The Wheel Option Strategy - Best Option Trading Strategy for Passive Income

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  • Опубліковано 14 лис 2024

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  • @Bamapride1985
    @Bamapride1985 2 роки тому +45

    I have been very successful using this strategy. One thing that not many people mention in the videos about selling calls and puts that has caused me to leave a lot of profit on the table is when to sell the put or call. I thought the more days in the contract would get the most premium bc of time decay which is not true. When selling a put, you will wanna sell the put on a red day for the stock and try to get it at the stock's lowest point of the day. Then right the opposite with selling the call. Wait sometimes a day if needed and sell the call on a green day. Sometimes if wait a day or 2 and the stock price decides to be up 3-5% that day, the premium will be 25% higher than the day before.

  • @EarthCreature.
    @EarthCreature. 2 роки тому +12

    Keep hammering this wheel strategy, Henry. It means a lot to us out here

  • @teslafirechallenge6432
    @teslafirechallenge6432 2 роки тому +3

    Amazing explanation. Really interested.
    I have 215 shares in Tesla bought, can I use the strategy and conservatively how much can I make monthly, I like to be ultra conservative.

    • @nathansilver3956
      @nathansilver3956 2 роки тому +1

      Conservatively I would say about 2-3% per month on Tesla

  • @danielrome6074
    @danielrome6074 Рік тому +1

    Hey Henry, thank you so much for this video. It actually helps me make sense of Australia. I have a question what are some good cheap stocks that I can run options on with an account size of about $200?

    • @sonny5982
      @sonny5982 Рік тому

      There are no cheap stocks in the stock market you get what you pay for

  • @bluest1524
    @bluest1524 2 роки тому +2

    I am so grateful for your amazing videos. You're the best teacher I've found. Thank you.

  • @alexpoon9048
    @alexpoon9048 Рік тому

    Hi Henry, is it much safer n better to do wheel strategy on an uptrending stock when it pullback to trendline or 50 sma support even you intend to own the stock because doing wheel option on downtrend stock is just like catching a falling knife

  • @salvatorefrancescocarollo8261
    @salvatorefrancescocarollo8261 Рік тому +1

    What is considered a small account

  • @aetrix7774
    @aetrix7774 2 роки тому +4

    Hey Henry! I just want to say I love what you're doing and I have learned quite a bit from your videos. I am a college student using Robinhood to trade options, but I have not unlocked level three trading yet to trade spreads. I have been in contact with Robinhood and they are unable to give me a straight answer as to how to meet the qualifications. Do you know how much experience I need to be qualified for level three?

    • @Enzo_aka_PKwarrior
      @Enzo_aka_PKwarrior 2 роки тому

      just say the second highest option, which i think is 3-5 years.

  • @Igorgraph77bbbb
    @Igorgraph77bbbb 2 роки тому +6

    Hi Henry. All you have said in the video is the truth. And a very good explanation and details too. Problem is that you have failed to mention or deliberately hid some of the downsides of this strategy. And those downsides are NOT negligible to be ignored in a very important video in which people might be tempted to do as you have. Number one downside is what happens if the stock you have placed put on tanks considerably lower and in a week which is the minimum options time a LOT can happen in this volatile market. Sure you have said it should be the stock you would like to own anyways, but if it tanks considerably lower then you are kinda stuck with that stock unable to get good calls on it and also unable to have any further income or trade. You are stuck with it until it goes back up higher and time is money. Time not making the money might as well be lost money.
    Second downside is if a stock jumps up considerably higher weather you are placing the put or a call it does not matter. If it does, yeah sure you have your premium money , but you could lose a considerable potential in stock rally if you were simply just to hold a same stock. For example I have placed a put in Tesla when it was 860$. Put was on 800$. I got my premium alright which was around 1200$ for one week. Tesla is now after a week and 2 days 970$. So my potential loss is 11000$ !!!! Thats a LOT of money lost in one week just only to grab 1200... You did not explained well the downsides of this strategy and they should have been mentioned in the video. The strategy is solid and relatively "safe" but I think if you want to make money faster there should be combinations of owning stocks plus this strategy and that was not mentioned in the video. Tnx for the upload anyways.
    P.S. One person in the comments mentioned that you do this for the money. If anyone has SEEN your brokerage account and you show it very plainly that is the furthest thing from the truth what he said. You are deffo NOT doing this for money. I do think however if you really wanna help people full info should be presented to them.

    • @jeffreydemaeyer352
      @jeffreydemaeyer352 2 роки тому +4

      First downside is inherent risk to the stock market. The same could happen when buying a low risk All-world ETF.
      Second downside is not a loss, it's a missed opportunity. On the other hand, if the stock moves horizontally, you make more money because of the premium. It goes both ways.

    • @gorhcpgoNEW
      @gorhcpgoNEW Рік тому

      @@jeffreydemaeyer352 exactly, you're selling the "upside" for a steady income. People seem to think "if the stock goes to 1!!!" is a counter argument. Just keep rolling a position, if you really lost a ton in one week, bad bet/luck. More likely than not, this would not happen, winning most of the time.

  • @farkhandawakeel7580
    @farkhandawakeel7580 2 роки тому

    Hello Henry,
    So for the strategy of buy call 2 sell call buy call
    So we let it expire,
    So then we will get the profit of risking 100 to 50 dollar and turn into 800 to 1000, if the stock stay in the breakeven price

  • @n7685
    @n7685 2 роки тому

    Hey Henry, when do you decide to sell weekly put options versus going two weeks out like you mentioned in the video? Thanks

  • @andrewkent6895
    @andrewkent6895 2 роки тому

    My son is going to Drexel in September. Any tips for him? GO DRAGONS!!!

  • @mroblivion2854
    @mroblivion2854 2 роки тому

    I like the video.. well done, but idky u refer to it as being put... when the option buyer exercises their put, u are assigned the shares at your agreed upon strike price.

  • @prometheus9464
    @prometheus9464 Рік тому

    Prometheus
    I am running a option wheel strategy, I bought a leap option to sell calls against it. As you have show in several vids, but now my leap option is down 17 %. when should I get out of my leap position?

  • @naterosales4990
    @naterosales4990 2 роки тому +1

    What happens if the stock hits your strike before the day of expiration? Does it automatically make me buy it or does it only matter at the day of expiration

    • @chriscapablanca3491
      @chriscapablanca3491 2 роки тому

      The holder of the option contract, that is the person you SOLD the option to, can exercise the contract and make you buy at ANY TIME prior to the option contract expiring. But it is only financially advantageous to them to exercise the contract once it is in the money and close to or at expiration. So while they can exercise the option any time they want to, you typically only see exercised options at the very end of the contract at expiration.

  • @MrCrazykill2
    @MrCrazykill2 2 роки тому +3

    I think it is also important to talk about the collateral? The max loss of $1.1k also means that we need at least $1.1k in the account before we can even sell the puts right?

    • @chriscapablanca3491
      @chriscapablanca3491 2 роки тому +1

      Right but if you were going to buy the stock anyway you would still need 100% collateral.

  • @fitfinish1502
    @fitfinish1502 2 роки тому +3

    This I was doing the wheel strategy when the market crashed and I am still down 70% this guy makes it sound like there’s no risk and it’s all easy money it definitely ain’t you’re providing insurance and when shit hits the fan they’re going to use her insurance

    • @MT-qq1rq
      @MT-qq1rq 2 роки тому

      Well said. The real risk is when you get assigned on the put and the stock keeps tanking and tanking.

  • @Thomasz126
    @Thomasz126 2 роки тому +2

    Uncle Henry with another 🔥🔥🔥 video!!! But this monster pullback definitely separated the men from the boys. 💎 🙌

    • @InvestwithHenry
      @InvestwithHenry  2 роки тому +1

      You already know!

    • @domingodelgado3944
      @domingodelgado3944 2 роки тому +1

      I have been trading this way for 3 years. Best advice I can give you is never go all in at once. Expect 20-30% drawdowns and be ready to double down when it happens. Only choose stocks that have been in uptrends for 5years.

  • @vexsuss
    @vexsuss 2 роки тому

    Hi Henry
    Can you give us some Tips
    What to do if you bought call/put
    And stock price goes against you?

    • @Enzo_aka_PKwarrior
      @Enzo_aka_PKwarrior 2 роки тому +1

      if you're not comfortable with losing the full premium that you paid to buy the call/put. Look into how to set stop losses in your particular broker app. For example, you might pay $400 in premium to buy a call, but lets say you're only comfortable losing $100 of that premium if you're wrong. You can set a stop loss (or even trailing stop loss) that will automatically sell your contract at the best price available at that time if it hits that "loss threshold" to prevent you from losing it all if the stock just keeps going against you. Especially useful if you need to step away momentarily. The common loss thresholds i see from traders is between 5% and 20% depending on your risk tolerance, but definitely never let your position go over 50% loss, at that point you're fighting a very big uphill losing battle just to breakeven.

  • @ericgonzalez5115
    @ericgonzalez5115 2 роки тому

    What delta do you like?

  • @titandagod
    @titandagod 2 роки тому

    Any videos on strategies that only involve buying and not selling options?

  • @lucaswhite3799
    @lucaswhite3799 2 роки тому +13

    Am No longer waiting for the stimulus check paying my bills cuz I keep on getting $19000 every week from a new trading platforms in town

    • @marcusann5036
      @marcusann5036 2 роки тому

      Wow that's success 😳

    • @marcusann5036
      @marcusann5036 2 роки тому

      Please how. Can you list the platforms for me.

    • @lucaswhite3799
      @lucaswhite3799 2 роки тому

      @@marcusann5036 Ya there is a lady who helped me out when I was living in trash without nothing except Mrs floral she changed my life for good

    • @yosoy2480
      @yosoy2480 2 роки тому

      Success depends on the actions or steps you take to achieve it. Show me a man without investment and I'll tell you how long it takes to go bankrupt. Investing creates a safe heaven for the future.

    • @susandook1366
      @susandook1366 2 роки тому

      I agree with you. I had a senior colleague at work who lived well but never had an investment. unfortunately is job ended so he went from living well to surviving with his family. If you had an investment.

  • @viviankwok4354
    @viviankwok4354 2 роки тому +1

    Hi Henry, how do I get one on one coaching with you? Do you have a discord? 👍👍

  • @eddie9945
    @eddie9945 2 роки тому +22

    Progress they say shows when hard work is put into a venture. I was experiencing lapses in putting enough work into trading, and my job made it nearly impossible for me to earn. Until I came across Brian Harding, turned my life around, I'm so grateful.

    • @jammiewood2121
      @jammiewood2121 2 роки тому

      I'm not here to converse but to share and testify just for what I'm sure of. Mr. Brian Harding is trust worthy and best option ever seen.

    • @harperabner1108
      @harperabner1108 2 роки тому

      The stock market is one of the most potential places to invest your money, investing in stock is often risky which draws attention to the huge gains and losses of investors, if you can manage the risk then you can take advantage of the stock market to secure your financial position and earn money

    • @DiegoMiguel229
      @DiegoMiguel229 2 роки тому

      Exactly man! Brian is the man, the brain and everything. God should bless that man for me

    • @eddie9945
      @eddie9945 2 роки тому

      @lizzy bethel Through Google Mail below👇 👇 👇

    • @eddie9945
      @eddie9945 2 роки тому

      @lizzy bethel TRADEWITHBRIANHARDING

  • @mikedickson7849
    @mikedickson7849 2 роки тому

    I definitely need help with options

  • @user-iy3pl9zl2e
    @user-iy3pl9zl2e 2 роки тому

    Great video thanks making me change my investment strategies trying short iron condors this week !! Will now be

  • @alexanderdylan2473
    @alexanderdylan2473 2 роки тому

    Thank you, I've been watching your channel for couple of weeks ago and it's really make sense and it really help me through

    • @jamesrobert7154
      @jamesrobert7154 2 роки тому

      would gladly appreciate if you can introduce us to a better platform where we can earn profits on a daliy bases......BTC/ ETH/DOG/,

    • @allendonpedro3508
      @allendonpedro3508 2 роки тому

      I'm 50% ADA 50% BTC 5 year hold

    • @litatorres2854
      @litatorres2854 2 роки тому

      Like you said, those are the only two I see holding at this time

    • @johnthomas8601
      @johnthomas8601 2 роки тому

      Thanks you for your update Am long term holding. I love doge coins

    • @oscarharry4030
      @oscarharry4030 2 роки тому

      Thought you'd mention Brazil and the UAE started a bitcoin ETF today.

  • @Abdolreza.Sadreddini
    @Abdolreza.Sadreddini 2 роки тому

    Dear Henry
    Let's assume that we got XYZ at $20 strick and get a $1 premium. now, what is the lowest price possible to NOT get into the "Wash Sale" trap? it's very important to know.

  • @bentley5589
    @bentley5589 2 роки тому +1

    First time watching your video, outstanding! Question closing what's the best way to close on this option.

    • @animallove5918
      @animallove5918 2 роки тому

      below answer is not from Henry it a scam they comment on every post

  • @pws087
    @pws087 2 роки тому +4

    Curious... why you always say that you like to trade weeklies but all of your own trades are a month out?

    • @animallove5918
      @animallove5918 2 роки тому

      below answer is not from Henry it a scam they comment on every post

  • @joshmacias3966
    @joshmacias3966 2 роки тому +1

    Yes 💯 I do this with APPLE only and make $100k a year easy money 💰💰💰

    • @HustleMayn
      @HustleMayn 2 роки тому +1

      Damm how many contracts are you up to in apple?

    • @animallove5918
      @animallove5918 2 роки тому +1

      @@HustleMayn above you answer is not from Henry it a scam they comment on every post

  • @Malachi162
    @Malachi162 2 роки тому +1

    Uncle henry bringing that fire!

  • @zoeamber1703
    @zoeamber1703 2 роки тому +89

    Most times it amazes me greatly the way I moved from an average lifestyle to earning over $63k per month, utter shock is the word. I have understood a lot in the past few years to doubt that opportunities abound in the financial markets, The only thing is to know where to focus.

    • @zoeamber1703
      @zoeamber1703 2 роки тому

      @Dane Ferolin My coin stays right in my trading account, my account just mirrors her trades in real-time.that's the idea behind copy trading.

    • @zoeamber1703
      @zoeamber1703 2 роки тому

      @Deniel Ken her availability is on watz app

    • @zoeamber1703
      @zoeamber1703 2 роки тому

      501

    • @zoeamber1703
      @zoeamber1703 2 роки тому

      488

    • @zoeamber1703
      @zoeamber1703 2 роки тому

      0230

  • @criticalthinking7975
    @criticalthinking7975 2 роки тому +2

    If u got assigned the cash secured put, u WILL still end up holding onto the stock if its price keeps dropping. U also ended up collecting very little premium on selling calls at strike prices BELOW your net cost (strike price - puts premium) price level as price drops.
    Don't mislead your viewers when especially most of them are options newbies.

    • @henrjay
      @henrjay 2 роки тому +1

      so you better choose a stock with not fluctuate too much

    • @criticalthinking7975
      @criticalthinking7975 2 роки тому +2

      @@henrjay easier said than done. Stocks that are stable have very low premiums.

    • @MT-qq1rq
      @MT-qq1rq 2 роки тому +1

      That's why Tesla's premium is so insane high because the stock is so freaking volatile.

    • @Lifted0311
      @Lifted0311 2 роки тому +2

      very true. thats why its still important to do actual ta when placing your wheel. if your ta shows a stock is bout to go down, make sure your wheel strike is set appropriately.

  • @miguelteran-raful2718
    @miguelteran-raful2718 2 роки тому

    can you cover UPST

  • @ellalope376
    @ellalope376 2 роки тому +1

    < The tip that started my proffesional trading career is to make your #1 focus risk management, seriously. There are 1000s of strategies that work but the true difference maker will be cutting your losses short and letting your winning trades run. If you can have these 4 outcomes to your trades, you will be a profitable trader. A big Win, small win, breakeven trade and a small loss. If you can do this I guarentee you will be a profitable trader. I love talking about this in my videos. Good luck traders!

  • @kingogames16
    @kingogames16 2 роки тому +1

    Options confuse me. I’ve watched multiple options videos over the last year and I’ve watched this video 5 times. I still don’t understand options.

  • @fitfinish1502
    @fitfinish1502 2 роки тому

    If stoopid means down 70%. Thank you so much

  • @Fueltravel
    @Fueltravel 2 роки тому

    Thanks brother please use black board explanation in future

  • @keevang4520
    @keevang4520 2 роки тому +1

    I liked the butterfly strategy better than the wheel strategy, well, it's the same as the wheel strategy but lower collateral and higher premiums

    • @mop2pelp
      @mop2pelp 2 роки тому

      how?can you explain your strategy please?

    • @keevang4520
      @keevang4520 2 роки тому +3

      @@mop2pelp the short butterfly needs 2 sell puts at different strikes and 2 buy puts at the same strike. Example:
      Current price of the stock is $35
      $20 sell put. Premium $.04 credit
      $25 buy puts. 2x. Premium $.06 debit
      $30 sell put. Premium $.10 credit
      $.14credit - $.06debit = $.08credit
      I'm too high to explain the buy put lol
      As long as the current price does not fall below your sell put strike $30 then all contracts will expired worthless and you collect premiums. Be sure to click the Do Not Exercise when expired on the buy put.
      Since it has more legs it's also harder to limit closed position. By buying puts with the sell puts gives your lower collateral and higher premiums vs a normal sell put.
      You can compare side to side of a normal sell put strike $30 vs a short butterfly strike $30 and look at the collateraland premiums difference. Short Butterfly wins. 🦋
      Not financial advice

  • @googs9186
    @googs9186 2 роки тому +1

    First time selling a put option last 4/19/22. Sold a NIO 17.5 strike price option expiring 4/29/22. The stock today dropped below 17.5 and I was wondering why I didn't get put the stock. From my understanding, if it goes below the strike price on or before the expiration date, I will have to buy the stock.
    So again, my question is why didn't I get put the stock? Thanks in advance

  • @jessesmith8817
    @jessesmith8817 2 роки тому

    Will tsla hit 2k by June?

    • @animallove5918
      @animallove5918 2 роки тому

      below answer is not from Henry it a scam they comment on every post

  • @ThyKingz
    @ThyKingz 2 роки тому +2

    im just stupid how do i get rich

  • @BuckI2Bdad
    @BuckI2Bdad 2 роки тому

    My #1 questions, how much money do I need to have in my account to trade options

    • @mattrichess1869
      @mattrichess1869 2 роки тому

      believe when day trading, you need 25k. otherwise there is a limit on RobinH

    • @ToothBrush531
      @ToothBrush531 2 роки тому +1

      There’s no required amount in to trade options. You just can’t day trade unless you have at least 25k. But day trading options or stocks is really risky and not nearly as consistent as swing trading, or holding for long periods of time. There are many strategies that Henry teaches that requires a lot less capital. Obviously the lower the amount you’re using to invest, the less returns you will get but there are strategies that he talks about specifically to aggressively grow a small account (which I think he considers 1k-10k).

  • @nataliadominguez4626
    @nataliadominguez4626 2 роки тому +31

    Exactly well said! Talking about stocks, Forex and cryptocurrency trading is the most profitable venture I ever invested in, I reached my goal of $120k monthly trade earnings. Wondering if viewers here are familiar with Rosemary trading strategy..?

    • @motiprasadraju4325
      @motiprasadraju4325 2 роки тому

      Having monitored my portfolio performance which has made a jaw dropping $370k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market.

    • @motiprasadraju4325
      @motiprasadraju4325 2 роки тому

      @wen te Straight fact is that the mindset is to diversify your investment, don't panic when everyone else is and invest consistently.

    • @danieljeronimo940
      @danieljeronimo940 2 роки тому

      @Jeffrey Harmon ✪ Amazing Dude I have to emphasis on this, Do you trade on your own?

    • @danieljeronimo940
      @danieljeronimo940 2 роки тому

      @Jeffrey Harmon ✪ That's impressive. What's really the idea behind copying tradings.

    • @GammingHammingr
      @GammingHammingr 2 роки тому

      my goodness, some of you do trade with her. Wow It’s been a good experience tho. I got my company involved and also got alot of bonuses plus my company making profit from her method.

  • @mrheisenburg3758
    @mrheisenburg3758 2 роки тому

    still not seeing that discord link! please!

    • @animallove5918
      @animallove5918 2 роки тому

      below answer is not from Henry it a scam they comment on every post

  • @lgnaclo
    @lgnaclo 2 роки тому

    Thanks for the information 👍🏽

  • @alexzagar5505
    @alexzagar5505 2 роки тому +1

    you are best :)

  • @lizbeth9254
    @lizbeth9254 2 роки тому

    wowzah he loves to say "Juicy Premiums" lolol there's new intertwined-phrases for everything today, odd & funny. i cant wait say or think of 'jucy premiums" but from Chicago i wont ever say that lololol -but we appreciate you Henry! overall good videos- great content for beginners like myself at 47, hopefully i can be like you when i grow up, it feels good to be Inspired :) Liz- Chicago

  • @lj291261
    @lj291261 2 роки тому +1

    Only works if you have the cash available to pay for those 100 shares you might have to buy if your put sell fails. Only for people with a lot of cash in their accounts or willing to use a lot of margin. Do not like it!!

  • @coliv2
    @coliv2 2 роки тому

    This kind of strategy is bonkers. You accept the downside risk, but get only a small upside. I don't do this kind of strategy, if I like a stock I just buy it outright. However, there is a way of doing this with little risk, which is to sell a put spread on the money (about 50/50 loss to gain ratio). This gives you great profit and little downside.

  • @junecartwright9224
    @junecartwright9224 2 роки тому

    Please do a Nndm video

    • @animallove5918
      @animallove5918 2 роки тому

      below answer is not from Henry it a scam they comment on every post

  • @jqsreefshack3457
    @jqsreefshack3457 2 роки тому +1

    Doesn't work if you sell a put at 30 and the stock drops to 5 dollars after hours. Talk about a kick in the nuts

    • @InvestwithHenry
      @InvestwithHenry  2 роки тому +5

      Sure, if you look for outliers there are examples out there. Let's stick to what's 99% of the time going to happen if you pick correctly.

    • @jqsreefshack3457
      @jqsreefshack3457 2 роки тому

      Yea. Fbrx got me good but 99 percent of the time it's a good strategy

  • @rasal-drool6046
    @rasal-drool6046 2 роки тому

    Oh look. Another invest with Henry wheel strategy video. Ugh

  • @leedykes5560
    @leedykes5560 2 роки тому

    Stop the cheesy faces on the video still shot description, 🤮

  • @ywfmedia5228
    @ywfmedia5228 2 роки тому

    I hate seeing you lie only for few $$

    • @InvestwithHenry
      @InvestwithHenry  2 роки тому +3

      I never lie it's against my morals and I don't do this for the money. I love teaching. So this is a pretty off comment. I'm glad I get these rarely but completely wrong. Look at other UA-camrs. Don't get me mixed with the fake ones.

    • @ywfmedia5228
      @ywfmedia5228 2 роки тому

      @@InvestwithHenry of course you do it for the money you are no saint everyone is doing it for the money but you got the connection to make money while you are directing people hard working people to lose there savings so just don’t do it go help people do something better than getting them addicted to this.

  • @vexsuss
    @vexsuss 2 роки тому

    Hi Henry
    Can you give us some Tips
    What to do if you bought call/put
    And stock price goes against you?

    • @silasstreeter7126
      @silasstreeter7126 2 роки тому

      I got the same question

    • @Thomasz126
      @Thomasz126 2 роки тому

      You must average down! Sold a $10 put, stock drops to $5. Sell another $5 puts bow cost basis is $7.50. Sell CC at $7.50 instead of 10. Averaging down mathematically makes sense. Hopes this helps