Options Trading for Beginners FULL FREE COURSE (4 Hours)

Welcome to my multiple-hours complete free option trading course for beginners. Yes, it's a couple of hours, but this is going to be totally worth it. I noticed that nothing on YouTube right now goes into detail enough and explains things simply, with examples, with managing closing and opening positions profitably. I want to make sure that this course teaches you everything, even if you're a complete beginner, helping you understand how to make money option trading.

Here is the full list of timestamps for everything I'll be covering in this course, as well as where you can find them on the YouTube play bar. I could easily charge, and I have charged, thousands of dollars for this type of education, and now I'm giving it away for free. This full course is especially designed to take you from a complete beginner—even if you don't know anything about option trading, even if you don't know what an option is—to a confident option trader equipped with the knowledge to create a safe, consistent, and pretty much completely passive income online. This way you can retire early with options; that's exactly what I've achieved after many, many years.

Yes, it does take years to actually scale up a portfolio to seven figures. I'm not going to sell you a fake dream and tell you that this happens overnight or in one week. This definitely takes time but is worthwhile because this is something that you can do on the side. It only takes about 1 hour per week to actually scale a passive, safe, consistent income. I have 10 years of experience. I started at 19 years old with just $2,000; now my portfolios sit at $2 million, another $2 million, and I have another portfolio that I'm scaling with a small amount of money. I went from pretty much $2,000 in my bank account to having a multi-million dollar portfolio, allowing me to retire before the age of 30 and travel around full-time. And I don't say this to brag; I'm saying this to show you that anybody can do this. So, with that being said, let's jump into it and learn how to actually trade options.

First of all, what is an option and how is it different from a stock? Well, we all know what a stock is, right? When you buy a share of a stock, you're just buying a really, really small percentage of a company, and you ideally want that company to rise in value. So say you buy a share of stock of Apple; when the company raises its value, so does that one share of stock that you bought. So if you bought a stock for $100, you're hoping that it goes up to 101, 105, 110—that's what you want to happen with a stock. Now let's say that you want to buy one Apple option contract. Yep, that's right; you have to buy an option in the form of a contract instead of a share. Okay, so an option is very similar; instead of buying the shares, you're buying an option, and that option just gives you access to those shares. So when you buy an option, you are betting on the stock also going up, but it's a little bit different. Okay, say you only pay $100 for an option; that option can raise a lot in value. It can go off from $1 to 200 to 300; you can many times your money versus a stock. It's a very small amount of money, the same amount of money, but it does not rise and fall the same as an option does. See, an option is almost like a leverage tool. Okay, imagine I have a lever here. Okay, if I push the lever a little bit, this option value goes up a lot. It also does go down a lot if the lever is not going up, whereas a stock, there really isn't a lever; it just goes up and down.

So here's how it works: Let's say a stock is trading at $50 per share, and you really like that stock; you think it's going to go up a lot in the next 30 days. In fact, you like it so much that you want to buy 100 shares of it, but that would be pretty expensive, right? That would cost you $5,000. Now I see you looking at this stock, and I already own 100 shares of it. I like this stock too, but I don't think it's going to go up past a certain amount in the next 30 days. So I say, "Hey, I'll make a deal. I think the stock will stay below 55 in the next 30 days. So if it goes to $55 or higher at any point in the next 30 days, I'll give you the option to buy my 100 shares at $55 per share, even if it goes to 60 per share; you can still buy it for 55. And if you decide to exercise that option, the broker will buy it at $55 per share for you, then immediately sell that at the market price, and you get to keep the difference." So you don't have to spend any money, and you still get the same benefit as if you had bought 100 shares of the actual stock. But if you want that option, you have to pay me $200. So if the stock goes up to $60, you have the option to buy it at $55 using the broker's money and immediately sell it at $60 for a profit of $5 per share, and since I have 100 shares, you will make $500. But since you paid me $200 for that option, you actually make 300, which is still pretty good. Now if you're wrong and the stock goes down, stays flat, or doesn't go above 55, you don't lose any money because you never owned the stock in the first place, but you do lose the $200 that you paid me for the option. That's essentially how an option contract works. That specifically was how a call option works, and there are also put options where you're betting on the stock going down, but we'll get into that in more detail later.

Now let's go back to the same scenario, but this time I'm going to teach you the option terminology that we use. Strike price: So in that scenario, 55 was what we call the strike price. The strike price is a price that the buyer and the seller agree on at which the buyer has the option to buy or sell shares of a stock. If the stock goes past the strike price, we call it "in the money"; otherwise, it is considered "out of the money." Expiration date: The expiration date is the date at which the buyer no longer has their option. So in that scenario, I kept mentioning 30 days; that means you had 30 days for the stock to hopefully go above $55. But the expiration date can be as short as one day or even zero days, or even as long as multiple years. So there's a whole lot of differences in the expiration date we'll be talking about later. Exercising/assignment: When the buyer exercises their option, that means they're going through with the deal; on the other side, the seller will get assigned if the buyer exercises their option. So let's talk about the buyer and the seller. Okay, for every option, there is a buyer—someone who's buying that option—and a seller who is selling that option. The buyer and the seller are basically betting against each other, so only one person can win. That's why they call this a zero-sum game; that's why option trading can be hard if you don't know what you're doing. There are a lot of sharks out there trying to make money, but the good news is Uncle Henry here has been doing this for a very long time, so if you stick through this video, I'm going to show you how to actually be a winner in this overall game. When different things happen to the stock—like it goes up or it goes down or if it even stays completely stable—this will depend on the movement of the option, depending on what type of option contract that you have. And there are only two: there's a call option and a put option. Okay, depending on this movement, both people can make money, or both people can actually lose money, depending on the option that they are buying. There are calls and puts, which is very simple, but you can also combine calls and puts together, and we're going to talk about that in a little bit, so don't get confused just yet. We're going to keep it very simple, and we're going to build up and scale as this video goes along, and we're actually going to cover even the more advanced stuff later on in this video. We're going to talk about spreads; we're going to talk about buying strategies like bull call spreads, iron condors; we're going to be talking about a lot of good stuff, as well as technical analysis, as well as managing your position properly, cutting your losses, making more profits. We're going to get all into that in just a moment. So this is much more different from your standard stock trading strategy; an option trading strategy, or the option market, is a little bit different, only in the sense that options move differently, but the market is very similar; it's still the same stocks; it's still the same movements up and down on the stock; just the option behaves differently. If you have a lot of questions, don't worry; that's completely normal. I'm going to answer all the questions you might have by going into my Robin Hood portfolio—this is a trading platform, by the way. You're welcome to use any trading platform that you want; I'm just the coach showing you. And if you do want to learn from me personally, there is a link in the description for my personal Discord community.

So now that I have Robin Hood open, I'm going to search up Apple and click "trade Apple options." Okay, so I'm going to go to the top here, going to type in AAPL. So AAPL. Once I click into that, you can see I do have 7,000 shares right now. I'm going to go into "trade" right here on the bottom right, in "trade options." So right here you will see right away there is something called an "option chain." Essentially, there are different expiration days, and this does look different if you're using a different broker. So I can go to May 17; I can go to May 31. Okay, and regardless of what expiration I go to, it still says "Buy, sell, call, put." Okay, so essentially, it's always going to be saying buy or sell a call or put. So there's only four things you can actually do. Now don't get intimidated by this screen; I know it looks very complicated to beginners. Only pay attention to the numbers I'm explaining, because if you try to take everything all in at once, you might get confused. So as you can see at the top, you can either buy or sell an option; you can buy or sell a call or put option. So let's talk about buying a call option on Apple. If I go to "buy call," now I get to select the strike price. Okay, so I can pick a different expiration day. So whether I go for—let's just say we're going to go out into the future—and we're going to go for October 18. Okay, so if I click October 18 right here, that is the expiration day; this option will be good until October 18. Okay, that's when this option officially expires, and that's it; that's when you actually have your profit or loss if you hold the option to expiration. Now this may sound a little bit confusing, but although options expire at certain dates, you're actually able to trade them before or after that expiration date. So let's say that I go ahead and I buy a call option; let's go to 190. Okay, you can see here if I click into this, it will give me the option to buy Apple 190 call for 10/17 expiration. So the price that I picked here, the 190, is called the strike price; that's basically where I want Apple to go to. So if Apple goes to 190, that means I'm going to break even. All right, if it goes above 190, that's where I can make money. The expiration is 10/17; that's when this option expires, and that's it. So hopefully I go above 190 by the 10/17 expiration, or ideally I'm way above the 190 call strike price. So you'll notice a few other things on the screen right now. So you can see that there is a bid; there's an ask. Okay, if you're buying an option, you will have to buy closer to the ask; if you are selling an option, you will have to sell it closer to the bid. Now we're just talking about buying an option right now, so if I go to one contract and I go into this limit price and I click nine—I'm picking nine because typically when you see there's a bid and then an ask, you're typically going to get the middle price. So right here it's $8.90, 9.10; you're going to get filled right in the middle for $9 in most cases. You can see here there is a max cost. In my program and my Discord community, I'm teaching people how to mainly sell options for income, but for this example right here, this is a buying strategy. Now I don't love buying strategies because buying strategies are very high reward but also a lot higher on the risk versus selling strategies. We'll talk more about that later in this video, but in this example, this will cost you $900. There's a little 3¢ fee, regulation fee from Robin Hood, now that they just recently implemented. So if I go to review this order, you will now see that I can easily just swipe up and submit this order, and this order would buy me one call option for 190 strike expiring in October 17, 2024. If you're watching this video in the future, by the way, this is the same logic, the same thought process that you can apply over and over again. Option trading doesn't change; in fact, I've been using the same option strategies for the past 10 years, and I've been very profitable. Now I want to go back here and talk a little bit more about mindset and how to manage a strategy just like this. So if you go into the middle here, you'll see that I have an expiration day that is October 18. All right, now this is an option that expires many days into the future; you can also trade options that are 30 days from expiration, heck, one week from expiration, one day from expiration; you can even—even trade options that are expiring on the same exact day. That means that I have an option to buy Apple here that's going to be expiring in many months. However, I can also go to a different expiration day; for example, I can go for, uh, May 10. As I'm making this video, that would be a very short expiration day. You'll actually even notice here that if I click the 182-182 call option here, it's going to be trading for a lot cheaper; it's only trading for $2.70 per contract. See, the thing is about options: the farther out you go, the more expensive they get. The reason why they're more expensive is a lot more stuff can happen from now until that long expiration day, but if you buy options that are very short-term, they're going to be a lot cheaper, and that's because the market knows, and they're pricing in a proper premium to account for the risk that a buyer or a seller is taking. Now to have any option to buy any call option, first I need to pay for it, and this is what the number in the green right here looks like. So it's either 2.70; if I go out farther out of the money, it's going to be cheaper; it's going to be 1.48 or 71 cents even. So the farther out of the money you go, the cheaper the premium becomes. You can see that the price is different for every single option; the price of the premium is calculated based on multiple different factors; one of them is the strike price. The further in the money the strike price is, the more expensive the premium is. So if this option's in the money—basically, since you see Apple's at 181—if I were to buy a call option that's at 180, it's going to be more expensive; if I buy something that's 175, it's even more expensive, because right here it already has intrinsic value. See, options are really pricey based on two—two different things. Okay, there's intrinsic value; there's extrinsic value. Intrinsic is how much are we already in the money? All right, so here at 175 call option, it's already in the money by $7; it's already in there; Apple's already above 175; that's the intrinsic value. Now the extrinsic value would be this: if I go up to 190, 34 cents right here is pretty cheap, but why does it cost anything? Well, there's no intrinsic value at all; Apple is not at 190; it's not really even that close to 190, but the reason why this has value is because there are a few other factors at play. Okay, one of the factors is there is a chance that it'll go into the money; there is a chance that Apple will go up, and specifically as you see on the screen right here, the delta is .2; that means there's a 12% chance that this option will go into the money. Isn't that really cool? There's a 12% chance; you know exactly, based on the delta, what the chances are of the option expiring in the money at expiration. So by this expiration of 5/10, okay, May 10th, there is a 12% chance that Apple will be at 190—not that much—however, it's something; that's why this option is so cheap because there's actually a small chance that it'll go into the money. Now this is one of the extrinsic values. Okay, there are also some other extrinsic values like volatility. Okay, if volatility increases, this option will also increase. So what's really interesting is you can wake up one morning and realize that your options are worth a lot more money, and that's because option volatility actually favors the option buyer. So when the market's more volatile, options become better because you don't want to take the risk of buying shares; you get a much better price just buying a small amount of an option, and if the market is crazy, this option can make a lot of money, and that's why these options become more valuable with higher implied volatility in the market. To help you remember, you can just think of "in the money" as all the strike prices that would be favorable to you, where you've already made money if it were to be at expiration. So if a stock goes up a lot—let's say you have Meta goes way past, you know, your strike price is, let's say, 500, and your strike price is 450—perfect; that means you made a lot of money if you have bought a call option. Now on the flip side, the further out of the money, the cheaper the premium is going to become because I'm only getting the option to buy the stock at a more expensive price than I could get it at the market today. So if I'm going to be paying for an option, I really don't want to pay that much because I'm essentially taking a bet: "Hey, this stock will go up a lot, I think, and I'm willing to pay x amount of dollars for it to potentially go up, and if it goes past my strike price, becoming in the money, then I'm going to be profitable, but if it doesn't, I lose whatever I put in for this option." So you can lose 100% of what you pay for an option. So for that to even be worth it, I would need the stock to go up and be out of the money from, you know, being out of the money to becoming in the money, and that means the stock may have to move 10 or 20%; it just depends on your strike price. But typically, if a stock goes up by 5%, an option can go up 10, 15, or 20, even 25%, easily, and that's because with options you're putting up a very small amount of money. You do need the stock to go up a lot in the case of a call option, but if it does go up a lot, you start multiplying your money from, let's say, you know—let's go over another example actually, 'cause I want to show you what this would look like. All right, so I'm going to pick an option, let's say May 17, and I'm going to buy an option right here at 185. Okay, so you can see here that it says "break even"; the break even is 187.16. Now the reason why you have this break even is you take the strike price of 185, and then you add $2.18 to get 187.18. Robin Hood is kind of mispricing this by 2 cents here, but at that point, that's where you break even. Now if it goes up, for example, to 190, you have a total gain of 190, okay, minus the 185 strike price, which is $5. Right, you paid 2.18; you have a profit of five; you doubled your money. Okay, Apple went from 182 to 190; it only moved up $8, but you, however, have doubled your money. All right, if Apple went up to $200, all right, you would have a total profit of $15; you have put in two, so you went from $2 to $15; you have multiplied your money over seven times. Whereas a stock investor, if the stock goes from 182 to 200, he has made 10%, whereas you have made 700%. So you can see how valuable an option can be. Also, you do have to realize that if the stock goes to 184, the stock investor would make $2; however, in this example, you would actually lose $2 because Apple did not go into the money. In this example, you would be below the 185 strike price that you have purchased; therefore, you wouldn't make any money. Remember, more out of the money means that it's riskier for you to buy that option; therefore, the premium is cheaper. More in the money means it's riskier for the seller of the option and safer for you as the buyer, so the premium—AKA what you pay upfront for an option—is going to be more expensive. The second factor that determines the price of an option premium is the expiration day. So right now you have seen that I had an October expiration; let's just say that we had an expiration of 30 days. Following the same principles of riskier options being cheaper premiums and safer options being more expensive premiums, it's going to be way more likely that an option that is going to be more cheaper is going to expire a lot sooner, and an option that's going to expire a lot later is going to be a lot more expensive. It's also going to be way more likely that an option is going to become more favorable for you, the longer the option is to the expiration date; that's because there is more that can happen. So the market perfectly has these options priced in, and often times a lot of people do say that it's hard to trade options because a lot is priced in. In fact, one of my students asked me, "Should I close a position and open up this one or this one?" They give me a couple different options, and I usually tell them that both of these options are actually very, very similar. Like if we go back to the example of Apple being at, uh, $200 in market price and me picking a strike price of 185—AKA having an option that, you know, I want to buy the shares at 185—if I pick a really long expiration date, like 2 years, it's way more likely that Apple is going to be at $200 or $250 in 2 years. At the same point, you know, during the next 2 days, it probably isn't going to move anywhere, so that's why the option premium is going to be a lot more expensive the longer there is until expiration. The third thing that determines option premium is how volatile a stock is. Now I've talked about implied volatility, so basically, if it tends to go up and down by very large amounts quickly compared to, you know, say other stocks that don't go up that much at all, that stock is going to be deemed more volatile by the market. Okay, like take Tesla, for example; Tesla is a pretty volatile stock because the price goes up and down a lot, so the premium for Tesla is going to be more expensive than a stock which is very stable—say Kraft Heinz; you know, they're selling some ketchup, and the company is very stable; it's not moving up and down, and it's not as volatile as Tesla, which is innovating; it has a lot of deliveries one quarter and the next quarter, you know, Elon Musk says something crazy, and the whole market reacts, and the stock is moving up and down a lot. So that implied volatility is just going to be a lot higher; that means the options are also going to be priced higher. Now that's partially a good thing because if you're selling options, you get more premium, and if you're buying options, well, Tesla moves up and down a lot, so you could make a lot of money. So it is fairly priced, and the market is pricing in this extra movement to compensate for both the buyer and the seller. So it makes sense for both because if we go back to an example like Apple being at, you know, let's say 200, if Apple was extremely volatile and it went up and down by 10, 20, $50 a day, trust me, this option would not be worth a couple of dollars; it would be worth tens, if not $20, because people would be scared. Who in their right mind would sell an option on Apple, you know, right around where it's trading at right now if the stock was moving from 200 down to 100, down to 50? If it was going like this, trust me, that premium would be very high; it would have to really compensate an investor for wanting to sell that option because, again, this is a game of both buyers and sellers, so they both want to be correct, and they both want to be compensated fairly for buying and selling, just like everyone in the world wants to be compensated fairly; so does the option market.

Now here's where options get really crazy, really powerful, and potentially really dangerous, but only if you don't know what you're doing. Remember at the beginning of the video when I said the stock comes in the form of shares, but options come in the form of contracts? Well, one contract actually does not equal one share; one option contract actually controls 100 shares of whatever stock that you choose. But this is different from just regularly buying 100 shares of Apple stock because if I want to buy 100 shares of Apple stock, that's going to be $177,000. But if I buy an option contract, as you already saw, it's a couple hundred; you're putting up a very small amount of money to get a very huge benefit. And if I up this to two contracts, now I'm going to be able to share or control 200 shares; three contracts to 300 shares, and so on. But let me bring it back down to one contract for now. So if we compare the hefty price of $177,000 upfront for the stock versus a total premium upfront of the option contract, which is $2,000, what is better? What seems better to you? It seems crazy, right? What's the catch? How can this option cost $200 and give you the same value? Well, that all depends on moneyness; is it in the money or is it out of the money? And yes, I know, even from the looks of it, it can be really crazy risking $177,000 upfront. Most beginners don't even have $177,000 to buy 100 shares; even if they could buy $177,000 worth, it might be really scary. But an option contract that costs $200 is a much easier way to get into the market and learn about trading and not have to have all that capital to really learn with. You can start scaling with just a couple hundred. In fact, I have many videos on this channel about scaling a small portfolio and actually specialize in taking $7,000, you know, to $10,000 accounts up to 20 and even $30,000 in one year, and that's in my Discord program; I call that my small account scaling challenge. So let's keep going. The regular stock, you're essentially risking $177,000, but for the option, the maximum amount of money that you can lose is the premium that you pay for that option; you can't lose more than the premium. If you pay $200, that $200 is gone, but the good news is you can't lose more than that $200 either. That option is going to make you a lot of money, or that option is going to lose, and you're going to lose your $200. Again, not more than 200 if you put 200 in because remember that you have the option to buy the stock at that strike price. Okay, if you buy a $200 strike call option, you have the option to buy 100 shares. Now look, you don't have to actually buy the 100 shares. Again, if it goes to expiration, the stock is at 250; the call option means that you're buying 100 shares. However, before—right before expiration or any time before expiration—you can just sell that option; it's going to be a lot more valuable than buying 100 shares, especially if you don't have the money to do so. And now you might be wondering, "Well, what is the catch? What are the downsides of how this trade could play out?" That's exactly what I'm going to show you right now. So let's go through some actual real-life scenarios, and I'll show you how they can play out. All right, so now we're going to go into my portfolio, and we're going to look at a stock that is potentially attractive for buying a call option. Now I'm going to be a little bit more serious, and instead of just making an example, I'm actually going to show you something that I actually want to do when the market opens up and why I want to do it. First of all, you can see I do have many options here, and Apple is one of my favorite positions. So I'm going to go through my watch list, and by the way, you should have your own watch list; if you want to be a successful investor, you don't want to look at whatever is hype; you want to look at a specific stock list that you build of stocks that you really like and that you believe in. So, for example, I actually want to take a look at Starbucks because recently—if I look at the one-month chart—you can see that Starbucks went down 17%. In the past month, they didn't do so well. Now some people might say, "Oh wow, the stock is going down," but look, nobody actually knows what happened in the past; the past is the past; what's going to happen in the future? Nobody knows—not Warren Buffett, not a billionaire, really nobody. But I'll tell you this: when a stock goes down by 17% in 1 month, that's actually a very good time to potentially use the option buying strategy of buying a call option because let's say that this stock may have a shift in momentum. Okay, what that means is the stock is going down, down, down, down, and instead of buying shares, which could be a little bit scary—some people call this a "falling knife"—okay, it's a falling knife; the stock is going down; you don't want to catch it; you might feel that pain; you might say, "Oh, I bought it at 73, and now it's at 63; it goes down $10 more; you might feel stupid; you might feel that this is really risky, and in many ways it is, but a call option would be very different here. A call option, you put up just, you know, a couple hundred as we mentioned, and let's say that the stock reverses and it goes back from, you know, 73 back up to, you know, let's not get overly optimistic and say it's going to go back up to 88, but let's just say that in the, you know, not too far future, it might go back up to, you know, maybe 83, 84, something like that; heck, even 80, that's fine as well. So here's what you would do: You'll go to "trade," "trade options," and in fact, I'm actually very, very interested in purchasing an option like this; I think that it's a very good idea, especially right after a stock has a lot of disappointment because what happens is when a stock has a lot of disappointment, and the whole market basically sells off that stock, a lot of people lose confidence. Well, that price is already really depressed; people went from enthusiasm and ecstasy and excitement down to—to really depression and not having any hope. That's actually a good part—a good time to buy a stock or a good time to buy an option because that option is undervalued in many ways. Okay, and in many cases, people are not so optimistic, and when they become more optimistic about the stock, the stock's price, you know, will go up, and the option will also go up in value. So again, I'm going to look at an expiration; now this stock went down a lot really quickly, so what I want to do is I don't want to pick a short-term expiration. If I were to pick an expiration really short-term, I'm not giving myself enough time for the option to actually make money or the stock to recover. So what I'm going to do is I'm going to pick an expiration day that gives me some time. So let's go for July 19th. So as I'm making this video, that's going to give me about, you know, 2 months. All right, so again, I said that I think this stock can go back up to, you know, maybe $80, all right, maybe $8 per share. So what I would do is I would buy call; as you can see here, I'm at "buy call," and I can have a few different options. Okay, I can go for an in-the-money option, so I can go for 65. Okay, you can see here the break even would be $74. I can also go for 70; I can go for 75; I can go for 80, but 80 wouldn't make any sense, right? 'Cause we just said that our base-case scenario is that we think the stock will go back up to $80. So buying an $80 call doesn't make any sense because if it just goes to 80, we can't make any money; it's not going past 80; therefore, we're not going to make money since we're

The strike price you're comfortable with for selling shares of stock is crucial. When buying a call option, you're saying, "I want to buy shares at 200," but when selling, you're saying, "I'm ready to sell shares at 200," your strike price.

When selling call options, you can't just sell one. You need the shares. With buying, you don't need them; just buy the option. When selling, you need 100 shares; this requires more capital. Covered calls aren't necessarily more advanced, they're very easy, but you need more capital to write or sell one. Writing and selling are synonyms.

Selling a call option directly to the market is very risky. The call option buyer has unlimited upside. Selling a naked call option exposes you to unlimited risk, which I don't recommend. Your broker won't allow it if you're a beginner. You need a large portfolio to sell naked call options. I don't recommend it unless you're advanced or have coached with me for over six months.

You need 100 shares to sell a call option. If those shares rise and you've sold a covered call, that's okay. If the buyer exercises their right to buy shares, you're covered; you have the shares. If the stock goes up significantly, you're covered because you have the shares. With a naked call, you don't have the shares, so if the buyer exercises, you're in trouble.

Selling options means getting paid upfront. Instead of spending money, you collect income. The premium the buyer pays increases when the option is favorable for them; the same is true for sellers. A higher premium is more attractive, compensating for the risk. The risk with a covered call is losing the shares at the strike price.

For example, if you buy a stock for 100 and sell a covered call at 110, you risk losing the stock at 110. This could be good; what if you wanted to sell at 110 anyway? Selling options can be favorable because you get paid and pick the strike price. Option sellers have full control; they know the strike price. Option buyers know their strike price, but not where the stock will move.

If the stock goes sideways, that's fine. If it goes down, it's not great, but if you owned the stock anyway, you're still losing the same amount, but you have the option premium. If the stock goes up, you still get paid, but you lose your stock.

If you pick a far out-of-the-money strike price (a call option's strike price is way above the market price), it's unlikely the stock will reach it. This option is less valuable for the buyer, meaning a low premium for you. It's also safe and consistent income. You likely won't lose your stock. You can collect income weekly, monthly, or bimonthly by selling options without losing your stock. That's my preferred method. I'll show you examples from my Robinhood app.

I'll show you Palen; I own over 3,000 shares (4% of my portfolio). I'm running a covered call strategy, selling $25 call options worth $0.18. Let me show you an example from scratch. Let's pretend you own 100 shares of Palen. If I want to sell a call option a week out, with a strike price of 242, I can make $132.92 ($133) per contract. That's $130 per week from 100 shares (costing ~$2,000). The further in-the-money, the higher the premium. A longer expiration (e.g., January 2025) means a higher premium.

You can buy 100 shares of Palen and sell a $25 call option for over $400, with a $2,000 investment. That's over 20% return yearly. Longer expirations (2 years) have higher premiums and higher chances of the stock reaching the strike price; it's less exciting but more consistent. You're paid for the risk of losing the stock. Losing the stock isn't bad; you buy it for $24 and sell it for $25, getting paid to sell it for more. The real risk is opportunity cost. If Palen goes up significantly, you only get the predetermined price ($25 + $4 premium = $29 break-even). You don't lose money when it goes up; you just can't make more. You're guaranteed an exit if the stock goes up.

Let's look at real numbers: If it goes to $25 exactly, profit is $84 + $400 premium = $484. A stock investor only made ~$85; I made $484. If the stock goes to $26, $27, or $28, I'm better off. Until $29.40 (our break-even), I'm better off. After that, I'm still doing well. As an option seller, you agree to sell at a certain price, get paid, and pick the expiration date. Short-term (weekly) options can make $100/week on a $2,000 investment—a high return. It may not seem like much, but consistently making that and scaling your portfolio leads to retirement.

I have a student, Denny, who had $300,000 and made $60,000-$110,000/month for 12 months using one strategy. He had some down months—the market fluctuates. He's consistently making good income from one strategy. Option trading isn't hard; master the fundamentals, the simple math. You don't need advanced math. Selling covered calls can make $5,000-$10,000/month.

Collecting more premium is generally better, but don't go for in-the-money options. With covered calls, it's different; in-the-money options cut your upside. If I go to 23, my break-even is 25, limiting upside. Go slightly out-of-the-money (242, 25, 26). Give yourself upside potential. If the stock goes down, you lose money; that's how markets work. I use dollar-cost averaging—buying more when the market goes down, or being patient.

I got my father into investing and advised him to dollar-cost average. He didn't listen; he waited for a recovery. If you buy a stock at 100 and it goes to 90, buying more at 90 lowers your average cost (from 100 to 95). The stock only needs to go back to 95 for break-even. Without dollar-cost averaging, if it goes from 100 to 90 and back to 96, you didn't make your money back. It's okay not to dollar-cost average if you lack funds; the market rises long-term.

My option trading focuses on safe, passive, consistent income. Even in the worst case, I break even eventually. When the market is down, options are good because they hedge your portfolio. A covered call strategy is more hedged than stock investing; you lose less money when the market falls. My option trading is safer than stock investing, crypto, futures, etc. I prefer options because of the high income and relatively low risk. It's not as low risk as a bank account (1-2% return), but who cares about 1-2%? We aim for 20-30-50% yearly. I've 7x'ed my money in some years. I took more risks when I was younger, but it's possible to scale a small portfolio quickly.

As an option buyer, you need enough cash to buy the option. There's a bid-ask spread (e.g., $1 bid, $1.04 ask). Buyers pay closer to the ask, sellers receive closer to the bid. As a seller, if forced to sell 100 shares (covered call), what if you don't own them? Yes, you need 100 shares for covered calls and selling calls. You never need shares for buying options (calls or puts). You mostly don't need 100 shares unless it's a covered call. You can borrow money from your brokerage (selling on margin); you can also buy on margin. Margin is risky; I don't recommend it unless you're highly skilled and have a large portfolio. My Discord program offers margin trading strategies.

Some platforms allow selling naked calls (selling without owning shares). This is rare; Robinhood and most brokerages don't allow it based on account size and trading ability. You need high-level permissions. I focus on safer, consistent strategies for consistent income to fund my lifestyle (I travel and rent). I make over $80,000/month, but I started with a goal of $2,000-$3,000 for rent. It starts somewhere. Even making $100/week is great. Don't be embarrassed about your starting point.

You now understand call options—buying (unlimited upside) and selling (needing 100 shares). Both involve picking a strike price. As a call buyer, you pick a strike price to purchase; ideally, the stock goes up. As a seller, you pick a strike price, hoping the stock goes up to, but not past, it. If it goes past it, you lose your shares. If it goes to it, you make money on the stock and the premium. The perfect scenario: a stock at 100, sell a covered call at 110, and the stock goes to $109.99. You're happy; the stock went up, but not enough to trigger the strike price. The buyer lost; you already got paid. The seller receives a premium upfront but must sell 100 shares at the strike price if the buyer exercises it (before the expiration date). If not, the seller keeps the premium and shares.

Now, let's talk about put options. A put option is the opposite of a call option. There's a buyer and a seller. The buyer buys an option to sell the stock at their chosen strike price. Put options bet on the stock going down. When buying a put, you want the stock to fall; as it falls, you make money. With a call, the buyer buys to buy 100 shares at the strike price; with a put, the buyer buys to sell 100 shares at the strike price. If the put buyer exercises their option, the seller must buy the stock. It's reversed. A call buyer wants it to go up; a put buyer wants it to go down and sell their stock. The put seller must buy the stock from the buyer.

The put option premium works like a call option's premium. The more favorable it is for the buyer, the more expensive it is. The less favorable (riskier), the cheaper it is. Let's look at some examples. A put option gives you the right (but not obligation) to sell a stock (e.g., Starbucks) at your chosen strike price within a specified time. If the price falls below the strike price, you can still sell at the higher strike price, profiting from the decline.

Example: Starbucks is at $73. You buy a long put option with a $70 strike price. You pay a $1 premium. If Starbucks falls to $65, the put option is in-the-money (for puts, it's in-the-money when the stock is below the strike price; for calls, it's above). You have the right to sell at $70. You buy shares at $65 and sell at $70, making $5 per share ($500 total, less the $100 premium = $400 profit).

Example 2: Apple is at $175. You buy a long put option with a $170 strike, paying $2 premium. The stock falls to $171. The put option remains out-of-the-money (the stock price is above the strike price). You don't exercise it; it expires worthless. The loss is the $200 premium.

Example 3: Chipotle is at $3000. You buy a $2900 strike put option for $100. The stock falls to $2850. You're in-the-money by $50, but you paid $100 premium, resulting in a $50 loss per share ($5000 total loss). Buying puts can be expensive; use proper position sizing and risk management.

Buying puts is like buying calls; if the stock doesn't reach your strike price, you lose the premium. You can't lose more than the premium. You can recoup some of the premium if it goes partially in-the-money. Risk management is key; you can take profits. You may not want to hold until expiration. If a stock moves in your direction, set an exit point (50%, 75%, or double your money). If you spend $1 on a put option and it becomes worth $2, take your profits. A "short amount of time" is relative to the holding period (a day or two for a week-long option, a month for a 6-month option). For option buying, always have an exit plan.

To limit losses, consider stop-loss or stop-limit orders. I'll show you a buy put on Starbucks in Robinhood. I'll go out to July 19th. Let's say I think Starbucks will fall. I'll buy a $70 put option. The premium is $1.44 to hedge 100 shares. You buy puts to make money or hedge. Let's focus on making money. I can set a stop-limit order; this triggers a limit order if the bid price rises to the stop price. I can set a stop price (e.g., $1.42) and a limit order (e.g., buy at $1.30 or lower). Limit orders won't execute until the price reaches your limit. You set a maximum price. Stop-limits let you set a profit target and exit at that price. I usually don't use these; I manage risk via position sizing. Small losses don't matter if the position size is small.

If the position size is really big, that can be the end of your portfolio, so you really do not want to do that. You can take an example like losing weight: you can have a little cheat meal here and there, you can have a cookie, a snack. But if you end up eating, if you end up going on a binge eat and you eat a whole cake worth 10,000 calories, that's going to set you back. The same thing with trading; if you end up making one bad trade, it can set you back quite a lot. So you want to make sure that you have proper position sizing, which for me can be anywhere from 1 or 2% of your portfolio for option buying.

Now, when you're option selling, it's a whole different game. I have lots of videos on this YouTube channel talking about option selling, which is primarily what I do to make currently around $80,000 per month selling options. So that's what I do, but when it comes to buying options, you want to be a lot more conservative, a lot more safe. When buying a put option, you honestly want to have a small position size, like I said, but you also want to really limit it to one, two, or three contracts. Or, if you want a protected position that you already have, a put option can perfectly get you out of a position you already own because you get to pick a strike price and basically exit a stock at that strike price, however many shares you have. So if you have 200 shares, you can buy two contracts. Again, this gets a little bit more complicated, and that goes into the hedging territory of using put options. You can simply just make money by buying a put option and selling a put option, as it makes money. Selling puts is by far one of the best, safest, and most consistent strategies to make weekly income in option trading. This step-by-step guide will help you better than any other video, and I'm going to be showing you proof. If you know the right time to sell puts, you can collect a ton of money from premiums with very little risk.

So first, I'm going to explain to you very simply how selling put options works. Then we're going to get into the stocks and indicators that I look for when I'm about to sell some put options. And lastly, to show you real-life proof trading, so you can get examples and see how I do it in my own portfolio, I'm going to be doing some live trading and collecting income. And you'll be very surprised how much money I can make in just 20 minutes. I'm going to be selling puts live; I'm going to see if I can make $5,000, or ideally even more than that, in this video. Let's keep track on the bottom right somewhere here, and let's get educated on consistently making money option trading. So get ready; let's flood your pockets with some money.

Firstly, there are two reasons why you're going to want to sell put option contracts: one to generate income, and two to buy shares of a stock at a cheaper price than you can normally get them on the market. Imagine that a stock is trading for $165; you can buy that stock cheaper than the current price of the market. My ebook talks about selling puts in detail, and I'm going to give you the number one secret to this strategy, which is actually my number one strategy. A put option is simply a contract between the buyer and the seller. The buyer of the put option will have the option to sell 100 shares of stock to you as a seller at the strike price, and of course you can pick any strike price you want to potentially buy the stock at that strike price if you do get assigned. So keep in mind that you want to be comfortable with buying 100 shares per option contract of a stock that you get to choose; you are in full control, but you must make sure that you do like the stock because if you get assigned, you will own 100 shares. Selling puts can be expensive because this is one of the strategies where you do need to have 100 shares of capital ready to go. So if you have a small portfolio, you will have to pick cheaper stocks such as HyPaler, Neo, under $5, of course American Airlines, and well other stocks that meet your portfolio size so you have proper position sizing and you don't hinder your risk management. The best part about this strategy is that you'll get paid to sell the option to the buyer; at worst, you will buy the shares for cheaper. In either way, your cash will grow in your account. Remember, the buyer has to pay you a premium to have the option to sell shares to you at that strike price; the option buyer is paying to have that right. Here's an analogy to help you out: puts are basically like you're an insurance company; you are charging a premium for the risk of the stock falling down and you having to buy that stock at that strike price. You are becoming a mini insurance company that can print your own money in the form of premium that you are collecting. The way it works is you collect a bunch of money upfront when you sell a put option, and some of the trades you will lose. Again, we can't be perfect here; I'm not perfect, I make mistakes all the time, and just in trading, if you have a high win ratio—you win more trades than you lose—you will come out profitable. So in this example, what you want to do with this strategy is you will be collecting money upfront; some of the trades you will lose, but your winners will far exceed your losers if you follow my step-by-step instructions as well as learn from the live trading that I'm going to do shortly.

So let's use some real numbers to help you understand. Microsoft is currently trading at $410 per share right now. Let's say that you think Microsoft is at a low right now and you don't think it's going to go much lower in the next 30 days. So what you want to do is you want to sell a put option contract on it. You picked the strike of $405, which means if Microsoft does happen to fall below 405, you have to be comfortable to buy 100 shares at that price, but you won't mind that because you think Microsoft is going to be going up. You love Microsoft long term; you think that it's at a pretty good, good low, so you will be happy to buy it at 405; it's currently at 410, so you're going to get paid to buy it for $5 cheaper than where the market is at right now. Seems pretty much like crazy, right? Like, why would someone do this? Well, someone else out there in the world thinks that the stock might go down a lot lower; they may be right or they may be wrong. Either way, you are happy making this strategy in this trade. And let's open up Robin Hood and see what I would actually get paid if I decided to sell the put option. So let's pick a strike price of 405. All right, so I'm going to go to trade options as I usually do, trade options, and then I will go for something very short term, so I'm going to go very short term here; we'll go actually to, you know, we'll give it a little bit of time, so let's just go to the end of the month, which is just a couple of weeks. So if I go to 405 right here, you will see that the premium collected is $480, or $4.80. So right here, I can actually make a 1% return. Now I know this is 1% because I'm putting up 405, and then 1% of 405 is going to be about $4.05, so this is actually over a 1% return; I'm getting paid over 1% and under 30 days to buy a stock that is going to be a very good buy at 405. In fact, this is actually under 30 days; if I were to go to about 30 days, I would be a lot closer to actually almost 2%. So you can see right here that uh, it's actually $75. So if I were to execute this option, one contract here would give me about $75. Actually, you will see here that I was actually on buy a put option, but I need to be on sell, so actually the price will be a little bit different; it's going to be $65, which is still amazing. I noticed that because I saw there was a max profit, and that was a bit weird. And this strategy actually has a max loss, although the max loss here will look extremely scary. You might be thinking, just oh my goodness, why would you ever collect $615 with the max loss of $39,000? This max loss is actually, you know, it's not really correct; in theory, it is correct, but what it means is if Microsoft went down to zero, you lose $39,000. You know, I don't know about you, but Microsoft is not going to go down to zero; I think the world has to literally end for the stock to fall that much. There is no way a company like Microsoft will go bankrupt; there's actually almost no way that stock will even fall 50%, yet alone and most years it doesn't even fall 10%, or it doesn't even fall at all; the stock is rising, right? So although the max loss is very scary, this is the equivalent of you getting into your car and the max loss says, well, you may not live today, so you know, yes, that's scary, but most people still have to drive to work; we still have life to live, and we still take that very, very small risk to go into a car every single day. It's the same thing here, so it has a very big max loss, but you know, in all reality, this is a very, very safe trade that I've been doing for the past 10 years. You know, I've, you know, worked for Goldman Sachs as well as a couple other hedge funds; I have a degree in this; I've sat with many experts on this; I've talked to many financial advisors; I've talked to hedge fund managers; this is a very standard, easy strategy that basically every single person in the world does. I've seen billionaire portfolios as well; this is just a typical strategy that they are using. So basically, let's do some scenario analysis. If Microsoft goes up to say 420, you're totally safe; you're going to be making money. If Microsoft goes up to anything really, if it goes up at all, you're going to be making money. If Microsoft actually goes down a little bit towards 405, you're still actually going to make money as long as Microsoft stays above 405. Now, at 405, if Microsoft were to hit 405, you would now be in assignment territory, meaning that you will get assigned at expiration if it's in the money; however, you still made a gain because you are collecting $65 here. Okay, so we have $6.15, so really, if it's at 405, you're good; if it's at 404, you lose a dollar, but you still collect the 615, so you are still positive 515. In fact, your break-even here would have to go 405 minus the premium that you collect, so the break-even here would be 3.99, or actually 398.85; I'm doing the math in my head. So at 398.85, that's your break-even point. Okay, you will be buying Microsoft at 405 or below, but at 398.85, that's actually your break-even. So if it goes lower than that, you will be at a slight loss, even considering the premium that you collected, which is totally okay because you may deem to yourself that I want to buy Microsoft; I'm very happy. And by the way, this is the truth; this is not just an example; this is exactly a trade that I would make, and as you'll see shortly, I'll make trades that look very similar to this. So you know, if Microsoft goes down past 405, you'll have to buy 100 shares of Microsoft, but it's not even that bad because you want to own the stock anyways. But how do you know if a stock is not going to go down? And that's by using some simple things called technical analysis.

Technical analysis can make or break your trading success; it can make you either very profitable or it can make you a loser in option trading, or any type of trading really. So technical analysis is simply just analyzing the price movement of a stock using multiple tools that I'm about to cover and show you real examples of. So many great option traders I've worked with; many of them have used technical analysis to a great extent, including myself. I use technical analysis to accurately predict where the stock price of a stock is going to go. Now, this isn't perfect; nobody really knows where a stock is going; in fact, there's a famous book out there called *A Random Walk Down Wall Street*, which discusses stocks being completely random and not having any clear direction where they're going. Now that book is not completely correct, but it's also not completely correct to understand or to say I know exactly where the stock is going to go; that's a complete lie, and almost nobody can do that. So I'm somewhere in between; I think that technical analysis is very, very helpful; it gives a very good sense of where a stock is trading at and where a stock is likely to be in the future. Now, short-term trading is very difficult, which is why I personally prefer monthly income strategies, but I'm going to show you all the strategies that I know around technical analysis. And I've said this many times on my channel before: my favorite three technical analysis tools are RSI, moving average, and Bollinger Band. The first one that I'm going to teach you is called moving average. All right, so now we're going to be looking at Amazon stock; I'm going to be using Amazon to give you some technical analysis. The first thing that I'm going to do is I'm going to go to the charting feature on Yahoo Finance. Yahoo Finance is free, and I absolutely love it. So I'm going to get rid of currently what I have going on here, and we're just going to analyze the stock looking at it without anything—without RSI, without Bollinger Band, without moving average. I'm also going to clear up the drawings just to give yourself some understanding of where the direction is headed. So if I look at the six-month chart right here, starting off with actually some lines, you will see that the hardest bottom here, the hardest low of the six months, is right here at around $144. So if I click right here, you can see that that trend has actually been very consistent with going up. Now, typically, I like to go for another bottom, so you can see here that this was another strong bottom. See, there's a very good strong momentum. Okay, momentum is really important because when I was working on Wall Street, one of the analysts that I worked with, which was a quantitative finance expert, he was looking at mathematical models; he simply told me that momentum is one of the strongest factors. And if you look at a six-month chart, if the stock is moving up, it's likely to continue moving up. It's crazy how simple investing is when you really think about it, but that predictor right there, the six-month chart, was actually explaining 80% of his returns. So basically, this one indicator right here will give you 80% of the potential returns that you can get from all indicators out there. And once I teach you the rest of the indicators, you're going to be in a really good position. So right here, you will see that you can go from a bottom to another hard bottom here, like there was a big bounce here at the 155 level, or you can even go longer term and go for another hard bounce here, which happened at 173. So you can see how Amazon is in a very strong trajectory going up, and that's why right here this would have been a very good indicator to buy the stock because you know we had a double bottom here. Okay, this was a very good indicator; you can see there's a double bottom, you know, bottom and bottom, and this is basically a flat; this is basically flat right here. Okay, so Amazon tried to go down, jump back up, tried to go down, couldn't jump back up; that was a sign to buy. Okay, even though this was a tough time, if you had bought at 180 for a little bit, it has proven to be a very good entry signal. Okay, so I would have probably bought right here because as this was bouncing up, I would have bought somewhere in between, somewhere maybe around the 175 area; I would have had a signal to buy. Now I'll show you the other indicators I would look at, but this would be a really good purchase based on this. You know, this is actually a triple bottom pattern. Now, this is some simple line charting that you can use to understand where a stock is heading. The next one that I like to personally use is I like to go to indicators, and the most simple one is moving average. Now you can use different moving averages; you can go for a 30-day moving average, you can go for a 60-day moving average, you can go for a 90-day moving average. I actually really like to use Yahoo Finance default; the reason for this is because the most common default is 50 on Yahoo Finance; that's what a lot of other investors are using, since so many people are using Yahoo Finance, so I like to keep it at 50 days; it gives me a really good understanding of where the stock is. So if I go to clear the drawings, you will see that this purple line right here is giving me the average 50-day price. So in the past 50 days, on average, where has Amazon been trading? You can see here how it's consistently moving up, and that's because Amazon as a stock is consistently moving up. As long as it's staying above the moving average, this tells me two things: if the momentum is strong, I want to be in this trade; I want to ride momentum; I want to go with the wave. Okay, I want to move with the motion; it's much easier. You probably heard this before, but a rising tide raises all boats. Okay, it's really easy, or it's just how it works: when the tide goes up, the boats go up. Okay, that's what you want to do when it comes to stock market investing: when the market is trending upwards, it's a bullish market; you want to ride that bullish momentum and make money, and that's actually where I prefer buying call options. Now, if it goes below the moving average, this is really interesting because this can tell you that momentum has shifted, but although momentum has shifted, there were two hard stops right here, so this should tell you actually Amazon is going for a good value because historically it is above; in the past 50 days, it's above this price, and now we're currently below. So 173 would have been a fantastic entry point. If I zoom out right here, you can see that basically Amazon has been completely trending up. So we're going to go over a different example when it comes to technical analysis, but I want to show you a couple more of the tools that I use. Okay, next one I use is going to be an RSI. Okay, this right here, I'm going to use for 14 days; this, the relative strength index, this is basically telling you, based on volume, based on how much people are buying up this stock, where is the stock on an overbought or oversold basis? Okay, at 20, this would be oversold; at 80, this would be overbought; we're currently sitting at 61; 50 would be very neutral; 61 means that this stock is heating up a little bit; it's heating up; there's a lot of people buying it; maybe it's becoming less of a good value stock to buy right now. Before I go into Bollinger Band, I do want to look at a different scenario, so I'm going to look at a stock like Tesla, because Tesla has had some volatility, and I have actually bought it very recently. So you can see here how Tesla is actually now consistently below the moving average. If I go to, let's go to three months here, Tesla is below the moving average here; it had a really sharp decline, and here you can actually see on the RSI it actually became very low; it almost hit 20; it almost hit oversold, but you can see here how it was 24, and because it was so low, this was a fantastic time to get into the stock because low RSI says that the stock is oversold; too many people are negative; there's too much skepticism out there; this is a fantastic time to do the opposite, to be a, you know, conservative investor, to go against the grain, and to make a decision to buy. So this right here at 140 was actually a price that I didn't get it at 140, but I started buying it at 150; I had 150 sell puts, by the way, so you already know right now what a sell put is. So I've sold puts at 150, and that's because I wanted to buy Tesla for $150, so now I'm actually very happy because I got assigned for $150, and currently the stock is at 184, so I ended up making really, really good money, like a 20% return in like a month, so it was a actually phenomenal decision to sell puts. So yeah, so what I would look at right here is we're below the moving average, and now Tesla has popped up above the moving average, so now we have strong momentum; I would still jump into the stock right now, and I would use some option strategies, and I would use a bull call spread, which we will talk about later in this course, because when it comes to buying options, there's some really interesting strategies that you can use; you can put up a very small amount of money, get a very big return. So I would use uh, some different spread strategies on Tesla. Actually, how I was able to go from $100,000 to $700,000 back in 2021 was I was using a lot of spreads and a lot of small account strategies, which you will learn about. On Tesla, I saw there was a lot of momentum; I traded Tesla very heavily, and I made, you know, 100K into $700,000; I made $600,000 that year; it was a fantastic year, and it was mainly, it was a lot of Tesla trading as well as other technology companies as well. So with that being said, you now understand the simple use of RSI; you understand that towards 20 is a good time to buy, towards 80 is a good time to sell; you understand that moving average just gives you a general idea of where the stock has been in the past 50 days. By the way, you can also change moving average from 50 days; you can change it to 90 days. So, for example, I can click 90, and you will see here how this is a much more smooth line because now it's taken a 90-day average instead of a 50-day average. The next thing that I want to talk about is the Bollinger Band. So if I go to indicators and I go to Bollinger Band, you will want a period of 20 days, which means that Bollinger Band is going to predict the next 20 days, and the standard deviation is two. Okay, you'll see here two is fine. Okay, so how this works is this is a statistical model; it's very simple. Okay, so if I click save, you will see here that we have an idea of where the Bollinger Band, where Tesla will trade within what range. Okay, you can see that the top of the band is going to be 196; the bottom of the band is going to be 139; two standard deviations means about 95% of the data; one standard deviation would be 68%; two standard deviations is 95%; three standard deviations would be 99%; it's a bell curve. Okay, the way I explain this is if you are a man, you are 5'10", and you have a son, your son will be about 5'10"; that would be the middle; that would be the average; your son would be about your height. Okay, that would be very high certainty. Okay, now if your son was 6' tall and you're 5'10", that would be towards this area; you would have maybe one standard deviation move. If your son was 6'3", this would be a two standard deviation move, and for your son to be 6'5", this would get into the territory of over three, three standard deviations above normal, so it'd be very unlikely, although possible, extremely unlikely that your son is going to be a lot taller given your genetics. Okay, so bell curves are, are done with weight, with a lot of physics, a lot of statistics, height, nutrition; a lot of different areas use bell curve; it's just a very easy statistic. Okay, so that's what this means. So if I go to Bollinger Band right here and I change this to one, you will notice that this got a lot smaller. Okay, because now we have some unusual movement because this is a little bit less usual than a one standard deviation move. Now if I do a three standard deviation move, which gets into really rare territory, okay, you will see how now the Bollinger Band has expanded; it has expanded to 210 on the upside and then 124 on the downside. I used two standard deviations because that captures 95% of the data; it gives me 95% certainty that an option will be in that price range. Okay, so if I go back to two, now I'm going to show you how I pick strike prices when I trade options. So if I click two, you'll see here that if I were to do a covered call, I would sell a call option at 196. If I were to sell some puts, I'd probably want to go down a lot lower. Now, obviously, I can't go down to 139 here in the Bollinger Band because that would be just too low; there's no premium there; that's too far out of the money, but I would certainly want to go at 167; I would pick 167 to pick the middle of the Bollinger Band. So use the Bollinger Band to understand the different scenarios where a stock can go, whether it's up or down, and then pick the appropriate option strategy based on the Bollinger Band.

So for me, I like to keep it as simple as possible because, you know, I am working with a lot of beginners, and I focus on helping beginners get into an intermediate or advanced option trader territory where they can leave their 9-to-5 job and actually do this for a living and have a lot of flexibility in their life, like I have. All right, so now I'm going to teach you some metrics that you need to pay attention to when looking at what option contracts to buy or sell. All of these things that I'm about to teach you are going to be extremely useful when you're analyzing how safe an option is. The first thing that I want to talk about is called implied volatility. Implied volatility is usually expressed as an annual percentage, and what percentage reflects the magnitude of how much a stock is expected to change in either direction for that given year, up or down. And people get confused over this term because it can, can look confusing, but it's actually very simple. We know that volatility means how much a stock price moves up and down; if it moves up and down a lot, that means that it has high implied volatility; if it doesn't move a lot, then it has low implied volatility. So ask yourself: do you think Coke has high or low implied volatility? Well, the answer is Coca-Cola has low volatility. If you look at something like a GameStop or AMC, when things were going crazy and parabolic during those times, those were high volatility stocks. Implied volatility just refers to how volatile we expect a specific stock to be, and to measure that, every stock is assigned an implied volatility percentage. This can get really overcomplicated, and all you really need to know is that anything above 50 is a high implied volatility, generally speaking, and anything close to 100 is extremely high implied volatility, meaning the stock is expected to shoot up or down a lot. Typically, stocks with extremely high volatility, these may be biotechnology companies that have some big events coming; this may be really hype meme stocks that have some news coming; this might be stocks that have had a short squeeze of some sort. So, for example, if you remember what happened to GameStop back in 2021, it had a really high implied volatility right before the stock skyrocketed and then it plummeted back down. So how does this apply to option trading? Well, stocks with higher implied volatility are going to have higher premiums. So even if there are two different stocks at the same exact price, the premiums on them could be very, very different. And if one is expected to be more volatile, the premium on the more volatile stock will have more premium. Implied volatility is also very interesting because when you're screening for stocks and you're looking for good stocks to buy, so for example, I do use a software called OptionsFY when I'm using a software like OptionsFY; they're screening for high implied volatility stocks. The reason why I like high implied volatility stocks is because I'm typically an option seller, so when I'm looking to sell options, I do want higher premiums; if I'm looking to buy options, then I want lower premiums. The next thing I want to talk about is the Greeks. So the Greeks are very important; it sounds a little bit confusing, but the Greeks basically explain how an option behaves. Okay, so if you have no strategy when going into an option trade or you do very little analysis and wonder to yourself, well, how would I lose money here? What if the stock goes up by $1? How much will the option change? The Greeks actually explain this. So the Greeks in option trading consist of really five of them; you don't need to know all five; I'm going to go over them very briefly, but the first one is the most important one, which is Delta. Okay, so Delta actually explains a couple things. Okay, first of all, if you look at Delta, it explains the chances the option will be in the money. So if you look at an at-the-money option, let's say a stock is at 100, you look at a $100 covered call or $100 put, it's going to be 50 Delta because there's a 50/50 chance that the stock is going to be about the same price as it is right now. If you go for an out-of-the-money option, okay, it's always going to have lower Delta because it's a lower chance than 50%, so it's going to have a lower Delta. We use the five Greeks basically to help measure and predict the price movement of an option premium. Now, as I screen record my phone really quickly, you can see on Robin Hood that we're going to look at some of these Greeks, and we're going to go over them and uh, what they mean and how to actually use them. Okay, so I'm looking at Microsoft sell put 415 for June 14, the previous example that we were looking at earlier in this course. So you will see here that the Delta is .48; that means that this option has a 48% chance of expiring in the money. Now, Delta also means that if the stock moves by $1, this option will move by $.48; so that's exactly what it means; there's two definitions for Delta; those are the two. Gamma just changes Delta; you know, it's not as important as Delta because you can see here how the gamma is really small. Theta is kind of important; Theta tells you how much this option is decaying per day. So you can see here that it says $1.177; this means that this option is losing about $1.177 per day in value. If you're an option seller, that's a good thing; if you're an option buyer, well, that's not really a good thing. Vega also, it is somewhat important, but honestly, it's not that important because Vega just measures volatility. So if volatility changes, then the option will change by, you know, 0.53 cents if it moves up in implied volatility by 1%, but you know, typically implied volatility is changing, but not by too much. Although Vega is more important than gamma, it's not necessarily more important than Theta; they're about the same. Rho is interest rates, which are completely useless because interest rates are not changing by much at all. So if I were you and you want to look at the Greeks, just simply focus on Delta. So Delta is the most important one; Delta measures how much the premium price of an option will change for every dollar the underlying stock price moves. So for a call option, this can be anywhere from 0 to 1, and for a put option, this can be anywhere from 0 to -1; again, not a big deal; basically think about it as if it moves up by a dollar, then your option will move up by $.50 towards the direction of the option. So if an option costs $3 and has a Delta of 0.5, well, if the stock moves up by $1, then this option will increase by $.50, so it'll be from $3 to now $3.50; if it moves up by another dollar, then this will again move up by $.50. Now, like I said, Theta is really interesting because when you're an option seller, you can actually take your Theta and see how much money you're making per day. So let's say that your Theta is 10, well, then you're making $10 per day on that option contract being open. So if you have many option contracts, you have 10 contracts, and then your Theta is 10, then you can make $100 per day consistently just through Theta as long as the stock doesn't have any crazy moves. And that's exactly how I trade options is I have a bunch of positions open; I have maybe 20 positions; each of them might, you know, have a Theta of 30 to 50, and voila, making well into the five figures or the multiple five figures per month in option premium. When options are closer to the money, they tend to have much more higher rates of theta decay because they're right at the edge of either being valuable or being completely worthless depending on the stock's price, the strike price. So you know, when options are close to the money, the Theta is going to be higher, which is kind of fun and kind of cool, but also more dangerous because the Delta will be higher, and when the Delta is higher, that means there's a higher chance of you getting assigned, whether it's selling a put option, it's closer to the money, or a covered call, it also is closer to the money. So with that being said, let's just get into some real examples, and let's show you exactly how I'm going to make some money in this video.

All right, so now is the part where we see how much money I can make by selling options. We're going to keep track of it on the bottom right or the bottom left as I make every trade; we're going to be adding this up. So let's see exactly how much money I can make in the next 10 or so minutes. All right, so the first thing that I want to do is I want to look at Google. Google is one of my favorite stocks; I'm very bullish on Google. Now, in the past three months, the stock did go up about 15%; I am going to be looking at technical analysis

Option on Google Now. One of my other top plays is American Airlines; this is a much cheaper play, specifically because American Airlines is about $14 per share now. This is my top plan in my Discord, but right now I'm a little bit upset because, as I'm making this video, I'm literally like 2 hours too late because the stock is skyrocketing. I have shares; I've have covered calls; I have sold a put option, but it's a little bit frustrating to see the stock go up because, basically, when a stock goes up, the put option premium goes down; they become—it becomes less valuable because, you know, as the stock goes up, it's becoming further out of the money.

So right now what we're going to do is we're going to go a little bit riskier. I'm going to show you a little bit shorter term of a trade. I'm going to go for the 14 and a half again. My goal is to actually get assigned; I do want to get assigned. If I don't get assigned, that's fine; I collect income. If I do get assigned, that's also fine with me because I still get to collect income, but now I have the shares and I can run something called The Wheel strategy, which we will cover later on, or, you know, check out my channel for the Wheel strategy. This is a very powerful strategy. So I'm going to go for selling a put option right now. I'm going to go for—uh, since this is very cheap—I'm going to go for 20 contracts here. Okay, so I'm going to go for just $17 per contract, and this is hopefully going to get filled for me since I did go towards the bid price. There you go, I got filled, so I made a dollar. So we're going to add that to the bottom of how much money I have made.

So that is the second trade, which is going to be American Airlines. By the way, the reason why I like American Airlines so much—I didn't show you the technical analysis—I've been literally trading this since I started my program back in 2021, so it's been three years since I've been running Discord, and I have been literally trading American Airlines since the very beginning. It's because American Airlines has some of the most consistent returns. The stock doesn't actually move up or down a whole lot, so over the past one year you can see how it actually started at 14.02, now at 14.61. So over a whole year period, it has gone nowhere; it's still at exactly where it has been, which means that there's a lot of volatility but really no direction. So when there's no direction, that makes a perfect candidate for selling options in general because options love volatility, and when you're selling options, you hope that there isn't any big, big moves typically. So this is a very profitable strategy that I've been running from the very beginning, and the reason why is because right here we're right in the middle of exactly what American Airlines has been historically valued at, so it's unlikely to get a whole lot cheaper; it's also unlikely to get a whole lot more expensive. So selling options on American Airlines is my top play right now; that's why I decided to just sell 20—20 contracts. Now I do have some more contracts actually in my portfolio; I have 35 contracts—30 more contracts here. So keep in mind I do already have some of this position.

Now we have done Google; we have done American Airlines. I'm also going to go ahead and do Apple. Apple's having a little bit of an intraday move where Apple pulled back, and I really quickly want to sell some put options on Apple. Now I already have a pretty big position on Apple, but I'm going to sell some put options and show you that it is okay to have big positions on big, high-quality companies, especially companies that you have a lot of belief in. For me, Apple is my top play. I was just listening to Warren Buffett have his discussion on Apple. They had a little bit of a cut; they had some sale at Berkshire Hathaway where they did get rid of $100 million worth of Apple, but he had stated that that's just because of rebalancing and other things that are very normal; he doesn't—he didn't actually lose his confidence in Apple.

Now what I'm going to do is on Apple I'm going to go out for June 21. Actually, I can also go really short term. So again, if you're watching this in the future, just go for something short term; it's fine. You go for short term or longer term; you actually get compensated in proportion to the amount of time that there is until expiration. So whether you get paid $1,000 a week or $4,000 a month, it's basically give or take the same thing. So I'm going to go for a sell put; I'm going to go for the 177.5 strike price. My average cost right now is 182. Intraday, actually, Apple was above my—um—average cost, and now it's, you know, it's a little bit below. 177 and a half is perfectly reasonable for me because I'm actually going to be dollar-cost averaging and getting a better price; I'm going to be reducing the price that I'm paying per share that I paid in the past. So for me, it's a good decision. I'm going to go ahead and sell 10 contracts right now, so I'm going to go for 10 contracts, and I'm going to execute this for a 112. So I'm going to collect $1,120 right now, and boom, we just got filled, so that's amazing right there. So we got filled for Apple, so we're going to add that to how much money we have made.

Now the next stock that I'm going to trade is going to be Amazon. I already have Amazon; it's actually above my current average cost by quite a lot; I'm up 37.7% on it. I do have some covered calls, and I would not mind having a little bit more Amazon, so I'm going to double down. This is something that I should have done a very long time ago, but I'm going to finally double down on Amazon, and I'm going to sell some put options. Now we take a look at Amazon; technical analysis is going to be important. I've actually shied away from selling put options on Amazon because I was a little bit concerned that the stock was kind of hot. So indeed, I was kind of—we had a pretty decent-sized pullback. However, what I was wrong about was I—you know, not that I'm—the timing—no one's really good at timing the market; if anyone says they're good, they're completely lying. I didn't time this well, so I, you know, kind of missed the boat at 175, and the stock's now back at 186. But what I can do is I can sell a put option closer to 180. So what I'm trying to do here is I'm not going to get 175, and I already know in my head right now if I were to sell 175 options, they are completely worthless; they're worth, you know, 30 cents; that's not that much. So what I'm trying to do right now is I'm trying to bridge the gap between where the stock is right now and 175. I'm not going to get to 175; I also don't want to buy at 186, so I'm going to find the middle point; I'm going to go for 180. So this right here is not going to be a whole lot of money, but it's a pretty safe, consistent trade, and the worst that can happen is I get to buy more Amazon; I think this would be a pretty good price for Amazon anyway. So as you can see, this is a non-losing strategy; you really can't lose. I'm collecting some income; I just got filled; made $49.85; we'll just call it $410.

The next stock that I'm going to trade actually had a snapshot of $9, and that was really, really bullish, and the stock actually did end up exploding up after earnings. Now it's a little bit high, so it's a little bit hard actually for me to sell put options because psychologically I have sold $9 puts. I mean, myself, my Discord, we made a lot of money; we made $1,650 by selling 50 contracts here, and now it feels really bad for me to sell a put option at 16—at 15; that's going to feel awful because I have sold a put option at 9. So now selling at 15, 16, I have to spend more than 50% from what I have, you know, before; sold some puts on. So this is psychologically very difficult, but at the same time, after this option expires, I really don't have a position anymore, so I don't really have that much of a choice besides selling some put options. I'm not going to sell that many, but I'm going to mix it in right now, and I'm going to sell some May 17. Actually, I can go for some really short—yeah, we'll do a May 17. I'm going to go for the 16 strike. Now why am I going 16, and why don't I need technical analysis on this play? Well, for me, I really don't have an option here; check it out. I can go for 15; there's no money there; there's no money literally; it's $8. I can go for 15 and a half; it's a 1% return in 11 days; not bad, but, you know, Uncle Henry wants more money than that—more than 1% in 11 days. So I would like to go a little bit more aggressive here, and this is a small position. No, I'm not going to put in 10% of my money; I'm not going to put in 5% of my money; I'm going to put in a very small amount; I'm going to go very small here and start to potentially get into Snapchat. I don't know if I'll, you know, I'll get into it or not, but if I do, I'll be pretty happy actually, and if I do get, you know, assigned on these 20 contracts, I'm just going to go 20 more; I'm going to go 20 more, 20 more, and 20 more. So I'm going to go three times for a total investment of, you know, quite a—quite a lot, but in relative proportion to my portfolio is going to be about 5% if I were to get assigned three times in a row on this type of size. Okay, so I'm going to review this order; I'm going to submit it, and I'm going to collect—hopefully—yep, I got filled for $539.40. So this time we'll round it down; we—we'll save $539. So we'll add that to the amount of money that I have made so far.

Now let's go to another stock where I can make some money. I do have Palantir here; I am currently—um—doing pretty well on Palantir here; $113,000 on the stock; I'm down a little bit on the options. It's a little bit difficult for me to trade this right now; it's up 7%, so I don't think I want to sell puts, as well as they do have earnings as I'm making this video. So selling puts before earnings can be smart, but often times there's a lot of volatility before earnings, so I typically don't like to sell options into earnings; I typically like to actually buy options. Buying options is better. We see American Airlines completely exploding up towards the upside; now that's interesting. So we'll see what happens there. Now I do want to make another trade; I think that I would love to make a PayPal trade; I think that the stock is going for a really good valuation. However, I will say that I currently do already have a decent-sized position of 99.69%, and for that reason, selling puts would not be smart because then I wouldn't have proper risk management; I would be way too invested in one stock, which would be very dangerous. So instead, what I'm going to do is I'm going to look for other stocks. So looking through my watch list, I'm going to take a look, and I could also easily do something pretty short term on QQQ. I don't always do this, but I can show you something kind of like a zero DTE trade. My zero DTE trade is something that's going to expire in the same day. This takes a lot more work, but, you know, long story short, I would like to show you that you can sell puts really short term. SPY and QQQ both have expirations in the same day. Let's see exactly how much money we can make. So I'm going to go to sell put option, and I can scroll down to something that's a little out of the money. I'm going to show you Delta right now. So if I go to—uh—43.7, you can see how the Delta is 0.4; that's really good; that's a sweet spot; that means 14% of the time that this option will go into the money; that means about 86% of the time that it is not. So this is going to be pretty safe. I'm going to go for this right here, and I'm going to click continue. Now I'm not going to make this too big; I'm just going to go for three contracts. This is going to be, you know, an interesting trade; I just want to mix it up and show you all the ranges of possibility and give you as much education as possible. So on this trade right here, I'm actually collecting a very small amount of money, and I'm risking quite a lot of amount of money, but it's also a very low probability trade that can go against me; it's also a very short-term trade of just zero days. Okay, so we're going to add about $33 from that trade. Okay.

Now I want to look at something like potentially like a Starbucks. Starbucks did pull back quite a lot here, so this could be a good trade to make. I want to see what other stocks I may have here that I am very bullish on in the longer term because right now I gave you a very short-term trade; I want to go for a very long-term trade. So a longer-term trade would mean that I am very bullish in the long term. I'm actually pretty bullish on Chipotle; however, Chipotle, I do know on the top of my head, is a bit more expensive, so I can go for something that—you know—what I have actually traded Meta quite a bit, and Meta seems to have a really strong bounce here. You can actually see how I'm up about $11,000 on a sell put that I already have on Meta, so I can just go for that again. I can go for a future expiration here. I'm going to go to sell put; I'm going to go for—I'm going to go for something a little bit longer. So we have already showed you guys that I can go for a zero DTE trade; now I'm going to go for an August trade; it's about 100 days out; you know, it's not too bad at all. I'm going to go for about 100 days out, and I can go down to say 410. This is a 22 Delta; it's a little high for me. You can go 40—405; 20 Delta; it's about, you know, it's about right; I think this is fine right here. Check out the bid-ask spread; it's 1180—12. By the way, the reason why I'm not always looking at technical analysis and, you know, is because I'm following these stocks on a very regular basis; I'm very close with all my stocks on my watch list, so I'm paying attention to the stocks, and I know that Meta has really, really good support around 400. So you can see here how this is 405, but my break-even is 393, so my break-even is below the support line. So if it hits support, I'll actually get exercised; I'll actually have to buy shares of Meta, but I'll be pretty happy because I'm going to be buying shares below what is support, so I'm actually going to be owning shares and still be in a profit because 393—the average—uh—cost here is going to be below what the stock will trade at. So—so if the stock goes down to 400, I'm going to get exercised, but my break-even is 393, so I'm really not going to care. Okay, I'm going to be in a—in a positive. So I'm going to go ahead and sell the 405 here, and I'm going to go for a probably decent-sized position; going to go for five contracts, and—um—I will go ahead and execute for—um—1180. And just if you guys weren't sure, I wasn't sure how much money I have made; I don't see it on the screen at the moment, but yeah, this trade itself is going to bring in $5,800. So I think I'm going to pass the trading challenge that we just had. So there you go; I submit it. So we're going to add $5,899.185—or 5900—to our trading challenge here, and there you have it. We have made a grand total of this amount of money on screen right now by selling put options.

Now some of these puts didn't expire yet; some of them will expire pretty soon, but as a beginner put option seller, you might be thinking, well, those option premiums are nice, but how do I actually manage those options? How do I go about closing positions, taking profit, and—now—to make—make sure that I really don't lose money afterwards doing these strategies? And that's exactly what I'm going to cover in this part of the course. Managing your positions until expiration is extremely important because if the stock shoots way below the strike price you choose, it's not that ideal for you to get assigned, and it may actually be scary. You want to manage that position; make sure that you're on the winning side of the trade, and if you're not on the winning side of the trade, how do you minimize the risk associated with owning and getting assigned 100 shares? And that really shouldn't be happening in the first place, most of the time, if you're picking the correct Delta, if you're picking the correct Greeks. Also, as a beginner, you should be okay with the worst-case scenario before you make a trade. Before you sell a put option, ask yourself, am I okay buying this stock—however many, you know, X shares—if it's one contract, am I okay buying 100 shares at the strike price? So if you're selling a 55 strike price, am I okay to own 100 shares at $55 per share? If the answer is no, then you shouldn't make the trade unless you really like risky trades and you're trading more as a speculator rather than an option trader that's looking for consistent income. And on top of that, you should be selling cash-secured puts, which means you should already have the money set aside in your account that you'll need if you do get assigned. This is called being cash-secured. So if you sell 55, you will need a $5,500 cash balance to potentially get assigned and buy those shares. So with all those factors, there shouldn't really be a losing situation for you when you're selling puts; you should be happy to get assigned or happy that you don't get assigned. However, I understand that sometimes the market can be very unpredictable, and things do change, and they don't always go as planned. So right after you collect premium, you need to keep a close eye on the stock, and just when you sell a put option, you need to understand, hey, is this really going against me? Is the momentum too strong here? Has something fundamentally changed about the stock? Maybe there's some news, or maybe there's an event in the market that changes your overall outlook on the stock.

Remember, there are only three things that can happen when you're selling a put option: the stock can go up; that's perfectly good; you should be happy, in which case you're good; you don't do anything; okay. The buyer can't exercise it; it's out of the money; it makes no sense for the buyer; it can stay at basically any level above the strike price, and you are good. If it goes towards the strike price that you have sold, you may be a little bit worried; however, I will tell you there is absolutely nothing to worry about before expiration if the stock is still out of the money from your strike price. I know a lot of people get anxious; they might be thinking to themselves, well, is this going against me? Should I cut this position? I would say that in most cases you want to relax because even when I was working at Goldman Sachs, we did some studies, and we saw that many options will actually dip into the money, and over 40% of the time—I think the statistic might be even higher than that—the option will come back out. So if it even dips into the money, you may not want to close; you may think about closing; you may decide to yourself that I may be looking to close potentially if it continues to go down, but that doesn't mean that you want to close just yet. It's totally okay for an option to go into the money and for you to hold that position. In fact, for me, I typically hold positions up until expiration even if they do go into the money because I've noticed that I get higher raw returns, which means that I get more returns—more money—by holding until expiration. However, it is very difficult; so this is a mental game; this is a very emotional game that you have to be very aware of. That if it goes into the money, that's okay, unless something has fundamentally changed or, on the technical chart, as you will learn very soon, has completely shifted, then it's okay to continue holding. The only thing that you actually need to watch out for is if the stock starts to go down, completely breaks down, goes way into the money, and the RSI is still high. So if you want to look at the RSI, I look at the 14-day period; if it's still above, you know, 50, and the stock is coming down, that is one bad sign, as well as if it's going down but it's still not at the bottom of the Bollinger band; that's also a negative sign. So if it does go down and let's say that the company that you are trading with is below your strike price, you just want to make sure that you have the cash available. So once you get assigned, then we will actually run a different strategy which I have been teaching for a long time called The Wheel strategy, which we will also cover shortly. If you are just trading puts and you want to open and close them all the time, you will be losing money if the stock moves down, and yes, when you buy it back, if the stock price is now close to the strike price, it will cost you more money to buy it back, so you won't always be able to win by trading put options, but you will basically be almost always winning if you just sell puts and you wait until expiration. Even if the stock plummets, again, you're not going to be in a bad situation if that's already a good stock that you want. This is a way that you can minimize your losses when selling put options; you don't really want to close them; you just get assigned. But that's not it; after that, you can do what's called rolling options if you wish. You can actually roll a put option lower. Rolling the option, in this case, just means that you're buying your put option back and you're simultaneously entering a new option trade with a much better position or a much better strike, as you will see examples. I do this all the time; sometimes it's for a net credit, and sometimes, in the case of covered calls, I'm very happy to even roll for a net debit. Don't worry; rolling can be confusing, but once you see the examples, you'll see how easy it really is. So when you roll a position, just know that the new option trade will have a better strike price because you're going to be going down in the case of selling puts; in the case of doing covered calls, you will be going up; you're always going to go in the direction that is more favorable to you, so you can make more money. In terms of expiration date, you will always have to go out; you'll always have to have more time because time will fix your position; time gives you the ability to collect more premium and to fix things and to adjust things. So I've actually had a trade where I was down $31,000 on my portfolio, which isn't necessarily that much money in relative to how much money I have; however, the $31,000 was, you know, pretty difficult for me, and I really wanted to recoup that loss, and what I did was when I rolled an option, I actually made back the $31,000 and $5,000 more within a single month by just rolling and adjusting a position. So this is one of the most powerful strategies—the most powerful techniques that you can have in your arsenal, in your portfolio, in your toolbox, if I'll say, of option trading. So you know the strategies, but then also this is a very important use of managing each and every single position, and you'll see different scenarios where—where sometimes you will want to decide for yourself. This is a very experienced game where psychologically you get to decide yourself what is better for you: do you want to roll a position? Do you want to get assigned? How far do you want to roll? You don't have to follow the dog strategy of, you know, 30 days out and down by five; you may decide that you only want to go down by one; you may decide that you want to go down a lot more—by 10. In the case of selling puts, you may decide that you want to go 60 days or 90 days into the future. Now, not only have you basically minimized your losses by rolling or adjusting, but on your new position, you can actually make huge amounts of money by collecting more income when you are rolling. It sounds amazing in theory, right? But of course, I understand that you, as a beginner, will not always know what to look for when rolling your position. So to help you out, I'm going to show you an example of a sell put position that I will roll, and the key point is that I'm going to be making more money. I'm going to show you different scenarios of maybe I'm going to lose some money; I'm going to get a much more favorable strike price; maybe I'm just going to move the strike price by a little bit and get a good net credit and actually collect income. So let's go into some examples right now. I'm going to show you exactly how rolling works, how I think about rolling, how I think about adjusting, and the good news is since I do this so often, I have many positions that I'm very positive that I'm going to be rolling right now. I'm going to show you some live examples. All right, so here's my portfolio—currently sitting at $2.1 million. I am frequently taking money out of this portfolio as I am making income, so, you know, typically stays around $2 million. Cuz I use this portfolio to fund my lifestyle. Let's just go into some trades that I currently have. You can see here that I have a trade on American Airlines that has already made money. Now there's no point of rolling a position if you've already made money, in most cases. If you're making money, I wait until expiration. Now sometimes I will close a trade out early and I will take profit; that is a little bit complicated of a situation because when is it best to actually close a position? Well, in this case, as this option expires in just 3 days as I'm making this video, if an option is expiring in 3 days, then there's really no point of closing; it's just three more days to wait. You can see the option is up 94%; I have 5 more per—that I'm going to be making from the option premium—the next 3 days; that's perfectly fine. Now right here, if I actually change the view from total return to last price, you can see how it's 2 cents—yeah, 2 cents is not that much; it's basically $2 a contract, but I have 35 contracts here, so if I were closing this trade right here, I would basically close and have to pay about $70. Now for me, I'd rather just wait the three days, make the $70; not a big deal; I'm going to wait. Okay. Now if this trade right here was expiring in 2 weeks and I had to pay $70 to close this trade and then I had two more weeks of my capital that was freed up—this is quite a bit of capital, by the way, because it's 35 contracts of about $11,000 each—so if I can get $35,000 and I have to pay $70 to kind of clear up my capital, obviously I'm still making money here; it's still for a gain because if I go to the total return, you can see how I'm still well above $1,000 in collected income, then for me that's going to be perfectly okay because I have two more weeks, but three more days—not so worth it. Okay, so that's how I think about when I can even close a position and take profit, and it depends on something called the annualized return. I go over annualized returns during my coaching sessions if you're interested; it's just the first link in the description. Annualized returns can be really boring, so basically you can just do the simple math in your head and see if it makes sense for you based on how you feel. If you get enough days—like I said, 2 weeks—maybe that's enough time, whereas, you know, 3 days—there's no point of actually closing the trade. All right, so the next trade that I want to look at is going to be something like an Apple, which I'm also up on, so let's look at something where I am down on because typically when I'm rolling, I'm looking for a trade that I'm not making money with because the whole point of rolling, in most cases, is that basically you're trying to fix something; you're trying to compensate and make money back from a losing trade. However, I will say that you can also roll a winning trade to make more money. For example, let me actually go to a winning trade first; I'll show you what I mean by that. So if I look at this Apple put option—it's a 177.5—2 puts here—you can see here I've sold 10 contracts, and so far I'm up just a small amount—about $110. Actually, you can see my simulated return right here is that over time this option will actually continue to gain money, so at expiration I'm going to just make over $1,000 if Apple stays at the 183 stock price. The reason why this is going to make money is if Apple stays at about $183, which is the current stock price, this 177 put option is going to be out of the money. However, if this starts to go back and it starts to go lower, you will see that the simulated returns are slightly changing; I still make my full amount at expiration because it's still out of the money, but in the meantime, I will have less returns. So as I go down, you can see how even in the short term, if Apple were to go down to 180, then this option right here would be in the red currently; however, it would still be in the green at expiration again because it's out of the money, and if I keep going down, you can see how this option will show a net loss. So when you make a trade—when you sell a put—you may have a net loss; you may look like this option is losing money, but the fact of the matter is it's only losing money right now if you were to close the position, but if you wait—like I said—if you wait until expiration, you will still see a green profit. So although it can be scary when a stock is going down, it's really not an issue as long as the stock is still out of the money. Even in a more extreme case scenario right here, you will see that I made the stock price 177.70; you will see that basically we're going to be in the red up until almost the last day of expiration—the last couple of days—then this will start going into the green. Okay. Now if this is actually below the price of 177.5, then yes, this sell put option will be losing money; however, again, this is not a problem. If you want to get assigned, you'll get assigned; you will have a small loss, but then you just start running the Wheel strategy. So what would happen if Apple went down below 177 and you don't want to get—get assigned and you don't want to run the Wheel strategy? Is you would roll the position. So we can go to roll this position, and although this won't be a perfect example because it's currently above, I'll show you what rolling looks like in this case scenario—how I can roll this position. So what I do is I clicked roll the position. Now I can pick a future date. So you can see how this option currently expires May 17; I have 10 buys to close, okay, cuz I'm going to be closing the current position that I have right—rolling is closing one position, opening up a new position—so I'm going to be closing this, and I'm going to be opening something into the future. So let's go for June 21. All right, so this is about 30 days. Okay, and now what I can do is I can get a more favorable price for myself. So although the 172.2 isn't available, so I can't roll this by five, I can roll this down by 2—and—a 2; I can go down from 177.2 down to 175, improving my cost basis, improving my strike price; going down in the case of a sell put, it's good to go down; you have less risk. So I'm moving down by 2.5; the time change here you can see is 35 days, so I'm increasing by 35 days; that's the time; I'm moving down by 2.5. Okay, and actually I'm collecting a credit of $1.39, so I'm collecting $1,390. So rolling is really amazing because not only am I going down from 177 to 175—improving by $25—I'm collecting income to do this, and the only thing that I'm paying for this is by time; I'm not paying any money; I'm actually making money, but I'm

And I don't get assigned on this position. So you can see that Apple is currently at 182.90, whereas my covered call is at 175. What I'm going to do is, I have a loss here; I'm going to click "roll" this position now. Now, keep in mind later on in this course, when I cover spreads, when I cover iron condors, when I cover other strategies, you cannot roll other strategies in Robinhood with one press of the button like I just did. You will have to close the position yourself manually and then open up a new position. Robinhood, though, gives you the ability to roll both selling puts and covered calls; these are the only two things that you can roll on this platform. Now, other platforms, which I'm not an expert on, probably—I think many of them do—let you roll in one transaction, even if it is a spread, because some of those platforms are paid platforms whereas Robinhood is free. It's not necessarily free; there are some other issues, but that is a topic for a different video.

So what I'm going to do right now is I'm going to show you how I can roll this option that's expiring on May 24th. Okay, in just two weeks, I can roll this into the future. So I can go from, let's say May 24th, I'm going to go to July 21st. So again, I'm running the "dog strategy"—the strategy that I basically came up with and called the dog strategy. I can move out by 30 days and by $5. So right here you will notice that I can move from 175 to, for example, 180. Now, this right here will cost a debit. So we're going to go over a couple of examples right now. This right here is a debit; I still have to pay money. Why? Why do I still have to pay money? Well, in this scenario, I'm moving up by $5, which is actually a lot of money because I have 70 contracts. 5 * 70 * 100 shares; each option contract is 100 shares. This is going to be $35,000. In 28 days, I'm going to improve by $35,000, and the total debit here I'm paying is $88,000. So I'm paying $88,000 to make $35,000. That's why, in this example, it will be actually somewhat expensive to close out this position and roll it; it'll cost $8,000.

However, if you don't want to pay at all, what you can do is if you increase the time. So if I go to 73 days away and now I pick a 180 covered call, you will see now, due to time, due to the extra, you know, 30 days or so, now going from one month to two months, you will actually notice that I'm now collecting a net credit of $2,800. So I went from spending $8,000 to making $35,000 to now collecting $2,800 to make $35,000. That's how rolling works, and you can play around with different strike prices. So let's say that you want to move up by $10 because when I move up by five, I'm still in the money. So if I wanted to move up by 10, my total debit would be very big, right, 'cause I'm moving up by a lot. So now my debit would be 16. Okay, if I wanted to roll up by a lot, lot more, my total debit would be 46,000. Okay, it does not make sense; you want to make small adjustments. That's why, when a stock does go parabolic, it moves up a lot, it falls down a lot; rolling is not your "get out of jail free card." It's not going to get you out of every single situation. At the end of the day, if a stock moves against you completely, you will have to wait patiently to actually make your money back. You won't always be able to roll and fix every single position. However, I will say that rolling, for me, fixes 90% of positions. So as long as the market isn't crashing, as long as you're picking high-quality companies, you're going to make money rolling. And in this example with the covered call, I've already made money; it's already above my average cost, and I've already collected income as a covered call. The only thing that I'm really paying for here, the debit, is to not lose my shares and to step up in my cost basis. And by the way, I advise—well, not a financial advisor, of course, I'm just the guy on the internet—but I advise or tell my clients, my students, and my Discord that they can roll unlimited times. Guys, you can roll indefinitely, month after month, after year after year, forever, for the rest of your life without ever having to actually pay money for taxes. You can keep stepping up in your cost basis; it's actually one of my unlimited profit potential strategies that I use with rolling. I just roll indefinitely, forever.

All right, guys, so we've talked a little bit about technical analysis. We use my three main indicators, which is RSI, Bollinger Band, and moving average. Now what I want to talk about is fundamental analysis. Okay, from one perspective, you can look at the charts and see where a stock is historically and where it is today. So you can see where the stock was trading at. So if a stock such as PayPal, which is a really good example—if I pull out PayPal—PayPal was a $300 stock; it has pulled back tremendously, and that is the reason why I bought the stock. So if I go to the chart right now, you can see here that in the past five years—this is a very interesting chart—the stock went up all the way to $38. If we take a look, this happened in 2021, and then since then the stock has absolutely gotten decimated and has crashed down to just $66. Now, taking a look at the past six months, the stock has really not done a whole lot, which is really interesting; that means the stock was trading at very high levels, has pulled down tremendously, now it's going sideways, which means that this is a very interesting stock for a selling strategy such as a covered call; a sell put specifically would work very well here because it's very unlikely that PayPal is going to fall lower. For example, if you look at the Bollinger Band, the Bollinger Band low is 61, the Bollinger Band high is 68. So this stock is trading in a very specific range. So this sideways action is actually very good for covered calls, selling puts; it's also very good for an iron condor strategy, which we will talk about once we go over spreads. So this is very interesting from the perspective of technical analysis because you can understand where the stock was trading at and where it is trading at right now. Now that's a technical perspective; now I want to talk about fundamentals. Okay, so when you couple technical analysis as well as fundamental analysis together, you really get a good picture of the stock and you get to understand the company a lot better.

So here's what I would do if you want to understand fundamental analysis. So I like to go into the statistics tab of Yahoo Finance. Now you can also use your broker; you just need this data; it doesn't really matter exactly what platform you use to understand this data. So first of all, the market cap here is 68 billion dollars; that is a pretty big company, which is good for option trading. I don't recommend people trade options on companies that have lower than a two billion dollar valuation; typically those options are very illiquid, meaning that there's not a lot of volume, and when there's low volume that means that the bid-ask spread—I can go over an example of this real quickly—the bid-ask spread is going to be very wide. Okay, here's what I mean by that: a bid and ask is exactly what you're paying for or you're collecting in terms of when you're buying or selling options. So, for example, if I go to trade PayPal options and I go to buy a call, and let's say that I just buy a 70 call here, you can see that the bid is 5 cents and the ask is 6 cents. That's amazing; that's very good; that means they're very, very close, and when you're trading you don't really experience any slippage, no costs; you're getting a good fill rate; you're going to get filled on this right, and the volume is very high. Now let me show you something where the volume would be really bad and the bid-ask would be really bad. So if I go to like a, you know, different expiration day, let's say December 20, and then I pick something like 72 and a half, you can see right here that this is still actually a very good bid-ask spread just in general because PayPal is a very actively traded company and it has a good market cap. I'm going to show you in just a moment a bad example, but this is a little bit wider but still really, really good. But if I go into a stock, let's say I go into, you know, Oatly, or if I go into something else like I could go into an expensive stock like Chipotle, but let's just go to Oatly. Okay, I haven't traded this stock in a very long time. Let's go to sell put and let's go to a future expiration day; let's say we're going to go for January 17. All right, so if I were to go to the 0.5 here, this is an awful option; like this is absolutely really, really, really bad. This is what I mean by a company that's smaller is going to have bad options. So the bid here is zero. Okay, so if you're trying to sell this, you'll literally probably get nothing for it; you won't even be able to get filled, and if you want to buy it you have to buy it at 15. Okay, so this is really bad, and also there's zero volume. So literally nobody in the entire world has traded Oatly today; the volume is zero; the open interest is kind of high though; 944 contracts have been traded historically in the past, but you can see here how the bid and ask is just really, really bad. Now if I go to Chipotle, this is a stock that I really like; however, it is very expensive, so I do look to trade spreads on it; however, I can't even really trade spreads on it, and I'll show you exactly why—again talking about the bid-ask spread—and this really important tip when you're trading options on market cap size, which has to do with fundamental analysis. So if I go into, let's say I want to sell a put. Okay, if I were to sell a put, and this is very similar to selling a put credit spread, but let's just go for a put, let's go for July. So if I were to go to I don't know, even something like near the money, you can see here how the bid and ask is so bad. Look, it's 73 and 79; that's a $6 gap; that's $600. So if you were to get filled for this, you're probably going to get filled somewhere in the middle, and that midpoint is $300 away from the bid and $300 away from that ask, give or take. So you're literally losing $300. Now, granted, you are going to collect a good amount of money here; you're going to collect $7,000 if you were to make a trade like this, but the bid-ask is absolutely terrible, and the volume here is zero, and the open interest is five. So this right here would be an example of a really bad option, and you know I'll give you some foreshadowing right now for what a spread is, but if I were to sell one put and then if I were to buy another put right below this, wouldn't even make any sense. All right, so this is going to have a really, really hard time getting filled. Look at the bid; it's negative 380, and ask is 750. So this is so bad in terms of bid-ask that you want to be really careful. And Chipotle is actually a big company, but this is an example of when volume is low and when bid-ask spreads are very wide; that does not make a good stock for trading options.

Now the next thing that I want to cover after this market cap is uh looking at the P/E ratio, both the trailing and the forward P/E. Okay, so the trailing P/E just means what is the P/E ratio right now? The P/E ratio for PayPal right now is 16. That just means that when you take price of, you know, $66 and you divide by the earnings, okay, you get a ratio of 16. Let me make it more simple for you: if a house were to cost $100,000 and per year you were collecting $10,000 in rental income, all right, you have a price-to-earnings of 100—the cost of the house 10,000, the cost of the earnings or the earnings that you get—100 divided by 10 is 10. So in this example that I gave you on a house that cost $100,000 and a return of $10,000 in rental income per year, the price-to-earnings ratio would be 10. So here what this is saying is you're paying $160 for $10 worth of earnings; that is kind of interesting because in real estate you collect more, but the thing is stocks can appreciate a lot more than real estate, and this is what I like about option trading is that option trading can make a lot of money, and then stock trading can also make a lot of money. Typically in a given year, the stock market goes up 10 to 12%; with option trading you can have some insane results, like I was saying earlier in this video that I turned $100,000 into $700,000. So but you still want to understand fundamental analysis in the perspective that sometimes it can be really high. If it's really high, for example, if I go to a company like Nvidia, it's very high because Nvidia is an AI company that's pricing in a lot of future growth; a lot of investors are very bullish on it, and you will see right here that the trailing P/E ratio is 77, which is pretty insane; it's really, really insane. So to get $10 worth of earnings, you are paying $770. So if you put up $770, this company will earn you $10 per year. So that is a pretty bad return when you look at it at face value, but the thing is you can now see the next metric, which is forward P/E ratio. You can see here how Nvidia goes from 77 to 38. Now how does that happen, or what does that mean? Well, that means the trailing P/E ratio right now is 77; again, Nvidia is making, let's say $10, and it's trading for $770; in all reality, it's trading for $899, which means that it's probably having earnings of $12, $13, or $14 or so, give or take. Right now, the forward P/E ratio means one year from today, what will the P/E ratio be based on estimates, based on analyst estimates. So what's really interesting here is that Nvidia is going from 77 to 38. What's crazy about that, and what's really cool, is that means that analysts are literally predicting that Nvidia will double earnings. So if it doubles earnings, then the P/E ratio will be 38, and in the future as these earnings come in, investors will say, "Hey, this company is growing so quickly; I think 38 is a very cheap P/E ratio; I'm going to buy it," and this is actually what drives stock prices up; they go up because the expectations of the market are that the stock is going to continue to earn more money, and investors are willing to pay more money for the stock price, and as they're buying up shares this increases the value of the stock, so the stock's value goes up. So as you can see, the forward P/E ratio here is 38; maybe in another year it will be 19; maybe in another year it'll be 9.5; maybe in another year it'll be 4.5. 4.5 would be a steal. So if this price of the stock were to stay the same and this stock kept doubling its earnings, then in one year 19, in two years 9.5, in three years 4.25—who doesn't want to, you know, put in $425 and get $100 back? You're basically having a price-earnings ratio of four. By the way, if you flip the ratio, the P/E is the four; if you flip it, you get 1/4 earnings over price. So you're going to get $1 for every $4 that you put in, or a return of 25%. Now I don't know about you, but the banks are not paying 25%; bonds aren't paying 25%; nothing in the world gives you a guaranteed percentage of 25% per year. So technically speaking, in just a few years, Nvidia, if it were to be doubling, would be an amazing value at 25%. Now another year after that, it would go from 25% to 50% per year in returns. Now what does that mean? Does that mean that you're going to get 50% returns? Not necessarily; all this means is if Nvidia were to keep doubling, the P/E ratio would continue to go down and become so cheap it wouldn't make any sense; the only way it would make sense is if the stock price rises because that makes the P bigger, therefore the valuation continues to stay stable; maybe it's not going to be 77, maybe it's not going to be 38, but as it keeps doubling in my example it will go to four, but let's say investors think it should be 20 P/E ratio, so the P/E ratio here could go down to 20, and that means that the stock would 5x in the next four years in this example if it were to continue doubling. Now with that being said, Nvidia is not going to continue doubling because if you go to the financials it's very unlikely to do so. So you can see here how—and I said it's unlikely to do so—but it is; it went from 16 billion in 2021; in 2022—I'm under the financials tab by the way—in 2022 went to 6 billion, which is almost a double; 2023 actually it just made slightly more, but in 2024 we had a skyrocket of more than double. So if you take the growth rate here, it's not quite doubling, but it is going up, and it can double, but it's unlikely to continue to double all the time. As you can also see here, Nvidia has beaten earnings over and over and over again; that's typically a positive sign of high momentum on the technical and the fundamental aspect; this is kind of somewhere both that many earnings beats is a very positive sign for a company. So this is a very good thing, and as you can see here the annual revenue just continues to skyrocket, and the earnings have actually skyrocketed as well; actually the earnings went from 4 billion up to 29 billion. So analysts think that the earnings can double again, meaning that the price-to-earnings ratio is going to continue to fall. If you want to know what the average price-to-earnings ratio is, it's between 20 to 30; that's what the S&P 500, general stock market index, is, is give or take roughly. So you want to look for a P/E ratio around 20 to 30; however, if you see a high P/E ratio that isn't necessarily mean that it is a bad company; it just means that the company most likely has high growth, and investors are predicting that the stock will go up, and that's why it is trading for expensive levels.

Next we will look at price-to-earnings growth ratio; that's what PEG stands for, and that is the five-year expected PEG ratio. So this just takes into price-to-earnings divided by growth. Now this is an interesting metric because typically it's around one or two. So here you can actually see that Nvidia is actually around 1.24. So when you take into account growth, it actually has a fantastic growth rate. Now if we take a look at Tesla, just to give you guys a different perspective of other companies and how expensive they are, you can see here that Tesla has a very interesting scenario; Tesla actually has a P/E ratio of 47 right now, but in the future, because actually it looks like analysts are expecting their earnings to actually slow down, and because they expect it to actually slow down, you can see here the forward P/E ratio is actually more expensive; this is a signal that Tesla can actually be a very bad stock; if Tesla doesn't experience enough growth, this could be a stock that has to go down in value because the P/E ratio is just way too expensive. Now also the PEG ratio is also very expensive; the PEG ratio here is 3.27. Nvidia seems very expensive, and it's going up a lot, and Tesla is going down a lot, but the fact of the matter is it actually looks like Tesla is a worse value; it actually looks like this stock that's falling is worse, and Nvidia is better because in the future Nvidia is likely to grow more based on analyst estimates whereas Tesla looks like it's going to slow down, and because it's slowing down the PEG ratio here is actually worse; it's actually a lot more expensive to buy Tesla.

Now taking a look at the next metric is price-to-sales; price-to-sales is simply how much is the price of the stock, how much revenue do they have, and those two numbers are divided. So for example, you can see that the market cap for Tesla is $580 billion, and let's say that their sales is 100 billion. So if it's 100 billion, you take the market cap of 5.89 divided by 100 billion, you get 5.89. Here we have a ratio 6.8, which means that Tesla has just probably under about $100 billion worth of sales per year. This is an awesome metric because it lets you kind of stabilize and compare an apple to an apple because if you look at earnings, earnings are not always that relevant; I mean if you look at something like an Amazon, as they were growing their earnings were negative for a very long time; earnings can be negative for quite a long time, and I'll actually show you that that was also the case for Tesla, and they can quickly go into the profits. So here you can see that they were actually in 2022 broke, you know, $721 million, and you can see here how the earnings are actually going up, but if you take a look at something like we were just looking at Nvidia, I believe that the earnings were actually negative. So no, the earnings here were also positive; that's because a lot of these companies are, um, you know, they're already mature. If we look at a company like Rivian, which I don't like at all; I've never recommended Rivian; this is one of my more hated stocks; I don't think the brand is too good—you can see here how they lost a billion; they lost four; they lost six billion; they lost five billion. Okay, so although the revenue is certainly rising, it certainly does look, you know, good; the earnings are really, really bad. So I would really steer away from a stock that has these types of elements, like the P/E ratio is non-existent 'cause they're not making any money; price-earnings growth ratio is non-existent and non-applicable because, well, they're not really making any money; they're losing money; price-to-sales is two, but that's expensive if they're not making anything; this company has a high chance of going bankrupt; you have to pay two times more than sales; you know, this is lower than Apple and Tesla, but, you know, still I'm not really bullish at all on this company. So, you know, let's continue on and look at other—I'm going to skip price-to-book; it's not as important, although some of these metrics can be somewhat important, but I don't look at these as much.

Now take a look right here; you can look at the share statistics; you can see how much is held by insiders as well as institutions. Now an important metric that I look at is short percentage of float. So this just means out of all the shares outstanding and floating, how many shares are being shorted, and here it's 22.98, which is incredibly, incredibly high. Now if I look at a different company like Disney—Disney is down a lot today—if we take a look at the short, you know, the short is 1%. So there's a whole lot of people shorting, which just means that they think that the stock will go down; they are bearish; so they believe that the stock will fall in value. Percentage short is a good metric to really look at because it also tells you how hated is a stock; how many people hate the stock; and if it's a really hated stock, I would recommend that you not touch the stock and maybe you can buy some put options, but you would generally want to stay away from the stock because it's most likely a very low-quality company. Now there are other metrics that you can look at, for example, like profitability, like the profit margin; this is a very interesting ratio; however, it depends on the industry. So a company like Amazon or Disney may have a very small profit margin because they're doing a lot of volume; however, if you look at a company that is more of a software play—you know, something that comes into my mind might be like Snowflake—if you look at something like Snowflake, it may have a lot higher profit margins; here actually it has -29, so this is not a good stock to look at. Now let's take a look at Datadog; I'm trying to find a traditional business in software that is just cranking out a high amount of money; again, here is 2.28, and as you guys can see, big companies have a lot of expenses, so a lot of them are really running on tight margins, which is why you do see, you know, sometimes companies laying off a lot of people. So let me go to Microsoft; for them, you know, when they can save money it is a big deal; Microsoft should have some really good profit margins; actually Meta has good profit margins; yep. So here's an example of a beautiful business; this is something that Warren Buffett would look at, something that he would own because, you know, the profit margin here is is really big; it's 36% on large volume because it's a big software company; profit margin is 36%; you can see here how the share short is very, very low; I mean you'd be kind of silly to short Microsoft on the long-term basis because, you know, when I was working on Wall Street one of the analysts told me stocks just like to go up and in the long term they're always rising. So any 15-year period, 99% of the time stocks are going up, so it's really kind of a bad idea to buy put options on large stable companies in the long term; maybe in the short term you can gamble with that, but I would not recommend it. You can see here how the shares short is very low; the price-to-sales ratio here is 13, which is very high, and that's because the market knows that Microsoft has a very stable, good business, and then they're willing to pay a higher price for the sales, and you can see here how the P/E ratio is actually 30, so it's not bad; that means that you put in $30, you get $1 worth of earnings, or an earnings yield of about 3.3%. So in general, 3.3% per year—what I'm doing—how to get that 3.3 is I reverse 30, and I reverse it; I put 30 on the bottom, one; so 1 divided by 30; the earnings of $1 for $30 that you're putting in is about 3.3%. So why would you settle for 3.3%? Well, that 3.3% is going to be growing every single year, so Microsoft is improving its business, and earnings are growing, so the 3.3% will get more as time goes on, and that's why people buy stocks; they want those earnings as well as dividends; there's a lot of dividend-paying stocks, especially the bigger stocks; they will pay you an annual dividend. So here you can see that the forward annual dividend yield is .73%; so it's not really high; you're not really going to get rich off the dividend, but hey, some stocks can pay you 3 or 4% dividend, so that does add up; you get the dividend plus you get upside plus if you're doing something that I call the "double dividend strategy," which is dividend-paying stocks to covered calls, you get a double dividend; you get paid dividends from the stock as well as you get paid from the covered call; you can do that on a quarterly basis; basically collect two dividends there, and that's a really good way to retire; that's a really good way to make, you know, $110,000 a month, $30,000 every quarter, $120,000 a year; you can get into that retirement zone pretty quickly with option trading; of course you need some capital; it'll take you some time, but, you know, I've been able to achieve that and basically get into the retirement zone by, you know, just simply doing strategies like covered calls, selling puts, as well as some other small-account strategies, of course.

To go over some more of the statistics, you can look at revenue to understand how much money are they making; you can also look at quarterly revenue growth year-over-year; that's why YoY stands for year-over-year. So year-over-year, how is this quarter to last quarter, and they grew by 177%, and you can see here how quarterly earnings are doing very, very well. So the revenue growth is growing 17%, and the earnings are going by almost 20%. All right, so now we're going to be talking about the wheel strategy. So to do the wheel strategy, you need to know what a covered call is; you need to know what a cash-secured put is, which I covered earlier in this course; so go back to that if you don't fully understand them. The wheel strategy involves a covered call and a cash-secured put at different times. To start off the wheel strategy, all you want to do is sell a put option. Once you get assigned, you start selling covered calls to generate income on the position that you got assigned. The wheel strategy is my very favorite strategy because you can make $5, $110,000 a month pretty easily, especially as you scale your portfolio. I also like the wheel strategy because it's a safe, consistent option income strategy that honestly is my number one strategy because it's just so consistent; it's really easy. First, you start by selling a cash-secured put; a cash-secured put means that you have the cash that if that put were to get assigned, then you have the cash to purchase that put option. If you do get assigned, so say that you sell a put option at the $100 strike of a, you know, different stock, let's say it's Apple, then if you get assigned at $100, that's basically a $10,000 position. You can also sell a, you know, put option on something cheap like American Airlines; that would be $1,400 if the strike is 14. So a covered call means that you already have the cash set aside in the account as well. So whether it's selling a put option, you do need to have the cash set aside, or a covered call option, you need to have 100 shares of stock. So again, this is a capital-intensive strategy, so you will want to have a stock, 100 shares of—so like that could be Palantir here, that could be anything that you can afford 100 shares of—or vice versa, if you're just going to sell a put option to get into the strategy, then again you need to have that cash laying around. If those are too expensive for you, you do have to look for the cheaper strategies that I will cover later on in this course. The point of the wheel strategy is that you're never afraid to get assigned; you are never, ever afraid to get assigned. So if you sell a put option, you're perfectly happy to get assigned 100 shares; if you, you know, get assigned and you have those shares, you sell a covered call; if the covered call gets assigned, you lose your shares; you're also perfectly happy; you're just generating income on both sides; you're generating income from puts; you're also generating income from selling covered calls. So you should never be frustrated or upset if you sold a put option; you get assigned; yes, it can go very into the money, and that could be difficult to run the wheel strategy, but in like basically 90% of cases it'll be very easy to run the wheel for consistent passive income, so I wouldn't really worry about it, especially if you're using high-quality companies.

Once you've chosen the stock that you like, now you have to pick a put contract with a relatively safe strike price with an expiration date of 30 to 40 days. You can use shorter-term expirations; you can also use longer-term expirations; I prefer to go for monthly income, so I will pick an expiration date that's 30 days out, and also my sweet spot delta will be about 30 as well. So after working for Goldman Sachs, looking at lots of research reports, what I realized was that selling options is way more profitable than buying options. I also realized that if I'm going to be selling put options, this is fantastic for having safe passive income; it's fantastic for growing a portfolio; selling put options to run the wheel strategy is specifically very good in volatile markets because when volatility is high, selling options is better; when the market goes down, you make more money than an average stock investor does using the wheel strategy because selling puts to get into a stock already gives you that margin of safety as well as cushion because when you're selling a 30 delta put option, or let's say you can also sell 25 delta—anywhere between 20-30 delta is a really good sweet spot—you'll actually get assigned about three out of 10 times on a 30 delta; if you're doing a 20 delta, you'll get assigned about two out of 10 times. Obviously, the less out of the money your strike price is, the higher premium you're going to collect, but in general, and especially for beginners, the wheel strategy is not about getting greedy; it's about safe, consistent returns. So you generally want to pick a strike price kind of far out of the money; you can also go under 20 delta; you will get paid a lot less. If you have a bigger portfolio, this will favor you. Now if you have a smaller portfolio, you may even decide to

You sell an out-of-the-money put. Most stocks just typically go sideways because most days stocks are not really moving that much. Sure, they might move half a percent, 1%, but if you're selling a 3%, 4%, or 5% out-of-the-money put option, in most cases you actually don't really need to do much. You can monitor the trade every few days, but you do not have to look at it all the time.

In fact, I have so many students that are doctors, dentists, lawyers, software engineers—they're very busy professionals. They're already making a high income, so even when they do make $10,000 per month doing option trading, they still have a very busy life. So they don't necessarily want to look at their portfolio, and I always tell them that's completely fine. You're not going to get better results by being obsessive over your portfolio. The fact of the matter is, it's actually really good to set a position and just completely forget about it. You can check on it every couple of times per week.

It's also not really worth rolling this type of position because since your goal is to get assigned, I typically would not roll a short put position or a sell put position because I'm happy to own it. Unless I, for some reason, change my mind about the stock or I slightly want to have a different entry point, then I can roll it using the diagonal strategy. But in most cases, this is not necessary at all because once you get assigned, you can do covered calls. And by the way, I would also do covered calls around a 20 to 30 delta. I have just found that that is a sweet spot for me.

So after that, if the option goes into the money again on the covered call, you do have a decision here. You don't have to lose your shares because often times you'll be generating a lot of money with the wheel strategy. And if you're up a lot on the stock, then you might not want to get rid of it. You may say to yourself, "Hey, I want to hang on to this." That's where rolling comes in. You can roll the in-the-money covered call; you can roll it up. You might not roll it up to become out-of-the-money, but you can roll an in-the-money option up, up, up until it becomes out-of-the-money. You can do that on a weekly basis, you can do that on a monthly basis, or, you know, you can even go farther than that. The whole goal is that you're going to be stepping up and rolling up if you don't want to lose a stock. If you're okay losing the stock, that's perfectly fine as well. You're going to be making money regardless.

Some really successful option traders that I know literally only use this strategy. They want to have a very boring strategy, for whatever reason—whether they're retired, whether they already have a big portfolio, and they're just doing this to generate extra income—they're very lazy with it, and that's perfectly fine. I'm also a lazy trader myself. I don't like to trade too often because overtrading is a very big issue. So if I had to pick one strategy to recommend to people who are looking to retire safely, I'd always recommend the wheel strategy because it's so good and it has such big results.

The last thing I should mention about the wheel strategy is that when you're about to sell your covered calls, you need to take into account your cost basis. To explain what cost basis is, I'm going to show you an example. Let's say that you sold a $165 put option for one week and you added, you know, 30 cents in premium. So now your break-even is $164.70. That's because when you have a put option that's at $165, you collect $0.30; now you have $164.70. So when you get assigned, you can count your cost basis minus the premium that you collected. And in theory, as you keep running the wheel strategy, you can basically get your average cost down to zero. Why? Well, let's just take this example. Let's say we go back to the $165 put. So you sell a $165 put, you get paid $1; nothing happens; you don't get assigned. Next week you get paid again $1; you do the same $165 put; nothing happens; the stock goes down, but it doesn't reach $165; and so on and so forth. Let's say the following week it's more volatile; you get paid $2; the following week you get paid another $1. Okay, now if you were to get assigned, you've already made $5—you made $1, $1, and $2, then another $1. So now you've gotten paid $5. And let's say you do get assigned at $165. Well, in theory, your cost basis is not $165, it's $160.

Once you get assigned, let's say that you sell a covered call, and you sell a covered call for $5; you don't get assigned. Let's say the stock just goes sideways; you sell another covered call; you get paid $3. So that can keep happening, and your average cost can keep going down every single time you collect premium. So in theory, you can actually have a position that you pay nothing for because you've collected so much premium over time to basically compensate your average cost to become zero. That means that, you know, basically you're in a really good position, and you can do anything that you want with that stock. That also means that when you get to the second part of the wheel strategy where you have to sell covered calls, you want to pick a strike price that is above your cost basis. So if your cost basis is $160, then you probably want to do a covered call that is above $160; otherwise, you'd be selling your stock for less than your cost basis, which is not going to feel really good.

The covered call is best used on really high-quality companies. So for me, that's Apple, that's Google, that's Microsoft, that's other high-quality companies that are in the S&P 500. I typically like to go for blue-chip stocks that have a good reputation, good brand. That way they are very predictable. And on a predictable stock, running the wheel strategy is fantastic because you're collecting income on the puts, you're collecting income on the covered calls, and the stock is typically bouncing up and down. There is some volatility, but not a huge amount of volatility, and that's what makes the strategy so good for retirement. In fact, I would say that once you have an account that's, you know, $50,000, $100,000, then you can basically run a majority of your portfolio just using this strategy.

Hey guys, I hope you're enjoying this course so far. As you can see, I'm filming in a new studio because this course is being filmed over many days. So if you can please share this with a friend, or at least one person that you think could benefit from this, that would be greatly appreciated. So continuing on, now that you understand covered calls, cash-secured puts, and how one type of option works by itself, you're ready to learn how you can combine different types of options to create what we call spreads. A spread is simply two or more option trades placed simultaneously. Usually you buy and sell an equal amount of option contracts. When you combine two or more types of option trades together, you can form all different kinds of strategies that benefit in different market conditions. Once you understand these few basic spreads I'm going to teach you, it'll open up the doors to literally 90% of option strategies. And I want you to pay special attention to this in this part of the course because spreads are absolutely awesome, and they're really good for scaling a small portfolio. They allow you to take a limited amount of risk with a small amount of capital and to get a lot of money back with a high probability of winning each trade. They also allow you to actually make super consistent income. For me, spreads are literally like the ultimate way to growing a small portfolio.

And when I started out with just $2,000, I grew from $2,000 to $7,000 in a given year. That year was pretty difficult; I didn't really know what I was doing, but spreads were a huge part of that. And then I took $7,000 to $17,000, and then from there, over a number of years, I finally got it past the seven-figure amount. And spreads were literally one of my biggest components for doing that. In fact, back in 2021, I turned $100,000 into $700,000—that's a 7x return—and a big contributor to that was spreads. I was using spreads on Tesla to multiply my money quickly. Although Tesla was one of my biggest contributors, I've also traded many other stocks: Apple, Google, Microsoft. I personally like to stick to technology companies because using spreads on tech companies gives you the best of both worlds. It gives you high implied volatility, which means the stocks are moving up a lot; you can make a lot of money quickly. It gives you good risk-reward ratio, which is also very important for me. And honestly, like, I really love the limited risk that I have with spreads.

So first of all, I love taking a limited amount of risk because, well, nobody wants to risk everything; that would be completely silly; that's not proper risk management. And many people, you know, they have just one big position, or they have too many small positions; none of those are actually going to give you the big results you need. Balance in your portfolio—that's where spreads really come into play. If you have a small portfolio, you can use spreads to just put in $500 per position, and now you can diversify while also having a high-returning position, which is a spread. So let's start off with the most basic type of spread, and that's called a vertical spread. A vertical spread consists of either two calls or two puts in a combination with each other. Out of those two calls or puts, one of them is a long position, and the other one is a short position. Basically, you sell one call, you then go ahead and buy another call; you sell one put, and then you go ahead and buy another put. Okay, and just for those who aren't familiar, long just means you're buying, and short just means that you're selling. Also, the long and short positions have different strike prices but the same expiration date. You'll be able to see that on the screen here. I'm going to pop up an image of an option chain, and if I buy one strike price and short another strike price, you will see that this creates a spread visually. You can see why it's called a vertical spread.

Now, within the vertical spread, there are multiple kinds of spreads that you can do, and I'm going to make this as simple as possible for you to understand. I'm going to go through each one very slowly. The first one is called a bull call spread. You can remember that because it's made of two calls, and it's a bull strategy, meaning that you want the stock to go up. You should also know that some people call it a call debit spread because you pay a net debit. So when you pay a net debit, you are paying money because you expect a certain outcome to happen, and you can multiply your money; you're making a bet; you're paying, and then you have an outcome. Okay, in other words, you pay, let's say $50 on the spread, but you can make up to $500, so you can 10x your money. So let's visualize it to help you understand. A bull call spread starts with buying a call option, but before I show you what the whole spread looks like, let's first compare: if I were to just buy a call option by itself for $8 at a strike price of $188.50, and say that the market price of the stock is currently at $190, your potential profit and loss chart for this option is going to look like this. As you can see, the vertical access represents your profit/loss (low to high), and the horizontal access represents the stock price (low to high). If the stock price goes below $185, the maximum amount of money I can lose on the option is $800, which is what I paid for the contract. Remember that an $8 cost is $800 because it controls 100 shares. Now, my break-even, aka the price of the stock needs to go for me to make a profit, is going to be $193. Your break-even for the calls can be easily calculated by adding your strike price and the premium that you paid together. And lastly, my maximum profit is infinite in theory because the underlying stock can keep going up higher and higher, making my option more valuable; and the higher it goes, the more money my option is going to be worth. So that's what buying a call option is going to look like by itself. To make this a bull call spread, I need to also short a call option at a higher strike price. So let's take a look at how everything changes when I short another call option at, say, $195, for example, and let's say that for selling this call option I get paid $2.50 per contract. This is obviously going to change how our profit and loss chart looks like. As you can see on the screen, my max loss is what I paid for the spread in total, and on most brokers you can easily pay for the entire spread in just one transaction. On Robinhood, at least, you need to be approved for level three option trading to trade spreads because it's considered an advanced strategy, but it's really not that complicated if you follow through with this. Anyway, in this case, the total spread price is going to be what you paid for the call option minus the premium that you got paid, which is $250. So now your max loss is $550 instead of the original $800. You see, you actually reduced your cost; you subsidized your call option by selling another call option. And this is not including if you get assigned on the option that you're selling. I'll cover assignment later in this video. So I reach my max loss if the stock price is at or below my lower strike price of $185 because both of my calls would expire worthless at that point. And not only is your maximum loss less, but your break-even is also less. Now, instead of $193, I would only need the stock to go up to $190.50 to break even. However, there is a trade-off for a lower loss and break-even. Of course, all things in life have trade-offs, which would be that your maximum profit is now capped; it's not unlimited. However, I'm going to explain to you why this is actually more advantageous. You can easily get your max profit for any spread by just seeing how wide your spread is. In this case, my long call is $185 and my short call is $195, making my spread $10 wide. That means if the spread expires when the stock price is above both of my strike prices, they will make a maximum profit, which will be $10, which you need to multiply by 100 to get a real maximum profit of $1000. So we can assume that the width of our spread will always be equivalent to our maximum profit. And just in case that this doesn't quite make sense to you, let's prove it by going through a quick scenario. Let's say, right as the spread expires, the stock price is above $196, so $1 over our top strike price, then my long call would expire $1 in the money, and my short call would expire $1 in the money. And since options always lose all of their extrinsic value at expiration, that's exactly why and how their total value would be as well. So to close out this spread and exit our position, all we would have to do is sell our long call for $11 and buy our short call for $1, so we would make a net profit of $10. And of course, most brokers let us do this all in just one transaction. And from here, you can assume that you can't make any more than $10 because even if the stock goes up by more than $5, we'll make $5 more on the long call, but we're still going to be losing $5 on the short call. But realistically, you're going to want to exit your bull call spread before expiration, so even if the stock goes past the short leg of your spread, it's not going to be worth $10 because the extrinsic value of the short leg is going to be more. Options that are closer to being at the money are always going to have more extrinsic value, so since your short leg is closer to the stock price, you're going to be paying more to buy it back. So realistically, if the stock goes up above both strike price expirations, depending on how much time you have left, your spread might still be worth something like $7 or $8.50, but it's not really going to be worth the maximum of $10, which is completely fine because if you end up closing a position early—say that you opened up a position that's a month out—and if you ended up closing a position in like a week or two weeks and you made $8 out of $10, that's really good; that's fantastic. That's pretty much my exit point: I either wait until expiration, or if I can get $7 or $8, or 70% or 80% of the bull call spread's value, then I'm going to do that. If I can do that early, and it's important to know your maximum value because once you start to see the value of your spread getting close to its maximum, you should be taking profit. There's absolutely no reason to risk losing at all just to get the extra dollar or fifty unless you're really close to expiration. In that case, sure, it makes sense. For me, I do close bull call spreads quite often and quite early if I can see even a profit of 30% in 3 weeks, to be honest, I'm really happy; or 30% in 3 days—it just really depends. For me, I look to close an option before the 50% mark. So if it's a month out, I look to close it at 2 weeks; if it's two months out, I look to close it at 4 weeks. Okay, only though if I have made a certain amount of profit. That profit isn't specific; sometimes for me it might be 30%, 40%, or 50%. You need to set this goal before you enter the position because coming in with a plan is going to make you a lot more successful than trying to figure it out in the moment. Because what happens—and I've seen this over and over again from coaching 4,000 students—they typically get greedy. And if you get greedy in the moment, then you're too much into the situation to really understand logically what has happened. So you need to zoom out, have a plan when you go into the situation, and then, once you're in the middle of the situation, don't get emotional; use logic and take your profits early if you see a really good return in a short amount of time.

Lastly, I know some people are going to have this question in their heads: what happens if I get assigned on the short call part of my spread? Because if the stock goes above my short option, technically the buyer has the right to exercise. So usually the buyer will never exercise on you when there's still time until expiration because it just really—it just doesn't make sense; they would just be throwing money out of the window into the trash can by not selling the option instead of cashing it in on the extrinsic value. I mean, if you even look at it right now, nobody's going to be exercising options early because the value of an option is usually a lot more than exercising that option, so it actually doesn't really make sense. A lot of people are afraid of exercising or assignment, but typically that doesn't happen, especially in the spread example. The only reason that it happens is if the option is very close to expiration—let's say there's only one or two days left, that option is in the money—then yes, your chances do increase, and I do recommend closing a spread that's in the money by a lot in the last few days. But that's actually not true for buying spreads. So in the example of a bull call spread, you don't have to worry about that; you only have to worry about it in the case that we talk about selling spreads, which we will talk about shortly. So most of the time you won't have to worry about early assignment, but yes, it's very unlikely but still possible. The only time it might be likely that you got assigned early is if your short option is super deep in the money, but at that point it will have so little intrinsic value that you should have already closed your position and taken your profit anyways. Cool.

So now that we have covered the bull call spread, which is the first out of the four types of vertical spreads—also, two vertical spreads are categorized as debit spreads, meaning you have to pay to enter them, and the other two are categorized as credit spreads, meaning you get paid to enter into them—since we just covered the bull call spread, which is a debit spread, the next one I'm going to be talking about is the bear put spread, which is also known as the put debit spread. And there's a reason why I'm covering the debit spreads together first because, as you're about to see, the bear put spread is the same exact thing as the bull call spread, except you want the stock to go down, hence the word "bear" being in the name. So again, let's show the graph on the screen. Now, a bear put spread starts with buying a put option, but before I show you what the whole spread looks like, let's first compare: if I were to just buy a put option by itself for $4 at a $58 strike price expiring in a month, and say the market price of the stock is $55, your potential profit and loss chart at expiration is going to look like this. If the stock price goes out of the money and above the $58 strike, I will lose 100% of what I paid for the contract, which is $4, so the maximum amount that I can lose is $400. My break-even price for this put option is going to be my strike price minus what I paid for the option, so $54, meaning I need the stock to go below $54 to make money at expiration. And lastly, my maximum profit can technically be quite a lot, in close to infinite, but of course the stock can only go down to zero; it can't go below zero. So you can make a lot of money up until zero; that's irrelevant because most of the time it's just not going to happen. To make this bear put spread work, I need to also short a put option at a lower strike price. So let's look at what happens when I short another put option at $52, and let's just say that for selling the put option I get paid $1, a real amount of $100. So now my max loss is $300 instead of $400 because, well, I just got paid $100. I reach my max loss if the stock price is at or above the higher strike, which is $58, because both of my puts would expire worthless at that point. Now let's talk about our new break-even. Instead of $54, I would only need the stock to go below $55 to break even because this time I didn't spend the $400; I only spent $300 because I again get subsidized when I sell a put option; it actually pays me $100. And lastly, let's just go over our maximum profit, which you basically come to the point of noticing that you would have a very high maximum profit again; you would be capped if the stock were to go down to zero, but here everything under the break-even is going to be pure profit. If you remember from the last spread, we can also automatically know our max profit from the width of our spread. So here in this case it wouldn't be unlimited because now we're not just buying a put option, so our spread is $6, and to reach that maximum profit the stock just needs to go down to $52 by expiration. That means we're essentially risking $300, our max loss, to make a potential $600, our maximum profit in this scenario. For me personally, I prefer bull call spreads; the reason for it is because the market typically goes up. I personally almost have never bet that the market is going down. However, if you spot an opportunity of a stock that you think has, for whatever reason, bad business, bad management, or just technically has bad negative momentum—it's going down, you think it's going to fall—this would be a good time to use this strategy. For me, I follow also very similar rules here: if I made 30% to 50% in just a couple of weeks, then that's a really good opportunity for me to take profit and close out this position. If the stock continues to go down, then I'm going to keep holding the position; it's really on a case-by-case basis, and you do want to use intuition. The most important thing is you want to make sure to use a strategy on a bearish stock.

So those were the two debit spreads. Now we can go over and talk about the two credit spreads. These are actually my favorite strategies to growing a small portfolio and making consistent income, meaning you actually get paid to enter them. The first one is called a bear call spread. It's also made up of two call options, except it is different from the bull call spread in that you want the stock to go down, or the stock can even go sideways. It's also known as a call credit spread, as you might have already guessed by now. With the spread, you generally want the stock to go sideways; it can go up a little bit, and you prefer it to go down. Okay, the good news here is that you sell a call option first; you sell the closer-to-the-money call, and then you buy another call option that is farther out of the money. The one that you sell is more expensive, that means you collect income, and the one that you buy is less expensive, so it gives you protection but it costs a lot less money, so you actually end up having a net credit; you end up collecting income with the spread. Generally, you will be making money as long as the stock price stays below both the strike prices of your spread, but it can go even up a little bit; you can also go down a little bit; you can still see a full profit. So first you're going to want to start by shorting a call option closer to the strike price than the long call option you're going to buy later. For selling the $102 call option, I will receive a premium of $11.50, and to buy the call option at $106, the option I'll have to pay $0.50. That gives me a net credit of $1, so I'll actually get paid $100 to even trade this spread in the first place, and $100 is also our max profit. That means my break-even is going to be $103, so I need the stock to fall or stay below at least $103 to make money. This is really good for a range-bound stock or any stock that even goes up; you just make sure that it doesn't go past your strike price. So that's why when I trade a call credit spread, I always pick out-of-the-money options; I go further away for that reason; there is a less likelihood that the stock will go up to that level. So I do pay attention to technical analysis for that, but the ultimate goal is that both of our calls expire worthless and that we get to keep the entire premium that we collected; and we don't have to close out the option; we don't have to pay anything to close it out; we don't even have to do anything as long as the stock stays below the strike price; we're in good shape; we just wait until expiration. Now, to calculate our maximum potential loss at expiration, we need to find the width of our strike, and our width here would be $4; then we just need to subtract what we got paid in the first place, so our width is $4, but we got paid $1 to enter this trade, that leaves our maximum loss at $3, or a real max loss of $300. You can see that the way we calculate our max loss and max profit is actually the reverse for a credit as it is for a debit. So the stock goes up a lot is going to be really bad for our short call, but our long call is there to protect the downside and cap our maximum loss. With the spread, we're essentially risking $300 to make a potential $100. You might be thinking to yourself, "Well, why would I want to risk $300 to make $100?" Just to give you an example: what if the chances of winning the $100 were 90%, but the chances of losing $300 were 10%? So that would be a profitable position to make because you would win well over to make a positive profit on your hands. If we compare this to the last debit spread we went over, it seems like the debit spread is actually better because we're risking $300 to make $600, but the thing is it's more likely that the stock is going to stay below a certain price for the credit spread, and it can even go up for the credit spread, and you can still end up making money, whereas with the debit spread, the stock has to go up; it like has to move up to a certain price for you to make profit; if it doesn't do that, you're not going to make any money. So that's why it's actually really beneficial to have a credit spread because you actually need something not to happen. Okay, it's really beneficial because most of the time you win, whereas with debit call spreads, to be honest, it can be pretty hard sometimes to win, but when you do win, you hit really hard. So it just comes down to risk and reward. If I'm going to be choosing a strike price for a call credit spread, basically here's what I would do: I would just go out of the money; I typically like to go for a delta around 15. Yes, that's a low delta, but that also means that I'm going to have a very high chance of success. I mean, if I pick a 20 delta, that means the chances of this option going into the money are 20%, which means that if it doesn't go into the money—which again, for a call credit spread, you don't want it to go into the money—then you end up making 80%, so it's really fantastic; you win 80% of the time, and 20% of the time you have a loss, and that's really important: how you manage your loss. And we'll be talking about rolling options, adjusting options, and how we manage those positions shortly.

Now, the last vertical is called the bull put spread. As you can probably tell, it's a bullish strategy using puts, and the alternative name for it is called a put credit spread because you're going to get paid to enter it. Generally, you're going to be making money as long as the underlying stock stays above your put spread, but you can still make money if it goes down just a little bit. So first you're going to want to start with shorting a put option closer to the strike price than the long put option you're going to be buying later on. So we're going to start off this example by looking at a short put option at $98, and I'm going to be buying a put option at $94. For selling the $98 put option, I will receive a premium of $1.50, and then I'm going to buy a put option at the $94 strike, and I'm going to be paying $0.50. That gives me a net credit of $1, so I'm going to get paid $1 to trade this spread, and that's going to be $100, and that's going to be our maximum profit. That means that my break-even is going to be at $97, so I need the stock to stay above or at least at $97 to make any money. But we want both of our puts to expire worthless so we get to keep the premium that we collect. To calculate our maximum potential loss at expiration, we need to find the width of our spread, which is $4, then we just need to subtract what we got paid in the first place to put on this trade, which is $1, that leaves our maximum loss at $3, or a real max loss of $300. So if the stock goes down a lot, it's not going to be good for our short put, but our long put is there to protect us on the downside and cap our maximum loss. And just like the bear call spread, we are essentially risking $300 to make a potential $100. Pretty simple, right? So for me, a put credit spread is literally one of my favorite strategies, and I'm going to go over an example right now and show you how the put credit spread works, how much money you can make with put credit spreads, and we're going to go into those details right now. All right, let's talk about put credit spreads. So let's go over an example right now. I'm going to use Apple stock. So I'm going to click Apple right here, and then I'm going to open up a put credit spread. Actually, you can see right here how I'm up $380k on the stock, and it does make up a significant portion of my portfolio. Again, if you want to see all of my picks, I do have a link in the description where you can actually check out my community where I post every single trade that I make. Now let's go to trade Apple options. The first thing I'm going to do is I'm going to sell a put option. Now, the best expiration date really varies, but anywhere from 1 to 6 weeks is going to be perfectly fine. The reason is because options actually expire—the reason is because theta, or time decay, actually kicks in very heavily in the last 1 to 6 weeks, specifically in the last week, but going 6 weeks is also perfectly fine. Now I'm going to pick an expiration date that's going to be in the future; let's go for an expiration date that's 1 month out. Now what I'm going to do is I'm going to sell a put option; I'm going to sell an out-of-the-money put option on Apple, and what I'm specifically looking at right now is delta. I want to sell a low delta; the lower the delta, the lower the chances are that the option is going to expire in the money, which is a good thing if you're an option seller. Going to move up right now to the $220 strike, and you can see right here that the delta is 9, which is pretty good; that means that I'm going to win about 80% of the time, and 20% of the time this option will go into the money, so that's perfectly fine with me. I'm going to go sell a put option, and then I'm going to click right here. Now, if I were just to make this trade right now, you can see here on the top right it says cash-secured put, so I'm just selling a put option, but to actually make this a spread, now we have to go ahead and buy a put option. First, we sold a put option; now we're going to buy a put option. For me, I like to buy a put option one leg down; typically I really like the width of

I don't usually close out positions. I've noticed my biggest returns come from holding options until expiration. That's what I teach in my community; I like simplicity, minimal work, and passive income. However, many of my students, especially engineers, want a system, precise closing times. The bad news is option trading isn't purely science; it's as much art as science. Each situation is unique. Sometimes I close, other times I hold to expiration. Mostly, I hold until expiration. I've been down $155,000, only to be up $155,000 at expiration—a $30,000 swing from patience. Doing more doesn't always mean making more; sometimes, it makes less.

For put credit spreads, use high-quality blue-chip stocks. Avoid stocks like CMG; Chipotle's stock split makes it a poor example, but before the split, the bid-ask spread was extremely wide. This current bid-ask spread is 15 cents ($15), unlike Apple's $5 spread. This adds expense, especially with multiple legs. This is exactly what you want to avoid. Let's say I want to sell a $5 put. These are strange due to the split. Let's try 62.3. I'll sell this and buy at 62.1. See how this is—it doesn't even show risk because these options are illiquid. Look at this: 460 and 730—that's awful! Robinhood shows a maximum profit of $50 and no maximum loss, which is incorrect; you won't get filled. The bid is -230, the ask is 330. It will be very difficult to get assigned or place this trade. You won't get filled. It says 0.5 here, but even at 0.2, it's a long shot. This is a terrible bid-ask spread. Choose high-quality companies and pay attention to the bid-ask spread.

Let's discuss using the four vertical spreads, their uses, and the stock outlook. For bull call spreads, you expect the stock to go up—a bullish outlook. A bull call spread makes money in a bullish market. This involves buying a call option closer to the money—a net debit, but high profit potential. This is my best strategy; I've made a lot on Tesla. Next is the bear call spread (or call credit spread). This bets against the stock going up; it stays lower, otherwise you lose money. The put debit spread pays for a put, meaning you expect the stock to go down. I don't usually use this. A put credit spread—I love it! You just saw how profitable it can be. Debit spreads are for high volatility and strong price changes; credit spreads are for low volatility and little to no price changes. I typically use a $5 gap; you can use $10 or $2-$3 for small portfolios.

Now, horizontal spreads. These are the opposite of vertical spreads. Vertical spreads use two options with the same expiration date, different strike prices. Horizontal spreads have the same strike price but different expiration dates—hence, the calendar spread. They're the same thing. Many option strategies have multiple names. There are long (buying) and short (selling) horizontal spreads. You can buy and sell calls or puts. I won't cover short horizontal spreads because of their unlimited risk. We'll start with long horizontal spreads, using a horizontal call spread example. This is used when the underlying stock is relatively stable or moves slightly in your favor. You pay a net debit to enter. The long call costs more than the short call. Only expiration dates differ. Longer expiration dates are more expensive.

Let's say Visa trades at $280. Buy a call option at $279 with 60 days until expiration. Sell a call option at $279 with 32 days until expiration, receiving $6 in premium. To enter, you pay $4 ($400). As time passes, you want the stock near your $279 strike price. You need to watch it closely. This requires management. To close, reverse the opening trade—buy back the short call and sell the long call. To profit, sell your long call for more than you buy your short call for. Theta decay hurts the short call faster than the long call due to the shorter expiration. Let's say in 32 days, at expiration of your short call, Visa is at $280. Your short call is worth its intrinsic value of $1, losing $5 of extrinsic value. Your long call has a month left, losing $4 of extrinsic value; it's worth $6. To exit, you make $600 selling your long call and pay $100 to buy back your short call—a $500 profit, minus the $400 initial cost, for a $100 net profit. This is decent, inexpensive, and good for small portfolios; you can make 20-25% monthly.

Early assignment happens when someone exercises their right to buy or sell before expiration. Why? Several reasons: dividends (call options exercised early to capture dividends); interest rate changes (less common); and intrinsic value (deep in-the-money options). Exercising is usually less valuable than trading the option, except on the last day. Don't worry about early exercise, but avoid decay. Option holders might exercise to avoid time decay, but it's usually better to close and buy back. Watch dividend dates when writing call options; someone might exercise to own the stock and collect the dividend. This is less of an issue unless it's the last month; the dividend might exceed the option's remaining time value. Pay attention to dividend dates and the ex-dividend date. If you have a covered call, closing it out might be safer. The worst-case scenario is losing shares with a gain, triggering taxes. Losses are tax-advantaged (up to $3,000 annually; I'm not a tax advisor). Short-term gains are taxed differently than long-term gains (holding >1 year). You generally don't want to sell because of taxes, but you can buy it back (wash sale rule). A loss doesn't count; a gain does. You'll pay taxes, then rebuy. My best option trading strategy is covered calls and selling puts, holding to expiration for long-term, steady, passive income. You should decide what works best for you. Some strategies, like buying call options and spreads, can make a lot of money (short-term capital gains).

Now, hedging—managing your portfolio. We've covered trading strategies and early assignment; now, hedging (mitigating risk). Let's say you bought Nvidia shares 2-3 years ago, 20% of your $100,000 portfolio ($20,000). It's now 10x ($200,000), and the rest is $80,000. Over-concentration in one stock is bad. Diversification is key (10-15 positions, ideally 12). Beyond 12, diminishing returns occur (like eating too many cheeseburgers). One stock is high risk; adding more reduces it, but less so with each addition. At 12, you're satisfied. With $200,000 in Nvidia and $80,000 elsewhere, sell covered calls. I like 30-delta covered calls, but we'll explore other deltas. 10-delta offers lots of upside and little income (low probability, out-of-the-money). Higher delta (50-delta) is higher risk (in-the-money). Selling 50-delta covered calls effectively reduces your position by 50%. This is volatile. Are you ready to sell? Later, I'll cover rolling options. You can sell 70-80 delta covered calls on part of your position to reduce exposure. If you have $200,000, sell covered calls on $100,000 at 100-delta. This is extreme. You can sell 60-80 delta calls on a portion to make it simple. By selling high-delta options, you're losing part of your position—good if you want to hedge. The market rises over time; don't usually sell high-delta options. Sell out-of-the-money options for consistent income.

Let's discuss iron condors. This is a neutral option strategy using four options: two calls and two puts with different strike prices and the same expiration date. Buy a lower-strike put and sell a higher-strike put; sell a lower-strike call and buy a higher-strike call. Choose strikes encompassing the expected trading range. I use a $5 width (e.g., selling 100 and 95, or 105 and 110). For low-priced stocks ($15), use $1 increments. Maximum profit is the premium received; maximum loss is the strike difference minus the premium. A profit/loss graph illustrates this. Break-even points are crucial; adding the premium to the lower short call strike and subtracting it from the higher short put strike. These show profitability and loss points. Iron condors work best in stable, low-volatility markets. If the stock moves significantly, roll the position or adjust strikes. Have a management plan. Often, leave the position open until expiration or close it for a loss. Closing and reopening involves four legs, so you might lose $4-$12 due to the bid-ask spread. Advantages include limited risk and high reward; I rank them high on my option strategy tier list. You sell calls and puts, collecting significant money. Let's look at a live trade example in my portfolio. I'll show break-even prices and execution. It's medium-risk, but you can make a lot quickly.

This is similar to put and call credit spreads; it's a combination of both. I'll show how I use technical analysis using Yahoo Finance and Apple's chart. Picking strike prices is crucial. Apple's gone up a lot, so it's not ideal. Let's use Nvidia. I use the Bollinger Band (20-day, 2 standard deviations). This shows where the stock trades. Nvidia's in the middle—neither expensive nor cheap. The Bollinger Band top is 135; my iron condor top end will be 136. The bottom is 119.51; my bottom end will be 119. I'll pick strike prices based on the Bollinger Band—super simple. I have a working iron condor up $5,610, expiring soon. This works for small, medium, and large portfolios. I coach beginners and intermediates. I'll sell a put option. Short-term, copy this logic to make money. The bottom is around 119 (20-day Bollinger Band), so I'll go further. Let's pick 119. I'll use a $5 width. I'll sell at 119 and buy at 114 (put credit spread). Now a call credit spread—selling both sides. The Bollinger Band top is 135.95; I'll use 136. I'll sell at 136 and buy at 141 (a $5 width). We have a short iron condor. Maximum profit is $275; maximum loss is $225. You double your money by running this repeatedly, as long as Nvidia stays in range, likely based on the Bollinger Band. If the stock moves slightly up or down, you're in the green.

Let's talk break-even points, risk management, and allocation. If Nvidia hits 138.75, you'll see losses. At 116.25 on the downside, it's different because you're collecting premium, so you have more buffer. If it hits a break-even price, close the iron condor; it has four legs. If it goes in-the-money, close and move on. For allocation, don't put all your money in an iron condor. With $10,000, use 10-20% (more for riskier investors). As you scale up, use 5%. It's high return, high risk; I have better strategies.

Several factors matter: market sentiment (bullish or bearish); market reports (GDP, unemployment rates). Rising unemployment is bad; low unemployment is good. Interest rates affect business borrowing; higher rates are bad for the stock market, but combat inflation. The Federal Reserve raises rates to combat inflation. Rates don't change quickly, but are different over five years. Inflation data (CPI) measures the cost of goods. Data can be manipulated; I wouldn't focus heavily on it, but understand inflation's impact on market volatility. Earnings reports and announcements hugely impact stocks (20% up or 15-30% down). Earnings show financial health (revenue, profit, margins). Amazon's 3% margin changing to 4% adds a lot. I use Options AI to track potential earnings beats; a beat doesn't guarantee upward movement. Monitor earnings dates. Use technical analysis; we've discussed fundamental analysis and market sentiment.

Emotional discipline is key. This course teaches the strategies; you need emotional discipline to handle market fluctuations. Option trading is partly technical, partly intuitive. The market moves randomly ("A Random Walk Down Wall Street"). There's no guaranteed winning strategy. Reward is directly proportional to risk. Invest in what you understand. I like technology. Understanding your stocks helps emotional discipline.

Greatly help your emotional discipline. Emotional discipline in general helps you cut a position more properly; hold a position longer. It's not always good to just panic and sell. There are many cognitive biases you want to be aware of; cognitive biases when it comes to trading. You are your worst enemy in the stock market—it's not other people, it's not the stock market, it's not the news; it's actually you. So be aware of cognitive biases such as anchoring, overconfidence, and loss aversion that can affect your decision-making.

Overconfidence is something that a lot of people experience. It's actually something that is not good. Just to give you a quick funny story: I typically have low confidence in most things I do, despite being worth multiple millions of dollars. So is that a good or bad thing? Well, it's good and bad. Having lower confidence in certain things means that I am more risk-averse, I'm more scared of certain things, and I'm more cautious, which has saved me in certain situations. But it also does not help in other situations. When you're super confident—let's say you make $10,000 one month—it's very dangerous, especially when you get into this game, or into this invest thing. And then you do very well, you get cocky, and you get greedy, and then you end up losing more money than you've made. I've seen that situation happen over and over. It's very important to keep a level head and avoid cognitive biases.

Another one is loss aversion. Ask yourself this: if I gave you $11,000 right now, how happy would you be? You would probably be pretty happy. If you went into the store and somehow you had $1,000 in cash and you lost it, how upset would you be? Research shows that you would be a lot more upset losing money—losing $1,000—than making $1,000. Be aware of loss aversion bias when it comes to investing. If you see a loss, it's okay to cut it. I see so many students that have lost a couple of dollars on a position; their portfolio is up a lot, but they refuse to sell the stock until it recovers. It's not always possible to recover something, and that's true across all areas of life. I've done a lot of personal development in areas of health, relationships, and money, and it's the same across all of these areas: you can't always win, and when you do have a loss, sometimes you just have to cut it. A bad relationship? Just have to let it go. A certain health issue? Just have to manage it. It's not always possible to fix everything, and it's not always possible to recover your money in a losing option trade. So it's okay to cut your losses. In fact, I prefer to cut my losses at a certain percentage. When it comes to, let's say, a position, I may decide to cut my losses at 5% or 10%. On a riskier option trade like a spread, I may decide to cut the position when it's down 50%. It does depend on your intuition, and there are no exact right answers. The market isn't an exact science, which is why I recommend that you keep a trading journal so you can learn for yourself what works, what doesn't work, what kind of bad mistakes you're making, and what good decisions you're making. Using a trading journal is really good. I don't have any recommendations for a trading journal; I personally just keep track of it either manually or in an Excel sheet that I have. I'll drop a simple Excel sheet in the description.

Now let's talk about a new strategy, and that is going to be called a straddle. A straddle is an option trading strategy that involves purchasing both a call option and a put option with the same strike price and expiration date on the same underlying asset. The strategy is used when the trader expects significant price volatility in the underlying asset. It means that you're buying calls and you're buying puts at the same time—let's say 80 and 80. Let me show you an example of what that looks like. Now let's go over a straddle. The ideal market outlook for a straddle is highly volatile, where significant price movements in either direction are expected. This could be due to upcoming events such as earnings reports, major news, or just regular market uncertainty. You want to pick a very volatile stock—let's pick Nvidia right now. Nvidia is going to be very interesting because, obviously, the stock has been in a very big bull run. Let me show you what a straddle would look like. Let's say that the stock has earnings. In fact, we can actually use Tesla because Tesla has had a lot of volatility recently, and yeah, Tesla has gone up a lot, but it doesn't really matter what stock you use; I'm just giving you this as an example. Let's say that earnings are coming up in a few days. So I'm going to do a short-term option. Here's what a straddle would look like: I could buy, for example, the 255 call, and I can also buy the 255 put. So I'm going to buy the 255 put. Now you can see that this is a straddle. If the stock doesn't do anything, you will lose money. If the stock goes up a lot, you can make a lot of money—unlimited on the upside—and if it goes down, you can make money until the stock price goes down to zero. This is a strategy that you use when you think a stock will either fall a lot on bad news or go up a lot on good news. In terms of risk management, there isn't a whole lot of risk management here; you're just basically buying an option. You are spending money, and you have to be okay with spending money to make money here. So I wouldn't use a whole lot of my capital to do this, but if you're bullish or very bearish on a stock, then go ahead and use a strategy. You can use one to two percent of your money and basically make small bets on big moves. This strategy can make you a lot of money. I've seen this used over and over on Wall Street, but they would primarily use this during earnings events.

Okay, now let's talk about the poor man's covered call. The poor man's covered call is an option trading strategy that replicates the profit potential of a covered call strategy but with a reduced upfront cost. It involves buying a long-term call option and selling short-term call options against it. Here's a detailed discussion on the poor man's covered call strategy. First, the component is a long call; call option. Purchasing a long-term call option, or basically a leap, is a long-term equity anticipated security; it's just a call option. This call option is typically one year out. Then there's also a short call option. This is something that you use to generate income, very similar to a covered call, but here your long call option functions the same as stock. That's why the long call option is best to be in the money—70 or 80 Delta—that way it's very similar to stock, and it's very long-term. It gives you the ability to sell short-term call options against the long-term call option. So there is a purpose and objective. The primary goal of the Poor Man's covered call strategy is to generate income through premiums received from selling short-term call options while benefiting from the price appreciation potential of the long-term call option. In the perfect scenario, this is a bullish strategy because as the stock goes up, the long-term call option increases in value. The short-term call option, because it's out of the money, will go against you. However, if it's 10% out of the money and the stock goes up by 5%, that's perfectly okay; it's still going to be out of the money, and because it's short-term, it's going to keep expiring. As it keeps expiring, you can keep moving up in terms of selling new call options every single month, every two weeks, or every six weeks, as you wish. You can sell call options on a consistent basis that acts as a covered call against your long-term call option that you bought. Compared to a traditional covered call where you would have to own the underlying asset, the poor man's covered call gives you a much smaller upfront investment because you're only buying a long-term call option, and that, in many cases, can be worth a tenth of buying 100 shares of stock. This strategy does benefit from many different things, which is why it's a very popular strategy, and it's a very good one as well. Time decay: when it comes to selling that short-term call option, time is going to be benefiting that short-term call option, and because it's decaying in value, however, it doesn't affect the long-term call option that you bought as much because it's long-term in the future. So you're going to be making money as time goes on if the position basically goes sideways. If it goes up, well, you're going to be benefiting from the leap option that you bought going up while the short-term call option is still going to be losing value because short-term options decay in value very quickly. That's why selling options works very well, especially in the short term. What I mean is selling short-term options; they always usually expire out of the money—like 90% of the time they expire worthless—so it's a very profitable strategy. Leaps typically have an expiration date over one year in the future; however, for me, I even go for six months, eight months, nine months, but sometimes two years if I want to make a position that's very long-term in nature. A two-year leap option is also perfectly okay. Now, the short-term call option—that's what generates income; that's what you're selling—and again, you can go for two to eight weeks; that's probably the sweet spot for me. A shorter-term call option has higher theta decay. Let's go over an example of a poor man's covered call.

All right, guys, now I want to talk about the Poor Man's covered call. In my community, Henry Trades, I am placing all my trades, and specifically yesterday I did give a little bit of a blueprint on the poor man's covered call strategy. So I'm going to read off of my Discord blueprint right here; I'm going to go into more detail. The poor man's covered call can be used as a substitute for a regular covered call. I tell this to my students all the time because not everyone has the capital to do a regular covered call. I mean, you could need five figures to make a simple covered call, which is why the poor man's covered call is a very good alternative to the regular covered call. So here's a cardinal rule and philosophy that I have around the poor man's covered call: essentially, a poor man's covered call needs to have a higher than 50 Delta call option that's also longer than six months. If you look at the textbook definition, a poor man's covered call is going to have a 70 or 80 Delta, and it's going to go out a lot longer, but 50 Delta in six months—that is the bare minimum—and I would say more is not necessarily better. So let me explain: you can go for an 80 Delta in 12 months; that would be completely fine, but above 80, it just defeats the purpose of actually having a leap option because it's going to be very expensive, and the whole point of a poor man's covered call is that you don't want to put up all the capital that you would for a regular covered call. So that's why, for me, I go for around 70 Delta. All right, 70 is not necessarily better than 80; it's just in that range of 70 to 80 Delta, and then from there, I sell covered calls. All right, so let's use Tesla and show you a Poor Man's covered call. I'm going to buy a call option that's going to expire well into the future. All right, so I'm going to buy one that's almost one year out—for June 20, 2025. Okay, now I'm going to buy something that has around 70 Delta. You can see here, this has 78 Delta—perfect. I can also go a little bit higher; the 210, this has 76 Delta, so this is good. All right, so I'm going to go ahead and buy this. You see here how the total cost is $7,900? Well, that's a lot better than buying 100 shares of Tesla because 100 shares of Tesla would be $25,000. So you're basically getting like 1/4 of the price, which is very, very good. So if I buy this call option, this is actually going to function very similar to owning stock. The reason why it's very similar is because this has a very high Delta, so when the stock moves up a dollar, this option is going to move up by 76 cents. Right? So it has a very good correlation—very similar to stock. Now you can use this call option and sell covered calls against this call option, making it a lot cheaper. So let's just say I'm going to sell a call option here for about a couple of months out. I can sell something at around a 30 Delta. All right, so let me go up a little bit higher—boom, that's perfectly fine; 35 Delta is good. So you can see right here how I can sell this option and make $13 on $80. So I'm actually getting a really good return. As you can see, this is a bullish strategy; you make money if the stock goes up. So this is a bullish strategy, and it's basically going to benefit if the stock rises. Now I'm putting up a lot less than the $7,900; I'm putting up only $6,600, and I'm making $1,300, and I can run this strategy over and over again on a repeat. So now I want to leave you with this: if you're interested in getting all my trades, seeing how I trade, and having live coaching sessions with me, I do have a Discord community. This community has taught over 4,000 people how to make a consistent income, and the investors in my community have had a lot of success. And if you'd be interested in learning more about it, do click the first link in the description. Now I also want to say that if you want to grow a small account, I suggest you watch my small account playlist that I'm going to put up on the screen right here.