Hey my hyped up ilus is up almost 100% and I got into that recently. The problem with this guy is he starts off by saying every investor should be doing covered calls. I only have $1,000 in the stock market. Until I list goes from 8 cents to $5 it probably won't be out of the OTC market which is doable they are running up and they are retiring shares instead of doing a reverse split and then they are going to probably spin off a company to reduce the share count even more. So my 8 cent position could easily go up to quite a bit but it's going to need to get up to $5 to hit the NASDAQ and quite frankly by the time it gets out of the OTC market I will have liquidated quite a bit. That's 100x to $4 If I were to put everything into one stock I wouldn't be able to do many covered calls so this really doesn't help me super much. Also with the Delta variant the stock market is going to be shifting quite dramatically in calls are very bad idea. If anything you should be buying high conviction undervalued plays that you think will thrive for the holiday season because of the dark winter remember that summer is the hottest months and that's when the virus has the hardest time doing anything. It's going to devastate us around October and by January I think it'll have been so bad that we're going to hit herd immunity even if vaccination rates stay stagnant. But the concern of long covet is really going to start devastating the workforce if we don't get our s*** together soon. On top of that you only have maybe a month and some change for the eviction moratorium so people are still building up back rent and we've only given out maybe 5 to 8% of the $44 billion some of which is a carryover from last year which is going to devastate rental stocks. On top of that there's no talk about stimulus the Republicans are very anti-government spending and would not be likely to do the spending bills that we need done until it's too late and the stock market hates spending bills and goes bonkers with all this talk. I'm sure calls are a great thing if you time it correctly they can be amazingly profitable but for us poor investors with this much FUD new investors should probably not be touching covered calls right now. Liquidate low conviction stocks and by the dips on high conviction stocks and hopefully next year the confidence in calls will be better right now we should not be reaching market all-time highs with several massive short squeezes going on the people struggling the hospital is filling up. Any of these things could cause a spiral of a reversal trend not to mention if AMC does start to go up to 50 and $60 or GameStop does start to go up to 300 400 500 again we will see massive massive issues. I'm actually primarily focused right now on stuff that squoze in January and still has potential to squeeze again. I'm actually using Robin Hood's share restricted list and then I take the lowest market caps and the total value of dollars that you can put into it on their platform as a gauge of how risky it is for citadel and other market makers and hedge funds because I think that those are the ones that are most likely to quadruple. I won't be putting a lot of money into these but if I can double or quadruple the money I put in a hundred here 200 there, I can build investment Capital to put into more high conviction plays and even if they just go up 10 20% it's not a lot of money sure but you do that over and over again swinging the bottoms and waiting for squeezes I can accumulate.

Thanks!

Thank you for all of your support!

Thanks for watching!

, covered calls are a terrible idea, they will take your profits whent the price goes up. Buy and hold and trap shorts, keep it simple my fellow ape

Thank you so much!

please don't, covered calls are a terrible idea, they will take your profits whent the price goes up. Buy and hold and trap shorts, keep it simple my fellow ape

Thanks!

Thanks for your support!

@@justinclynes481 hi, no I haven't do you know any or can you point me in the right direction?

Thanks for sharing, but have you made any profit whatsoever?

hey thanks for sharing, I just looked her up found her website and left a message, hope she replies soon. I really want to make some profit of this.

Amelia babasa wood is a professional. I have came across her website she’s good

@@anthonyszymon3032 ha ha ha ha ha

, covered calls are a terrible idea, they will take your profits whent the price goes up. Buy and hold and trap shorts, keep it simple my fellow ape

Glad you found this video helpful!

My pleasure, thank you for watching!

Thank you so much!

Happy to hear that!

My pleasure!

Thank you so much!

Thank you so much Dan!

Glad to hear that!

Thank you!

My pleasure!

You're welcome!

My pleasure!

p

q

@@gianluca1971100 mind your P's and Q's

No problem!

Thanks Jerry!

Thanks Lawear!

, covered calls are a terrible idea, they will take your profits whent the price goes up. Buy and hold and trap shorts, keep it simple my fellow ape

Yes, those 0.16 is a 16 Delta.

Stocks with good premiums are the ones with volatility. You want the gain without the risk! The type of stock this is best with are the flat trading stocks with high dividends. But they don't have huge premiums. That's where the dividends come in.

And?

yes it is but its high for a reason, it can turn against you.

That was a mistake I made when I started. Chased high IV. Buying in and getting inflated premium. But the IV is almost always spiked high for a reason. By the time the call expires, what ever caused the spike has passed and now you are holding shares that are down 30% plus. The silver lining is that you can keep selling calls till you cover that loss. At lower premiums of course and most likely a couple months till you break even. It's better to be holding a good stock that experiences an IV spike than it is to buy a stock because it is currently experiencing a spike.

It is usually best to learn using your broker’s platform to get familiar with their interface and margin requirements, which vary greatly. Note paper trading won’t mirror real world trading, as trades that won’t be filled on exchanges will trigger in the paper account.

Hindsight is the only true actualizer. It all just depends what the underlying ends up actually doing man, at the end of the day. All we can do is make the best assumption. If we had fool proof conviction regarding the underlying’s movement, then everyone would just write the perfect terms each & every time; and rolling out/up wouldn’t even be a part of the conversation at that point

, covered calls are a terrible idea, they will take your profits whent the price goes up. Buy and hold and trap shorts, keep it simple my fellow ape

@iBuiltA why not find a stock you love and believe in that's heavily shorted, stick with it and sqeeuze out shorts instead of hoping for a stock to stay flat and get tiny profits, and lose out when volatility happens (likely in this market)

Rollover is just a new position... just take your profit and decide on a new position. ...

@@BALLYRM it is a loss and not profit

thats the real issue. it hampers your ability to trade the stock. not for stocks with possibilities of big gaps. ok for boring go no where stocks...if you wnat to even bother with them

His channel has debit & credit spread videos and how to manage them, posted within the past 8 weeks.

Right this strategy is for more advanced traders with more capital most regular ppl do not have 10 to 15k or more to front for 100 stocks and the option it is better to start off with regular buying and selling options then to get into this strategy without much capital

The deeper in the money any contract is (higher the delta), the less “time decay” will affect its value premium value. That’s because more of its premium value will be made up of intrinsic value. If it’s a .99-1 delta for example (pretty extreme example); you’d still have pretty much most of your equity intact even if the underlying traded flat the whole time, and even if it went against you by a slight amount.

U r kidding right? This man is like the king of option.

@iBuiltA Ye I found it after I commented

Change in price of asset ( call) divided by change in underlying asset ( stock)

it can be, rolling is just closing and opening.

You have to keep track of your cost basis if the stock cost you 90 and you made 10 after 3 trades your new cost basis is 80 so you can sell calls that at 80 or above.

Recall that this is the same risk as just owning any stock. This is why dividend stocks are great; you get paid to hold them (even while they are underwater).

True, I've had my TSLA shares called away on a run up, but they always seem to come back down for repurchase. TSLA is probably not the type of stock to do this with, unless you follow it very closely. Although I did sell a 990 call on them last week that obviously paid off.

you get out when you want, noone can answer that for you.

A personal decision.

A covered call does have some risk, limited but not negligible. When the underlying security price causes the call to be "in the money", and rises above the break-even point (that's strike price plus premium), it is preferable to get out, especially if the underlying stock appears poised to keep going up past the break-even point. When the call is in the money, any increase in the stock value is offset by the decrease in value of the call. At that point, I buy the call back, especially if I am getting close to the expiry date.

@@pierrec1590 Right. But... Consider the opposite scenario. When the stock tanks, you need to jump overboard fast. Yet, you're stuck with the position because the loser stock is securing the short call. So, you're forced to buy back the short call. It may be cheap. But it might not be proportionately cheap So, you may end up giving back a lot of premium while you take a ride.

@@davidchristie3245 When that happened to me, I bought back the calls, and then sold the stock. Glad I did because I would have lost thousands the next day.

@iBuiltA thanks!

@UCan9-RbRNv60GVQ5sLz6I7A I have a 100% win rate. I am in and out of the markets when the time is right. Took years to establish a 100% win rate; it wasn’t always like that.

@iBuiltA it’s possible. But you’ll have to pay tuition.

@iBuiltA you my friend must have not figured it out yet. Give me any ticker and I’ll manage it good enough to take the W when it presents itself. It takes 5-10 years of risk management to finesse the way I do. Have a good day sir.

100% win rate by managing. Not “going all in” silly.

@iBuiltA You my friend have not figured it out yet. Just by your lack of frustration. Relax and go make some money!

Not enough shares and know nothing about them.

thats why you choose stable stocks.

@@no9254me How do you define a stable stock? It is stable until it is not.

@@babycutezz5665 check the beta. Usually dividend stocks sacrifice growth. Yes you are correct past performance blah blAh blah

The person buying your call option is essentially renting the 100 shares from you through the options contract. They get to be long implied volatility and the price of an option goes up non-linearly as the stock price ascends so they are basically using it as an analog to leverage in their portfolio. Many people also use call options because the capital requirements are lower than purchasing the shares outright.

@@drxkalishnakov2464 Appreciate the clarification. Thank You!

But the point of this type of trade is realized income, not unrealized stock gains. Ideally you'd have your buy and hold portfolio with growth stocks and your covered call portfolio with value stocks for income that don't have wild swings. If you have a small account, maybe focus on the former before you start the latter.

@@uclajd thanks do u have trial membership and does it shows when what stock sell put or call I like simple strategy calenders and straddle or butterfly seem complicated and high risk and does this complicated strategy had more return?

@@uclajd do u think is it worth get 30 yrs loan SBA gives me for 3.75 rate and invest in stock market indexes or ETFs?

@@edwinbab705 Depends on the stock! And I think that is illegal, better run it by your accountant. Could be fraud. I do know people who have taken home equity loans to invest. But I fear we are headed for a bear market until the Fed stops the beatings!

Obviously Stocks, I’m a child psychologist who hasn’t worked since December of last year, which made me start looking for passive income, I finally reached out to an advisor for help, following her recommendations, I dumped 30k all in NIO and NVDA shares and call options, Up 200k so far!!! this has literally been a life saver.

@@jenbynature780 I worked with Ashley Elizabeth Alson, She's been in the news when she revived Preemark company in 2019, met her at an annual fundraiser in Boston. You can look her up on the web for info on her work

@@mitchel8329 Wish I could say I can relate but I cant, Ashley 's charge is one time only and very much reasonable when compared to what I benefit from her expertise

@@cupcakekaren7208 lockdown could have been lifted earlier

Crypto! 😀😀

are you a beginner?

@@jeremyt820 Yes but unlike alot of these youtubers I actually read books on the subject buy options trading for dummies covered calls is a form of hedging it does minimize risk but you will need alot of capital in order to do that and also what he didn't mention is you will need a margin account to trade covered calls with TD ameritrade it is required to have at least 2k google it or ask them if you dont believe me. Another issue with what he is saying to do covered calls you need 100 shares of the stock the option is bought separately most beginners do not have that kind of money which is why I say it is a more advanced strategy for people who have it like that.. You can do this and make money if you read up on probability charting understand the Greeks and how they work I suggest getting your information from reading textbooks and going on the tdameritrade site and utilizing their educational guides so your not led astray alot of these youtubers count on you to be confused so you can buy their courses. I dont recommend anyone who is a beginner using a margin anything because all it is is a loan from the broker so you can trade why borrow money from them just use your own money and when your really good at it if you want to use a margin its your life.