Cash Secured Puts Explained: Options Trading for Beginners

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  • Опубліковано 3 гру 2024

КОМЕНТАРІ • 214

  • @clearvaluetax9382
    @clearvaluetax9382  Рік тому +20

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  • @Dustyschneidr
    @Dustyschneidr 22 дні тому +41

    I Hit 12k today trading. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this.

    • @RyanMaverick8
      @RyanMaverick8 22 дні тому +2

      I'm happy to see Mrs Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing.

    • @AveryBrice8
      @AveryBrice8 22 дні тому +1

      That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.

    • @Shelby.Thompson
      @Shelby.Thompson 22 дні тому +3

      I'm new at this, please how can I reach her?

    • @Joey.vasquez
      @Joey.vasquez 22 дні тому +1

      I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much

    • @Dustyschneidr
      @Dustyschneidr 22 дні тому +4

      S.he communicates on tele gram..

  • @alenbabakhanians5864
    @alenbabakhanians5864 Рік тому +60

    Great explanation! One thing I would add regarding the con is the potential loss of income if SIRI were to, let's say, reach 7, 8, or 9 dollars. Your gain would be limited to only $0.32.

  • @bahrambj
    @bahrambj Рік тому +31

    Great explanation! I would've mention that $450 will be needed in the account and will be locked until the expiration.

    • @frankkoempel7701
      @frankkoempel7701 10 місяців тому +8

      I feel this should have been necessary, some may not have known.

    • @tamaica7770
      @tamaica7770 8 місяців тому

      Good point. But i wonder if you only had $200 in account and the broker allowed you to sell that put as in the example above. When the expiration comes, how are you gonna pay or I don’t get this part.

    • @ggmanatee
      @ggmanatee 8 місяців тому

      @@tamaica7770 They wouldn't allow you to do so, it's cash-secured, so you need that as collateral, effectively.

  • @usamamasood5855
    @usamamasood5855 7 днів тому +1

    One of the best financial literacy creators! Thank you!

  • @scarlotraven6193
    @scarlotraven6193 7 місяців тому +7

    Thank you for explaining this so clearly. I’ve been studying options for 3 years and still haven’t started. I’m waiting until I feel comfortable in my ability.

  • @justincase1919
    @justincase1919 15 днів тому +1

    This guy is the best teacher I've found on UA-cam.
    Still confused though...

  • @edwarddiaz1130
    @edwarddiaz1130 Рік тому +29

    YOU SIR ARE A GENTLEMAN AND A SCHOLAR!!! Awesome info!!

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +2

      Thank you Edward! I appreciate the support and wish you a great day!

  • @cynthiaking4437
    @cynthiaking4437 Рік тому +1

    Brian, what an American treasure. Thanks Brian, if I die poorly it’s not for your lack of knowledge, talent, and effort.

  • @matthewcruze3060
    @matthewcruze3060 11 місяців тому +6

    Great explanation! Can you provide the link to the video on how to shop around for good deals on Cash Secured Puts?

  • @briangammage5351
    @briangammage5351 Рік тому +4

    Thank you so much for unveiling the mystery of the stock market!! It is so intimidating with the fancy words and procedures, but your video makes it so clear!!!! Thank you and God bless your ventures!!!!

  • @allenh7835
    @allenh7835 Рік тому +4

    THANK YOU ! You explain it in a way the average person can comprehend it.

  • @timothyy7
    @timothyy7 Рік тому +7

    im preparing to deploy a cash secured put on an etf, but you should also mention that having the necessary funds is needed ahead of time. so if you're buying SIRI at $4.18 then you will need to have $418 ready to be assigned assuming assignment.

  • @crystaljones3844
    @crystaljones3844 Рік тому +13

    Thank you sir for always sharing such valuable information with us peons

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +10

      Hi Crystal, it's my pleasure and we're not peons! We're all great and just need an opportunity to shine.

  • @theinthanaung1070
    @theinthanaung1070 Місяць тому

    Thanks!

  • @Killmonger23363
    @Killmonger23363 Рік тому +5

    This is what we need more of create a playlist ! Please more on trading education thanks !

  • @da_cryptoguy7744
    @da_cryptoguy7744 Рік тому +3

    please do more videos of investing. You explain everything better than the fake guru out there. Love your contents.

  • @Gwillis7
    @Gwillis7 Рік тому +117

    Brian looks full today, that’s cuz he ate @RJTalksTV lunch yesterday 😂😂

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +30

      Hi Gwillis! It's always great to see you! Thanks for that commenting, if they want to bring, I hope they can take it.

    • @IROCZSPEED
      @IROCZSPEED Рік тому +4

      Waiting for Brian to comment on Reventure Consulting, lol

    • @TwoTwo-e7c
      @TwoTwo-e7c Рік тому +1

      Lmao 🎉😂

    • @katv3116
      @katv3116 Рік тому +1

      Brilliant 😂

    • @dannyfinanzas3064
      @dannyfinanzas3064 Рік тому

      @@clearvaluetax9382well said

  • @danielberitu2489
    @danielberitu2489 Рік тому +1

    you put hard work and effort on your videos to clarify everything .Thank you !

  • @utkbyuca89
    @utkbyuca89 Рік тому +3

    You’re best Brian ! Love your clear explanation .

  • @fabiGBOtown
    @fabiGBOtown Рік тому

    Outstanding, I can't wait to watch your video on theta decay, when to buy to close, etc.. this is your strength, I think I've said it before

  • @rosebloom2518
    @rosebloom2518 Рік тому +5

    Happy Tuesday Brian! Have a fabulous day!💗☀️

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +2

      Happy Tuesday Rose Bloom! I hope you have a fabulous day as well!

  • @psha8178
    @psha8178 Місяць тому +1

    Thanks for the clear & concise explanation. Do these always have to be as cash and not in margin account?

  • @bisimj
    @bisimj Рік тому

    Best put option explaination on UA-cam. Thank you very much

  • @gratefulbrad
    @gratefulbrad 10 місяців тому

    I like your style of presentation, animation with clear voice, excellent subject matter, jah

  • @Slaphappy-_-
    @Slaphappy-_- Рік тому +3

    Thanks Brian for getting back to to what we like!

  • @Trade2Invest-
    @Trade2Invest- Рік тому +1

    Very well PUTS video. Thank you for your hard work.

  • @ThePimpedOutPlatypus
    @ThePimpedOutPlatypus Рік тому +6

    Thank you for the Smooth-Brain explanation. Made it much easier to understand

  • @Chinny_Winny
    @Chinny_Winny Рік тому

    Thx B! Cant wait to learn more on calls and put options. im too unconfident to try it yet.

  • @brogetsrich
    @brogetsrich Рік тому

    Very great analogy in the beginning. Love it.

  • @desiexpat7
    @desiexpat7 9 місяців тому

    Really helpful and well explained. THANKS!!

  • @kevinnoel4647
    @kevinnoel4647 6 місяців тому +5

    Best options explanations serie on UA-cam !

  • @mrlion2022
    @mrlion2022 Рік тому +5

    Brian makes it too easy

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +2

      Thank your for that feedback and the support Mr. Lion!

    • @mrlion2022
      @mrlion2022 Рік тому +1

      @clearvaluetax9382
      You're welcome. I appreciate hard work and honesty.

  • @a1isrising
    @a1isrising Рік тому +2

    Great explanation thanks

  • @christopherfanara2593
    @christopherfanara2593 Рік тому +1

    Thank you for your service and time.

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +1

      It's my pleasure Christopher. Thank you for all the support!

  • @nicolapansini5656
    @nicolapansini5656 Рік тому +3

    Great explanation as always, this video is perfect for whoever is learning how to sell options.
    I use csp and cc to improve my P&L ratio in one of my positions that I am currently in the red.

  • @joseacevedo9117
    @joseacevedo9117 4 місяці тому

    Great explanation, i will definitely be using this strategy to expand my portfolio and income.

  • @rlin656
    @rlin656 Рік тому

    This is exactly what I use! Perfect for this market!

  • @redloh8845
    @redloh8845 Рік тому

    TYFYS Brian! As always, excellent content.

  • @吳家任-y1o
    @吳家任-y1o Рік тому +1

    Another risk is if the stock skyrockets before the expiration date.
    For example, if SIRI goes from $4.89 to $6 before the expiration date, you could've made $1.11 if you had just bought the stock. Instead you only make 32 cents from the CSP.

  • @goforitsystems1890
    @goforitsystems1890 3 місяці тому

    I love you guys. You explain everything so good

  • @beccasmom
    @beccasmom Рік тому +3

    Thank you so much!

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому

      It's my pleasure, thank you for all the support Becca's Mom!

  • @pikaaacz
    @pikaaacz Рік тому

    I thank you for your videos, please publish more, and I wish you a very nice day, take care

  • @Tellinhowitis121
    @Tellinhowitis121 Рік тому

    Good explanation Brian. Look forward to your future videos.

  • @psharp2468
    @psharp2468 Рік тому

    Great video Brian! I’m glad to know that you are a part of team theta!

  • @rockfordfos1
    @rockfordfos1 Рік тому +1

    What brokerage do you recommend for a starter?

  • @linabellegarcia6158
    @linabellegarcia6158 Рік тому +3

    Hi Brian.
    Thanks so much. I want to start investing. I wish you could be my accountant

  • @titaniumsandwedge
    @titaniumsandwedge Рік тому +2

    This video explains cash secured puts very well. But puts can be used in more ways than shown. Example: Some stocks have weekly options. It is more profitable to sell weeklies as the time obligation is much shorter than monthly options. Dividend stocks can be played to harvest the dividend and option premiums. It starts with a short put position that is assigned causing the investor to own the stock. With the stock, a call can be sold against the position to gain more premium. It is vital that the stock be kept through the ex dividend date so the dividend is harvested. The daddy of all plays with puts is to use margin secured puts. As it sounds, an account with margin can use it to secure a put position. The magic of this is that no interest accrues on the margin that secures the put. But a margin secured put can go bad if the price drops forcing the investor to buy the stock.

    • @ashleykim6432
      @ashleykim6432 Рік тому

      How did you learn how to trade options

    • @titaniumsandwedge
      @titaniumsandwedge Рік тому +1

      @@ashleykim6432 Just by trading options. They are confusing for the newbie.

  • @lakshmimathangikuppuswamy5111
    @lakshmimathangikuppuswamy5111 9 місяців тому

    Excellent video, thanks for this one.. pls share how do you look out for good deals on cash secured puts pls

  • @jv-king
    @jv-king 7 місяців тому

    thank you for this awesome content. I learnt so much.

  • @yoanandrial6116
    @yoanandrial6116 6 днів тому

    very nice explanation

  • @HHuynh-rs8gj
    @HHuynh-rs8gj 5 місяців тому

    Thank you Brian, you are the best

  • @jrraven3230
    @jrraven3230 Рік тому +1

    Thanks Brian 😊 😊

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому

      THank you JR Raven for all the support, it's always so great to see you!

  • @melissah3069
    @melissah3069 Рік тому +3

    Hey Brian 👋🏼 could you do a video on money market accounts? From what I understand, that can be an account that keeps your cash liquid and can also have a high yield!!

  • @Minhnguyen-tf8ps
    @Minhnguyen-tf8ps Рік тому

    Thanks, Brian...give a deal so I can try . This is my 1st learning

  • @prashantsoni3170
    @prashantsoni3170 Рік тому

    Thanks buddy, great video as always

  • @TraderChick
    @TraderChick Рік тому

    Thank you been waiting for this one 🙏🏻❤

  • @Pandadadp
    @Pandadadp Рік тому +1

    Thank you

  • @edreygarcia2189
    @edreygarcia2189 Рік тому

    Awesome, we need more of this videos

  • @douglasbrownfield2771
    @douglasbrownfield2771 Рік тому

    Brian cover the UAW contract expiring and what it could mean if they go on strike. Work at a parts plant and I used to work at ford. I’d love to hear your opinion on the contract the workers. The company and anything in between and what it should be!

  • @sithlordbilly4206
    @sithlordbilly4206 Рік тому +1

    Hello, Brian how is the weather in Chicago?

  • @jhansimahasivaraju5682
    @jhansimahasivaraju5682 12 днів тому

    Well explained!!

  • @brendank4927
    @brendank4927 Рік тому

    My favorite strategy

  • @ondrey95
    @ondrey95 Рік тому

    This guy hasn't missed, it's actually insane

  • @SuperKarthick12345
    @SuperKarthick12345 8 місяців тому

    Great explanation..but quick query ..if stock goes down the underlying put contract value will also increase ..how do we manage that loss?

  • @landofgoshenstudios6402
    @landofgoshenstudios6402 Рік тому +2

    This is freaking cool🎉

  • @ongaga9
    @ongaga9 Рік тому +2

    Love this

  • @josh8672
    @josh8672 Місяць тому

    Your security choice in this video caused my phone to develop its own trading strategy

  • @hypothetix1
    @hypothetix1 7 місяців тому

    One thing I don't understand is why you can't set up an automatic sell position on the underlying stock at $4.18. That way if it falls to $1, you would still be net $0 as the sell position negates the losses of the put.

  • @zmoney100
    @zmoney100 Рік тому

    great video

  • @ddude27
    @ddude27 Рік тому

    Does timing also matter when you create a contract and it gets agreed upon? I'm assuming the advantage of buying a stock outright is the freedom of when to buy and sell as opposed to cash secured puts. Unless I have it misunderstood.

  • @mbg9650
    @mbg9650 Рік тому

    With 22 DTE, are you more exposed to Gamma vs taking position at 45 DTE & closing position at 21 DTE?

  • @Maximo21akuma
    @Maximo21akuma Рік тому

    I love this guy. I always feel like I’m gonna die when I watch his videos. Let me get my coffee this one sounds juicy. LOL

  • @riseofkilling7248
    @riseofkilling7248 Рік тому

    do you have any videos about investing into a Roth IRA and how to take out money from it? Thank you!!

  • @vrindakaushik2141
    @vrindakaushik2141 4 місяці тому

    Can you also clarify the premium calculation and effect on purchase as when the price moves in the direction premium increase I mean I wonder about unlimited loss scenario when selling ?

  • @chewie1355
    @chewie1355 Рік тому

    Thanks

  • @heinzyketchupy4175
    @heinzyketchupy4175 Рік тому +2

    So basically sell puts on companies you like? And only ones you like, bc the benefit of owning it or not is good either way?

    • @joseheredia9275
      @joseheredia9275 2 місяці тому

      Also you need to have enough cash to buy $100 shares in cases it goes below strike price

  • @stamatiskourtis9653
    @stamatiskourtis9653 5 місяців тому

    Great gob man!!!

  • @stephenrogers4537
    @stephenrogers4537 Рік тому +1

    Good afternoon, Brian. I hope everything's going well for you today, BROTHER !
    BRIAN THE PODCAST🦁 LION (the Walter Cronkite of podcasts 🏆)

  • @thebrilliancyofreality4408
    @thebrilliancyofreality4408 6 місяців тому

    Does it get sold automatically after the expiration or do we have to sell to close?

  • @LARealEstateChannel
    @LARealEstateChannel 11 місяців тому

    Thank you.

  • @pegazuz1977
    @pegazuz1977 Рік тому

    Awesome explanation - why would anyone take the other side of that bet? Seems unbalanced.

  • @pierce9954
    @pierce9954 19 днів тому +1

    So in my account I need to have $489 of my own money to be set aside for the trade is this correct???

  • @pierce9954
    @pierce9954 19 днів тому

    How do you determine how much cash you need to have set aside in your account is it stock price times 100

  • @clairewyndham1971
    @clairewyndham1971 Рік тому

    Can I do this for Berkshire Hathaway?

  • @ArunKLogan
    @ArunKLogan 3 місяці тому

    I did CSP on NVDA for 5$ for this Friday expiry, but don't see credit added to my buying power. when does the CR get added? Stock is down 10$ and I am down 500$, but I am expecting my account portfolio chart remains the same value because my CR 5$ and loss 5$ are equalized, but I am down 500$ and dont see that CR anywhere.Thoughts pls!

  • @087RR
    @087RR Рік тому

    This man is the 🐐 of tutorials 🫡

  • @TheNPColiseum
    @TheNPColiseum Рік тому

    Great video as always :)

  • @TheJ0Lim
    @TheJ0Lim 10 місяців тому +1

    Is the price based of the closing price or is it within the trading day. IE the stock went to 4.20 but then closed at 4.51. Would that put be exercised??

    • @fishballx8
      @fishballx8 Місяць тому

      same question.can someone explain this please.

  • @brianlb78
    @brianlb78 8 місяців тому

    When u sell the put you're basically shoring it. Do you have to buy the put back at anytime or do u let it expire? I'm guessing u do t have to and if u do you basically cancel the trade and don't have to buy the stock if It falls to or below the price?

  • @kirpaS
    @kirpaS 21 день тому

    Is mean to be sell to open?

  • @michellejackson7293
    @michellejackson7293 Рік тому +1

    This is so hard to get I ready want to learn this

  • @imhiLARRYous
    @imhiLARRYous Рік тому

    I got absolutely destroyed selling puts on AMC before the reverse stock split news. It was $5.26 at the close before the news came out. Currently trading at 70-80c split adjusted 🤦‍♂️ down 80%+ just like that on the assigned shares

  • @zebholt03
    @zebholt03 Рік тому

    so 1 put is 100 shares, and you buy the contract for .32, does that mean you are always expected to lose or gain $32? or does it depend on how many shares are actually bought or sold?

  • @Freesmoketvv
    @Freesmoketvv Рік тому

    Do u have an options course ?

  • @dharam4u2
    @dharam4u2 3 місяці тому +1

    Question: If SIRI goes below $4.50 on 6-August and then rises to $5.00 on 18-August, does the contract gets executed?

    • @Luis-nj8yh
      @Luis-nj8yh 2 місяці тому

      it can get executed if the contract hasn't expired

  • @scorpionking9925
    @scorpionking9925 6 місяців тому

    Is that different from put option

  • @arrey11
    @arrey11 Рік тому

    Wonderful 😊

  • @albrio5749
    @albrio5749 Рік тому +1

    can you do a video on how to do ur own covered call?

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +1

      Yes, I've created that video a little while back.

    • @qdood
      @qdood Рік тому

      ua-cam.com/video/D5Rjx_7XG2U/v-deo.htmlsi=yLEYrKFxPXGtqGM5

  • @luisfranco5396
    @luisfranco5396 2 місяці тому

    Where can l find stocks for cash secured puts?