Careful folks. This works until it doesn't. Once you have a strong correction, you can be assigned in many positions, then your covered calls will be farther from assignment price and you will receive very low or zero premium to recover. Keep in mind that if you sell a call below your assigned price you will write off a loss if exercised. Yes, it can work, but you may have to go months or years to recover a damaged portfolio. for my long term positions (normally high quality stocks), I prefer to sell a put spread (in bullish markets) and cover when my short strike is reached in a bull market. In this case even if it keeps going down, I'm already out of the spread (you can consider holding just the long put but hard to manage properly). If there is a crazy fast correction, the max you will lose is the spread size minus premium, assuming that for some reason, you couldn't close the spread (e.g. a catastrophic event). Yes, you may not make as much, but the peace of mind will be worth.
@@friedbeefjerky Yes. Normally around 10 delta. But if the short strike is reached, I close the entire spread. You can set this up automatically on TOS. This not only protects you in case of a crash, but also prevents a margin increase as price goes down.
Bro, what you’re telling people is gold. No one realized how much of a scam Henry is. He only flashes his one million account and use UA-cam money to boost his size. It’s so unethical, wait until those poor people actually lose money, but it’s too late. This society needs some compliance.
Henry, I've literally spent my entire Christmas break with you. Thanks for all the free and great content. I expect this to prove life-changing. Happy New Year from Birmingham Alabama.
Thank you Henry for your upfront and truthful advise. I have been subscribed to you for awhile and like your content and the transparency that you provide. I do somewhat of a ladder put selling strategy where I'm writing out 6-8 weeks mostly and 4 week or less where there is clear opportunity. When the 6-8 week ones become 4 week or less, I start managing them to expiration or rolling if needed and also writing out my next set of 6-8 week ones for a steady monthly stream of income from low to moderate risk puts.
I only do weekly, and only sometimes 2 weeks. practically never monthlys. There is a higher percentage on weekly than going out all the way a month. this year I made 34.7%. That includes premiums, dividends, and stock appreciation on the calls.
This doesnt make any sense whatsoever, monthly gives you some time to recover from a bad stretch of days that work against you. Using your logic, you should do nothing but 0 DTE options. Why go all the way out to a full week using your logic.
@@johnt697 I trade the wheel. 0 DTE has very little premium left. Everyone has a very different risk tolerance to their risk/ reward ratio. This is mine and Ive done well.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a-lot of wealth transfer in this downtime if you know where to look.
I completely agree; I am 50 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
@@maryHenokNftI'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Which software are you using to track down trhe wheel. I m doing it for 2 years with an excel spread sheet and that takes a long time and effort daily!
Can you please explain the huge drop in your account? I see you are up a lot on the year I am curious what a trade gone bad looks like in the strategy you use. Thank you
A bad trade is… stock selling at $180. You sell a $170 put 5 weeks out. Stock drops way lower than $170 and you are waiting for it to recover. It may take months. Not really a wheel at this point.
Thank you! I am a single mom, I've been thinking about investing going into 2024. I'm starting a business and am about to be financially stable enough to start putting money into the market. My biggest question before I get started is: How do I know if the stock market is too high right now so should I wait for a downturn before investing? Or what type of stocks (ETF, Index Funds, Penny Stocks, High Yield Dividends, etc.) should I buy at different turns in the market?
@sammyphon you're really doing well for yourself, my retirement plans are going down the drain. I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
Exactly what I’m doing again this week. The smartest thing I’ve ever done was having 30% in cash to buy on the way down in 2021. It hurt watching 30-40% discounts drop to 50, but grabbing Google, NVDIA, Apple, and others near the bottom has paid off. I love the bull outlook but I’m not confident to should hold all equities
What do you do in a market correction? S&P has been running for quite a bit now. But what if it pulls back 10%, you get assigned, then the market pulls back another 5% in that month to 2 months? Youre now well below your cost basis, and would be selling CC's at a strike below what you paid for it. So you just have to sit on the stocks you bought until it goes above what you paid for it, which could be a month or even a year?
This is why you only want to do it on stocks you want to own. I like KEY as they pay a nice dividend and are in S&P. Doesn’t have crazy volatility and I’d be happy to own them for a long time. If the market tanks it’s ok I’ll add more. I just got assigned today at $15 becuase I wanted more shares and that price is still well below fair value the premium was 50 per contract.
@@analyticsx3 But you'd be getting zero income (not including dividends) if we were in a sustained down trend. What about selling otm calls and rolling or closing them before exp if it gets close to your strike? You'd be risking the buyer exercising early, but you'd still be getting an income. And you could just start the whole strategy over at that current lower stock price, while having to eat the loss.
if you like the stock and you buy it outright youd be even deeper in the red. the wheel simply lets you make income while owning a red stock if that happens. im doing it on palantir, riot, and sofi
@@disco4535 Your absolute right. what you don’t see is what shares someone on yt got stuck holding for longer than expected or how much they’ve contributed over the year. The wheel strategy definitely works but you can modify it for your own goals and depending on the volume the strike prices can be terrible. I’m stuck holding epm at 7.50 becuase they announced a partnership that would slow their growth the price now sits $5-6 but I’ll collect the 8% dividend. Stay away from wheeling stocks over the date of when they announce earnings. That’s the other big risk. If you can do the indexes and have the cash for it all the power to you but that’s more risk than I’m comfortable with. This guy has over a million in his account. Even wheeling QQQ is only 4% of his account. Hell I’d do the same.
Thank you for the great video. I’m trying to learn option trading. I learned so much from your option trading videos. I own many apple stocks for a long time. I would like to sell covered calls using my apple stocks. Do you think it’s good to do so ?
You packed so much information into this video. I do want to say I think you need to mention that a stocks volume needs to be sufficient to allow moves into and out of options. If there isn't sufficient volume being able to sell/buy the options becomes problematic. Just my two cents. Thank you for all your informative knowledge. Best of luck to you in the New Year.
Thanks Henry. Here is the question. I have 100 shares of ABC stock bought at 95$, so l sold 1 Call expiring in a week with 100$ strike price. The premium was 2$ which is 200$ received. At expiration day the ABC stock's price is 100.5$ the Covered Call I sold is at 4.5$ which is negative 450$. At the expiration day totally I received 250$ (50$ on shares + 200$ on Call I sold), and spent 450$ because this was the Call's close price it traded at. Please confirm that I actually lost on that trade 450-250= 200$. Am I correct? Thanks
This is not true, the value of the option would be .50 cents at time of expiration = strike price - price of stock at expiration. You still would have made money 500$ + 200$ in premium which is more than the 550$ for just selling the stock at 100.5. Your example wouldn’t make much sense for a 2$ premium at a 3% out of the money call for a safe stock unless there was a lot of time to expiration.
The wheel only goes up and long as you don't sell puts on stocks on the warpath to zero or are in lala land like NVDA when it finally comes down to reality.
It's crazy how much money u can make doing this... the more u have the more u can make.. and the more u have u can wheel with lower prices otm on secure put since u have more capital.. safer... imo 3 weeks would be the most.. after 3 weeks the premiums don't go up as much
Hi, I would like to start using this strategy but I'm struggling with choosing a strike price because most of the high quality stocks are very loose to their 52 week highs. Does anyone have any tips?
Hey Henry, thanks for your great content!!! What I’m not understanding correctly how do you calculate the risk of 10% for one position? e.g. You sell a Put on Spy with a strike of 450 that means a max position if it’s assigned of 45.000$ in SPY. I understand that correctly that I need for this example an account of min 450.000$ ??? Thanks for your help and a healthy new year 🎉
In 2022 I lost lot of money selling puts on Tesla as it dropped from 400 to 100. The covered call premium was too low and I got stuck with Tesla stocks. Finally I sold them at a huge loss. How does one handle such situations.
I started doing the wheel after the covid crash I made allot of money but anyone could have made money then. Buy and hold would have worked also I took out a nice chunk of money which was my profits for a year and put it in CEFS Then the stock market was down last year and I spun my wheels and lost some money. This year I made it back and made some more profits which I took out and put it in CEFS. I have built the CEFS up to more dividends than I spend each month and I can reinvest a little for more dividends. Basically the money I am doing the wheel strategy with is close to being the house's money. I paid allot of money in taxes but I made allot of money and had it to pay the tax bill. The wheel strategy works in a bull market. My friend also did the wheel. He was up big after a year and never took any money off the table. Then during the bear market he gave it all back and then some. Finally after the third year he's back to even. I wish I knew when the next correction will be but for now I just have to ride this wave The entire year and a half the market went up after covid some people were predicting gloom and recessions or worse
You do get to colect the dividend because of your ownership rights as a shareholder, those being collateral assignment (pledging stock for credit), absolute assignment (selling your stock), and the residual right to collect dividends.
Curious- If say you sell a 100 put on AAPL and at expiration its at 99. Even if you would like to buy the stock at some point, would you buy back your 100 put for say $1 and resell the $100 for say $2, making you another $1 in premium?
If you sell a put at a 100 strike and it falls to 99, 98, 95, $1… you will be assigned the 100 shares of Apple at 100/share because that’s what you agreed upon the contract. If the share price doesn’t hit 100.00, say 100.50, 101.00 then you have your collateral released and you keep all of your premium.
Hello Henry! I would like to know some suggestions of stocks below $40 that are still good companies, in order to make the wheel. Greetings from Brazil!
Henry, you have changed the entire course of my life! I learned how to sell options through your teachings, and I've gotten pretty good at it over the last couple of years!! Thank you!!
What is your approach when you sell a put - get assigned and the price drops ~ 10% lower? I fear selling a call would ensure an overall loss if the stock gets called away with a quick rebound. I realize selecting good stocks is important, but this can happen with any stock e.g TSLA - has significant swings. Perhaps wait for a bit of a recovery before selling calls? Thank you.
@@thedalehayes3 aah yes - thank you. I have often thought about selling covered calls on my “forever “ stocks - I think a few minutes a month could safely net me ~ $2000! Have a profitable 2024! Cheers
If you roll the short put further down and at a further date before assignment for a credit you can gain additional protection without giving up the premium. It just may take longer to collect.
Just sell another put for the same stock at the price it got called away for. It's like a rolling volatility play for both sides plus div with something you want to own long term. Div stocks are great here e.g. KR. Just ensure that you time the exp date of the call to be After the div week and or the put before thediv week.
It's a really fun strategy, but you sell away the alpha returns for the concurrent income. Sometimes the strategy outperforms when the market goes sideways or even down, but other times the market kicks your ass, and that's by just owning an etf. Not spending 100's of hours of research about what stocks to pick and manage your options.
LOL, there's no days off when you have a ranch, I'll be spending the holiday feeding, cleaning and working with horses. Hard work, but rewarding. As for the wheel, I'm basically running it on AMC and AGNC. AMC isn't going so well at the moment, but I'm not really taking losses either. AGNC is going well, plus they pay dividends, so I go out about 3 months at a time with them. Anyhow, have a great new year!
TO put this into context, he actively traded and barely beat spy. This is a good strategy, but not as bulletproof as the video acts. If something is this easy/bulletproof then everyone would do it. Keep that in mind.
Everyone would not do it because it’s options and many people don’t understand what the heck options are. Second thing most people who DO understand options don’t want $15 -$20 K tied up for a month. Not sexy and takes lots of capital. Not attractive to 99% of people in general and a small subset of investors/ traders.
Can someone please help me understand this, Is there a way to turn off Margin investing on webull for Level 3 I just want to use my own money. I don't want to borrow money. But I still need a margin account for level 3 can someone please clarify this?
Yes, you need to switch to a cash account level 2 options trading. You have to have 25k in your account to do margin on webull with unlimited day trades.
Just started this strategy thinking of rolling some of my Bitcoin gains into this strategy in 2025 for retirement, currently just testing, selling puts on USB.
@@thedalehayes3 it’s hard for me to get any of the big UA-camrs to want to do that bc they know there are levels to the Transparency game. They might not be as comfortable as I am divulging all of the results and letting them speak for themselves.
Don't you have to evaluate the "wash sale" rule with so many puts and calls, which is similar to buys (puts) and sells (calls) ? Wouldn't that complicate this a lot with all those multiple buys and sells at different strike prices? At what point does it become a problem that could violate that "wash sale" rule and what effect does that violation have on continued trading at a brokerage (I have Schwab) ?
@@ticktock2383 however, if you sell a cash secured Put & it gets assigned, you just bought that stock. Then, if you sell a covered call on that stock and it gets called away (sold), wouldn't that register as a buy and sell of a stock within a short amount of time (30-60 days) where that "wash sale" rule could come into play if I keep doing this on the same stock (i.e. sell another Put on that stock that then gets assigned again to me) ?
I wouldnt worry much about the wash sales, the brokers take care of this for you. A wash sale is not permanent, it is deferred until at some point you have sold a position and waited 30 days. So many people think you can NEVER take that loss which is false. It's only deferred.
With the wheel strategy you will NEVER make consistent gains. This is just BS !!! 26% this year ??? What a joke !! BABA and selling puts ? Study the chart from the last 2 years !!!
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@@theodoreresultan3312 good luck with that one. Fed has never accomplished a “soft “ landing in history. But don’t worry it will happen this time after that fastest rate hikes in history
So ur doing tons of work, using lots of margin , paying lots in taxes, and just pacing the market ……………buying and holding spy with a tiny bit of margin would of been way smarter
@@thedalehayes3 nobody cares what your doing. My comment was to Henry. And he absolutely is not beating the pants off the market. He is up 26% ytd using tons of margin. Now he has to pay a large portion of that to taxes since that puts him in highest tax bracket. He could of done nothing and just held SPY and made 24% and paid ZERO taxes!!! Clown. So he basically does all this work to not beat the market
@@shill1103 i dont know if you are joking but you really need an education into what Henry does. you can easily do this with zero margin and get the same returns. I do the same strategies as him and im up double over SPY. You need to understand how this works before telling millionaires they are clowns, LOL!
Careful folks. This works until it doesn't. Once you have a strong correction, you can be assigned in many positions, then your covered calls will be farther from assignment price and you will receive very low or zero premium to recover. Keep in mind that if you sell a call below your assigned price you will write off a loss if exercised. Yes, it can work, but you may have to go months or years to recover a damaged portfolio. for my long term positions (normally high quality stocks), I prefer to sell a put spread (in bullish markets) and cover when my short strike is reached in a bull market. In this case even if it keeps going down, I'm already out of the spread (you can consider holding just the long put but hard to manage properly). If there is a crazy fast correction, the max you will lose is the spread size minus premium, assuming that for some reason, you couldn't close the spread (e.g. a catastrophic event). Yes, you may not make as much, but the peace of mind will be worth.
By this do you mean to buy a put option slightly further out as a hedge?
@@friedbeefjerky Exactly. That's called a spread. Feel free to follow my lives every morning. I run a portfolio of 50+ options spread positions. 👍
@@friedbeefjerky Yes. Normally around 10 delta. But if the short strike is reached, I close the entire spread. You can set this up automatically on TOS. This not only protects you in case of a crash, but also prevents a margin increase as price goes down.
Bro, what you’re telling people is gold. No one realized how much of a scam Henry is. He only flashes his one million account and use UA-cam money to boost his size. It’s so unethical, wait until those poor people actually lose money, but it’s too late. This society needs some compliance.
How do u sell a put speed…
I have been running the wheel strategy in an IRA for years. My worst year was +35%, which is like SPYs best year.
The circle of life has no beginning and no end. Thanks for showing how to do the wheel strategy!
Henry, I've literally spent my entire Christmas break with you. Thanks for all the free and great content. I expect this to prove life-changing. Happy New Year from Birmingham Alabama.
Thank you Henry for your upfront and truthful advise. I have been subscribed to you for awhile and like your content and the transparency that you provide. I do somewhat of a ladder put selling strategy where I'm writing out 6-8 weeks mostly and 4 week or less where there is clear opportunity. When the 6-8 week ones become 4 week or less, I start managing them to expiration or rolling if needed and also writing out my next set of 6-8 week ones for a steady monthly stream of income from low to moderate risk puts.
I only do weekly, and only sometimes 2 weeks. practically never monthlys. There is a higher percentage on weekly than going out all the way a month. this year I made 34.7%. That includes premiums, dividends, and stock appreciation on the calls.
This doesnt make any sense whatsoever, monthly gives you some time to recover from a bad stretch of days that work against you. Using your logic, you should do nothing but 0 DTE options. Why go all the way out to a full week using your logic.
@@johnt697 I trade the wheel. 0 DTE has very little premium left. Everyone has a very different risk tolerance to their risk/ reward ratio. This is mine and Ive done well.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a-lot of wealth transfer in this downtime if you know where to look.
I completely agree; I am 50 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
@@maryHenokNftI'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
@@maryHenokNft Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems
The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Which software are you using to track down trhe wheel. I m doing it for 2 years with an excel spread sheet and that takes a long time and effort daily!
Can you please explain the huge drop in your account? I see you are up a lot on the year
I am curious what a trade gone bad looks like in the strategy you use. Thank you
The market dropped in September/october
A bad trade is… stock selling at $180. You sell a $170 put 5 weeks out. Stock drops way lower than $170 and you are waiting for it to recover. It may take months. Not really a wheel at this point.
Thank you! I am a single mom, I've been thinking about investing going into 2024. I'm starting a business and am about to be financially stable enough to start putting money into the market. My biggest question before I get started is: How do I know if the stock market is too high right now so should I wait for a downturn before investing? Or what type of stocks (ETF, Index Funds, Penny Stocks, High Yield Dividends, etc.) should I buy at different turns in the market?
@sammyphon you're really doing well for yourself, my retirement plans are going down the drain. I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
Exactly what I’m doing again this week. The smartest thing I’ve ever done was having 30% in cash to buy on the way down in 2021. It hurt watching 30-40% discounts drop to 50, but grabbing Google, NVDIA, Apple, and others near the bottom has paid off. I love the bull outlook but I’m not confident to should hold all equities
Thanks for sharing. searched for her full name and her website popped up
Single Mom? Gross
Thanks a lot🙏 i really appreciate. Was amazing speaking with Martha on the phone
What do you do in a market correction? S&P has been running for quite a bit now. But what if it pulls back 10%, you get assigned, then the market pulls back another 5% in that month to 2 months? Youre now well below your cost basis, and would be selling CC's at a strike below what you paid for it. So you just have to sit on the stocks you bought until it goes above what you paid for it, which could be a month or even a year?
Yup basically or sell cc below your cost basis but your technical analysis better be in point or you can just roll if it gets to close for comfort
This is why you only want to do it on stocks you want to own. I like KEY as they pay a nice dividend and are in S&P. Doesn’t have crazy volatility and I’d be happy to own them for a long time. If the market tanks it’s ok I’ll add more. I just got assigned today at $15 becuase I wanted more shares and that price is still well below fair value the premium was 50 per contract.
@@analyticsx3 But you'd be getting zero income (not including dividends) if we were in a sustained down trend. What about selling otm calls and rolling or closing them before exp if it gets close to your strike? You'd be risking the buyer exercising early, but you'd still be getting an income. And you could just start the whole strategy over at that current lower stock price, while having to eat the loss.
if you like the stock and you buy it outright youd be even deeper in the red. the wheel simply lets you make income while owning a red stock if that happens. im doing it on palantir, riot, and sofi
@@disco4535 Your absolute right. what you don’t see is what shares someone on yt got stuck holding for longer than expected or how much they’ve contributed over the year. The wheel strategy definitely works but you can modify it for your own goals and depending on the volume the strike prices can be terrible. I’m stuck holding epm at 7.50 becuase they announced a partnership that would slow their growth the price now sits $5-6 but I’ll collect the 8% dividend. Stay away from wheeling stocks over the date of when they announce earnings. That’s the other big risk. If you can do the indexes and have the cash for it all the power to you but that’s more risk than I’m comfortable with. This guy has over a million in his account. Even wheeling QQQ is only 4% of his account. Hell I’d do the same.
Thank you for the great video. I’m trying to learn option trading. I learned so much from your option trading videos. I own many apple stocks for a long time. I would like to sell covered calls using my apple stocks. Do you think it’s good to do so ?
You packed so much information into this video. I do want to say I think you need to mention that a stocks volume needs to be sufficient to allow moves into and out of options. If there isn't sufficient volume being able to sell/buy the options becomes problematic. Just my two cents. Thank you for all your informative knowledge. Best of luck to you in the New Year.
Yeah but most of us ain’t buyers of hundreds of contracts
Thanks Henry. Here is the question. I have 100 shares of ABC stock bought at 95$, so l sold 1 Call expiring in a week with 100$ strike price. The premium was 2$ which is 200$ received. At expiration day the ABC stock's price is 100.5$ the Covered Call I sold is at 4.5$ which is negative 450$. At the expiration day totally I received 250$ (50$ on shares + 200$ on Call I sold), and spent 450$ because this was the Call's close price it traded at. Please confirm that I actually lost on that trade 450-250= 200$. Am I correct? Thanks
This is not true, the value of the option would be .50 cents at time of expiration = strike price - price of stock at expiration. You still would have made money 500$ + 200$ in premium which is more than the 550$ for just selling the stock at 100.5. Your example wouldn’t make much sense for a 2$ premium at a 3% out of the money call for a safe stock unless there was a lot of time to expiration.
The wheel only goes up and long as you don't sell puts on stocks on the warpath to zero or are in lala land like NVDA when it finally comes down to reality.
It's crazy how much money u can make doing this... the more u have the more u can make.. and the more u have u can wheel with lower prices otm on secure put since u have more capital.. safer... imo 3 weeks would be the most.. after 3 weeks the premiums don't go up as much
Henry can you please make detail video on AMC .Thanks .
@ 14:50 you discuss 5 possible scenarios. I don't see a significant difference between scenario 2 and scenario 5 as described. Am I missing something?
yea probably that this dude dont know what hes talking about
Hi Henry, how are where do you see that if you wait a couple of more days you’re gonna make so much more
I been running the Wheel on TNA .
Hi, I would like to start using this strategy but I'm struggling with choosing a strike price because most of the high quality stocks are very loose to their 52 week highs. Does anyone have any tips?
Hey Henry, thanks for your great content!!! What I’m not understanding correctly how do you calculate the risk of 10% for one position? e.g. You sell a Put on Spy with a strike of 450 that means a max position if it’s assigned of 45.000$ in SPY. I understand that correctly that I need for this example an account of min 450.000$ ???
Thanks for your help and a healthy new year 🎉
This is when you use the credit spread to get away from that 45,000 collateral.
Why you have a funnel set up when trying to get to your discord. Is that for real or an error? Are you charging for the access to discord?
In 2022 I lost lot of money selling puts on Tesla as it dropped from 400 to 100. The covered call premium was too low and I got stuck with Tesla stocks. Finally I sold them at a huge loss. How does one handle such situations.
you should of kept selling calls until it came back, But tbh the wheel strategy is way better on indexes
I started doing the wheel after the covid crash
I made allot of money but anyone could have made money then.
Buy and hold would have worked also
I took out a nice chunk of money which was my profits for a year and put it in CEFS
Then the stock market was down last year and I spun my wheels and lost some
money. This year I made it back and made some more profits which I took out and put it in CEFS.
I have built the CEFS up to more dividends than I spend each month and I can reinvest a little
for more dividends. Basically the money I am doing the wheel strategy with is close to being
the house's money. I paid allot of money in taxes but I made allot of money and had it to pay the
tax bill. The wheel strategy works in a bull market. My friend also did the wheel. He was up big after a
year and never took any money off the table. Then during the bear market he gave it all back and
then some. Finally after the third year he's back to even. I wish I knew when the next correction will be
but for now I just have to ride this wave
The entire year and a half the market went up after covid some people were predicting gloom and recessions or worse
When doing the wheel strategy, does that affect dividends? I.e, if the stock is locked up in collateral, do you still get your dividend?
You do get to colect the dividend because of your ownership rights as a shareholder, those being collateral assignment (pledging stock for credit), absolute assignment (selling your stock), and the residual right to collect dividends.
The discord link is not available
How do you get into your discord group? Looking for more information and guidance on moving forward with investing
I love wheeling and my goal is to get enough capital to consistently wheel, how long did it take to get your portfolio to where it’s at?
He's mentioned in other videos. I believe it's about 3 years, and he's deposited about a million in those three years.
Happy New Year 2024 uncle Henry!! ❤❤
Thank you
I’m trading the wheel o NIO; one of your favs back in the day!
Wouldn't taxes kill you if doing this in a taxable account?
That is 1% higher than buying T-Bills & chill. If you buy a T-Bill ladder you’ll make more because of compounding. What’s your sharpe ratio?
How are your puts doing this week?
Is this 100% success strategy still working this week for you.
Your account amount can make at least 100k/month in premium. Focus 3-5 stocks/etfs with big premiums and dividends payout.
Curious- If say you sell a 100 put on AAPL and at expiration its at 99. Even if you would like to buy the stock at some point, would you buy back your 100 put for say $1 and resell the $100 for say $2, making you another $1 in premium?
If you sell a put at a 100 strike and it falls to 99, 98, 95, $1… you will be assigned the 100 shares of Apple at 100/share because that’s what you agreed upon the contract. If the share price doesn’t hit 100.00, say 100.50, 101.00 then you have your collateral released and you keep all of your premium.
Hello Henry! I would like to know some suggestions of stocks below $40 that are still good companies, in order to make the wheel. Greetings from Brazil!
dont do this strategy he dont know what hes talking about
I am excited to learn from you the options
Good morning sir!
Henry, you have changed the entire course of my life! I learned how to sell options through your teachings, and I've gotten pretty good at it over the last couple of years!! Thank you!!
Thanks!
What’s the taxes like when it comes to doing options?
Short term capital gains tax. ~32%
What is your approach when you sell a put - get assigned and the price drops ~ 10% lower? I fear selling a call would ensure an overall loss if the stock gets called away with a quick rebound. I realize selecting good stocks is important, but this can happen with any stock e.g TSLA - has significant swings. Perhaps wait for a bit of a recovery before selling calls?
Thank you.
thats when rolling an option saves you. I recently rolled covered calls on RIOT, collected nice premium and increased my strike price by 10 dollars
@@thedalehayes3 aah yes - thank you. I have often thought about selling covered calls on my “forever “ stocks - I think a few minutes a month could safely net me ~ $2000! Have a profitable 2024! Cheers
defintely! i look at my stocks like real estate, they need to bring some income in the door! cheers
@@ronocnayr
If you roll the short put further down and at a further date before assignment for a credit you can gain additional protection without giving up the premium. It just may take longer to collect.
Just sell another put for the same stock at the price it got called away for. It's like a rolling volatility play for both sides plus div with something you want to own long term. Div stocks are great here e.g. KR. Just ensure that you time the exp date of the call to be After the div week and or the put before thediv week.
I'm going back to boring covered calls. I made 1-2 percent consistently
Cash-covered puts are the best way to acquire stocks.
It's a really fun strategy, but you sell away the alpha returns for the concurrent income. Sometimes the strategy outperforms when the market goes sideways or even down, but other times the market kicks your ass, and that's by just owning an etf. Not spending 100's of hours of research about what stocks to pick and manage your options.
You are awesome. Thx for you information.
hey i gotta bridge to sell ya
another excellent video.
LOL, there's no days off when you have a ranch, I'll be spending the holiday feeding, cleaning and working with horses. Hard work, but rewarding. As for the wheel, I'm basically running it on AMC and AGNC. AMC isn't going so well at the moment, but I'm not really taking losses either. AGNC is going well, plus they pay dividends, so I go out about 3 months at a time with them. Anyhow, have a great new year!
The 1230000 video on the same topic. Breaking news: it doesn't work as him or the majority of the people explain it.
TO put this into context, he actively traded and barely beat spy. This is a good strategy, but not as bulletproof as the video acts. If something is this easy/bulletproof then everyone would do it. Keep that in mind.
Everyone would not do it because it’s options and many people don’t understand what the heck options are. Second thing most people who DO understand options don’t want $15 -$20 K tied up for a month. Not sexy and takes lots of capital. Not attractive to 99% of people in general and a small subset of investors/ traders.
Can someone please help me understand this, Is there a way to turn off Margin investing on webull for Level 3 I just want to use my own money. I don't want to borrow money. But I still need a margin account for level 3 can someone please clarify this?
Yes, you need to switch to a cash account level 2 options trading. You have to have 25k in your account to do margin on webull with unlimited day trades.
They will only allow level 2 with a cash account, level 3-5 can only be a margin account per webull.
You don’t have to use the margin right?
@@HawaiianSkies No.
Thank you
Yo, thanks Unc Hen. I got you one day.
What’s your discord? How do I reach you?
TGT 125 sell call? in 3 weeks? hum...
I’m running the wheel on Rocket lab
There's also the option of rolling the position if something fundamentally changes with the stock or market conditions.
Just started this strategy thinking of rolling some of my Bitcoin gains into this strategy in 2025 for retirement, currently just testing, selling puts on USB.
Good stuff, bud. We should do wheel strategy episode together sometime since we have the largest Profitable accounts on UA-cam.
ive been wanting you guys to collab!!
@@thedalehayes3 it’s hard for me to get any of the big UA-camrs to want to do that bc they know there are levels to the Transparency game. They might not be as comfortable as I am divulging all of the results and letting them speak for themselves.
All the way to the bank hahahaha😂😂😂
COIN Wheel 100%
Don't you have to evaluate the "wash sale" rule with so many puts and calls, which is similar to buys (puts) and sells (calls) ? Wouldn't that complicate this a lot with all those multiple buys and sells at different strike prices? At what point does it become a problem that could violate that "wash sale" rule and what effect does that violation have on continued trading at a brokerage (I have Schwab) ?
If you are buying options and not the actual stocks, so the wash rule would not apply
@@ticktock2383 however, if you sell a cash secured Put & it gets assigned, you just bought that stock. Then, if you sell a covered call on that stock and it gets called away (sold), wouldn't that register as a buy and sell of a stock within a short amount of time (30-60 days) where that "wash sale" rule could come into play if I keep doing this on the same stock (i.e. sell another Put on that stock that then gets assigned again to me) ?
I wouldnt worry much about the wash sales, the brokers take care of this for you. A wash sale is not permanent, it is deferred until at some point you have sold a position and waited 30 days. So many people think you can NEVER take that loss which is false. It's only deferred.
@@johnt697 Thanks, I didn't know this. Basically, I just didn't want to get unexpectedly "cut off" from trading.
Finally understand what the wheel strategy is lol
26% is literally market returns this year, nothing to brag about 😂
it is when you consider the average is 8% this is a good strat i’ve been using for the past 8 years it’s def good for cashflow
Hey Henry, what platform do you use to read up on stocks/news? Thank you and wishing you a happy new year!
TBH probably should have just held the PLTR shares at $15 for the long haul
lol wait, did you just say you can wheel a cash settled product? interesting.
You just deposit money from
Selling ur UA-cam channels into ur trading account for people to think your investments went up 😂
so great example with collecting $70 on a 6 week option and title stating guide to 10k monthly. Be real Pro !
VOO YTD 26.66%
Weren’t you at $2 million? Maybe withdrew for travel…
Your strategy don’t work lol
Wheel Strat definitely works
What happened to your account Henry? You had 2.3M not long ago
My toxic trait is thinking I can do this too
😂
Learn something again
I watched the entire video because of the title. Not once did I hear $10,000 per month. I consider this clickbait, hmm?
Hopefully he doesnt have half his account in apple still lmao
Man if any one make $10000 per month I don’t think they have time to make UA-cam video.
so much talking yet nothing was explained. wtf is this?
and to think my portfolio is only .01% the value of yours oof
With the wheel strategy you will NEVER make consistent gains. This is just BS !!! 26% this year ??? What a joke !! BABA and selling puts ? Study the chart from the last 2 years !!!
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At this point just get out because market is going to crash so bad
Same thing they said last year
@@bsaver5942 well “they” are all predicting big years for stocks in 2024. So what does that tell you?
Soft landing apparently. Pretty bullish for 2024
@@theodoreresultan3312 good luck with that one. Fed has never accomplished a “soft “ landing in history. But don’t worry it will happen this time after that fastest rate hikes in history
@@shill1103 yeah good luck to you too.
so stupid, win small lose big
So ur doing tons of work, using lots of margin , paying lots in taxes, and just pacing the market ……………buying and holding spy with a tiny bit of margin would of been way smarter
he is beating the pants off the market, lol im up double what SPY is every month doing this and i have the proof just like henry does.
@@thedalehayes3 nobody cares what your doing. My comment was to Henry. And he absolutely is not beating the pants off the market. He is up 26% ytd using tons of margin. Now he has to pay a large portion of that to taxes since that puts him in highest tax bracket. He could of done nothing and just held SPY and made 24% and paid ZERO taxes!!! Clown. So he basically does all this work to not beat the market
@@shill1103 i dont know if you are joking but you really need an education into what Henry does. you can easily do this with zero margin and get the same returns. I do the same strategies as him and im up double over SPY. You need to understand how this works before telling millionaires they are clowns, LOL!
@thedalehayes3 I do it in Roth so no taxes
@@bsaver5942can’t use margin in a Roth tho right…
hi again how to join your discord
XOM, NEM, MOS, HSY, EXAI
... 🎡