S&P 500 Covered Calls with a Small Account ($5,000)

Рет қаралды 17,171

7 ай бұрын

How to sell Covered Calls on the S&P 500 with a small account!
I hope you enjoyed this video, I wish I knew this info when I first started selling options, it would've saved me a lot of money and time! That's why I'm sharing it here in this video as I know this knowledge will help someone.
Drop a comment down below if you have any questions or thoughts!
Thanks for watching

Пікірлер: 38

@RoqueTrades 2 күн бұрын

Great video thank you!

@nick_investing 2 күн бұрын

Thank you!!

@Mssilverbelle 2 ай бұрын

Thank you !! I"m just starting on this journey, haven't pulled the trigger until I understand more.. so many vids show covered calls on VOO, SPY etc..( with big premiums) not realistic for starting out . This info is key.

@nick_investing 2 ай бұрын

Ya totally. Gotta be more realistic. Lots of videos on KZfaq show off unrealistic results with options selling but that leads you down a dangerous and risky route, or a route not possible for small accounts like this is! Hope this video helped

@statikfeedbak 2 ай бұрын

Clever strategy, thanks and subscribed. Also, perfect choice for background track with Mind Playing Tricks On Me.

@nick_investing 2 ай бұрын

Thank you! FINALLY someone recognized the track in the background lol

@BM_Holdings 22 күн бұрын

Thank you Nick. This was an excellent video. Very informative and gave me something to think about.

@nick_investing 21 күн бұрын

No thank you! Glad this was helpful!

@raytailor9251 7 ай бұрын

Interesting! New subscriber.

@nick_investing 6 ай бұрын

Thank you for subscribing!

@VolatilityTrading27 6 ай бұрын

Only problem I see is the liquidity. Great find though. I am still looking for something that runs similar to SPY but with the cheaper price because like you said...no one has that much money laying around! haha

@nick_investing 6 ай бұрын

Ya thats the only downside but I still really like it all around, hopefully one day I can buy 100 shares of SPY!

@rgarri6396 Ай бұрын

If you don’t have that much, maybe you shouldn’t be doing option!

@brucef1299 7 ай бұрын

Interesting. Thanks for taking the time to make the video. Do you have any concerns on the bid/ask spreads and trading volume of the options available for SPLG?

@nick_investing 7 ай бұрын

Thank you and great question. Concerning the bid ask and volume: I do not. If you take a look at OTM calls on SPLG wether that be the nearest expiration or December expiry you can see there are a ton of buyers at the bid and a ton of sellers at the ask. For example: $52 Call 12/15 has 721 buyers at the $0.25 bid and 1,706 sellers at the $0.35 ask. SPLG’s options trade in 5¢ increments so every order follows that rule and that can make the bid ask seem wide when in reality you can get fills every time by going with the mid price or if it’s just a 5¢ overall bid ask spread by going with the natural price (selling at the bid buying at the ask). I know because I’ve been selling $KEY options for quite some time and those options also trade in 5¢ increments and I’ve had no problems getting a fill and $KEY has WAY less volume option wise so SPLG should be smooth entries an exits but you do need to place orders with that 5¢ rule in mind which can be annoying especially when trying to close a trade as a seller that is worthless (must either buy to close at .05 instead of the usual .01 or let it expire worthless for the full premium). Hopefully that answers your question, if not just let me know!

@benfrombc Ай бұрын

if your option is assigned , can you hold like stock or (SPY) . or is this cash settle like SPX ? can you make a video of how to compare 2 chart at the same time on tradingview like you do. i want to compare them with SPX chart.

@nick_investing Ай бұрын

No it is not cash settled, you hold shares of SPLG which tracks the S&P 500 exactly so it is not cash settled like SPX. Also for comparisons I would but it is super simple luckily: Click the plus in the top left next to the symbol and you can add any other symbol on top. Hope this helps!

@TheTechCguy 24 күн бұрын

Build a savings and low risk investment net, too. Diversify across all sectors and markets. Just in case you head south with these options trades. 👌

@nick_investing 24 күн бұрын

Love the advice and don’t worry… I’ve since done that if you’ve seen my newer videos!

@oddpancakegaming4391 Ай бұрын

you will need 6,000 today

@nick_investing Ай бұрын

Yup, S&P has grown quite a bit since I made this video!

@frankmaranville9549 Ай бұрын

Aal would be a good one for a covered call.

@nick_investing Ай бұрын

True true, definitely better premiums, but gotta consider the safety and the diversification that SPLG provides!

@thastockhawk 18 күн бұрын

how can i lose money with a covered call, and is it best to sell call a week out?

@nick_investing 17 күн бұрын

If you always sell above your cost basis you can never technically "lose money" but you essentially cap your upside and can miss out on additional gains that you would be able to participate in had you not sold that call if that makes sense. Also typically it seems 30 - 45 DTE is best but make sure to do your own research!

@jimmypui5293 2 ай бұрын

new subs

@nick_investing 2 ай бұрын

Always gotta keep learning

@davidshiwota7620 Ай бұрын

@blackmagick77 5 күн бұрын

They have like no open interest and the premium on them is so abysmal

@nick_investing 5 күн бұрын

I agree but its due to a much lower risk of selling the contract in terms of premium as you're diversified over 500 companies. The liquidity I agree does suck but you can still get some nice change 45 - 2 months out.