Great info! The #1 lesson I’ve learned trading options is to not quit my day job.

Good stuff. Those risks are one of the primary reasons I trade much shorter duration contracts, and I manage them daily like an actual job, even though In too see my options trading as a side hustle amongst my other income streams. I also often close out at set profit and loss percentages regardless of remaining time to expiration. Lastly, sometimes the best trade is no trade at all, such as Fed Weeks. Thanks for all of the great rational, sensible videos.

"Rolling" options should've been mentioned here. It's the 'ace in the back pocket' to option sellers. Another super important factor is to always have 10-20% of your entire portfolio in dry powder.

That is why you only put to work the amount needed until you get the premium needed to cover your life expenses and inflation, the rest you keep it in cash.

thanks Dave....... for sharing your insight

100% agree with this. If you have the time and enjoy the process, by all means explore the side hustle approach.

Just put 300k in spyi and call it a day

Good video ! Nice advices to be diversified !

I actually think there is risk retiring on a small account in general regardless of options. The FIRE movement pushes retiring with less and I know everyone’s situation is different, but that could be problematic. I am similar in that I’m predominantly a long-term dividend investor but based on your comments in this video I rely on selling options more than you do and it’s been a game changer. I have Portfolio Margin and I’ll treat all of my wheel positions like an investment so I don’t take realize losses just because a stock moves against me or I get assigned on a stock that’s the difference. I view my wheel positions, no different than my long term dividends stocks that may be down like MCD is right now. I’m still getting my dividends just like I get my options premium on stocks that may be down. Once you learn that its an income strategy that changes everything. Need to shift from a “trader” mindset to an investor mindset. But I do agree, and I tell people all the time you can’t do this with a small account usually but that’s true no matter whether you’re buying crazy stocks or trading Options. You need a certain size account to be successful doing anything.

I agree with a lot that's being said on this topic. In my opinion, options require a decent sized account and a plan. Without these two things you'll likely fail. You can only do 4 things with options: buy/sell calls and buy/sell puts so making a trade is simple. However, if you don't have a plan for that trade you're going to have problems. You need to know what is the goal and how you plan on achieving it. You need to know what you will do if it goes up, down, or sideways. You can't use all your capital so you need to know how you are going to scale into and out of a trade. Trade and capital management are crucial in options trading and that's tough to impossible to do with a small account.

Great Video, upfront honest, I had so many others trying to upsell the potential to make big cash,

Couldn’t agree more. I’ve seen lots of new KZfaqrs claiming you can retire trading options with less than $100k, $200k etc. I just don’t see how you would do it unless you take on huge risk and therefore you’ll eventually get crushed

Thanks for the guidance here, Dave! I can easily get "buzzed up" when selling puts and cc and the nice premiums that come with them. But....the all-time highs can't last forever. Correction will come but who knows when and how hard. Best right now to stay quite cautious especially when close to retirement age.

Not true! Im doing it now!!! Around 300k. Selling puts nets me 5-6000 month. VERY LITTLE risk. Not hard to make this.

Very good and true! Good advise!

I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.

Sooner or later, the bill comes due.

If not $200,000 or $300,000, for you what number would you be comfortable with?? $500,0000 or $600,000

IF new investors actually will listen to you, you are doing a great service to them. People tend to get cocky and arrogant when there having some success. In my trading history when the market was shooting up, I was the smartest guy out there and it was soo easy. Unfortunately, in a normal market I was just another average investor, winning sometimes and losing others. Keep up the great info!

somebody is watching invest with henry lol

Good video. I think options are a good tool in the investing toolbox, but I would hate to rely on them as a sole source of retirement income as some strategies are pretty risky. I also agree that they are interesting and fun. I think my wife used the term entertaining when I described what I was doing.

might want to correct the spelling errors in your disclaimer. You know...for legal reasons.

Dave, I appreciate the videos you put out and they have helped me make decisions as to investing in several of them. I just found out a new ETF called AIPI and wanted to know if you can do a review on it. I don't know much about AI. Thank you for your time.

I do not disagree with ur comments but as an only option trader i quantify that my return is about 1.5 percent per month of the capital. What u said about risk is real an sensible. As rule after i blew up an account i keep 50 percent of my capital at the end of day in t bills or cash. Beside puts i do also calls so that can add more to ur income. It is a difficult year cause of the “hockey stick “ type of market with low volatility. Based of my 1.5 % return i think u need about 500 k if u want to play income game. A caveat though : it is a full job for me! Take vacation u make less! Good luck

Dave, any thoughts on alternative investments for accredited investors? Private equity, real estate funds, etc. I’m not real big on bonds, but would like to diversify from stocks. Interested in your thoughts

Options were invented to control risk in either direction the narkets take us. If a trader is worried about a short put position, buy a lower strike put to manage yiur risk. If you dont like the cost of protection and complain about the reduced yield, then are you trading or gambling?

basically avoid selling options but covered calls is ok on a small percentage 20% of portfolio

Thank you for raining on my parade dude... Now let's talk futures.. Like crude. $1K a point 🤔

I’m not trying to insult you so don’t get me wrong, but your giving bad advice. I had a small account ($28,000), and I make about $2,000 a week on covered calls or poor man’s covered calls. So, it can be done.