Passive Income by Selling Options (Easiest Way To Profit)
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- Опубліковано 22 сер 2024
- How I generate passive income and make $5,000 per week selling options.
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Welcome back to Pandrea finance, my name is Alex Pandrea and today I am going to show you my strategy for selling options for passive income - how I enter trades, which strike prices I choose, and more importantly how I close out my trades to continuously collect income on a weekly or monthly basis. Now at the end of the video I am going to share with you the exact step-by-step game plan that I follow whenever I sell options.
When you buy options, you PAY a premium for the option. When you sell options you COLLECT a premium. The money goes from the buyer of the option to the seller of the option. Since both the buyer and seller are betting on the same option only 1 can win the trade - as in - the option can either expire IN the money or OUT of the money. The buyer is hoping the option expires IN the money. The seller is betting that the option will expire OUT of the money. This is in essence the ultimate goal of buying and selling options - and you make profit as that goal becomes a reality in the markets. Here is the interesting part (all info in video)
Moving on to the second part of this strategy - the different ways that you can make money selling options. Selling options can be broken up into 2 categories - selling puts and selling calls. Here is a chart explaining each.
SELLING PUTS
- Selling puts gives the seller the obligation to purchase stock at a given strike price if that option expires in-the-money and the option is exercised.
- If we want to sell options for income we do NOT want our stock price to drop below our strike price. If that happens we may be forced to buy 100 shares the company for every 1 option contract we sold.
- We MUST have collateral in the form of CASH to cover our position in case we are forced to buy the stock.
- If the stock price does NOT drop below our strike price then we get to collect the entire premium.
SELLING CALLS
- Selling calls gives the seller the obligation to sell stock at a given strike price if that option expires in-the-money and the option is exercised
- If we want to sell calls for income we do NOT want our stock price to exceed our strike price. If that happens we may be forced to sell 100 shares of the company for every 1 option contract we sold.
- To cover our position we MUST have collateral in the form of shares. 100 shares for each option contract.
- If the stock price does NOT exceed the strike price then we get to keep the entire premium.
So to summarize the process of selling calls and puts - the first thing you do is to make sure you have the collateral necessary to start selling options. Ok so you have the collateral - then you pick an option you want to sell and you sell it. Once you sell the option you collect the premium and that money is then put into your account right away. That money is now yours to do what you want with but keep in mind - we’ll need to CLOSE our position by buying back the contract at some point. In the best case scenario the option will expire worthless and you won’t need to buy it back BUT in a lot of cases you might have the option be worth pennies but not quite zero and you don’t want to wait until expiration so you’ll decide to buy back the option at a lower price than what you sold it for and keep the difference in profit.
Its important to understand that this is a percentage game and the money that you’ll make is going to be in percentage terms relative to how much collateral you have - so we always look for a return on collateral to determine if a trade is good or not. Typically I look to make between 2 and 3% per month on the money I use for selling puts and calls - and through my experience it usually averages out to 2% per month return overall which is a great return.
Now here comes the most important part of selling options - closing the position and buying back the option. Now as you know our ideal scenario is to have the option expire worthless at expiration - this way you collect 100% of the premium - but is that really the ideal scencario? Well let’s look at a scenario - you sell an option expiring in 1 month and you collect the full premium. You want to hold on to that premium and not have to give it back - but next week lets say the option loses 50% of its value. Well in that case what I would do is to buy back that option and only keep 50% of the value of the option and then open up a new position rather than having to wait another 3 weeks for the other 50% of that premium. (Full strategy in video)
WOO! Got this video out despite my nasty cold all weekend. Hope you enjoy it! ALSOO…beware of scammers in the comments!! I DO NOT have whatsapp or any of that.
hey pan thanks for the great video. are you going to explain the strategies ( iron condor....) ?
looks like you didn't add the videos you thought you did.
Good info. and, thanks for letting me know about the WhatsApp number. Kindly think of putting a video to identifying the undervalued stocks / strategies for better profits.
This channel is so underrated. Glad I stumbled upon through it on someone else page. Anyway; watched the Buy Call video over the weekend. And went for GOEV Strike Nov 12 and WKHS Strike Jan. The Delta, volume, interest was within range of what Pandrea said. During a break, I checked my RH account, and was in disbelief of how much funds accumulated and sold each contract within an hour of Market opening. So this works. Thanks for posting!
Thanks Alex! When will you cut lost or close a sold call contract which unfortunately turn in the money before expiration
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@ChristopherAnthony-9 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@ElijahReuben- My advisor is VICTORIA CARMEN SANTAELLA;
You can look her up online
@@ChristopherAnthony-9 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Considering how volatile the stock market is right now, I think investors should focus on cheap stocks. Of my $270k portfolio, 35% consists of formerly well-regarded stocks that are currently experiencing a sharp decrease. I have no idea how to escape this awful circumstance.
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
So how exactly can we guard against the coming financial reset for 2024? Like what are really the best strategies to make our portfolio recession proof against the incoming financial reset? I'm very worried about my $110k stock portfolio.
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
I agree, having the right plan is priceless. My portfolio is well-suited for any market and recently doubled since early last year. My CFP and I are aiming for a seven-figure goal, which might take another year to achieve.
Great gains! Can you share your CFP details? I'm gaining more cash flow from my job and want to invest in stocks and alternative assets to build wealth.
'Amber Dawn Brummit' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I don’t know how, but you’ve managed to package an unbiased analysis that is more entertaining than the sensationalized segment of economic and financial news. Thank you for your efforts to be the signal and not the noise. I understand that the economy is currently in a downturn and that we must wait for the stock market to recover in order to break even and make profit..
As hard as it may sound, you can plan for recession. If you’re working, find extra work and also get a financial advisor. Protect your deposits by having enough cash in short term fixed income, cut down your expenses, utilities and minimal insurance.
That’s why I make it a point to speak with a financial advisor before choosing any investments. I’ve been using one since the pandemic, using profits oriented tactics and minimizing risks as a buffer against inevitable downtrends. In addition they have access to insider knowledge and analysis, making failure virtually impossible for them. I’ve made about $800k working with John Desmond Heppolette my advisor for over three years now.
Your advisor really seem to know this stuff. I found his online-page when I google up his full names, read through his resume, educational background, qualifications and it was really impressive. I left him a note and booked a call session with him..
I have a suggestion. Make a part 2 of this video showing how to close a position and how you know it’s wiser to close the position than letting it expire. I still am not sure when and how to close options
Closing options are different whether you're selling or buying. For example: When you sell options for Premium, you must BUY the option to close it. You profit the difference.
As for when to close, set a stop loss relative to your risk tolerance. Your goal is to have the option expire worthless by expiration.
P.S. he did explain in this video
I'd love to see this too with him showing us how to close positions with the RH app to avoid any mistakes.
@@backstab6606 need someone to hold your hand too? go on demo and practice kid
@@skylinetrading9498 I'm good. Thanks for the offer though.
I must say you are an inspiration because I started up investing and trading as a scared investor who doesn’t want to lose money, glad to say I’m very profitable now and bought my first house through it
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name Helene Claire Johnson and everything changed. In in the first quarter of this year i made $370k and counting.
Impressive, that sounds good but how do I reach out to helene ?
You can glance her name up on the internet and verify her yourself. she has years of financial market experience.
Recession is often the result of external factors, and it appears that the United States is losing its grip as a federal reserve currency. With a decreasing ability to control inflation and a reduction in stocks and oil trading, it seems that a new multilateral world order is on the horizon.
It's important to keep in mind that investing is a zero-sum game with both good and bad days. However, by spending and investing wisely and diversifying your holdings, you can minimize risks and maximize gains. Hiring a knowledgeable investment advisor with a wide range of options can help you achieve this and leave little room for regrets.
I personally worked with an investment advisor to diversify my $200k portfolio across multiple markets, resulting in over $980k in net profit from high dividend yielding stocks. With the right guidance, you can also make informed investment decisions and achieve your financial goals.
I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?
Credits Julia Ann Finnicum, to one of the best portfolio manager’s out there. She’s well known, you should look her up
thanks for sharing this, I googled the advisor you mentioned and after going through her resume, I can tell she's a pro. I wrote her and I'm waiting on her reply
*I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.*
If the stock you want to buy fell 40% the next day, would you buy more?
If no: don't buy the stock
If yes: buy the stock.
A good rule to follow, if you previously liked the stock, then you should love it at a discounted price.
work on that and your financial potentials becomes exponential, build yourself in every aspect, don’t just jump in because you heard someone made so much amount of money, focus on the company, not just the stock price. I employed Rita Wildrin Mora's professional help because on the long run options requires time and expertise
@@martinbelanger9963 if you don't mind can you link me ?
@@harrisahmed3066 google her name, then contact her through her webpage
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@RaymondKuhl Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. 'Alice Marie Coraggio", a licensed fiduciary who has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@RaymondKuhl 'Alice Marie Coraggio".
Lookup with her name on the webpage
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@Harperrr.99 Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.
@@user-3456rtu That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
@@MiikeFaber My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.
@@user-3456rtu Thanks for the info, i found her website and sent a message hopefully she replies soon.
This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
Hi Mike. Any ideas how to reach Gary Joe Wilde? I love the testimonies I have seen about him he seems not to own a video channel here.
The stock market rally started Thursday strong but reversed solidly lower, undercutting the lows of the prior few days. It's a reason to be cautious in the very short term. But the pullback could be setting the stage for another solid advance. Tesla (TSLA) continued to climb Thursday, even though the EV giant pared intraday gains. TSLA stock has now more than doubled from its Jan. 6 bear-market low,I'm still at a crossroads deciding if to liquidate my $238k stock portfolio, what’s the best way to take advantage of this bear market?
Sure there are loads of ways to make a killing right now, but such high-volume near impeccable trades can only be carried out by real-time experts.
Having an investment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I made over $220K during this dip, that made it clear there's more to the market that we avg joes don't know.
That's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
Credits to Catherine Morrison Evans, one of the best portfolio manager’s out there. she’s well known, you should look her up
Thank goodness . I just found her on the web. She seems well experienced.
My aunt passed and I inherited some of her portfolio and cash savings, I’m 28 with about 400k cash in savings and as usual everybody’s preaching invest, so what stocks are a good long term buy, only major purchase I intend to make is buying a home in 5years from my returns
You're lucky; I would use that to invest heavily in tech stocks and dividend portfolios.
Don’t come to UA-cam looking for UA-cam advise, instead contact a fiduciary for proper guidance.
Same, I just use UA-cam for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own.
@@thomasbetts01 who is your advisor please, if you don't mind me asking?
who is your advisor please, if you don't mind me asking?
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
You trade with Natalie Strayer too? Wow that woman has been a blessing to me and my family.
YES!!! That's exactly her name (Natalie Strayer) so many people have recommended highly about her and am just starting with her from Brisbane Australia🇦🇺
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. I’ve been trying to grow my portfolio of $210K for sometime now, my major challenge is not knowing the best entry and exit strategies ... I would greatly appreciate any suggestions
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
I recommend developing a diversification strategy, as constructing a solid financial portfolio has become more intricate since the onset of the COVID-19 pandemic. Following my colleague's suggestion, I enlisted the services of an advisor, and to my surprise, I've managed to accumulate over $150K under my coach's guidance, particularly during market downturns. She adeptly devised defensive strategies to safeguard my portfolio and capitalize on the unpredictable nature of the market.
Mind if I ask you to recommend this particular coach you using their service?
My advisor is Stacey Lee Decker a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Hint: don’t exit
Great Video.
As an intending trader understanding it’s no guess game rather the need for professional guidance, I would call an easy way for remunerative returns
I agree with you sir, however a lot of experts hardly reply to investors wanting to learn, how do you go about profitable outcomes if you don’t mind
Indeed, on market broad as well complicated as that of options as well as stcks, nothing even luck compares to skill and experience. I do believe it saves a rookie trader from blind mistakes which can capital consuming
I’ve had my share of bad trades, I came across a trade analyst and pro investor in a summit where he spoke, got in contact with him, and his system has been responsible for making me good sums even though I haven’t made millions yet, I do have to admit his system is top notch.
I wouldn’t share his contact but You can look up his name
Noud Mikan his bio page as well as contact mediums all on there. Do your own due diligence and Get to him on your own.
I’m a benefactor or Mr Mikan, everyone always fails to mention he’s unwilling to teach his clients how to do it alone,
He rathers works with the I make you profit and you give me commission on what you earn,
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into investment advisors for a strategy that suits your goals.
I completely agree; I'm 60 and recently retired with roughly 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds compared to my portfolio balance over the last three years. To be honest, the role of the invt-advisor can only be ignored, not denied. So do your homework to choose a reliable one.
@@sommersalt88 Well a million in profit is a nice milestone, how can i reachout to this advisor of yours?
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "LISA ELLEN SHAW" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
@@sommersalt88 I am going to look her up too, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
The reason many people venture into Trading/lnvesting (Financial Market), is so that they can get to have a better life, while working and even after retirement. The wisest thing that should be on every wise individual's list is to invest in different stream of income; I am earning more this year because I have been investing while working at the same time. I Invested through Steven Dunn , same man that an anchor kept mentioning on CNBC, he is licensed and made multiple of my start up capital within three months.
I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market. i was at a seminar and the host spoke about making well over $3.5M within a short period of time investing in Cryptocurrency. i need to know what coin to buy.
I'm surprised you know him too. I've made a lot of profit investing with him over the past few months.
Seeing this post made me smile as I started investing in Steven Dunn two weeks ago and so far I can say he is the best. I look forward to sharing with you my journey to success and the gains I see in my portfolio.
he's frequently engaged on the platform known as TelegramS, utilizing the aforementioned username
@stevendunn471
Great! The year is almost over and very glad about the decisions I have made so far. Investing in the market earlier this year regardless of the market conditions has saved my life. I made over 70k USD with a start of 25k in the last 3 months trading with a professional, I remain eternally grateful to Michelle Stewart for her efforts that got me to this point. I know it's nothing compared to what others make but I'm glad I'm changing my finances.
I'm surprised you know her. I've been making a lot of profits investing with her for a few months now.
Mrs Stewart changed my life because of the high profits I got from investing with her.
You invest with Mrs Stewart too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Buying an individual stock is a fair investment but its performance level can’t generate high dividends. Diversification is the secret to optimal performance, that’s why I have my interest set on options based on projected growth and performance.
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
Yes true, I learnt that in 2020, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $100k every one quarter of the year so I’m sticking to investing via an Adviser.
Please who is the consultant that assist you with your portfolio and if you don't mind, how do I get in touch with them?
I started out with an FA named Emily Lois Parker Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
Thanks for sharing, I just looked her up on the web because this is equally important to me, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I want a balanced portfolio, with growth investments, safe investments, and also a focus on dividends to gain up to $20K monthly with minimal risk. is this your strategy sustainable?
I’d rather you just start new positions in ETFs with future income and build that. I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.
well things are different now, same market strategies applied over last decade wouldn’t apply to the current market, so to actually figure out how to outperform the market and stay afloat for the next decade, you should reach out to a financial advisor, that’s how I’ve managed to properly diversify across the right asset classes and gained over $450k in profit this past couple years.
That’s impressive, have you always had a financial advisor?
Sharon Ann Meny is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
My portfolio has good companies, however it has been declining since last year. I have lost over *$200K* in the stock market and i'm looking to improve my portfolio. How do i turn my portfolio around?
Find st0cks with market-beating yields and shares that at least keep pace with the market long term. For a successful long-term strategy you have to seek guidance from a broker or financial advisor.
I diversified my *$400K* portfolio across various market with the aid of an investment advisor, I have been able to generate over *$900k* in net profit across high dividend yield stocks, ETF and bonds.
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you
@@EthanMaloney-qp4lh by whom?
’Vivian Louise Dehoff’ is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Making the first 100k has been a marathon, I am 26 and at 75k mark, No useless spending, just work, save and mostly trading, thanks to my fiduciary Mr Arlto Eric, I am blessed and I believe I will keep growing
Amazing. great path to make and retain money, please share your fiduciary link for me
I stopped believing in anything a long time ago, I have had to stand and fight for myself and family but 75k at 26 years is quite a milestone so cheers
Arltoeric that’s his gmai okay
@@olivia4182yeah, thanks man I dropped his address above
Wow this is a terrific way to make money, the internet is filled with opportunities and information thanks for this eye opener
my portfolio has been dwindling despite the S&P 500 doing well. It's frustrating. About *$80K* has been lost in my stock portfolio in 4 months. How do I turn this around ?
Maybe it's time to reassess your portfolio and see if there are any adjustments or diversification strategies you could consider to align it better with the current market trends. It’s best you consult with an expert advis0r
If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Having an investment adviser is the best way to go about the stock market right now, especially for near retirees, I've been in touch with a coach for awhile now and I made over *$800K* from an initial *450K* since Q2
I've been looking to switch, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
I work with *Sharon Louise Count* , just look her up yourself online to message her, she’s proficient.
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless, I remain grateful to my humble advisor Jane Marie Kunak.
After researching the history of great assets such as real estate, dividend-paying stocks, gold, oil, and other commodities, I've come to the conclusion that most excellent assets never come down to the price you want to acquire them at. Simply get the ones you can afford right now.
Thanks for sharing this has been beneficial to me! I googled the lady you mentioned, and after going through her credentials, I can tell she's a pro, I'll be writing her a mail shortly.
Consistently investing in quality dividend paying companies over the long term is a relatively easy strategy to create generational wealth
@@bruce6985 not necessarily true if you actually track the dividend stock.. they go down when the dividend is about to be payed there for your more likely to break even on them.. I been doing dividend stock for a few years now and it's a known trend and not as profitable unless you have a large amount of money for them
No
The digital market turned out favorable! $60,000 every month. I can now give back to the locals in my community and also support God's work and the church, God bless America
I know you commented seven months ago can you please help me do what you’re doing for my family I would really appreciate it. Thank you.
The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.
I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.
I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured some money in value stocks and digital assets,i accrued over $80K in dividends last year
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Since I don't have the collateral to Sell Puts (at the moment), I've been entering weekly Put Credit Spreads on Mondays to build up my buying power and will close them on Wednesdays or Thursdays.
I'm currently at $1500 of buying power and climbing. My end goal is to be able to do the wheel strategy.
SAME! That's where I put all my "leftover" collateral after writing my puts for my wheels.
I've watched a lot of videos about options; you explain them simply and openly. Most other videos leave a lot out almost like they have something to hide. Great Job!
Still trying to understand options but I slowly retain a lil more each time you do these videos. Keep up the good content Alex 👍
I don’t know how, but you’ve been able to package an unbiased analysis that is more entertaining than the sensational segment of the economic and financial news, thank you for your effort to be the signal and not the noise, I had to get an expert, Sir Eric Arlo to manage my trades as I have no skills for that, my account has been growing up to 7- 15 % weekly depending on market conditions and this is the sixth month for me
Great, trading hasn't been a good ride for me though I am trying to be better plus combining it with work doesn't give me enough time, Can I have your trader’s contact to help me
Understanding the basics of call and put options and learning how work can be useful for traders who’re new to the derivative market, so they can formulate appropriate options trading strategies
@@Lilyoregon okay, his mail is below
I plan on making short term gains as a passive source soon as I get started, quite green to it
@@dave1142 Thanks, I have mailed him
You did a good job here Alex. I dealt with a lot of inexperience and struggle with a series of recurring losses during my rookie days trying to find good footing trading. I earn almost thrice what I was making even more with help.
I’m also trying to earn, doesn’t matter if I have to pay a token, as long as he can help me trade and I can make income from it while I’m fully focused on building a career for myself I’m ok. Left a message thanks
Why do every financial video has these cluster bots? No one is failing for this.
@@senki0151 I Report them all the time as SPAM/SCAM!
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Mrs Katherine Flores.
wow.. amazing to see others who trade with Mrs Katherine Flores, i'm currently on my 5th trade with her and my portfolio has grown tremendously.
I invest with Mrs Katherine Flores too, she charges a 20%commission on profit made after every trading session which is fair compare to the effort she put in to make huge profits.
this is not the first time i am hearing of Mrs Katherine Flores and her exploits in the trading world but i have no idea how to reach her.
As a first time investor I started trading with her, with just a thousand bucks. my portfolio is worth much more that now within just weeks of trading with her.
With the consistent weekly profits I'm getting investing with Mrs Flores, there's no doubt she is the most reliable in the market. such a genius
Can you please make a video showing exactly how you do this strategy from start to finish using Robinhood
Also can you show how you buy back an option and keep %50 of the value
I thought that this is what the vid was about 🤦♀️
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Kathleen Nolan
Most people are retiring this year and has nothing to show for. But I assure you it’s never late to get your financial life together again.. All thanks to Kathleen Nolan for I and my family
Ah yes aka the wheel strategy 💪🏻 I like weeklies and letting my options expire worthless so playing with a company I love works for me. Awesome video as always 👍🏻
Thanks Zac! Yup, would have loved to explain the wheel in this video but will save that for another video so i dont rush it! Its great
@@PandreaMoney hope you are feeling better alex
For sell cash secured put, if the stock rise much higher than the strike price and somehow on the expiration date the stock fall back below the strike price, what will happen ? It is just a a scenario. Please let me know your insight. I always wonder about but never ask
@@boutiquenaillounge6860 you will then get assigned 100 shares of said company for each contract you sell. However if it’s after hours on expiration and the stock falls below strike you won’t get assigned any shares.
@@boutiquenaillounge6860 you will automatically be owned a 100 shares (1 contract) of that stock so pick the right strike price wisely
WHAT THEY DONT TELL YOU IS YOU CAN LOSE EVERYTHING remember keep your head up
Yup exactly. Nothing "passive" or risk-free about selling puts or options in general. Lot of people got blown out on short puts this past month of January. ALWAYS keep your risk in check and plan ahead for worse-case scenarios.
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge/professional
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
There are a lot of independent advisors you might look into. But i work with Carol Pasol Lewis and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
If you want to do that just think that you can just spend them in one day just for your pleasures,you will understand something from them beacouse this can happen in market and lose all for nothing
Great info here! Closing out of these contracts is so important. Trading options is quickly changing my life. But I've got a bad habit of not closing out of my positions early. One of these days that's going to come back to bite me.
Thanks Alex!! Makes a lot of sense. Glad you cleared up on how long I need to hold onto the option. I wasn't sure about HAVING to wait til expiration. Great video.👍
I normally don't buy back the option until it has expired from 88% to 93% since commissions also eat into the profit a bit. The only times I wait for it to fully expire is when it is a very low cost option and even paying $1 per contract to close the position is too much to give up. I have experimented with extending the expiration out as far as 4 to 6 months, but in practice that can be quite exasperating if the stock moves up much faster than expected. I find that I am making tens of thousands per year selling calls (and a few puts), and only rarely does a stock move so sharply up that I regret having sold the call. I believe Pandrea is correct that a good time frame to expiration is from 4 to 6 weeks. My experience has been that there are differences between brokers, and some allow more control in entering prices, whereas others are too restrictive by insisting that price be a multiple of 5 cents per share (as opposed to just 1 cent). There are some times when I've had to buy the position back at a much greater cost than the premium I received, but that is seldom and also has the benefit that the rising stock will not be called away. Obviously one improves at this with more experience.
If youre happy and watch Pandrea clap your hands!!
haha should be the intro song
Haha.
Venturing into the trading world without the help of a professional trader and expecting profits is like turning water into wine, you would need a miracle, that's why i trade with Mrs Paula David, her skills set is exceptional.
I'm surprised you know her too, I've been making a lot of profit investing with her for a few month now.
Wow, amazing to see others who trade with Paula David, I'm currently on my 5th trade with her and my portfolio has grown tremendously.
Mrs Paula changed my life because of her high profits i got from investing with her.
Any information on how to reach her, i'm new to this.
I was skeptical at first until i decided to try. Its huge returns are awesome, can't say much
Thanks for this! Your strategies seem the most sensible out there, esp for people like me who doesn't want to YOLO anything. Looking fwd to your next videos
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I lost over $70K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I find one source to recover my money, at least $9k profits weekly. Thanks so much Mrs Karen Cosmann.
Mrs Cosmann changed my life because of the high profits I got from investing with her.
You invest with Mrs Cosmann too? Wow that woman has been a blessing to me and my family.
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
@Yvonne Foster You can communicate with her on telegam with the user name below
investwithcosmann,, that's it
Just Subscribed and just started investing. $150 starting out
Best of luck! :)
The only downside is that you have to have a lot of money for collateral
Margin :)
You can always sell puts on much cheaper stocks or sell put credit spreads to keep the capital requirements a lot smaller!
Maybe I am a little confused on the collateral. In your example $47 Put @ 1 Credit = $129 (Collateral $4,700) So if you lose, you could potentially lose up to 4,700?
If the stock goes to $0 by the expiration date, then yes you will lose almost $4,700. You still get to keep the $129 of credit, so the actual max loss is $4,700 - $129 = $4,571.
No, you don’t lose it, the option is exercised meaning it uses the collateral to buy the stock, adding it to your portfolio, which you can sell normally or use an option to sell it
Absolutely the best explanation of options this dude is 100% spot on
easily the funniest and coolest options guy to watch. Just found the channel!
Hi Pandrea I’ve watched all the videos several time now. Can you include in a video:
- what if the trade goes not as planned? With selling outs for example.
- some examples with buy lower back in puts and calls
- how you can for see the collateral without robinhood.
- wen you need to pay the taxes for closing before 1 year.
Great video! Options are still confusing to me but, I watch your videos over and over, I'm learning a lot! Thank you for sharing!
Buy low sell high that's the whole point of this vid😏
Robin Hood, unfortunately, is not available where I live, so I’m using Interactive Brokers. I am a conservative non-US investor who has invested in a couple index funds. I found options intriguing so I decided to open up a paper account alongside my live account so I have the ability to execute selling a put option and following along with your videos so I can understand as much as I can without risking real money. I’ve learned so much from your videos. One day, when I fully understand everything I will do a live trade and start making money like you. Thank you Alex!!!
Great video as always. But you didn't actually show us how to get out of your position in Robinhood. You explained it, yes, but show us how. I know you'd have to record yourself exiting a live position which is easier said than done but, it would be a killer video.
I second that
Just click Trade and then Buy. Buy back the same contract and it will release your collateral and close out the position.
I third that!!
How do buyback or close an option????
I don’t understand how much it cost to do it…
I can’t figure it out… 🤨
i forth that haha - thanks for the comment Thomas, you’re right, would have to record a trade over the course of a week or more - definitely added to the list of vids for the future!
Mainly what I am and I believe some of us are saying/asking using a test example of mine. I have a cei 2 dollar call 1 week out. I was credited 5.00. It now says I am +4.00. Up 80% return. So I want to use your strategy but When I go to buy it to close early it will cost 5.00 to do so. I am thinking that means I gain nothing or does that mean I pay 5 to pocket 4? That's where I am getting the hangup and a video on how to read the gui and calculate your profit would be amazing. Thank you in advance.
I'm having trouble understanding what you mean by closing your position early and buying back the option for profit. Can you make a video showing how to do that? I get confused when u say buy back the option
Let's say you sell a Put as an opening trade for a credit of $200. Eventually, the value of the Put drops to $50. At this point, you can place a Buy order for the exact same Put contract that you sold initially (same strike and expiration). This is how you "buy back" the option and close out the position. So the final outcome of the trade would be a profit of $200 - $50 = $150.
This was so eye opening to me. As a beginner , I jumped into trading without the necessary knowledge. I started to lose confidence in my ability to do this. I realized I’ve been going about it all wrong by buying calls and puts. Thanks for sharing your strategy. Slow and steady wins the race.
the only person who explain plain and simple this. already love you.
Hi Alex, thanks for the video, very informative. I have a couple questions. (1) for a day trader who wants to be out of their position, will this model be realistic, in other words, what are the odds I can get out of the trade the same day and be profitable?. 2) in case the trade goes against, do just then purchase the stock at whatever strike price you chose, or is better to set a stop loss and automatically ask Robinhood to sell whenever ur stop loss price is reached?. (3) Now for someone who wants a higher return, would it make sense to buy more contracts of the same stock, because it’s already giving us a win probability of 75% or better?. Thanks
Great video. I would like to ask as this has happened to me while writing call options, what is the strategy you use if there is a significant drop in the stock price, more than the premium you have collected and also more than the anticipated premium for the next time period?
Then you simply have to make do with selling much cheaper call options going forward until the stock recovers...if it ever does. This is why selling options is NOT passive income. There is always risk involved and proper management is required.
Selling options is a GREAT way for people who shouldn't be trading options to get in a world of debt they will never climb out of.
This is great. Thank you! Just have a quick question. I see that Robinhood shows the probability of success, do all apps/trading platforms also how you the probability of success? Or just Robinhood? Thanks again!
Awesome video man! You explained it very well. Thanks for all this knowledge your are passing on. 💯
Thanks for watching!.
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Alex, Great video! Thank you very much for making it easy to understand with step by step how to trade options. Your teaching trading option inspired me and and now I am almost ready to make my very first sell option.
Thanks for watching!.
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@8:13 "Typically I look to make around 2-4% of collateral per month".
r = 1% is equivalent to () an annualized return of 12.682%.
r = 1.5% 19.56%
r = 2% 26.82%
r = 2.5% 34.49%
r = 3% 42.57%
r = 4% 60.10%
@17:36 Unless it makes more sense to get assigned and start selling covered calls.
Mr. Pandrea. Thank you very much for your videos. I have a question how much money should you recommend me to save in order to sell puts options?
You could probably start with as little as $5,000. You do need some decent amount of capital because any time you get assigned on a Put, you must purchase 100 shares of stock. And most stocks with good options markets are more than $10 per share.
I'm glad I got into crypto because it was a turning point for me financially, my best decision to date.
As an independent woman, I started my first investment plan with just $1000 and now earn a weekly income of $4830 from cryptocurrency exchange with my personal broker.
Great strategy! The question is when you close your position early for 50% primium and open the new one for what date? Thanks
Ya I didn’t get that part either
I would assume he means you open the new position looking for a 30-45 day expiration
If it’s September 1st you open a trade for October 1st aka 30 days by September 8th you gained 50% you can close there on September 8th and open a new one right then and there for October 8th.
Generally speaking, choosing cycles around 30 to 45 days from expiration is what you want to shoot for. And it's also typically best to trade the Monthly contracts as opposed to the Weeklys because the Monthlys are often much more heavily traded. This means tight Bid/Ask spreads and therefore great fill prices.
Hi Alex, Can you do a video on how to pick stocks that are good for selling options please. Thank you for your videos
Most important thing to look for is high implied volatility...which will therefore allow you to sell the options for high prices. Also very important to make sure the option markets for the stock are highly liquid....good Volume and Open Interest.
Best way is to mostly sell Put options when a stock price is down around 10% or more and sell a Call option when a stock price is up around 10% or more. This way you will get the highest premium.
"Chance of profit" is just a fancy name for delta I guess, right?
They're both different concepts, but end up being represented by the same value.
Thanks a lot. This was extremely helpful. I do have a couple of questions. How do you progressively close out an option from 50% to 75%. If one option is a single contract, you either close out all of it at at a given % or not. In your video at 17:16 you mentioned closing your position at 50% and then continuing out of the position till 75%. I lost you there. Thanks 🙏
Hey Ricky, that’s right - if you had multiple contracts you can close them out progressively. So if i had 10 contracts i would close out 5 at 50%, then another 3, then another 2, whatever the case is. If you only had 1 then of course you would just close out the 1. I recommend at 50% but thats up to you. hope that helps!
@@PandreaMoney Great. Thanks.
I believe you are giving people a false sense of security. Sorry dude, but the bull market you're trying to make this 6k a week is over. Interest rate hikes are right around the corner along with Omicron and lastly Build Back Better failed. A TON of negative catalysts that are going to leave the market in uncertainty. You might get by with selling calls, but selling puts will most likely always leave you in the red.
For consultation on trading, Investing and proper earning. helpline is shown above. Senda direct message right away
Yup definitely agree with you here. Nothing "passive" or risk-free about selling puts. Still a solid strategy since the market does climb higher in the long-term, but you will always get smacked at some point if you are not careful.
Hello sir. I really hope you will answer this question for me as I haven’t been able to find anyone who can answer it. I’ll start of by saying the answer is not $10K or anything like that. If I put $4000.00 on Bitcoin in Robinhood and let it sit for 10 years not touching it, how much money would I (potentially have)? You have to factor in the rate of return for Bitcoin and also the potential price of Bitcoin in ten years and that’s where people I have asked seem to get lost. I’d really be interested in your hypothetical answer please 🙏🏾.
Around 30k if done right now.
This is like asking what the weather will be like on Feb 2, 2032. No one can possibly answer it with any reasonable accuracy.
Really Great video…
I have never seen anyone explain so much in depth…. Keep it up.
Love your videos 😍
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Hi Alex, Thank you for the great video. I literally take notes on all your videos and make moves on my options trades. I still don't understand how to use BUY Calls and BUY puts. Can you do a video with an example of what is the best scenario to use these options? Thank you
You buy calls when you think the stock will go up during your expiration date and the strike price of the contract. You would do this when you don't want to commit to buying the shares of the stock.
You buy puts when you think the stock is going to go down but you don't want to sell your shares just in case you're wrong.
Basically buying options = insurance.
The best video on options I have seen yet.
Selling options is such a high risk versus making profit, its insane, especially for a new trader.
Hey I love your videos, super informative, I’m looking to begin selling options but I have one question that I don’t fully understand. If the premium loses value, do you lose any collateral? If not wouldn’t that mean that there’s basically no way to lose money? Thank you in advance !
You’re on the right track. If the premium loses value thats good for you. You want the premium to lose as much value as possible as an option seller. The way you would lose money is if the premium rises in price and you decide to close the position and buy back the contract at a higher price than you sold it for. Hope that helps!
@@PandreaMoney hi do you have classes on stock options
You always make a nice video 😊 but I’m really tired of future predictions… it drives me crazy. I think crypto investment is better than stocks. Though I failed sometimes ago when I tried trading myself but Tisha Lauri helps me now
Money is an issue that everyone has for a better and luxurious life. Life was hard for me until I started making profits on my investment with the help of Tisha Lauri
I never doubted trading with Mrs Tisha after seeing her POT (Proof of Trades) I have made good profit this year, I hope to make much more in future.
This is by far the the best video I’ve seen on selling covered calls, can’t just explain without an example, which you did so well. I’m not sure if you have another video on how to close out an option early and when it would make sense with an example, if you did, would make it full circle for me. Thanks for making this, you rock!
So what happens if you sell a put and the stock price starts to drop the following week? It now costs you more than the premium you got to buy it back and you lose money. I understand most trades you'll win some money, especially if you don't get greedy and take profits early, but all it takes is the stock going heavily the wrong way on one or two trades to wipe out a lot of small modest gains. How often are you buying back for a loss when you realize you won't be able to buy it back for less than what you received?
This is exactly why selling puts or options in general is NOT passive income. There is always risk involved and management required. Anyone trying to create a "paycheck" from selling puts this past month of January likely got obliterated. That said, selling options is a great way to make money in the long-term if done correctly with proper risk management...it's just not something you should ever rely on as a consistent source of income.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
For a successful long-term strategy you have to seek guidance from a broker or financial advisor.
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon , and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Hi Great recap. I'm glad to have been able to achieve success in forex trading when i read through your post about a bitcoin and how to get started with the help of Expert Mrs Lucy
I'm also a living attestation of Mrs Lucy's services. She's obviously the best and has really made a good name for herself. I invested 4000$ with her and made a profit of 16,107$ in 9days.
I think I found guy who speaks terms that I can understand, so moving forward to learn more from this channel
Question closing ur position u said buying back the option so if u pay 2 grand for it once it drops u paying say a grand to buy it back? Can u do a video on buying back ur position I like ur strategy sounds safe just trying to learn it all
If you sell an option for $500, for example, this amount technically gets credited to your account. If you then buy the contract back for a debit of $200, then the net result is a profit of $500 - $200 = $300.
in bear market selling covered call can minimize your loss but after you get assigned with loss(sometimes deadcat bounce can assign your call in bear market) becareful when you sell puts to get stocks back. dont get your put assinged within 30 days after your call assignment your loss will count as wash sale which means you wont get tax reduction from loss but you have to pay tax for premiums you got. so if you make this mistake constantly your asset slowly goes down but tax will go up. you lost money but have to pay tax.
Hey! How can I determine the % chance of profit by looking at the Delta value?
The Delta of any contract is an approximation for the probability that it will expire in the money. So a .3 delta Put means that the contract has about a 30% chance of expiring in the money...and therefore a 70% chance of expiring worthless.
You are by far the best teacher ! I was wondering if you could make videos explain how to read balance sheets, income statements and the cash flow statement
New to channel how accurate is the chance of profit indicator on Robinhood when selling options
It's reasonably accurate. It's based on complex mathematical models...the Black-Scholes equations I believe.
I sold 2 PUT options that were gonna expire this Friday and stock market crashed, sold both for 180 total and their price went up to 1,000 after the crash... 2 days away from expiration and I learned that there's a chance that I won't even get assigned by robinhood and will be forced to buy back the PUTS at a loss without getting any shares 😢
Sorry to hear that. This is exactly why selling options is NOT "passive income". There is always risk involved and there is always management that is required. Hope you are able to recover
I just about lost it at 14:14. Thank you for that.
You are recommending selling Put and Calls and these are the riskiest trades you can do. Even if the chance of win is 80% there is still a chance of unlimited loss...
So how do you get taxed? You should make a video on that since beginners can make mistakes. Awesome vid btw!
Thanks for your support><
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Helpline is provided above.
For option selling strategies, it's very simple. You will always be taxed at short-term capital gains.
How you close position on 50%, 60% and 75%, if you have 1 contract? What is buy back? I need to do some homework.
If you sell a Put for $100, then buying it back at 50% means creating a Buy order to purchase the exact same option (same strike and expiration) if the price falls by 50%. So if you sold the Put for $100 and then bought it back for a debit of $50, then your profit would be $100 - $50 = $50.
I recently started following your channel. Great stuff! Thank you. Looking forward to improving my options strategies.
I hate SELLING short options first. I don't have collateral for that. I buy options low first and sell high only if there's volume or breakouts. Every single options video on YT is for selling short options. Nobody ever talks about buying them first.
This is such an underrated channel. 26.4k subs only ?