??
Thaks for the intervew video Shay!! I was alos a vfx artist, Canada turend into a trader, lol. very much appreciated!!
🙌
I started out with $1k, starting trading options. Now I have a 6 figure portfolio. Started 2 years ago, just takes time and risk management.
Hey. Which broker would you recommend for Canadians?
Open interest is the number of contracts that have been created between a buyer and a seller and not yet settled.
Sound about right ✅
I never trade on margin, or do naked puts, and do not recommend anyone do it, it's risky to be on the hook to pay money you don't have - you would simply owe it. Much better to sell secured puts based on capital you already have, and are willing to put toward those shares. He's right.
Cheers 👋
gotta say the future sure is bright
This definitely the next lvl of reverse psychology
This looks like it will be 2nd most important video for me (only behind risk management)
*dives into the video*
Stay gifted
Hi, Cody. you mentioned briefly "set and done" startegy. Do you have a video taking about this and show how to?
Search “Cody set and done” on TH-cam and you will find the video.
This is another great video by Shay. I would really recommend taking a extensive course before you start trading options. I've spent a year learning first, it's a lot different then stock trading. You have to really understand the greeks. Good and informative interview. Thanks once more Shay.
Thanks! Definitely been studying it with my extra time
I learned about trading from Elon Musk, and now I'm making $30,000 a month. 🤑
@@HumbledTraderOfficial easy money is like wheeling SPY OR QQQ, that's like 20% annual return for sure...the only prob is understanding volume, MACD stuffs and how to analyze and forecast...really wanna find a trustworthy teacher to learn that.....any recommendation?
Absolutely!
You're extraordinary. Success is just around the corner.
Hi great video , I have a question how doy you validate what other traders say they earn ? Is there someway to see their track record or something ?
I actually showed Shay my account in person for her to play around before filming this interview.
I loved this episode so much. Just has been the only trading I e had success in the last few years
option trade💟
Sell the option is quite basic skill for day Trader. I am a ES / NQ day trader, sometimes, I use Straddle strategy to cope with side-way market
You don't use straddle in a side-way market. You use it when volatility is high with a lot of uncertainty. Iron Condor is one of the strategies used for side-way market.
@@MT-qq1rq... and for that reason, we have to be careful what we take away from these comments
@@MT-qq1rq preach!
I have a question using the apple example from the video. Can you close the position before the strike price and keep the premium?
Thanks
Yes, you can buy to close the position at anytime, but the closer it gets to the strike price the more the position is down and you would take a loss.
If it’s truly a stock you want to own it’s better to get assigned the shares and sell covered calls for more premium until the share price recovers.
You can close the option position anytime you want. The question is if you want to close it at loss or profit.
If Apple stock price doesn’t go below the strike price of the option position at expiration of the position, we will keep all the premium at expiration.
Hope that helps your question.
If you sell to open, you can buy it back to close it. You will keep the difference between what you were given and what it costs at the time you "close" it.
Thanks for responding, I truly appreciate your help!@@JL_Batman
The best strategy by far. took years to figure that out. Wheel Strategy
Do you have a very beginners class like how to use Trading View first?
For how to use Tradingview, you could search on TH-cam for many good tutorials. I do have beginner to master courses to help bring people from zero experience to get consistent profits from options.
What is the name of his company?
Same as his own name “Cody Yeh”
In this video the super slight background noise like it is done in an ER with the hospital sensors.
Please use correct noise cancellation when discussing such a serious topic as people are listening intently.
If the noise is introduced intentionally then it is definitely a BAD CHOICE.
All in all, a great presentation bar the slight background noise.
38:00 I’m not seeing it on Trading View. “Say Yeh” u say?
Yes, the difference between the wealthy and the wretched is not all about what they know, but what they do with the knowledge and time.
- Nelles Serge
n e l l 9 s
truthfully, because knowledge profits less than application. I love the 30mins strategy
With the free ebook by Nelle Serge, I was able to start earning profitably from daily trades. Technique matters, I agree now.
@@YangHeX perhaps I can get the knowledge too, I need more clarification to improve my profits
@@tradecoach-si6qd Nelles Serge sent me a copy.
T.e l e.g ram:
n e l l 9 s
I agree the stock market is a very good way to make passive income. I have heard of several investors who were making more than $40k a month from the market. I'm ready to go into the market now, but I'm careful to not make a mistake. Or are there are safe bets?
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a lot of independent advisors you might look into. But i work with *Kaitlin Rose Sternberg* and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
What Broker platform did you use in that trading options demo? Please////.
the one he used was IBKR mobile
Fidelity and Schwab also offer options trading. I use both.
@@HumbledTraderOfficial That's correct!
So what TICKER spreads do you trade on the set and done
E-mini S&P 500 Index Futures, Ticker: ES
Theta baby
Shay can you please get Wall street trapper on the show.. Please he does option trading but leap options its a different strategy i think you will like.
Thank you @CodiYeh for sharing your wisdom. I'm a day trader ( loosing ) at heart and recently started trading options. I'm enjoying. however, I still don't get the full science.. delta theta, vega ...baby steps but I'm making full efforts to learn
You are on your way there! Go get it! 🔥
How to come up with shuper shtock shtrategy
On 31:54, Cody mention the trade size is 5000 on ES / SP500. What does trade size means? 50 contracts?
It means the minimum capital requirement per trade we are using in our hedge fund strategies is $5000.
@HumbledTrader I'm only 3 mins it but when the guest says the $VIX impacts options prices, I believe he's talking about the IV of any specific option contract... Imo, as I can't imagine the $VIX would have an impact on all options for every optionable stock. For example: a historically low volume small cap with a 25 cent atr wouldn't typically track/trade in conjuction with the $ES therefore wouldn't be affected by the $VIX 🤔🇨🇦💪
Both VIX and IV impacts options and IV is more localized than VIX. We decided to mention VIX for people to grasp the option concepts more easily.
Just about to dig in vix and I found this quick answer, thx.
@@CodyYeh That makes sense, I appreciate your reply & truly enjoyed your story. Success to you in all your endeavors going forward brother, much respect 🙏
Do you verify what these people claim their income is? 🤔
Exactly I think this guy is BS
Thanks for asking, my live update and our students’ current update are all ready to be shared anytime if you are interested.
Let us know.😊
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over 545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
@@Elkemartin213 I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a lot of independent advisors you might look into. But i work with “Vivian Carol Gioia” and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
The wheel options strategy great strategy
what is gptrader?
What are you using for trading ? Thanks
We are using Interactive Brokers(IBKR), and “Cody set and done” on TH-cam.
which lots do you use?
please review about mini hammer EA. many people talk about this
As anything with options I'll have to watch this 100 times and then forget how it works again tomorrow, I think the best way to learn options is just to keep doing them.
You bet! 👋
When can I go on a pod cast
that was very insightful .... My question is, are you now more confident in trying options??
Yes I am 👍
But options are so risky.
@@romulovasquez9777 Options could be risky but it's riskier if you don't follow me... jk 😎
The strategy is sound. What if the covered calls get called on your long term security, buying back the option would be a large premium, which will yield a negative return or let it be called and realized on a long term cap gain tax?
Usually when covered call is ITM at expiration, we would just let it call the shares away. There are ways to not letting the shares called away and could potentially earn more but it would need a lot more strategical planning and calculations.
Wow, well I did the opposite and started with 1000 dollars buying calls and puts. Seems to be working out well. Let's you size up much faster.
@@Humbledtraders3-Gmail.- How can I get in touch with you?
I personally know people that has success scaling up small accounts. it could be fruitful. There are just more people washed out during the scaling process because the odds are stacked against you when buying options
If you sell options at the wrong time, regardless of what stock it is, you can lose serious money. Especially if you oversize. This strategy requires serious discipline and well thought out stops. Its not easy or risk free.
Managing risks is always first priority.
What is the application they are using in the demo?
We are using Interactive Brokers(IBKR).
What’s platform do you use for option trade?
Interactive Brokers
What app are you using on your phone?
Nm I figured It out.
A lot of similarities. I am also an engineer and I trade like him. 30 to 40% a year. Slow, boring, steady...
Holy shit when did you get over 1 million subscribers wow ✌️🙏👏👏👍
thank you!
What about selling options is "passiv" ??
Sure is easy to sell options and collect premium and you don’t have to do anything as is an easy strategy. But wait until the markets has a massive move and your stuck now with having to give those shares or you are losing your shirt off. Selling options is the most dangerous thing you can do. You collect peanuts compare to the liability you put your self in. Do not sell options unless you own the stock or are prepare to own it. Sell vertical spreads as is the best way.
Vertical spread is one of a great option strategy to lower risk and earn consistent profits if the parameters and strategy combinations are set and used correctly. 👍
Trade dividend paying stocks. Get paid to wait for rebound in stocks, if market dumps.
I’m gonna stick with trading the charts. Options always sound great and all, but the “too good to be true” senses are going off. I have always felt this way, and I’d rather put my energy into my current strategies.
Sure thing! Stick with what’s working 👍
Selling options isn’t dangerous. Buying naked calls or puts absolutely is
I used to buy options never again I only sell them