You have been orange pilled! Congratulations! I understand about having to keep up appearances as a good percentage of your audience would unsubscribe if you leaned too far into rabbit hole territory. In my list of investors I follow, you are on the more value and grounded side so a full video dedicated to Bitcoin was a surprise. You should team up with Armchair income investor and do a video comparing notes on how BTC fits into your respective portfolios. Guaranteed to receive a ton of views.
Will you be doing short calls against your IBIT LEAPs? If so, what do you do if the calls are threatened? I've been doing PMCCs on a few stocks, but I've only been threatened once and rolled it.
I have not done that trade yet. I may if it pulls back but I would likely just hold and not sell calls against it. Right now just buying some IBIT, selling calls against some, and selling some puts. Also some put ratio spreads.
Great info, Thanks. We all agree BTC is #1. Lets talk about #2; Ethereum is old tech now, all of the new developments are on Solana now, Solana has higher TPS and extremely lower fees. We'll see how it shakes out over the next 6 months. Thanks for the great videos!
at 23:04 , when you are buying deep in the money with delta 89 % ( leap ) , can you sell cover call against it ??? is it the same as POOR MAN cover call ? I have Fidelity account , can I construct the two order ( LEAP and selling calls ) at the same time ? I have never done Poor man cover calls in Fidelity....Thank you
Completely agree about deficit spending being a major problem. And completely disagree about bitcoin being part of any sort of solution. Americans want tax cuts, low interest rates and cheap gas and there are no adults in the room to tell them no.
Yeah blockfi got me too. The whole you are missing out on getting interest got me. All my crypto is self stored now. I did buy FBTC when it came out in a retirement account.
Bro , when you sell calls on these IBIT , do you BUY put option to protect yourself ? and at what DELTA you would buy your PUT option to protect your selling Call option . thx
I have a few long puts but not a lot. If I was to really protect the position, I would probably go OTM far enough to equal 30% or so of the income im generating. I think that would be around BTC = 60K. It would be for damage control.
Love your videos. And love that you said 'do you get to keep it (premium).. Rarely mentioned by other channels! Ques on your option calculator /sheet... Why is the loss displayed as it is... BC if the stocks falls its only a paper loss. So I wonder as newish seller of puts why the apps and sheets show the loss is such a way... Is it to scare pple away? Lol. It's not an actual loss and especially since I only sell puts on the mag 7... So of course the thesis is that they are going to recover in the medium to long run. Perhaps the negative side should a cell that reflects the opportunity cost of that capital being tied up in a temporary underperforming stock.. Again which will recover. I wanted to get your thoughts on how to view or assess /measure the true downside of selling options when its only a paper loss. Thanks!!
Yes. You can think of it as your current position adjusted for the premium collected. As you trade lots of options, it becomes important to track your overall basis or breakeven through multiple trades. Brokerages do not track that for you.
When the stock price drops in the second scenario, it is a false statement to say that you have lost money. You have not lost any money until you sell your stock below your cost. Same for when the stock goes up. You have not made any money until you sell for more than your cost.
It is a spreadsheet I use to share ideas. You can find it in some of my videos such as this one and download it: ua-cam.com/video/aSyylRRDpLE/v-deo.html
The ProShares Bitcoin Strategy ETF (BITO) pays dividends by distributing the net income generated from its investments in Bitcoin futures contracts. BITO does not hold any Bitcoin directly.
I've been selling covered calls on BITO for a while now. About half my holdings get called away near ex-dividend date. But i still collect the +40% dividend on about half the shares. The options and dividend income more than make up for the inherit drag on BITO NAV.
new to options, but why buy calls deep in the money? you do that if you think it will fall in value? instead of buying 600 shares, why not just buy call options out of the money in case it keeps skyrocketing?
I think of deep in the money as a way to try and hit lots of singles and doubles. OTM calls are for the the home run. It can work with both trades. That example was a 90 delta. Think of that like controlling 90 shares out of 100 at a discounted rate. If the ETF moves up 1 point, your position should gain 0.9. If you go with OTM and a delta of 20, a 1 point move would gain you 0.20. It takes longer to get going but if it does, you can do great. You just need more movement.
BTC is supposed to be digital gold but it is the gold rush so it a risk asset right now...high risk high reward. But it isn't going to zero. Why not have 2% of your portfolio in BTC just like putting 2% into gold?
When I heard options began trading, my previously sworn statement about avoiding anything related to crypto was retracted! I’ve started with naked puts, but I like your thinking of covered calls, so I’ll look into that. I would avoid long calls since you stated they’re quite expensive, but that’s just me, as I’m primarily an options seller. Now we need to get IBIT to have 0 DTE options!
I heard this the other day and found it interesting... Many people look at BTC as a Ponzi scheme, so in a sense it is already like an option. That is, in their mind It may go to zero tomorrow or it may go to 500K. If someone with that view wants to take risk with BTC, it would be best to do it by buying options. You can buy ITM, ATM, or OTM calls and spend much less to still achieve great results but ultimately with less capital at risk. The put/call ratio is extremely heavy on the call side at the moment. It makes it good for sellers but the sellers are still holding the majority of the risk.
@@wealthadventures That sure makes sense; should someone have that kind of outlook, buying calls would be the strategy, even if pricey. I don't have that outlook, so I feel there will be value. In any event, I'm keeping my size very manageable and the speculative portion of my portfolio is expected to be volatile (like my DJT trades!). Buckle up!
The ProShares Bitcoin Strategy ETF (BITO) pays dividends by distributing the net income generated from its investments in Bitcoin futures contracts. BITO does not hold any Bitcoin directly.
Always been a skeptic and always been proven wrong. If Bitcoin is here to stay, and maintains its crazy volatility, one strategy that just involves bitcoin returns to its current level in the future , is to buy IBIT in your IRA.. when it takes a ride down 30-40%, then do a ROTH conversion.. when it returns to today’s price .. you have all that gain tax free and saved on taxes. Fibonacci retracement would have you wait for a 23% pullback, if not 38%
Hi Dave, Another great video, thank you. Might I suggest that you start another channel that focuses on options only.....maybe call it Wealth Adventures Option Details or whatever. You obviously know way more about this than many of us out here who are a little more conservative with our portfolios and who still want to listen to your content that the original Wealth Adventures channel is popular for. Keep the existing Wealth Adventure channel and still keep doing the seperate traditional content for that. Just a suggestion. Thanks again!
I am really surprised at you Dave for recommending such a cynical film as the one you mentioned. A first year student in Economics could knock over the simplistic description of inflation given. In a growing economy money supply must grow also. Anyway, what do you think of doge coin ?
Here's my story: I bought Bitcoin back in 2018, one whole Bitcoin, I convinced my wife. She was super skeptical then. I then became skeptical and sold the Bitcoin not knowing the real value and decided to put money in stocks instead. My wife always thinks what I do is gambling, even though I'm getting more than 100% annualized returns. Now, when she puts on the news, she sees how much Bitcoin is worth and uses that against me saying where is our Bitcoin, and I reply with my skepticism. Now, is she the gambler? With that said, I'm excited to get into Bitcoin "unlyings" and collect premium! That feels like investing to me, not gambling.
I did trade in and out at first. Plan now is to just hold and try to take advantage with some options. I tell my wife about it and she acts like she is interested... but she isn't.
That clip is a perfect example of why bitcoin does not work as a currency (today). You could put in an offer in a house in BTC, and by the time it closes you just overpaid by 40%
I’m an investor , not a gambler. Crypto, like gold, is an unproductive asset. It’s only actually used in black market transactions, such as ransomware, child trafficking, illegal drugs, stolen goods, etc. If a productive product like wheat, cars, oil, utilities, dollars, yen, etc vanished, as occurs in war zones, there is massive suffering. The same is not true for non productive assets. Nevertheless trading is growing fast, as is the lottery. No Wall Street CEO accepts pay in crypto and they never will. As Charlie Munger said, trading crypto is like trading turds. Crypto is the next credit default swap (CDO), and, as we saw with CDOs in 2008, it will result in the next collapse and bailout of Wall Street.
The last financial bailout occurred with USD. So we have been pretty effective at not always using USD well. Money and bitcoin are financial tools and we can do good or bad with both.
This is completely false. For many that don't have access to easy banking that you take for granted crypto is in legitimate use. Additionally, amongst other major companies, Home Depot for example accepts bitcoin...it was an easy google search.
There is the other side of this debate to consider as well:
ua-cam.com/video/ORdWE_ffirg/v-deo.html
excellent insights
I wish i found ibit sooner,but i got in and will DCA and add for a long position
You have been orange pilled! Congratulations! I understand about having to keep up appearances as a good percentage of your audience would unsubscribe if you leaned too far into rabbit hole territory. In my list of investors I follow, you are on the more value and grounded side so a full video dedicated to Bitcoin was a surprise. You should team up with Armchair income investor and do a video comparing notes on how BTC fits into your respective portfolios. Guaranteed to receive a ton of views.
I don't think Armchair does much with BTC but I think he did add an ETF recently.
Great info! Thanks!
Glad it was helpful!
The BTC doc was awsome! It's great to break down exactly why BTC was created, and it shows that BTC really is much harder than cash. Thanks
It was interesting and they simply shared it on UA-cam which was generous.
Hi, your analysis was fantastic. Especially on why sell calls vs puts; and leaps instead of mstx
Thanks!
Will you be doing short calls against your IBIT LEAPs? If so, what do you do if the calls are threatened? I've been doing PMCCs on a few stocks, but I've only been threatened once and rolled it.
I have not done that trade yet. I may if it pulls back but I would likely just hold and not sell calls against it. Right now just buying some IBIT, selling calls against some, and selling some puts. Also some put ratio spreads.
Great info, Thanks. We all agree BTC is #1. Lets talk about #2; Ethereum is old tech now, all of the new developments are on Solana now, Solana has higher TPS and extremely lower fees. We'll see how it shakes out over the next 6 months. Thanks for the great videos!
Thanks! Appreciate it. Solana seems to be gaining traction.
at 23:04 , when you are buying deep in the money with delta 89 % ( leap ) , can you sell cover call against it ??? is it the same as POOR MAN cover call ? I have Fidelity account , can I construct the two order ( LEAP and selling calls ) at the same time ? I have never done Poor man cover calls in Fidelity....Thank you
You could do that. However, when BTC or IBIT moves, it moves quickly so may be tricky to manage.
@@wealthadventures thank you bro
What Options trading exchange do you use? The screen shares so a simpler platform than I exchange I use at the moment... Thanks
This was on Fidelity. It does a pretty good job. Also use Etrade.
Completely agree about deficit spending being a major problem. And completely disagree about bitcoin being part of any sort of solution. Americans want tax cuts, low interest rates and cheap gas and there are no adults in the room to tell them no.
Ha! The search for some adults continues... Perhaps bitcoin is our grass roots protest. Time to grow out my hair.
FBTC better catch up if they want that Market Share
Yeah blockfi got me too. The whole you are missing out on getting interest got me. All my crypto is self stored now. I did buy FBTC when it came out in a retirement account.
Sorry to hear that! Must resist the FOMO!
Bro , when you sell calls on these IBIT , do you BUY put option to protect yourself ? and at what DELTA you would buy your PUT option to protect your selling Call option . thx
I have a few long puts but not a lot. If I was to really protect the position, I would probably go OTM far enough to equal 30% or so of the income im generating. I think that would be around BTC = 60K. It would be for damage control.
@@wealthadventures thank you bro
yes i do
Love your videos. And love that you said 'do you get to keep it (premium).. Rarely mentioned by other channels! Ques on your option calculator /sheet... Why is the loss displayed as it is... BC if the stocks falls its only a paper loss. So I wonder as newish seller of puts why the apps and sheets show the loss is such a way... Is it to scare pple away? Lol. It's not an actual loss and especially since I only sell puts on the mag 7... So of course the thesis is that they are going to recover in the medium to long run. Perhaps the negative side should a cell that reflects the opportunity cost of that capital being tied up in a temporary underperforming stock.. Again which will recover. I wanted to get your thoughts on how to view or assess /measure the true downside of selling options when its only a paper loss. Thanks!!
Yes. You can think of it as your current position adjusted for the premium collected. As you trade lots of options, it becomes important to track your overall basis or breakeven through multiple trades. Brokerages do not track that for you.
When the stock price drops in the second scenario, it is a false statement to say that you have lost money. You have not lost any money until you sell your stock below your cost. Same for when the stock goes up. You have not made any money until you sell for more than your cost.
What are you using for that covered call calculator?
It is a spreadsheet I use to share ideas. You can find it in some of my videos such as this one and download it:
ua-cam.com/video/aSyylRRDpLE/v-deo.html
Thank you @@wealthadventures
Any idea why BITO pays dividends
The ProShares Bitcoin Strategy ETF (BITO) pays dividends by distributing the net income generated from its investments in Bitcoin futures contracts.
BITO does not hold any Bitcoin directly.
Not sure but I'll find out. Likely uses futures and just distributes income.
I see your trade group is closed or full? Will it reopen any time soon?! Thanks so much!
We had an issue. Hope to have it back up in the near future.
I've been selling covered calls on BITO for a while now. About half my holdings get called away near ex-dividend date. But i still collect the +40% dividend on about half the shares. The options and dividend income more than make up for the inherit drag on BITO NAV.
I have not looked much at BITO but will be soon.
Ibit or fbtc ?
new to options, but why buy calls deep in the money? you do that if you think it will fall in value? instead of buying 600 shares, why not just buy call options out of the money in case it keeps skyrocketing?
I think of deep in the money as a way to try and hit lots of singles and doubles. OTM calls are for the the home run. It can work with both trades. That example was a 90 delta. Think of that like controlling 90 shares out of 100 at a discounted rate. If the ETF moves up 1 point, your position should gain 0.9. If you go with OTM and a delta of 20, a 1 point move would gain you 0.20. It takes longer to get going but if it does, you can do great. You just need more movement.
BTC is supposed to be digital gold but it is the gold rush so it a risk asset right now...high risk high reward. But it isn't going to zero. Why not have 2% of your portfolio in BTC just like putting 2% into gold?
That is about what I had previous to this past week. Adding a little more.
@Dave do you have a physical gold in your portfolio? Would you trust having a gold or a bitcoin ? Thanks.
I held GLD for a long time. Sold it a few months ago. That is about it on the gold front.
Instead of buying expensive calls I would rather take brokerage leverage for 6-7% per year.
When I heard options began trading, my previously sworn statement about avoiding anything related to crypto was retracted! I’ve started with naked puts, but I like your thinking of covered calls, so I’ll look into that. I would avoid long calls since you stated they’re quite expensive, but that’s just me, as I’m primarily an options seller. Now we need to get IBIT to have 0 DTE options!
I heard this the other day and found it interesting... Many people look at BTC as a Ponzi scheme, so in a sense it is already like an option. That is, in their mind It may go to zero tomorrow or it may go to 500K. If someone with that view wants to take risk with BTC, it would be best to do it by buying options. You can buy ITM, ATM, or OTM calls and spend much less to still achieve great results but ultimately with less capital at risk. The put/call ratio is extremely heavy on the call side at the moment. It makes it good for sellers but the sellers are still holding the majority of the risk.
@@wealthadventures That sure makes sense; should someone have that kind of outlook, buying calls would be the strategy, even if pricey. I don't have that outlook, so I feel there will be value. In any event, I'm keeping my size very manageable and the speculative portion of my portfolio is expected to be volatile (like my DJT trades!). Buckle up!
Have you looked at BITO?
The ProShares Bitcoin Strategy ETF (BITO) pays dividends by distributing the net income generated from its investments in Bitcoin futures contracts.
BITO does not hold any Bitcoin directly.
Just a bit but I should be catching up with NEOS about their new fund soon which uses BITO.
Ride the wave Dave. But, know when to sell it all and get out.
Can you let me know?!!! My timing is sometimes off.
If you going to play with fire might as well go double trouble : Defiance Daily Target 2x Long MSTR ETF (MSTX)
That’s more like quadruple trouble but I’m not hating
I'm fine with the slow and easy path... If this can fit in that category.
Always been a skeptic and always been proven wrong. If Bitcoin is here to stay, and maintains its crazy volatility, one strategy that just involves bitcoin returns to its current level in the future , is to buy IBIT in your IRA.. when it takes a ride down 30-40%, then do a ROTH conversion.. when it returns to today’s price .. you have all that gain tax free and saved on taxes. Fibonacci retracement would have you wait for a 23% pullback, if not 38%
Ha! Love it. Need to think through that but interesting.
Hi Dave, Another great video, thank you. Might I suggest that you start another channel that focuses on options only.....maybe call it Wealth Adventures Option Details or whatever. You obviously know way more about this than many of us out here who are a little more conservative with our portfolios and who still want to listen to your content that the original Wealth Adventures channel is popular for. Keep the existing Wealth Adventure channel and still keep doing the seperate traditional content for that. Just a suggestion. Thanks again!
I do try to organize by playlists but I probably should be more focused. So are you looking for more direct option information or ETF reviews?
@wealthadventures Personally I like your ETF reviews. I am letting the NEOS team do my option trading for me so to speak.
@@Bullseye120 NEOS is on it! I started with options and floated over to ETF reviews. I like both!... And news. And real estate. That is my issue.
I am really surprised at you Dave for recommending such a cynical film as the one you mentioned. A first year student in Economics could knock over the simplistic description of inflation given. In a growing economy money supply must grow also. Anyway, what do you think of doge coin ?
Doggie coin? Bleck.
IBIT will only be 0.12 until Jan 2025
What do you mean .12?
@@Lineside Expense ratio
@ can you break that down? Not sure what that is? I was wanting to buy some long calls for IBIT.
Here's my story: I bought Bitcoin back in 2018, one whole Bitcoin, I convinced my wife. She was super skeptical then. I then became skeptical and sold the Bitcoin not knowing the real value and decided to put money in stocks instead. My wife always thinks what I do is gambling, even though I'm getting more than 100% annualized returns. Now, when she puts on the news, she sees how much Bitcoin is worth and uses that against me saying where is our Bitcoin, and I reply with my skepticism. Now, is she the gambler?
With that said, I'm excited to get into Bitcoin "unlyings" and collect premium! That feels like investing to me, not gambling.
I did trade in and out at first. Plan now is to just hold and try to take advantage with some options. I tell my wife about it and she acts like she is interested... but she isn't.
That clip is a perfect example of why bitcoin does not work as a currency (today). You could put in an offer in a house in BTC, and by the time it closes you just overpaid by 40%
Or got a discount. 😊
you agree to a price in USD but pay using BTC at closing. You would pay out less BTC in your scenario. Net Net the seller gets the same value of USD
I saw this video earlier which seems pretty wild:
ua-cam.com/video/26bOawTzT5U/v-deo.html
I’m an investor , not a gambler. Crypto, like gold, is an unproductive asset. It’s only actually used in black market transactions, such as ransomware, child trafficking, illegal drugs, stolen goods, etc. If a productive product like wheat, cars, oil, utilities, dollars, yen, etc vanished, as occurs in war zones, there is massive suffering. The same is not true for non productive assets. Nevertheless trading is growing fast, as is the lottery. No Wall Street CEO accepts pay in crypto and they never will. As Charlie Munger said, trading crypto is like trading turds. Crypto is the next credit default swap (CDO), and, as we saw with CDOs in 2008, it will result in the next collapse and bailout of Wall Street.
The last financial bailout occurred with USD. So we have been pretty effective at not always using USD well. Money and bitcoin are financial tools and we can do good or bad with both.
This is completely false. For many that don't have access to easy banking that you take for granted crypto is in legitimate use. Additionally, amongst other major companies, Home Depot for example accepts bitcoin...it was an easy google search.
This guy is a fed
The US $ is the most used currency in criminal activity. Do you own/use $s? You’re just salty that you don’t have any Bitcoin. Enjoy staying poor. 😊
You have no idea what you are talking about and do not understand Blockchain technology,