Transcription
Paler is up over 300% this year so far, and a lot of my students are asking me, "Henry, is it still a buy at these prices?" Even though Paler is one of the best companies on this entire planet when it comes to AI, I would say there's actually a better way to get into Paler right now. Given that Paler has pulled back just a little bit, we actually have a very good opportunity in front of us to sell put options and buy Paler here for a much more favorable and optimal price versus just buying the shares alone.
All right, guys, we're going to jump into my screen right now. You will notice something very special about the portfolio today. Well, we're actually 20K short from that very special moment of what I've been saying—we're about to hit 4 million in the portfolio. So we're on track here to make some big returns, and I would say that Paler is still one of my very favorite positions.
Actually, I'm going to make a live trade right now on Paler. It's finally a time when the market's open. It's late in the evening for me, but the market's open, so we're going to make it. Now, check this out. On Paler right now, my average cost is $21.70. This is a very low price compared to the stock, obviously at $60 per share; it's at $61.89.
So I'm going to show you how to get a much more favorable price. Now, guys, just to remind you real quick, I'm not going to spend too much time on why I like Paler here, but the three reasons are:
1. I see a lot of billionaires buying this stock. I’ve taken a look at Ken Griffin of Citadel. He posted his 13F—not that he wants to post it, but big organizations and hedge funds with $100 million in assets have to report what they're buying and what they're selling. Ken Griffin is buying Paler hand over fist, guys, hand over fist. He's buying this stock, and I think that's going to be a really interesting catalyst because he increased his position by 100%.
2. Earnings are not soon on Paler here, but I'm already starting on this channel—I'm already beginning two and a half months early. Mark my words, we're going to have some amazing earnings coming up, and I'm going to give you a price target in a future video if you're subscribed.
3. Today, we just want to cover how to sell puts and enter into Paler for a good price and get that run-up because I think due to the Trump rally, as well as just end-of-year stuff, I do see the market continuing to rise. We're in full-fledged bull market mode, guys. The market I see is very hot, and I'm actually not worried right now. I think we're going to get a really hot rally, as well as the January effect.
The January effect is something that a lot of experts call an anomaly. Basically, this January effect anomaly means the stock market goes up in January. So, hey guys, for the next couple of months, we have to make as much money as possible—hand over fist, guys, hand over fist.
The second reason is topping estimates. I saw that the revenue for Paler was astronomically high. I've already sent in another video that we went $20 million more than expected. The third reason, and I already mentioned it, is actually the earnings coming up.
Okay, so look, I have over $300K invested in Paler right now. This has been a big position for me in this portfolio, and I'm still very bullish.
So look, check out my positions right now, guys. I think that the most optimal entry for Paler—there's actually two optimal entries. The first one, let me tell you, is the 55 sell put. I would easily sell a 55 sell put—go as much as 10% of your portfolio. I think 10% of your portfolio in Paler is honestly a no-brainer. I wouldn't say that that's anything crazy or out of the norm.
We want to have 10 to 15 stocks in our portfolio; that's just a typical and standard amount. Because when I was covering risk management back in college, I took a risk management course. The numbers showed that 12 stocks in your portfolio are basically diversified. If you get 13, 14, 15 stocks, yeah, you get a little bit of benefit, but it's diminishing returns.
Think about it: As you eat a first hamburger, you're really hungry. That first hamburger tastes like heaven, right? You're like, "Oh God, thank you so much for this hamburger!" But the second hamburger, you're like, "Well, this is still good." The third hamburger, you don't want to eat it because you're full, right?
The same thing with diversification. That's the same way that it works; you get diminishing returns—which is one of the standard principles in economics. Hopefully, I'm not talking too fast. I just want to hit you guys with some fast, actionable insights on Paler and how to make more money because I do respect your time.
So, we're going to keep this video short. A 55 sell put on Paler—that's what I would do for $12.20. Let me actually show you why I'm doing that. I'm going to trade Paler options, and I'm going to sell a put option. I'm going to show you the Delta because I think Delta is really important to understand when it comes to Paler and any option that you trade.
Knowing Delta tells you so much about the option. A Delta tells you the chance that the option will go down to that price. So if I go to the 55 option right here, I'm going to open up some more. Watch; I'm going to open up a lot more Paler right in front of your eyes. I'm not BSing you guys. I have $300K in the stock. I'm going to open up some more right now just to show you how much I support this stock and how much I believe in it.
Guys, I don't make videos on stocks I don't believe in. Even if I can get a lot of views on this channel, I do not do that. I'm not going to sell out; I'm only going to tell you stocks that I 100% have my money in. That's it. If I'm not talking about it, if I don't have my money in it, I'm not going to recommend it to you guys. I'm not going to cover that stock; that's not how I am. For me, it's all about the truth.
Okay, so here's the 55 sell put. Look, the Delta is 0.21. That means there's a 21% chance of Paler reaching this price, which honestly means that I have an 80% success chance on this trade and a 21% chance that, basically, Paler will go below 55. But I'm not concerned. $55 per share, guys, is a phenomenal price.
Selling put options is what I personally call a non-losing strategy. That's what I want for you guys. I want you to have that safe passive income, but I also want you guys to have non-losing trades because I hate it when investors go into a trade and lose money. No, I want to put you in trades that are so easy to make money that you just basically profit, and you don't have to do too much work.
Okay, that's why selling puts for me—you’re going to get an optimal entry into Paler, and that’s where you really maximize profits. If you're looking to maximize profits, you don't always want to buy the stock at the current price.
So instead of buying it at $61.81, I already covered a video on LEAPS, but I'm also going to just say we're going to sell a 55 put option right here. And, you know, I said I'm going to go big, guys. I said I'm going to go big, so let me go 20 contracts here, and let me see—that's going to be a $107K bet, and I'm going to collect some income right here.
Most importantly, the income is nice, guys; that's cool. But what's really cool is if Paler pulls back to 55 or 56, I'm going to look like a genius because I'm getting paid to wait. That's one of my sets: I'm getting paid to wait or I'm getting paid to enter. So either paid to wait or paid to enter; either way, this is going to be a beneficial position.
So I'm going to go for $1.37 just because I want to do this quick. I can go for $1.38, but I'm trying to get filled fast, so I got 16 contracts filled right there. Boom! I got 20 contracts filled. I'm going to post this in my Discord community right now as well. Every single trade that I make, I post in my Discord. We are fairly full right now, but we still have some one-on-one spots open, so if you're interested, hit the first link in the description.
But look, I have another play for you on Paler. I said I have two plays for you; I have a short-term play right now—December 20th. This one, we've already opened up $2,700 in cash collected premium. Now, that's $2,700 in cash collected premium, and I count that as good as mine because that has actually entered my account. I could have shown you my investing balance actually before I made this trade, but I had $28K; now I have $31K.
So now my portfolio is at $31K, but it was at $28K. But look, I'm going to make another trade. You’ll see this trade, though. I'm going to make it a little bit smaller. I don't want to tie up capital; you know right now, I want to make fast money. I think right now there are really, really good opportunities; that's why I'm going for fast money.
But look, I could also go for a little bit safer of a play. I know some of you guys are in that retirement zone where you're really going for that safety. So I just showed you a really good play on Paler. Now I'm going to show you more of that safe passive income approach where you can have both, guys. You can have both: you can have the 55 sell put, but you can also go for the 50. This would be a really low Delta.
Now, to be honest, the 55 is going to make you a lot more money, but I'm just going to show this for some of the retirees. So, 50 sell put, I'm going to go continue. I think this is good to have diversification across different expiration dates.
All right, something that Goldman Sachs taught me—no other YouTuber talks about that because they didn't work at Goldman Sachs; they don't have that experience there. When I was working with large portfolios, I’ve seen really big portfolios of CEOs that had $50 million, $150 million in their own stock, and I basically had to be an expert at risk management, understanding their portfolio.
Now, I wasn't going to the meetings, guys. I'm being really clear—I was not a financial adviser. I'm not a financial adviser now, and I was not a financial adviser before. I was working with financial advisers and private wealth management, as well as a financial analyst, a hedge fund analyst, and a quant analyst. I had four jobs, and I worked in consulting as well.
So I've had a whole lot of jobs. I was a big fan of getting experience, learning everything I could, and then applying it in my own portfolio. And that's why, guys, we're at multiple full seven figures. That's because the shortcut is knowledge and mentorship. Knowledge and mentorship—I paid a ton of money for knowledge and mentorship.
So look, we're going to go ahead and do three contracts right now. Nothing crazy; I just want to show you this example, and I want to put my money where my mouth is and go heavier on Paler. This is going to be me. I'm going to get $335—nothing crazy. But look, when you have positions like this on Tesla, on Nvidia—you guys know that I've been right all along with Tesla, Nvidia, and Paler.
So I just posted that trade. You see now I have three contracts that I sold short. This is a very low Delta. If you want higher income, I would go for the 55 Delta. If you want really high Delta—actually, let me give you a third play right now—a 60 sell put would also be a fantastic entry, guys. It would be a fantastic entry.
This is a little bit higher on the Delta—this is a little bit higher than my sweet spot. My sweet spot is 30 Delta here. The Delta is a little higher than what I like, but still, this would be a very good entry, and $4 would be about a 7% return in 60 days.
Okay, a 7% return. I just know 7 times 6 is 42, and this is 425. So we’re at a little bit over 7% return. If I click this right here, you'll see that I have to put up about $5,500 worth of capital. Now, let me tell you why—the strike price here is 60, but I'm collecting about $4.25, which makes my total capital outlay $5,575.
Don't worry about the max loss; the max loss is incorrect. That max loss just means if Paler went down to zero, you would lose $55,000. But Paler is not going to zero, so forget about that. You don't have to worry about it; it's not going to happen.
So there we go. That's the place that I would have to maximize Paler and have a better entry into Paler stock right now versus just buying the shares. I think this stock is going to have really good performance, so if you're trying to make more money hand over fist, I hope you've already been making money hand over fist.
We've been growing the subscriber base here on this YouTube channel a lot, and that's because we've been making a lot of money. So I hope to continue that success with you guys. Let's keep making money. Please subscribe and check out this video right here if you want to level up your option trading.