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How To Sell Cash Covered Puts On Fidelity | Options Trading Strategy
Рет қаралды 13,199
Күн бұрынIn this video I discuss how I made money by selling a put option on Facebook stock.
How to generate income by selling cash covered puts? This is a strategy I have been using with my Fidelity stock market portfolio. In the last month, I have found that selling cash secured puts is an effective way to generate more passive income, along with dividends. This options trading strategy is also a great way to purchase a stock by collecting premium.
Trading options is all about knowledge and education. In this video I will trade a put option and show you exactly how I make passive income by selling put options on Fidelity. If done correctly you can minimize risk and make good passive income.
I would not recommend options trading to complete beginners. This strategy
took time to learn and practice.
👉🏻My Video On Covered Calls: • How To Sell Covered Ca...
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DISCLAIMERS:
-I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just my viewpoints, and ideas for your entertainment only. Consult your financial adviser.
#cashcoveredputs #cashsecuredputs #optionstrading #fidelity
@joymae 4 жыл бұрын
This is new to me! Thanks for showing us, I use Fidelity too
@ThinkMoneyBenny 4 жыл бұрын
thanks for stopping by Joy, let me know if you have a question, perhaps I can answer it in my next video
@joeybtheman1906 3 жыл бұрын
Make sure to enable real time quotes.
@KenanGrace 4 жыл бұрын
I never sold puts! I knew you wild break it all the way down! Shout out to FaceTime stock on your example. I went from not knowing about puts to understanding all you said. It is worth putting in the effort like you said! I agree buying for the div/yield is a bit dangerous too! 🔥🔥🔥 video bro.
@ThinkMoneyBenny 4 жыл бұрын
my guyyy
@TimRoseOfficial 4 жыл бұрын
*_Hey my friend, saw you in Cathrin's comments and stopped in to say hi! LOVE your thumbnails, really killer job on those man. Keep up the awesome work/vids! You're crushing it! :D_*
@ThinkMoneyBenny 4 жыл бұрын
Tim Rose hey thanks man! Cathrins dope, I see you’re crushing it too! Let’s get it!
@CanadianFinancePro 4 жыл бұрын
Dang, your channel has grown so much since I last checked! I love it, I'm trying to get to 5K by December. Love seeing the portfolio grow. Selling cash secured puts are my favvvvv especially when they expire worthless
@ThinkMoneyBenny 4 жыл бұрын
haha same bro! i just closed out two positions before close because I was up a lot already % wise.... 96% on an SPG put and 70% on a T PUT... wanted to start fresh Monday... thanks for stopping by!
@CanadianFinancePro 4 жыл бұрын
@@ThinkMoneyBenny That's awesome, I'm going back to catch up on some more of your videos, keep at it man.
@ThinkMoneyBenny 4 жыл бұрын
Dope! Lol Im actually checking out your vids as we speak, the $4ook in 1 year vid
@Seoulsearch616 2 жыл бұрын
Thank you for explaining these strategies in terms that are easy to understand. I've never sold a cash covered put before, only covered calls, but videos like yours are giving me the confidence to give it a try. 👍
@JasonBay-RealEstateInvesting 4 жыл бұрын
I've watched several of your older videos and just subscribed. You're growing your portfolio quickly!!
@ThinkMoneyBenny 4 жыл бұрын
Gemz: Real Estate - Personal Finance - Investing that’s what it’s all about growing the portfolio over time, no overnight get quick rich quick stuff, we gotta do this the right way!
@HiddenFreedom 4 жыл бұрын
Kinda bummed about the TSLA split. It was such a great naked put money maker for me! I suppose I can just do several contracts now and it would be the same thing. Nice work Benny.
@ThinkMoneyBenny 4 жыл бұрын
Hidden Freedom Investing I was wondering how these apple/Tesla splits would affect contracts.. welp let’s see what the market brings us in a few hrs
@InvestingwithNickCowles 4 жыл бұрын
another great video ben! you went from 50k to 81k in like a couple weeks. hard work and focus pays off! Thanks for the shout out as well homie. Appreciate all the help you have provided me with over the last year. keep killing it.
@ThinkMoneyBenny 4 жыл бұрын
thanks bro! I'm looking forward to our collab video coming real soon.. 🔥
@JasonBay-RealEstateInvesting 4 жыл бұрын
I was surprised to see it jump up so much also.
@CaseyBurnsInvesting 4 жыл бұрын
That portfolio value is soaring. Filling up these retirement accounts first but I gotta get in there with you.
@ThinkMoneyBenny 4 жыл бұрын
Casey Burns Investing let’s gooooo 💰
@stepclosertosuccess996 4 жыл бұрын
Thank you for sharing. I've been trying to learn more ways to produce passive income.
@ThinkMoneyBenny 4 жыл бұрын
Step Closer to Success producing passive income is what this channel is all about!
@stepclosertosuccess996 4 жыл бұрын
@@ThinkMoneyBenny Great! new subscriber here
@marcblackgen5494 4 жыл бұрын
Can you make a video on how to do a puts or call spread ?
@ThinkMoneyBenny 4 жыл бұрын
hey marc thanks for commenting. you mean buying puts?
@themoneyhack8693 4 жыл бұрын
Hey Benny just got here, love the video! For the record I did smashed the like button and also subscribed! Thanks for sharing! 😃
@ThinkMoneyBenny 4 жыл бұрын
love it! lOl thanks for Smashhingg that like button! i'm gonna check out your channel
@trevorhassel8296 4 жыл бұрын
This is always something I needed help with, great video Benny!
@ThinkMoneyBenny 4 жыл бұрын
Thanks Trev.. we have to get a collab going sometime soon!
@djbyrdbeatz 4 жыл бұрын
Appreciate the video fam. What level of options trading do you need to sell puts on Fidelity? Thx.
@ThinkMoneyBenny 4 жыл бұрын
Thanks for the feedback bro. Level 2* which includes covered call writing, purchases of calls and puts, writing of cash covered puts, and purchases of straddles or combinations.
@djbyrdbeatz 4 жыл бұрын
@@ThinkMoneyBenny cool, thanks for the quick reply. Let's get rich! 💰💰💰
@ThinkMoneyBenny 4 жыл бұрын
💯 lets get itt
@normabates9044 4 жыл бұрын
Thank you for all your information on helping others make money...
@ThinkMoneyBenny 4 жыл бұрын
Simply sharing it forward, I learned so much on youtube myself. Thank you for commenting Norma!!
@wileybatista795 4 жыл бұрын
Something I've always been on the fence about thanks for making things clearer!
@ThinkMoneyBenny 4 жыл бұрын
Wiley Batista thanks bro
@deyashalash7976 3 жыл бұрын
I though you're Eminem for a sec lol thanks for sharing
@ThinkMoneyBenny 3 жыл бұрын
Lol real slim shady
@nicholasgaspard4876 3 жыл бұрын
Great video Benny, how can you tell the current value of your option contract on fidelity, I’m trying figure out when to close out of options contracts early like you did on this Facebook trade? 💪🏻
@ThinkMoneyBenny 3 жыл бұрын
Fidelity will tell you the current value of your contract on the positions tab. However, I like to get a more precise value so I always check Robinhoods Options because they have a more accurate read.
@nicholasgaspard4876 3 жыл бұрын
@@ThinkMoneyBenny thank you sir!
@DaddyDebt 4 жыл бұрын
Thanks for sharing the knowledge! Great video!
@ThinkMoneyBenny 4 жыл бұрын
Daddy Debt a part of the ASH Management Group thanks for the comment!
@MrJwyne 3 жыл бұрын
Good stuff my man! Appreciate this video. Good content
@ThinkMoneyBenny 3 жыл бұрын
Thanks bro! 💯
@Iam_KGray 3 жыл бұрын
Can you explain how you "get out of the trade" when the price shot up? is that a coverd call?
@ThinkMoneyBenny 3 жыл бұрын
you can get out of the trade by buying the contract back. So that would be “Buy To Close” for example if you sold a contract for .50 today, and next week the contract is only worth .10 ..Then you can “buy to close” that contract and you would pocket .40
@Iam_KGray 3 жыл бұрын
@@ThinkMoneyBenny Thank you. I love your channel. Just found you . Trying to learn options - I also have fidelity -
@ThinkMoneyBenny 3 жыл бұрын
@@Iam_KGray Thank you! And welcome to then channel 🚀💯
@friedaspatheseosaspath2373 4 жыл бұрын
I didn't know about this thanks for sharing.New supporter here showing genuinely care
@ThinkMoneyBenny 4 жыл бұрын
thank you for commenting! it's not something many people know about.
@carolinecastro1620 4 жыл бұрын
I need to learn options so i can make more income, dividends are great but this can boost income
@iGetEm420 4 жыл бұрын
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@ThinkMoneyBenny 4 жыл бұрын
4 sure lets go
@saradelossantos7405 4 жыл бұрын
Hey think money after watching Stephen Gardner my favorite guy from my community he is so Awesome. I decided that I would go add subscribed to your KZfaq channel I would like to learn. So thank you on your opinion and I will keep watching have a wonderful and lovely week.😊🍀💕😷
@ThinkMoneyBenny 4 жыл бұрын
Hey Sara! Thank you for supporting my channel, Welcome! 😃
@stocks6003 2 жыл бұрын
things have changed since this video, you should do an updated version
@ThinkMoneyBenny 2 жыл бұрын
thats true! Things have changed
@WorldHAX 4 жыл бұрын
*AWESOME. KEEP IT GOING.*
@ThinkMoneyBenny 4 жыл бұрын
WorldHAX thanks! For sure!
@Bochizzle208 3 жыл бұрын
Hey man, if you are selling a put, I get that you do a sell to open. If you want to close it out early, do you do a buy to close? And if you already collected the premium up front and you close out early, does this just mean you give some of the premium back? Thanks in advance
@ThinkMoneyBenny 3 жыл бұрын
That is all correct 🎯
@Bochizzle208 3 жыл бұрын
@@ThinkMoneyBenny thank you man love your videos. Super helpful!
@alexperoff-investingessent8367 4 жыл бұрын
Holy COW! I'm new to this channel. I had no idea yous started this channel with $100 in Fidelity and now you have $81K??? Please tell me you've been adding extra cash into the portfolio and it's not just from investments??
@ThinkMoneyBenny 4 жыл бұрын
lmao I wish.. I started my portfolio with $100 last year and kept adding consistently. What I have noticed is that the portfolio generates money on its own now. getting started, and the first couple of months sucked lol
@Premiuminvesting 4 жыл бұрын
Really great explanation mate and your backdrop is ridiculously good!! Have subbed. I've never traded options before so this completely opened my eyes!
@ThinkMoneyBenny 4 жыл бұрын
Glad it was helpful! and thanks for the comment bro!
@kimberlygiannola4677 4 жыл бұрын
Hey Benny, love the channel! What level of options trading do you need in Fidelity to do the cash covered puts? 2 or 3? Thanks so much for the content 👌
@ThinkMoneyBenny 4 жыл бұрын
Hey thank you Kimberly! 😊 you need to Level 2 to be able to sell cash covered puts on Fidelity.
@richardgarza4214 3 жыл бұрын
Why are you not using Fidelity Active Trader Pro?
@ThinkMoneyBenny 3 жыл бұрын
I tried it, and I do not like the interface
@StanWithaPlan 4 жыл бұрын
That looks so simple! 😀 I love the video man, keep up the great work! Subscribing for more 😀
@ThinkMoneyBenny 4 жыл бұрын
Thanks for the sub!
@clownanaround7996 4 жыл бұрын
Great video
@ThinkMoneyBenny 4 жыл бұрын
Thanks!
@0519fl 4 жыл бұрын
Congrats Benny!
@ThinkMoneyBenny 4 жыл бұрын
Flavi thanks flavi! i hope you smashed that Like button😆
@vincentliang4787 3 жыл бұрын
we can start with a cash covered put, if we do get assigned the 100 shares we can then just starting selling cash covered calls?
@ThinkMoneyBenny 3 жыл бұрын
Right, you can start selling “covered calls” 👍🏻
@vincentliang4787 3 жыл бұрын
@@ThinkMoneyBenny awesome thanks for the reply, just subscribes, lets get it
@ThinkMoneyBenny 3 жыл бұрын
@Vincent Liang appreciate that, welcome to the channel lets get it !!🚀
@ULTIMATEhouseTV 3 жыл бұрын
on the Fidelity application, is this considered Level 3? What ballpark #'s on the application qualify for Level 2 and 3. Right now I was only approved for Level 1 which only allows me to do half the wheel (covered calls)
@ThinkMoneyBenny 3 жыл бұрын
This is level 2. I don’t recall what I entered for the numbers, but try 50k as income.
@ULTIMATEhouseTV 3 жыл бұрын
@@ThinkMoneyBenny thanks i put honest #’s the first time. Income greater than 100K, liquid new worth greater than 100k etc. Maybe it’s the # of years trading options that rejected me. I put 0 since I’ve only done options for 1 month. I’ll change the number of years doing options and see what happens. If not I’ll call and threaten to switch brokerages lol. Thanks for the videos also, super helpful
@ThinkMoneyBenny 3 жыл бұрын
@@ULTIMATEhouseTV haha threatening always works lol jk.. yea I think it might be experience based
@ULTIMATEhouseTV 3 жыл бұрын
@@ThinkMoneyBenny fyi to all subscribers, i put 2 yrs experience with options and i got approved for Level 3 haha!
@ThinkMoneyBenny 3 жыл бұрын
Nice, be careful w level 3 they allow for riskier plays
@alphaangel976 4 жыл бұрын
whats the best way I can learn about selling options?
@ThinkMoneyBenny 4 жыл бұрын
You have to start researching and then applying what you learned by taking action to gain experience. That’s what worked for me!
@ASH-mk7tg 4 жыл бұрын
Nice work keep it up 👍
@ThinkMoneyBenny 4 жыл бұрын
The Santos Family thanks yoly!!
@bluesky5587 3 жыл бұрын
At Fidelity can margin be used as a collateral for the cash secured part? thank you... or is it cash or no trade.
@ThinkMoneyBenny 3 жыл бұрын
yes, you can use margin to sell a cash secured put.. how ever, i have not tried this being that I always have a cash available balance.
@STOCKBOY-fu5sd 3 жыл бұрын
That 80K did you make all that from selling cash secured puts? .New to channel your great brother.
@ThinkMoneyBenny 3 жыл бұрын
Na man I wish lol.. most of it is me contributing for the year... getting to 100 is the tough part, then after I hear the compound starts to kick in
@nanchotv 4 жыл бұрын
Hi, new friend. I'm here to be friends with my neighbors. I hope we can support each other for a long time instead of just passing by. I wish all family members are healthy and happy.🍀
@ThinkMoneyBenny 4 жыл бұрын
💯💯💯
@DSKim-ej5uf 4 жыл бұрын
I enjoyed it so much. I give praise and support for making it so well and thank you very much.Thank you for letting me see a good video.좋은 영상 볼수 있게 해주셔서 감사해요.님의 채널이 점차 발전하여 매우 큰 채널이되기를 바랍니다.좋은영상이고 재능있는 사람이라고 생각합니다.님의 채널에 칭찬과 응원을 드리고 날마다 잘 성장하고 성공적인 채널이되기를 진심으로 바랍니다.I hope your channel will develop and become a very big channel. I think it's a good video and a talented person. 나날이 발전함에 따라 항상 님의 채널에 행운이 따라서 채널이 매우 커지기를 진심으로 바랍니다. 영상이 마음에 들어요. 너무 재미있게 보았어요. 너무 잘 만들어서 칭찬과 응원을 드리고 정말 감사드립니다. We sincerely hope that your channel will be praised and cheered on, and you will grow well and become a successful channel every day. We sincerely hope that your channel will grow very large with good luck as it develops day by day. I like the video.
@ThinkMoneyBenny 4 жыл бұрын
nicee
@chiaseyeuthuong4187 4 жыл бұрын
Ban chia se nhung dieu tuyet voi lam
@ThinkMoneyBenny 4 жыл бұрын
letgoo
@Bigace39. 3 жыл бұрын
excellent content thank you very much! I love CSP, always be the casino and sell the contracts. as a viewer, maybe a little less hand gestures, kind of distracting. just my .02, again thanks for the tutorial i'll be subscribing.
@ThinkMoneyBenny 3 жыл бұрын
Thanks for the feedback & welcome to the channel! 👍🏻
@oymisa12 4 жыл бұрын
Those puts sound like a lot of research and work, is it worth it 🤔
@ThinkMoneyBenny 4 жыл бұрын
D-PLAN TV it’ll come naturally with time investing 💯
@curtiskimmley2116 3 жыл бұрын
With this strategy, can you write a put on stocks you already own like you can for a covered call? Or do you HAVE to have just cash in the account in case of assignment? Wondering why its called a cash covered put instead of a Covered put... if the 1st scenario is possible.
@ThinkMoneyBenny 3 жыл бұрын
no, you have to have cash in your account in case of assignment.
@TheRichiesInPeru 3 жыл бұрын
With Fidelity, what option level did you need to sell cash covered puts? It looks like Level 2, but I've heard different things when speaking to them. Some say 2 and some say 3.
@ThinkMoneyBenny 3 жыл бұрын
You need to be at level 2 to sell cash covered puts. Thanks for watching!
@TheRichiesInPeru 3 жыл бұрын
@@ThinkMoneyBenny Thanks. I switched over to Fidelity last year after seeing your video and researching myself. I've been making gains with the covered calls, just gotta get approved for level 2 so I can do cash puts.
@ThinkMoneyBenny 3 жыл бұрын
@@TheRichiesInPeru Nice man, yea it’s pretty str8 forward. If you don’t mind owning the shares, and also don’t mind losing them, then selling covered calls is a win-win scenario. 🚀
@jarangjalan-jalan8818 4 жыл бұрын
Good luck this chanel
@ThinkMoneyBenny 4 жыл бұрын
Jarang Jalan - Jalan thanks man!
@sergiolopez1855 3 жыл бұрын
What level is this in fidelity?
@ThinkMoneyBenny 3 жыл бұрын
LEVEL numero dos ✌🏻
@sergiolopez1855 3 жыл бұрын
@@ThinkMoneyBenny gracias!
@aznkill 3 жыл бұрын
What is the difference between selling cash covered puts and cash secured puts? Is it just the same thing and different name?
@ThinkMoneyBenny 3 жыл бұрын
Same thing, just different name
@Truck--kun 3 жыл бұрын
What level options trading do you need to be approved for to do cash covered puts?
@ThinkMoneyBenny 3 жыл бұрын
Level 2
@xxIndridcold99xx 3 жыл бұрын
The big homey ! Benny Big Faces
@ThinkMoneyBenny 3 жыл бұрын
lets gooo
@joeybtheman1906 3 жыл бұрын
show me how to do it in trader pro
@ThinkMoneyBenny 3 жыл бұрын
I don't use trader pro, I did not like the interface.
@joeybtheman1906 3 жыл бұрын
@@ThinkMoneyBenny for those that use trader pro. To sell puts do the following. Sell to open. And to close it before expiration Close to buy.
@ThinkMoneyBenny 3 жыл бұрын
@@joeybtheman1906 that’s the process on the regular Fidelity platform, or any platform when selling options. (It’s *buy to close)
@joeybtheman1906 3 жыл бұрын
@@ThinkMoneyBenny not true, the interface can vary from platform to platform
@ThinkMoneyBenny 3 жыл бұрын
Sell to open & buy to close, hmm perhaps but it’ll be the same concept thanks for clarifying
@herlans.h9042 4 жыл бұрын
keren banget siap support👍👍👍👍♥️♥️♥️🙏🙏🙏
@ThinkMoneyBenny 4 жыл бұрын
dope
@udarpavarota396 3 жыл бұрын
Am I going to learn how to sell dope or cash-secured puts? Strange choice of musical ambience there, pal.
@ThinkMoneyBenny 3 жыл бұрын
Lol we are here to learn of course! Let’s Go!💯
@ellomon2005 3 жыл бұрын
I've been looking into this for about a week now, and have started an account with 3k. Is there a way of figuring out the strike price I want or is that completely up to me?
@ThinkMoneyBenny 3 жыл бұрын
Jacob Fraser-Ratzlaff it’s up to you to select a strike price you would feel comfortable purchasing 100 shares of. Sometimes I select a strike with a chance of getting assigned to get better premium, and sometimes I pick a strike lowball price, just to collect premium.
@ellomon2005 3 жыл бұрын
@@ThinkMoneyBenny That's kind of what I was thinking, would picking a lowball price result in the same kind of premium as a higher price? Also, is there anything against selling the stock at a later date for a higher price if I do end up getting it assigned? (The money I have put in is still waiting for the check to be cleared so it hasn't settled yet. I've got time and will take it to do research before actually making a purchase)
@ThinkMoneyBenny 3 жыл бұрын
@@ellomon2005 no the premium is different for each strike price, the farther out you go, the less it will be. you can look at the options chain for that stock and see. if I do get assigned I will then sell a covered call on it, thus collecting premium that way as well until I get exercised. this is called the wheel strategy.
@ellomon2005 3 жыл бұрын
@@ThinkMoneyBenny Okay I think I am getting the picture. I was just reading a reddit post about the wheel strategy that's how I ended up at your videos, googling terms from that video to make sure I understood them. Thank you for the information it really is helpful! I'll definitely continue to watch.
@ThinkMoneyBenny 3 жыл бұрын
Jacob Fraser-Ratzlaff thanks man, I remember my first try, you just have to do it to get the hang of it. Which stock are you looking to try it on? I’ll give you my thoughts...
@DonavanMcdabb 4 жыл бұрын
What’s the link to your discord ?
@ThinkMoneyBenny 4 жыл бұрын
discord.gg/BWJXhF You can find me here along with a great group of guys
@DannyCastro 4 жыл бұрын
Great video! Just subbed, we should work together!
@ThinkMoneyBenny 4 жыл бұрын
thanks for stopping by man, welcome!
@xquakexx 4 жыл бұрын
Why does Jeremy still not talk about WKHS
@ThinkMoneyBenny 4 жыл бұрын
what do you mean
@xquakexx 4 жыл бұрын
@@ThinkMoneyBenny I mean what I said.
@ThinkMoneyBenny 4 жыл бұрын
David Z i mean which jeremy lol
@xquakexx 4 жыл бұрын
@@ThinkMoneyBenny Who is the first person you think of when I say Jeremy
@ThinkMoneyBenny 4 жыл бұрын
Lmaoo i know that you know, that I know! But im trying to see where you are coming from...
@ivan23rosales 3 жыл бұрын
What level do you have to be? And how to you increase your level?
@ThinkMoneyBenny 3 жыл бұрын
level 2, and it depends on how you answer the questions on the application. 💰
@ivan23rosales 3 жыл бұрын
@@ThinkMoneyBenny any tips?
@ThinkMoneyBenny 3 жыл бұрын
hypothetically, if you were to say you’re very well experienced in the application.. that would help. They will probably review your portfolio balance & cash amount too.
@jtran3546 Жыл бұрын
smash smash smash! what are you the 'hatchet killer"?
@ThinkMoneyBenny Жыл бұрын
Lmfao
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