Put Options - How to Sell Puts for Weekly Passive Income EASY Quick Explanation

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  • Опубліковано 12 вер 2024
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    𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

КОМЕНТАРІ • 583

  • @DavidAntony-gq7id
    @DavidAntony-gq7id Рік тому +185

    After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

    • @harrisonjamie794
      @harrisonjamie794 Рік тому

      Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor

    • @DavidAntony-gq7id
      @DavidAntony-gq7id Рік тому

      @@harrisonjamie794 In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.

    • @harrisonjamie794
      @harrisonjamie794 Рік тому

      @@DavidAntony-gq7id Please provide the information for your investment advisor here. I really need it now.

    • @DavidAntony-gq7id
      @DavidAntony-gq7id Рік тому

      @@harrisonjamie794 She is KRISTIN GAIL CUNNINGHAM , my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.

    • @harrisonjamie794
      @harrisonjamie794 Рік тому

      @@DavidAntony-gq7id sincerely thank you I looked her up on the internet and was awestruck by how qualified she was; I contacted her since I need all the help I can get with canning. I've just scheduled a call.

  • @eduardoh2900
    @eduardoh2900 Рік тому +18

    out of everyone in youtube , your one of the most legit people i know that trades options and actually shows his portfolio thank you for motivating me 🙏

  • @Eireternal
    @Eireternal 2 роки тому +40

    This was incredibly helpful as I'm just diving into options and have a couple options trades under my belt. Subscribed and thank you!

  • @srf2112
    @srf2112 2 роки тому +4

    I'm brand new to options trading and trying to learn what I need to before I start risking money. Your channel is one of the best as far as pertinent, detailed information.

  • @davidandronicomusic
    @davidandronicomusic 3 роки тому +23

    These are my favorite videos of yours. Keep em coming, and do an options portfolio reveal video please!! Thanks for sharing all of your knowledge

    • @InvestwithHenry
      @InvestwithHenry  3 роки тому +4

      More to come! Thanks! :)

    • @dragon.fromindia3235
      @dragon.fromindia3235 2 роки тому

      CRUDE OIL PRICE WILL RISE AGAIN BECAUSE OF YEMEN INCIDENT OIL PRODUCTION IS LOW NOW IT WILL RISE AGAIN TO 100$./B.

    • @geniouslin2
      @geniouslin2 Рік тому

      @@dragon.fromindia3235ok bro😅

  • @Elcamina145
    @Elcamina145 3 роки тому +6

    How did you end up closing these options? Do you have a follow up video?

    • @marknevin8947
      @marknevin8947 2 роки тому

      That’s what I want to know lol. Definitely not collecting just by clicking

  • @teslafirechallenge6432
    @teslafirechallenge6432 2 роки тому +2

    Really cool strategy, I have 215 shares in Tesla which I wanted to keep forever, what conservative strategy would you consider? Just wanted 1% per month so about $2000 per month. Any ideas?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Selling covered calls would probably be your best bet. And if you're worried about getting assigned and losing your shares in some cases, you can just continually roll those calls to the next expiration cycle to avoid that...and also collect more premium!

    • @affordfreetime
      @affordfreetime 11 місяців тому

      Covered calls and roll as needed

  • @aggropa
    @aggropa 3 роки тому +8

    Good video. I liked the real time demonstrations. I would recommend bringing down your exposure quite a bit, and maybe bringing down highlights and some other tweaks in video editing to make your video look more professional.

    • @InvestwithHenry
      @InvestwithHenry  3 роки тому

      Thanks! I need help with editing. Reach out on instagram if you are good at it.

    • @SniperTrader2023
      @SniperTrader2023 2 роки тому +1

      @@InvestwithHenry Wow unbelievable....I could care less about exposure and professionalism, the content is all that matters. I wouldn't worry about it Henry.

  • @jayaramanramakrishnan3251
    @jayaramanramakrishnan3251 2 роки тому +2

    I would like to see how you manage these options trade. When do you close them out, and how to minimize the loss if the trade is going against the plan

  • @andyt6220
    @andyt6220 3 роки тому +12

    Love your content. I’m familiar with how options work. My problem is knowing which stocks to pick. Can you do a video on how to select stocks for options? Thanks.

    • @acrandleman7404
      @acrandleman7404 3 роки тому +12

      This is simple just look in your portfolio only sell options on stocks you really want to own for the long term this way if it gets exercises you get shares you already own at a discount if it does not you keep the premium free and clear

  • @lilliankerr-z7c
    @lilliankerr-z7c 11 днів тому +1

    I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK

  • @alokyadav-fh6pv
    @alokyadav-fh6pv Рік тому +4

    Watching this after a year where all these stock have dropped between 50-80 % in value. can you make a video on the consequences of doing wheel strategy with these stocks and what happens when the price goes down? Thanks

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @worldwideog4836
    @worldwideog4836 Рік тому +1

    If the option expires on Friday and you try to sell is on Wed will it get sold

  • @jmg1962
    @jmg1962 2 роки тому +1

    Henry, thanks for your explanation of your Put option passive income strategy. I have some questions for you. Just so I understand, you are OK with your $175k investment only earning between 1% - 1.6% return per month on options premiums? I ask because even though the weekly premiums are lower, they add up to be worth more per month than the monthlies. My next question is this: Earning less than $2000 per month on whopping $175k capital, what are you planning on doing with your less than $24k per year in options premiums? I am curious because these premiums are being earned at a relatively slow pace. Do you use the premium money just to pay rent and things like that? Or are you slowly feeding the option premium money back into your investment pool to continue selling more monthly PUTs? Thanks.

    • @stephenadair8356
      @stephenadair8356 Рік тому +1

      Wasnt the 1% per week ?

    • @affordfreetime
      @affordfreetime 11 місяців тому

      Take that as 1 example, that 1% in premium is for a particular stock, particular strike, particular timeframe. All those variable will affect the amount of premium and this also comes with the probability of making that profit. You could diversify in some trades that targets 5% per week and some just 1% per month. Risk reward ratio.

  • @komfyowl
    @komfyowl 3 роки тому +8

    What happens if you don't have enough for collateral? How can some one use options to build their portfolio?

  • @jkuntz67
    @jkuntz67 2 роки тому +1

    Good day if you sell a put you expect the price to go up or down for you ?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      You want the price of the put option to decrease. This will happen the most quickly if the stock price increases, but it will also happen if the stock simply remains above the strike price as you approach expiration.

  • @jasoneyes01
    @jasoneyes01 3 роки тому +7

    Nice presentation Henry. I took the Tesla put 500 and 475 @ 2 weeks out. Basically at the daily 250 MA and just below at major support. I hope I get assigned so I can sell some covered calls while holding for a summer swing trade.

    • @InvestwithHenry
      @InvestwithHenry  3 роки тому

      Nice work!

    • @davidandronicomusic
      @davidandronicomusic 3 роки тому

      Awesome plan. I also want to sell puts on Tesla but waiting to transfer more cash to cover it.

    • @basantashrestha6245
      @basantashrestha6245 3 роки тому

      Hello just need help if the stock hits below ur strike price sellin put call,does robinhood automatically buys the 100shares of stock since they held the collateral or they send u msg sayin u r assigned? My option expires on aug 20, hasnt received any msg frm . Shud I wait until Aug 20th which is tomm?

    • @farhancfo
      @farhancfo 3 роки тому +1

      @@basantashrestha6245 u need to keep watching the stock price, if it will be near or lower than your strike price then either buy back or roll before the market close (I suggest at least 2-3 hours before to avoid any issue). Robinhood is not going to call you. They will assign 100% if stock price is equal or less than strike price.

  • @DonovanBrown
    @DonovanBrown 2 роки тому +1

    Great video. Only suggestion is in post move yourself from the portion of the chart you are talking about. At 18:23 you are talking about lines that your PIP is covering.

  • @davidandronicomusic
    @davidandronicomusic 3 роки тому +1

    Thinking of selling the June 18th $200 put for SQ. $900 premium! $190 put looking good too.

  • @jawdrop6038
    @jawdrop6038 2 роки тому +7

    Well this video didn’t age too well. However it’s an extremely helpful video in understanding selling put options. Selling puts does make one a better investor. It forces one to be patient and instead of just setting a limit order your also collecting the premiums

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Ya my guess is a lot of those "quick and easy" profits from last year will be disappearing for a lot of put sellers this year :)

    • @obidamnkenobi
      @obidamnkenobi 2 роки тому

      well from what I can tell he did make money on PTON; it went up again, to $120+.. before now (05/2022) crashing down to $14! lol

    • @jayhenry3146
      @jayhenry3146 2 роки тому

      120 days ago things felt alright, not so much now September 2022. What will January 2023 look like?

    • @tapion1337
      @tapion1337 Рік тому

      I lost everything twice

  • @ItsMeRockyT
    @ItsMeRockyT 2 роки тому +1

    Probably the best PUT video I've seen so far. Great job!

  • @chiangleon3020
    @chiangleon3020 Рік тому +1

    Hey Henry, I love your videos. Great stuff and thank you for the great work. Can I ask where can I join your community? I’m a wheels strategy trader too 😊

  • @larrythecoderguy9560
    @larrythecoderguy9560 9 місяців тому +1

    I realize that I'm late to the party, but this video is about to change my life. I can't wait to put your strategies to work starting right now! Thanks for producing such great content.

    • @787beb0
      @787beb0 7 місяців тому

      Tell us your experience with this strategy, does it work?

    • @larrythecoderguy9560
      @larrythecoderguy9560 7 місяців тому

      @@787beb0 Yes it does! I was already experienced in trading stocks, and now adding this PUT strategy, along with selling covered calls I expect to add an additional 10-20% to my yearly returns.

  • @shawnd567
    @shawnd567 Рік тому

    I just started doing this but only doing 90% trades. I can't believe I just learned how to do this! Easy $100-200/week.

  • @MatthewSenneke
    @MatthewSenneke 2 роки тому

    Bruh this guy is actually helping me understand it more, I like the detail he goes in to, with this stuff for me atleast it requires a lot of specific detail for me to understand it

  • @unikiran
    @unikiran 2 роки тому +3

    Hey Henry, I am still trying to understand the whole thing. What should I do when a share is trading at its 52 weeks lowest price and I know that it it will go up in price in few months/years. Should I sell call or sell puts?

    • @kylesteiner4158
      @kylesteiner4158 2 роки тому +1

      In this case you would sell puts. If you buy calls and the price drops, you lose money. If you sell puts at the money and the price falls, the contract expires worthless for the buyer and you, as the seller, keep the premium.

  • @otonielortiz1
    @otonielortiz1 2 роки тому +2

    Hey Henry when are you going to write a book about options. I never done it before and I feels a little nervous to that. I only have about one year trading buying low price and sell at high price. Is a little confused for me.

  • @thewainstains
    @thewainstains 3 роки тому +2

    good video Henry. thank you. are you still bullish on PLTR?

  • @andychlumecky8035
    @andychlumecky8035 2 роки тому +2

    what worries me is you are not hedged for a outlier event that might push the stock down considerably past your assignment value. Like what happens if you sell tsla puts at 875..then significant event crashes stock to 800 ...and you get stock at 875...all your gains from all this activity could be wiped out. Why not do vertical spread and buy out of the money puts as hedge?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      This is exactly why I short the stock if it drops below my put strike...totally covers my obligations on the contract if I get assigned AND I would still walk away with the premium. Selling vertical spreads is also a great defense tactic in itself. You just have to make sure you do something in situations like you just described.

  • @ericphalin85
    @ericphalin85 2 роки тому

    Loving the videos but just jumping into things and trying to learn as much as possible. I guess where im slightly confused is how you are technically spending money but everytime you say you are collecting a premium back instantly? Am I missing something or is there another video I should be watching to clear this up?

  • @ZelenaZmija
    @ZelenaZmija 2 роки тому +1

    Do you do any trading off of indexes or leveraged indexes?

  • @brettn8604
    @brettn8604 2 роки тому +1

    what if the price moves against you? I was under the impression naked puts and calls are risky. would it not be less risky to use a credit spread strategy?

    • @brettn8604
      @brettn8604 2 роки тому +1

      @Henry ㊉①②①⑨④②④②⑧⑨⑦ Thank you for the offer but this type of options trading is to risky for me. I am learning all about options trading but it was clear that naked trading that your did in your video is very risky. I would like to offer constructive feedback on your video. Maybe you should make it clear to people that naked trades like you are doing is high risk when in fact there are safer ways to trade options with probability trades of 75-80%, which uses less of your account capital and limited risk!.

  • @rkanagala
    @rkanagala 2 роки тому +2

    Great video, easy to understand. However, why would you not put in the ask price when selling a Put to collect maximum premium. I would think you should have your limit price at "Ask price" when selling a put to Open and "Bid price" when you are closing out with a Buy. Can you clarify?

    • @kylesteiner4158
      @kylesteiner4158 2 роки тому +1

      Because setting a limit order at the ask reduces the chance that your order will be filled.

    • @vasilestana9754
      @vasilestana9754 2 роки тому +1

      @@kylesteiner4158 but you don't have to get whatever they offer. they will always be stingy. i'll go between. yes sometimes they don't fill me and i have to play their game, but not always.

  • @SJTaveras
    @SJTaveras 3 роки тому +12

    Amazing video, can we do the same but instead of selling puts, selling credit spreads for those who have less capital? Thank you keep up the great work.

  • @ottizjoseph3267
    @ottizjoseph3267 2 роки тому +1

    What happens if you sell a put option with a strike price above the stock's price? I see ppl get strike prices under stock's price which makes sense, but im just curious when the strike price is already above. Do u get assigned right away at the stock's price or strike price? Or nothing happens

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You will not get assigned right away. However, as long as the option is in the money, there is a greater risk of getting assigned early. But this would only occur if there is no extrinsic value remaining in the contract. I have a video that takes a deep dive into this topic if you're interested...
      ua-cam.com/video/CX9B-qPJmMM/v-deo.html

  • @CursedWarrior100
    @CursedWarrior100 2 роки тому +1

    If the stock goes up do you lose anything or just keep the premium?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      If the stock is above your put strike by expiration, you keep the full premium. You can also buy back the put before expiration if the price of the contract falls substantially. You will make the difference in your sell and buy prices as a profit as well.

    • @CursedWarrior100
      @CursedWarrior100 2 роки тому +1

      @@scottreesetradinginvesting7936 is there any point in selling an out of the money put above the stock price?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      @@CursedWarrior100 I think you meant to say in the money? All puts with strikes above the current stock price are in the money. And no, I don't see any reason to sell these. You'll collect a much larger credit obviously, but if you get assigned, you'll just end up giving most of it back.

    • @CursedWarrior100
      @CursedWarrior100 2 роки тому +1

      @@scottreesetradinginvesting7936 my only thing is... my stock is 1.10. I sold a $5 put (to see what would happen). It list current prince as $4.95 while the stock is down at $1.06. So would it get assigned when that option price hits $5 or the actual stock? Robinhood sucks when it comes to clarity lol

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      @@CursedWarrior100 You run the risk of early assignment if there is no more extrinsic value remaining in the contract. With the stock at $1.06, that $5-strike put option has $3.94 of intrinsic value and $1.01 of extrinsic value....just going off the $4.95 price that you mentioned. So right now, there is hardly any risk of early assignment. I also have a video that takes a deep dive into early assignment risk as well in case you're interested...
      ua-cam.com/video/CX9B-qPJmMM/v-deo.html

  • @RajeshJustaguy
    @RajeshJustaguy 2 роки тому +1

    Just curious.. regarding the Alibaba stock.. on May 14th it went down to 209. Did you have to purcahse the stock?

  • @skylerstewart
    @skylerstewart 2 роки тому +1

    So technically use short puts like a limit order for the shares and if you get assigned then win, if you don’t then win.

  • @drake9572
    @drake9572 2 роки тому +1

    i am a bit confused, you need the collateral(price of stockx100) to get the premium of x amount, does the collateral coke back or will you be losing that to gain the premium?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      The collateral will be released once the trade is over IF the put option expires worthless. Otherwise, you'll be assigned 100 shares of stock, and the collateral will be used to make that purchase.

  • @jebssan9
    @jebssan9 2 роки тому

    Hi Henry, I did (by mistake) a Put with Buy To Close of 14 options of AAPL with premium of $2.69 - a Strike of $170 and expire in 4 days (Feb. 4). I think, to close this position, I need to do a Sell To Close. My question is what should I look for Bid and Ask - should it be higher than $2.69 so I don't lose money? Thanks a lot in advance!

  • @u.w.sunitedwestand2117
    @u.w.sunitedwestand2117 6 місяців тому

    Thank you sir you are a blessing! Most try and make it sound difficult but some reason i understand you perfectly!

  • @ricseeds4835
    @ricseeds4835 3 роки тому +6

    If you're selling puts why would you want to be filled at the bid price? At least start at the higher ask price and if it doesn't filled you decrease it.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Yup you're right...although you'll almost never get filled at the Ask price. I always try to set my price right in between the Bid and Ask.

  • @marsdam
    @marsdam 2 роки тому +2

    super cristal clear for a difficult subject thank you

  • @Shaniloka369
    @Shaniloka369 3 роки тому +2

    Thanks for this great video. I need a good video like this instead just talking about it. I need to see exactly how you place and sell etc.

  • @TheBodrey
    @TheBodrey 2 роки тому +1

    Henry, when looking at Peloton what did you mean by the "2 green lines" indicating that buyers were starting to come back in? Your camera feed is situated in the bottom righthand corner so it's covering the most recent price action and technical indicator values. I can't see what "green lines" you're speaking about. Are you talking about the two bottom Bollinger bands or something else?

  • @Ka_Gg
    @Ka_Gg 3 роки тому +8

    Looks like you may be owning some square! lol. It dropped a lot today, but overall the chart shows Square consistently rising over time! Price will probably jump up a few dollars tomorrow.

    • @InvestwithHenry
      @InvestwithHenry  3 роки тому +3

      We shall see

    • @kzigmant
      @kzigmant 2 роки тому +2

      That's why the best strategy is to always go out at least one month. Gives enough time to allow the stock price to change.

  • @agarf412
    @agarf412 3 роки тому +3

    Do you ever just buy and in the money weekly for max premium, then retain the collateral for the 2nd 100 shares and then just have covered calls and puts going weekly and simultaneously? Would this ultimately profit more annually?

    • @udayhomeful
      @udayhomeful Рік тому

      In the money weekly? Call put? Buy or sell?

  • @coolkookoo
    @coolkookoo 2 роки тому +1

    How do you save yourself from stock suddenly plummet, do you buy cheaper puts to as insurance ?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      That's one way you can defend a trade. You can also buy back the put option at any point to cut losses. Or you can try shorting shares of stock, which is what I do.

  • @adrianwysocki1086
    @adrianwysocki1086 2 роки тому +1

    I don't understand: so why people, me including, would just but straight stock righ away?

  • @chaffelhaye9259
    @chaffelhaye9259 2 роки тому +2

    You are a pro teacher bro..... PATRIOT!!!!👍😎👍

  • @Andrew.Ferguson
    @Andrew.Ferguson 2 роки тому +3

    Great a thorough explanation of selling put options! Awesome work on a concept that can be very confusing for new investors.

  • @qilongli
    @qilongli 2 роки тому

    Does rolling over in the money put options count as washsale?

  • @karsonwilson2356
    @karsonwilson2356 Рік тому

    When you’re selling these put options is that meaning you are hoping/betting the stock continues to decrease in trade price?

    • @alokyadav-fh6pv
      @alokyadav-fh6pv Рік тому +1

      No. Ideally you want those stocks to stay where they are or go up in value (stay above your selected strike price
      )so you will collect the premium and not be forced to buy the shares.

  • @KShawIII
    @KShawIII 2 роки тому +6

    Great video as always Henry! Wondering about the assignment of the stock when you sell the put options. When you place the order for the put options contracts and it say the collateral amount, does the amount have to be inside your account at that moment or if you wanted to pay in case later, could you do that? Is collateral your overall portfolio? Meaning the investments that are already in the portfolio plus the cash?

    • @Eireternal
      @Eireternal 2 роки тому

      The collateral as to already be in your account. Otherwise robinhood will tell you you don't have enough.

    • @jugsma6676
      @jugsma6676 2 роки тому +1

      Some brokerage eg: IKBR will give you a margin amount, with t2-t4 days to settle

    • @lenandov
      @lenandov 2 роки тому +3

      Easy way to remember : if you get to choose, you can pay later but if they get to choose, you have to have it already in case they do.

    • @fumbelstiltskin4250
      @fumbelstiltskin4250 Рік тому +6

      Each brokerage firm provides different "levels" of trading approval. If you have cash (or shares of the stock) to cover the cost of a contract assignment, that is called a "covered" contract. If you don't, that's a "naked" contract and each broker has rules and formulas to determine how much of your other owned positions can be counted as collateral against the "naked" contract if it is assigned. You have to request, and be approved, to be at either trading level -- "covered" and "naked". Note, at a naked level if you don't pony up the cash or securities in the time allotted to satisfy a contract assignment, the broker will decide which of your other assets to liquidate in order to fulfill your obligation as a seller (or "writer") of a naked contract.

    • @loopholelifestyle
      @loopholelifestyle Рік тому

      Just watched this. I iw about 3000 shares of Tesla and wanted to start earning with selling cash secured puts. Say it's at 200 and I enter the strike of 150. If I don't actually want more shares can't I just put a sell in at the same price of some other shares so that if/when I get assigned these shares at 150 I can offset the asigned shares with stop.lossea of other shares I own and that way I just guarantee the premium without any concern of accumulating shares I don't actually want.
      Thanks in advance

  • @weeshenteo9938
    @weeshenteo9938 2 роки тому +2

    If I have a 330/325 FB Bull Put Spread, on expiration, FB stock price is 328.
    Will the broker
    1) Assign the short leg and allow the long leg to expire? (And this will require capital)
    2) Assign the short leg and exercise the long leg, therefore cancelling out each others and resulting in some loss ?

    • @WinstonKnows
      @WinstonKnows 2 роки тому

      Did #1 happen for you?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You will get assigned on the 330-strike short put. The 325 long put will expire worthless because it remained out of the money. So to avoid this rare but potentially dangerous situation, simply close your spreads before expiration!

  • @etahhcumosevahi
    @etahhcumosevahi 2 роки тому +1

    Yes. Do this. Especially toward early March. 🍿😉

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Lol ya all these "passive income" put sellers are going to get crushed this year...or perhaps already have been crushed lol

    • @etahhcumosevahi
      @etahhcumosevahi 2 роки тому +1

      @@scottreesetradinginvesting7936 yes. As expected 🤣🤣🤣 I had forgotten about this post. Glad I saw this.

  • @slickktravelzz
    @slickktravelzz 2 роки тому

    Thanks for all your knowledge and insite your giving to the streets. I have a question regarding the collateral. Is that coming from your buying power because your collateral is so much higher then you profit. Thanks again for your prospective on this subject.

  • @TheHighlycaff
    @TheHighlycaff 2 роки тому

    where are you seeing the RSI on yahoo chart?

  • @sandeepjoshi8531
    @sandeepjoshi8531 2 роки тому +1

    You have decent experience and nice capital. I would recommend vertical spreads for newbies.

  • @Testroutesuk
    @Testroutesuk 2 роки тому +1

    Hi. Would be able to recommend a platform to trade options in UK?

  • @Ranalla651
    @Ranalla651 Рік тому

    When you sell a put, When do you collect premium? Do you have to let it expire or how can you collect premium and lock it in? Obviously if it falls below strike you will get premium and assigned.

    • @affordfreetime
      @affordfreetime 11 місяців тому

      As soon as you sell the option and your order fills, you collect the premium deposited in cash on your account. But you are on the hook to buy the shares if the stock trades below the strike price at expiration. If it trades above, the options expire worthless. In both cases, the premium is yours. In between you can exit that contract by buying back the option which could be for more or for less that the premium you collected.

  • @vark
    @vark 3 роки тому +2

    Henry!! new to your world.....wow....you are da man. Great job.

  • @favoriten6709
    @favoriten6709 Рік тому

    that video contains some incredible helpful tipps! thank you !!! perfect to see your csp procedure! 👍🍀🙏

  • @vaibhav123a
    @vaibhav123a 2 роки тому +1

    So you end up buying the shares every time? You do not tell us how to close the options.

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @aimarflorian
    @aimarflorian Рік тому

    You only sum the potential premium earned at expiration but the total required buying power for all those cash secured puts is huge.
    Requires a > 100K account.

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @damminable
    @damminable 3 роки тому +3

    Hi great video however i would like to ask. Assuming you sell puts and the stock price reaches your strike and you have to buy the stocks isnt it possible to just sell your stocks back and keep your money having a slight loss compared to the premium you would’ve gotten assuming the trade went in your favour

    • @InvestwithHenry
      @InvestwithHenry  3 роки тому +1

      Yeah it depends

    • @alohaparsons3328
      @alohaparsons3328 3 роки тому +2

      Or sell
      Covered calls

    • @dragon.fromindia3235
      @dragon.fromindia3235 2 роки тому +1

      CRUDE OIL PRICE WILL RISE AGAIN BECAUSE OF YEMEN INCIDENT OIL PRODUCTION IS LOW NOW IT WILL RISE AGAIN TO 100$./B.

  • @roxannebrown-thorpe5909
    @roxannebrown-thorpe5909 2 роки тому +2

    I’m watching this one year later, it’s now September 1st 2022 to be exact and Peloton is now at $10.25

    • @arechigaa3
      @arechigaa3 2 місяці тому

      And Square is $62 😮

  • @Brvelittletoaster
    @Brvelittletoaster 3 роки тому +6

    can you do a video about diagonal spreads (poor man covered call)

    • @SolidBased
      @SolidBased 3 роки тому

      I’m learning PMCC are my fav during these choppy ass times!! Once you lose enough on Calls then learning other strategies comes in handy especially the PMCC!

  • @Noah-pj6tc
    @Noah-pj6tc 2 роки тому +11

    Pinned this video down, helped me when I started some months back but I lost money because I was gambling the market by myself but then it is the most lucrative investment I have now

    • @Noah-pj6tc
      @Noah-pj6tc 2 роки тому

      Mr (Eric Arlo) a fiduciary is the man behind my success that's why I succeed at it, it's that plain maybe he could help you

    • @Noah-pj6tc
      @Noah-pj6tc 2 роки тому

      Arloeric 1(a)Gmai
      Lcom...Is he taking commissions for trades? Yes, he is

    • @Thyago2420
      @Thyago2420 2 роки тому

      I rather pay a commission for expertise and profits than to loose money hopelessly gambling

  • @sarahk6996
    @sarahk6996 2 роки тому +3

    I made 19k last week using one of your strategies! Unfortunately, it was in my paper trading account!😔….will continue practicing!😉
    Thanks for sharing 👏🏽👏🏽👏🏽

    • @jacobgonzalez3789
      @jacobgonzalez3789 2 роки тому +2

      What is paper trading i searched it up and is it like practice trading?

    • @Mustang-bk4ns
      @Mustang-bk4ns Рік тому

      @@jacobgonzalez3789 - uh yeah. What else would he be saying?

  • @BornToShred6900
    @BornToShred6900 2 роки тому +1

    The risk to reward ratio is terrible for selling options/spreads, which is why I switched to buying/debit spreads

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You have to factor in the probability of profit though. Yes you may be risking $100 to make only $25, for example, but you might have an 80% chance of making that $25.

  • @JohnBeattie_
    @JohnBeattie_ 2 роки тому

    Henry, thank you for the video! What would you recommend though for someone with only a $500 account to start? I do not have the capital to put up like you do unfortunately but I will get there eventually with enough learning and practice

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

    • @Mustang-bk4ns
      @Mustang-bk4ns Рік тому

      Where's the reply?

  • @LibertyOrGTHO
    @LibertyOrGTHO 2 роки тому +2

    the BABA move aged well... lol Great vid
    none of those worked out except AAPL lol

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Ya this is exactly why selling puts is a terrible idea to try and create a passive income stream for yourself. They're a great investment tool for the long-term, but making "quick and easy" profits all the time is a fantasy.

  • @jobensandhu5624
    @jobensandhu5624 4 місяці тому

    hi about setting STOP LOSS on options? and is it alright to to BUY BACK sold option EVERY NEXT DAY in order to keep contract expiry for ONE day ?

  • @alexpoon9048
    @alexpoon9048 3 роки тому +1

    Do you select what delta to trade?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      For short puts, I have found selling around the 30 delta has a good balance of risk to reward. About a 70% chance of profit and you still collect pretty decent premium.

  • @michiganebayflipper9497
    @michiganebayflipper9497 3 роки тому +2

    Finally it clicked appreciate it thanks!

  • @knm185
    @knm185 5 місяців тому

    Do you have a weekly list to buy and sell options?

  • @hungchau3925
    @hungchau3925 3 роки тому +3

    Great video, i did almost exactly like the way you taught on this video in the past few years
    Thank you so much, again, it is awesome video

  • @hakuei7530
    @hakuei7530 2 роки тому +3

    “I don’t think Alibaba can fall much more…” Glad I’m watching this in 2022.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Ya this is exactly why selling puts is a terrible idea to try and create a passive income stream for yourself. They're a great investment tool for the long-term, but making "quick and easy" profits all the time is a fantasy.

  • @jacobgonzalez3789
    @jacobgonzalez3789 2 роки тому

    Where do y'all option trade at? Is it good to option trade in webull?

  • @jung-ahpark2370
    @jung-ahpark2370 3 роки тому +2

    Can you do a video on closing options and spreads?

  • @viciousdreamz
    @viciousdreamz 2 роки тому +2

    What happens if the price rises instead of dropping to your srike price? Do you loose money?

  • @itzkonch3401
    @itzkonch3401 2 роки тому

    Do you need to own 100 shares of the stock to sell puts or options

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @Mike-fm3km
    @Mike-fm3km 2 роки тому +1

    classic case of the blind leading the blind

  • @Rebel-from-Hell
    @Rebel-from-Hell Рік тому

    After receiving your premium can you close your "sell put" position and get your collateral back? and then sell same put again same day? If not, I don't see the benefit of locking up so much capital for so little return.

  • @CathleenSolomon
    @CathleenSolomon Рік тому

    Confused. I still don't understand how, if you don't have the $ to buy the shares if your options trade doesn't work out, what happens? Are you prohibited from even making such a trade if you don't have the funds in your account TO cover the purchase? If they let you do the option, and it doesn't work, does the brokerage come after you for that $? How can they force you to buy those shares?

    • @alokyadav-fh6pv
      @alokyadav-fh6pv Рік тому

      You need to have the cash in the account to by minimum 100 shares of that stock before you even place the trade. ie if a stock is at 50$ , you need to have at least 5000$ in your account depending on your strike pice

  • @kilobumpin
    @kilobumpin Рік тому

    ive been selling options only problem is i dont have the capital to trade the stocks i want to

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @christendenise220
    @christendenise220 3 роки тому +2

    I'm confused, I thought selling a put meant I wrote the contract to sell 100 shares and collect upfront premium. Why at the end of the sell put option, are you on the hook to purchase 100 shares?

    • @goliathonscave9834
      @goliathonscave9834 3 роки тому +1

      "I'm confused, I thought selling a put meant I wrote the contract to sell 100 shares and collect upfront premium." That is a Covered Call. If the actual stock price goes above the strike price you agreed upon (the amount you got paid the premium for), then you would be exercised and you are then obligated to sell the other party the 100 shares. In a cash-secured put, you get paid a premium to buy 100 shares from a party if the actual stock price drops below the strike price you agreed to.

    • @christendenise220
      @christendenise220 3 роки тому

      @@goliathonscave9834 Thank you so much!

  • @alekseytatsitov2522
    @alekseytatsitov2522 2 роки тому

    I like your approach. As for me I prefer selling cash-secured puts with 30-60 DTE. To find these stocks I use options scanner by 5Greeks

  • @peipeisiau-cronin6322
    @peipeisiau-cronin6322 Рік тому

    Great video! Newbie question -- how much money do you have to have in your brokerage to carry out 4 transactions? $109,850 (total price of stocks if you get assigned for all stocks) or $43500 (the highest collateral ie for SQ stock)? Thank you.

    • @affordfreetime
      @affordfreetime 11 місяців тому

      4 times the price of buying the stock at the strike price in a cash account. In a margin accout, it will be much less but there is more risk in trading on margin.

  • @casienwhey
    @casienwhey 2 роки тому +1

    That put income comes with a big catch. If the stock price drops big, your losses will be equally big.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Yup that's exactly right. This is why you can't rely on short puts to make consistent gains or income...still a great strategy, but there's plenty of risk involved.

  • @KelvinEchor
    @KelvinEchor Рік тому

    What app do you use to sell options, most brokers don't let you sell options n get premium

    • @BWealthy.
      @BWealthy. Рік тому

      ⬆️⬆️⬆️thanks for the comment..
      Contact the What'sap line above for more information, advise and consultation.

  • @SJTaveras
    @SJTaveras 2 роки тому +6

    Hey Henry, is your weekly income academy suitable for someone who has 10k to 15k to invest? Can we make constant weekly income with that amount? Thank you

    • @InvestwithHenry
      @InvestwithHenry  2 роки тому +5

      Absolutely! I have a 7k to 17k challenge and up $696 in the first month. Email ben@investwithhenry.com

  • @waltervidal3237
    @waltervidal3237 3 роки тому +6

    Henry, selling PUS is great, but, you need to cover the pUTS in case of assignment. You premiums look great when because you have the funds

    • @eyerocmedia5253
      @eyerocmedia5253 2 роки тому +1

      Bingo

    • @utubemuzic1
      @utubemuzic1 2 роки тому +2

      My first video with him. All he did was place the orders. I liked his tech analysis but the true test of him keeping any of the money has yet to be shown.

  • @fkustaa
    @fkustaa 2 роки тому

    Thank you for your video on selling trading options. Although I find the video on this subject to be useful and it is what I am looking for, I thought that you were a bit faster for someone like me who is new to all this. You mention some new concepts such as value-oriented stocks and momentum options, but what do you mean by this? Can you explain this? I look forward to hearing from you.

    • @fkustaa
      @fkustaa 2 роки тому

      Thank you again for your response to my query. I will re-watch your video and ask more specific questions in a short while.

  • @finny_
    @finny_ Рік тому +28

    I had to get a pro, Sir Eric Arlto to manage my trades as I have no skills for that, my portfolio has been growing up to 7 % daily depending on market conditions and this is the sixth month for me

    • @Lilyoregon
      @Lilyoregon Рік тому +1

      Hi, what if I will like to give it a try with your pro, since you are familiar with his abilities maybe you can connect me as I haven’t made a good trade in weeks

    • @Taliecat
      @Taliecat Рік тому +1

      I plan on making short term gains as a passive source soon as I get started, how much is his commission charge please

    • @Ahmad-b9q5x
      @Ahmad-b9q5x Рік тому

      I have done very well by trading Stock options as well as using simple covered calls and married puts over the years

    • @user-zh5mp5zt4c
      @user-zh5mp5zt4c Рік тому

      How about uncle henry ?

    • @Lilyoregon
      @Lilyoregon Рік тому

      Hi, please how do I connect with your trader

  • @AlexAlex-hl6ip
    @AlexAlex-hl6ip Рік тому +1

    Well in order to sell put contacts as u did in this video you have to have a decent amount of cash to cover. Broker wouldn’t allow you open the trade if u don’t have much collateral to cover that. And those who somehow able to trade sell naked pull options are sick people, who risk everything.

  • @LMF-ct4lt
    @LMF-ct4lt 9 місяців тому

    Looking forward to today, BABA is $78, SQ is $59, and PTON is $5. Your stock analysis is no better than reading tea leaves.

  • @marsdam
    @marsdam 2 роки тому +1

    very nic explanations you really got it

  • @RicardoHernandez-zr1pw
    @RicardoHernandez-zr1pw 3 роки тому +1

    So is BABA a good options trade now? I've been eyeing it for a while.

    • @olympicsniperxx5017
      @olympicsniperxx5017 3 роки тому

      Yes

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      With proper risk management, yes it's a good choice because the implied volatility is so high.

    • @RicardoHernandez-zr1pw
      @RicardoHernandez-zr1pw 2 роки тому +1

      @@scottreesetradinginvesting7936 So have you bought it yet or will you buy it this coming week?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      @@RicardoHernandez-zr1pw I've been selling naked Calls on it to continue playing it to the downside. I don't expect to go long on it...just want to take advantage of its high implied volatility.

    • @RicardoHernandez-zr1pw
      @RicardoHernandez-zr1pw 2 роки тому +1

      @@scottreesetradinginvesting7936 You could also do that with TQQQ or SOXL etc. They always have high IV.