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MicroStrategy (MSTR) thoughts, philosophy and housekeeping.

Passive Income, Covered Calls & Stocks29:34

Transcription

hey good morning it's uh about 8:00 in

the morning on Friday and um just a

quick video update uh to kind of go over

some housekeeping and tell you to start

off this one that today is going to suck

um you know we're we're expecting some

kind of an inflation report at 8:30 and

the street is you know expecting a bad

one whatever that means uh so we're

going to be down pretty heavily this

morning I think um and that's on the

heels of of a couple of really bad days

uh in a row I mean yesterday wasn't that

bad but it wasn't good and so th this is

I'm just letting you know that you know

this is part of the game and this is why

I use Market timing I was I've been

talking about for the last you know more

than a week now that we are in a red

Market red Market means you've got to be

in the money more or at least at the

money okay depending on your trading

plan depending on your personality your

risk management your tolerance all those

things so today is going to suck why

well we got a potential of a government

shut shut down and that's never good

we've got some weird stuff going on in

the white house I'm not going to

speculate on what that is but I have my

own ideas that's not good Bitcoin was

down to 92,000 and change uh overnight

and I think it's still right around

there so that's not good for any of the

cryptocurrency exchanges miners uh

Bitcoin companies like micro strategy uh

none of those right so that's going to

suck Tesla is down because Tesla's run

up and everything that goes up

eventually comes down at some point and

so hopefully you've been in the money or

at least getting the juice and

protecting your downside um you know so

there's a bunch of things let let's go

back to the market triple witching

Friday which means the expiration of a

bunch of different kinds of options uh

at the end of the quarter and so this is

the end of the quarter also where people

are taking tax uh tax hits right or

they're taking they're they're doing all

their tax stuff they're using tax law

selling uh to go against their gains and

you know all these kinds of things are

happening in the market and so the

Market's been just selling off for

basically 11 12 days now and uh we've

only had one decent day in there and I

don't think it was that decent um and it

depends on the stocks you're in take a

look at the screen here and you can see

what's going on pre-market and you could

see everything on my screen this is my

watch list these are things that I'm

interested in there are other other

screens this is my main watch list

everything on the screen is red except

for the treasuries which treasuries suck

uh compared to what we do in the cash

flow machine and gold right Safe Haven

assets even big Bitcoin is down because

Bitcoin does does these kinds of things

when people sell off they sell off

liquid assets to raise cash for other

things this will end okay this will end

but this is what separates the good

Traders from the the bad Traders or the

weak ones I should say maybe you're not

bad you just get a little you don't have

a plan you know how I always get on here

and say you got to have a plan well you

do right this is why you have to have a

plan because I know that you're there

are a lot of people out there cuz I see

the comments here that are freaking out

and so you got to have a plan all right

let me this is a this is going to be

basically a housekeeping video uh let me

tell you what I'm going to talk about

real quick okay cuz you might have to

you might have to you know get some

popcorn Buckle in I'm going to be

talking about a few things because I'm a

little bit pissed off today so uh we've

got housekeeping um I'm going to talk

about uh the math that I put out in the

video yesterday and how a bunch of

people didn't understand it and uh you

know I guess that's on me but I thought

I explained it I'm going to re-explain

it and show you the difference in math

and then and then the the the the

explanation of how we use the system and

how mindset as you're seeing today is

going to be the most important thing

that you've got to develop okay so uh

again today is probably going to suck

but the sucking we want to get it out of

the way because on the other side of the

suck is good like a bunch of good stuff

is happening right we get weak rid of

the weak holders the people that can't

handle the truth get rid of those people

hopefully it's not you unless that's

part of your plan that's fine and then

all of a sudden the market makers are

like cool we got rid of all the people

that couldn't handle it and now we're

going to go in and buy all their assets

up for cheap and so you're seeing things

go on sale I had to use that term in the

stock market but on these big sell-offs

like you know what's what's the

difference in a company a week ago that

was trading at $480 and today it's

trading at $400 like the company didn't

change uh but the stock's down

20% uh there stocks down 10% there's

other stocks that are all over the place

right so nothing's changed fundamentally

the company what's changed the supply

and demand of the stockholder I hope

you're not following me in these trades

without knowing what you're doing the

idea is that you shouldn't just blindly

follow some bald guy on the internet and

do what he's doing because it looks

exciting I mean it is exciting but these

are the times that are tough right I

they come back I don't know when they

come back they might come back tomorrow

Monday or they might come back you know

a month from now but you've got to be

able to sit through these or have a plan

to get out and go to cash if you haven't

done it if you don't know what you're

doing shame on you I tell you every

video don't follow what I'm doing learn

from what I'm doing understand what I'm

doing that's why I made 18 videos in

this micro strategy Series so that you

understand hey the Market's going up

here's what I'm doing the Market's going

down here's what I'm doing I'm not

saying I'm the best Trader in the world

I'm not telling you that you're going to

make a gazillion dollars I'm telling you

I'm doing it this way right and if you

want to do it this way great just know

what you're doing two kinds of people in

the world educated people and uneducated

people right trained and

untrained you know if you're trained in

something that's awesome if you're

untrained in something that's also

awesome but understand that you're

untrained you're uneducated and get the

education you have the ability to fix it

don't just follow people that do things

on the internet because it looks good I

don't care what it is right I don't care

if it's an only fans account or whatever

anyway I don't have an only fans account

anymore I closed it because people got

tired of looking at my really sexy feet

anyway so I want to start explaining to

you the math but to set it up I have to

give you an example of what realized

versus unrealized is because some people

in the comments last night frankly piss

me off right and and some of you are

like oh your math is off and okay great

my math may be off I don't think it is

but that's the way I do my math and

that's the way I've done it for 40 years

and I'm old now so I you know like

you're not going to make me use this new

math that you have and question the

things that I have great I love it when

you question but if you question to

snipe me if you question to troll me if

you question to say that I'm doing

something underhanded I'm being the most

transparent that I can possibly be I'm

putting my videos up practically every

day about what I'm doing so if you're

saying that I'm you know hiding

something like what the hell are you

talking about dumbass I'm putting my

videos out there so that you can learn

if you don't want to learn don't watch

my channel don't comment like if you

think that you know you don't like my

zit on the top of my forehead okay maybe

that's a comment that you could make and

I'll try to put a little makeup on it or

something but if you're telling me that

I'm not being transparent like shame on

you go watch somebody else's Channel man

I don't need you I want people that here

are here to learn and most of you are

here to learn so thank you and by the

way I don't want to just harp on the on

the the wrong answers on the test like

the teachers did I want to harp on the

people that did uh that did comment and

that you guys are appreciating what I'm

doing and you're learning from it and

that's the whole thing here like we're

all humans trying to get better and I'm

just trying to share information all

right so we have realized and unrealized

positions just so you know and this

might be basic for a lot of you but a

realized position is a position that

you've closed that you've taken off the

table right in every trade you open a

trade and then you close the trade when

you close it it's a realized position a

trade that isn't closed it's still on

the books it's open it moves around and

fluctuates with the market value that's

an unrealized position right I mean I

probably don't need to say that but

realized positions or closed positions

unrealized positions still are moving

around with the market okay the value

hasn't been taken off the table if you

want to realize what everything is all

together you take your realize in your

unrealized position you net them out and

that's what your gain is now I showed

this spreadsheet yesterday and then I

showed a screenshot of what is actually

going on in my account and some of you

just blew off the screenshot and didn't

say that I and said that I wasn't

telling you what it was well go back to

1638 on yesterday's video and you could

see the screenshot the actual live

screen

and what the value of my base position

was I'll show I'll show you what I mean

and I'll make it simpler today so you

can understand cuz maybe I wasn't you

know I wasn't clear and I want to be

clear okay um I don't want anybody to be

misled by anything so you remember

yesterday I put the spreadsheet up of

all of my trades most of them are closed

the ones that are not closed are this

base position that's this section up

here that's the base position the 250s

that I have which are in a little bit of

trouble today I will be I will be honest

about that uh because the stock is you

know looking look like it's going to you

know be around $310 or $320 today when

it opens I don't know probably go lower

if it does I've got a plan for that and

I'll talk about that in a minute if I

don't talk about it in a minute I'm

going to plan on rolling those down

because I still believe in the stock I

just don't want it to get under my $250

strike price that's all okay so there's

three sections of this there is the base

position cost now I still have a base

position some of it's realized and some

of it's unrealized but primarily I have

seven positions open according to this

sheet right so this is how much my base

position has cost me right from the

account so I still have that as an

unrealized position seven contracts are

open and this is what they've cost me

boom that's number one number two what's

the base position market value so if I

wanted to sell it right now how much

could I get for it well I could get

120,000 if you go to 1638 on the video

from yesterday it's

12,780 it's not some convoluted thing

that it's got to add the 250 plus how

much I paid for like that's the market

value if I sold it right there

everything would be closed there would

be nothing left because there's only

seven contracts in the base position and

if I close those the the account is Cash

the macro strategy portion of the

account is cash right so you got your

base position cost and if I were to sell

it right now or sell it yesterday uh

like I showed you on the video it was

worth 120,000 yeah it's down like the

stock is down $220 like what do you

expect me to make money every week some

of you trolls right oh yeah you're down

in your position great trade screw you

man like I'm trying to explain you what

what the point is and I'm going to get

to get to that but if you bought it for

223 and you sold it for 120 that sucks

I'll admit that sucks but you know what

doesn't suck the third part of this and

it's all of these trades that I've been

showing you for the last 28 days okay 28

days I've shown you all these trades

these are all

closed these are all closed they're

realized here's the number

10472 is the gain on all of these closed

positions go add all this stuff up even

my mistake here and my mistake here add

them all up it's

$104,000 now we take number one the cost

of the base position okay the market

value if I were to close it I call it

the walkway value like if I closed

everything out right now here's how much

I would get on this trade and I might

close it out I don't think I'm gonna but

I might like I don't think anything

fundamentally has changed with micro

strategy except bitcoin's gone down but

okay that that could be something that

could be a reason to close down but

that's not in my trading plan but I

might do it like I don't know so I've

got the 223 that I've paid and then I've

got the Bas position market value if I

were to close it down right now 120,000

it's dropped below that because the

Market's uh pooping right now so uh but

then I've gained 104,000 so as of when I

made that video yesterday I I've gained

13297 like for a month of work and a lot

of you are like hey great trade you

broke even after a month the stock is

down 220 bucks that's a cool thing isn't

it like most of you get this right if

I'm in a stock and it goes 20 down $220

and I'm still even like that's a pretty

good trade or at least it's not a bad

trade like I I could I could sell it get

out and break even right but what I'm

doing is I'm making 15,1 $5 $20,000 a

week from the juice and that's adding to

this 104,000 these are realized

positions and so that number is going up

I own the position for for free is my

goal eventually but for right now I

haven't lost any money on the position

and by the way I sold another contract

on it yesterday at the money the 430s

okay

so you know that's the math right it's

just math it's I don't know what your

math is but my math is I take much I

paid how much could I get if I sold it

right now it's going to be less today

but anyway using using yesterday's math

and then how much have I made on the

closed positions like there's no other

math there's nothing in here there's no

adding to the base position there's this

is the value 100 1,32 big deal or that's

awesome you um you gained 1,32 in a

month but you still have six months left

to sell against your

calls you know there's lots of different

ways to look at it I guess I can say

well I paid uh you know

$223,000 for this and it's only worth

120,000 but since I've got this I'm now

you know I'm I've lowered my basis so my

risk is way less than it was when I

started that's another way to look at it

all right enough on that I think you

kind of get the math if you don't get

the math I don't want I don't want you

to comment I think I'm being really

clear on the math I think of be one more

time I paid this I could get this if I

sold it right now and I've already made

this juice in the last 28 days can I get

any more transparent than that trolls I

don't think so so don't comment like

don't tell me that you don't understand

what I'm doing I've been you go back and

watch the micro strategy series uh and

and and see if any of this makes sense

and if it doesn't make sense don't trade

it but don't tell me that I'm wrong this

math is not wrong all right enough on

that now let me explain to those of you

that are still with me and that still

care about what I'm doing um you know

this is going to suck today for me and

for you and for everybody right nobody

likes selling unless you bought puts

right even selling puts you're not going

to like today so if you bought puts cool

I don't buy puts that's expensive

insurance for me but boy I would have

been smart but these black swans don't

come about every day you know where the

stock market drops $1,100 in a day and

then follows on and it's going to follow

on P possibly today unless we have a

good inflation report or the government

doesn't shut down or whatever right

whatever other noise there is all right

I want to take you through my system

because a lot of you are asking because

maybe you didn't watch the first video

um of the series and follow it along

you're just asking questions because you

watched that last video and you go oh

that's cool you made $104,000 I did make

$114,000 in Juice okay but I'm even as

you know all right let me let me just

get back to my agenda here all

right the system is simple okay it's

simple but not easy or easy but not

simple what whatever they say about that

it's actually simple the way I think

about it you buy a base position you

sell against it okay when you sell

against it you get time premium there's

two parts of a premium in an option

there's the in the money amount if it's

in the money if it's not the in the

money amount is zero you get that

there's the in the money amount and the

out of the money amount that's it

there's no two there's no no other

components of the premium the price of

an option

so you've got your in the money amount

and you've got your out of the money

amount I don't like the out of the money

amount that sounds like a third grader

says it I also don't like extrinsic

value that's like a lawyer says it I

like juice okay this is the juice we're

after this juice and every week you sell

the juice and you buy it back for almost

nothing prior to expiration every week

this is what you're after is this part

here the in the money amount is going to

move up and down now either it's going

to be deeper in the money or it's going

to be deeper out of the money you know

and there in which case there's zero

value but I don't care about all that

and this is what most of you don't

understand or not not most of you a lot

of trolls don't understand is that I'm

not here about the in the money amount

I'm not I'm not here for the micro

strategy going up or Tesla's going up or

you know Nvidia is going up or down

that's not what we do that's what

everybody else does in here what I do is

I care about this

now this has been good because it's

buffered my account but it hasn't been

awesome because the accounts you know

the the the price of the thing has gone

from a high of 543 down to 320 or

wherever it's going to open today okay

that has not been good so you know could

I have predicted the stock better I

don't know most of you were saying that

I was a fool to be selling at the money

because this thing was going to take off

because I got Nas you know added to the

NASDAQ 100 I don't care what the news is

guys like I don't care there's news

there's news in every stock there's

there's fud fear uncertainty and doubt

in everything you're going to trade if

you listen to Kramer um you know he's

going to tell you one thing and he's

usually wrong so do the opposite by the

way um but there's always going to be

news there's always going to be people

trying to scare you out of your stock

that's wall Street's game trust me I was

on Wall Street I know this game and I've

seen this for for 45 something years now

I've watched people get taken out of

their stock at the worst possible time

now if it's part of your plan cool all

right so that's what we do is we it's a

simple thing we buy the position the

base position we sell the juice against

it the juice over time if the stock

doesn't go out of business or if the

stock doesn't tank you know incredibly

and you know we try to protect the

account during bad markets so we try to

be in the money or at least at the money

to maximize our juice so that we have

some cushion and in markets that are

going up maybe we're at the money and

maybe a little out of the money right to

try to maximize if it's going up it's

not that hard right but most people

never hear this everybody else that

talks about covered calls on Wall Street

talks about buying the stock and selling

out of the money well if you've been

selling out of the money while the stock

has been dropping 200 points you haven't

really been helping yourself notice how

I've done a lot of Trades at the money

and a couple of trades in the money that

have saved my bacon

right so that is that's that's what I'm

trying to show you here so that's the

way the system works we try to buy the

right stock which I think we have in the

right Market which we don't have right

but I'm not entering the position here

and I generally don't go to cash by the

way but you could you could make that a

part of your plan right stock right Mark

at the right spot on the chart right

which we're not at we're in a

consolidation or a drop and then we

squeeze the juice the juice is the

biggest component of probability in our

favor because that's outside energy

coming into our account every week so

every week we some Gambler is paying us

juice to have the right to take our

stock okay now the stock could go up

over the strike and I want to address

that if it goes over the strike I'm

thrilled why am I thrilled everybody's

like not everybody but a lot of you are

like well if you're if you're uh over

the strike you're going to get exercised

or assigned or whatever you call it

right um you're not I don't get EX I

show you every trade like there's been

like two that I've let

expire right the rest of them I roll I

buy them back before expiration I roll

to the next strike collect that juice

buy it before respiration roll to the

next strike collect the juice if I focus

on this you know 15 to 20 bucks a week

that I'm getting per share or $1,500 per

contract

eventually as long as the stock you know

doesn't fall

precipitously further especially now

then the juice is going to be basically

be buying down the price of the base

position eventually it's going to be

free in four weeks I've cut it in almost

half right in eight weeks will I have a

free position I hope so right my base

position I don't know what it's going to

be worth but I'm probably going to roll

that down today to to protect the in

the- money value of that make sense

still got six months left all right the

goal here is not to pick the stock not

to pick the direction not to know which

where it's going where it's stopping

where it's going and how all these

people are you know figuring out where

micr my goal is the juice right and you

can walk you keep watching these trades

I'll put them out there you know I may

not be I'm probably a little embarrassed

that I've been in the stock you know

from from this whole range maybe at the

same time I'm a little bit proud that

I've kind of shown you that you can

collect juice every single week and

preserve the value of the account right

I'm breaking even on a stock that's gone

200 bucks I think you see the power of

that right most of you anyway all right

my goal is to reduce the basis on my

stock or my base position to zero but by

collecting that juice okay you get that

all right everybody needs to have a

trading plan okay if you don't have a

trading plan if you're just following

some you know somebody on the internet

please don't do that have a trading plan

why do you have a trading plan this is

my this is what I preach to everybody

that's in my program is like they asked

me a question I'm like well what's your

trading plan say because you're not me

and I'm not you and I'm not you know Joe

John Doe on the street right because

we're all different you may not be able

to handle the kind of moves that I can

handle because I've been doing this for

40 years or maybe you can you may not be

able to handle a stock like Tesla or

micro strategy maybe you should be an

apple maybe you can't handle apple or

maybe it's too boring for you

everybody's different but what is your

plan what is your plan for the markets

are going up when the markets are going

sideways or the markets are going down

what is your plan what is your plan for

risk management are you going to cash

you know are you trading too big are you

having trouble sleeping at night because

you've bought too many contracts I don't

know what your plan is so you can't ask

me like what should I do I can't tell

you what you should do I can tell you

what I do right but I'm not you and I

got a lot of experience in this a lot of

Decades of experience okay last concept

and I touched on it before we rarely get

assigned okay we're short these calls

and they're sometimes in the money and

most people think you're going to get

assigned we rarely rarely I can't say

never but I say rarely get assigned

because we roll them and if the the

cheap bastard

that that buy options we're the sellers

so they buy them from us the cheap bards

to buy options if they wanted to buy

micro strategy at $400 they would have

done it but they're not doing it they're

trying to buy it cheap have an option

and you know double triple quadruple 10x

their money so they're spending less

money but the chances of them making

money on that are pretty slim they don't

realize it we do because we sell options

okay so we rarely get assigned now the

last thing and I'm going to kind of

finish a couple housekeep housekeeping

items here the last thing is some of you

think that this game is always Rosy and

so you're sitting there on the on the

side with no skin in the game and you're

waiting for me to screw up okay and then

you go look look the bald gu screwed up

okay cool you know this trade may not

work long term maybe I just lose all my

money on this micr strategy trade I

don't think so I've done this for a long

time and this is part of the game stocks

go down and the stocks rip your face off

back going back up but you know what

I'll I'll let you know like I don't win

in every single trade but I get the

probabilities on my side I think I'm

doing this right right been doing this

for a lot of years I think I'm doing it

right trying to show you um it's not

always Rosy though it was great a couple

weeks ago remember when stock was going

up and I was putting all this juice into

the account I'm still putting the juice

in the account but now people are like

oh yeah but your base position is going

down in value yeah it is that's what

happens with stocks they go up they go

down they go sideways stocks move around

some of the big ones that pay a lot of

this juice like micro strategy and Tesla

pay a lot of juice because there's a lot

of volatility you got to be able to

handle that or trade a different stock

it's not always Rosy that's what I'm

trying to say

okay uh some of you know that I'm having

a program a live Workshop it's a

four-week thing that's happening on

January 15th um I I am running out of

seats for that I I do mentorship in that

program I like to keep my group small

and um and and I like to I like to get

to know people in there and there's been

a lot of demand frankly and I'm

basically going to be shutting it down

pretty quickly here so we're running out

of seats that's not like a sales Ploy

like oh my God you've got to get the

seats I'm just letting you know like if

you don't take action or if you haven't

taken action and you click on the button

and there's no seats and you have to

join the wait list for the next one uh

I'll run another one there's been a lot

of people that are you know on the fence

and they haven't signed up and that's

cool like I'm not a pressure guy I'm

like hey here's what we're doing if you

want to take advantage of this cool

program uh I am running out of seats so

I just want to be totally transparent um

and I don't know when you're watching

this but I could be out of seats by the

time you uh you uh do this uh I think I

did mention that I sold another call so

I didn't do a video on it because this

Market's been crazy and I've been doing

a lot of coaching frankly uh for all my

Mastermind people and for a lot of

people that are uh that are you know

getting training from us so you know I

can't make a video on all this stuff

anymore uh I think I've given you an

idea of what I do the Market's been

declining and I think you're getting an

idea of what I could do could I have

done things better yeah I've probably

made a couple of Errors I could have

rolled sooner you know but that's the

way it goes I'm still showing you what

I'm doing it's just I'll probably be

doing fewer videos on micro strategy as

we go forward just so you know uh

because I don't want you first of all to

rely on what I'm doing second of all I

think a lot of the learning has happened

you've seen me write it up you've seen

seen me write it down I've shown you the

math on it um I've shown you the

philosophy if you're getting in and

watching this video you're probably not

even understanding what the heck I'm

talking about so you may want to you

know jump back and watch the other

videos and this listen it's almost like

I put a course online for free here this

micro strategy uh series which still to

me has six months to run as I said here

this morning is a is a is a class on how

to handle the life cycle of a trade I

think we're just at at the beginning of

the like life cycle of the trade but

there's a minicycle in between that it's

gone up it's gone down I think it's

going to go back up I don't know maybe

it doesn't but I'm going to sit here and

collect the juice for as long as I can

all right uh I think I've gotten through

my list of housekeeping items and things

like that sorry about the long video

guys but uh you know I was I got a

little bit mad about you know some of

the people that didn't understand my

math or were questioning me and my

Integrity I don't like that right like

don't question my integrity that's one

of the one of the Four Agreements right

if you ever read that book Four

Agreements don't don't question

somebody's intent or Integrity I'm

trying to teach people how to do this

and you know I have courses yes I have

courses because I like to teach people

how to do this the right way but I'm not

you don't have to buy the course like

you can learn a lot of stuff just

watching what I'm doing but just know

what I'm doing rather than follow what

I'm doing if you know what I mean right

all right listen thanks for your time if

you stuck to the end God bless you you

got you got to hear me rant uh for about

a half an hour so U thanks for sitting

here thank you very much for those of

you that do give me your support and you

guys make those great comments and you

tell me that I'm you know helping you

and all that stuff I love to help people

so that's my thing so keep those

comments coming those of you who are

trolls like ask

yourself if you're trolling me where

else is this showing up in your life

right it's one thing to question because

you don't understand it's another thing

to criticize because you just want to be

negative and you want me to fail and if

you want me to fail I don't want you on

my ch Channel okay cuz I'm trying to

help enough other people and you know

what I'm probably not hearing from 90%

of you who who uh who like my channel

and thank you so much for doing that by

the way if you haven't liked and

subscribed and done the notification

Bell please do that because it helps me

get this information out to a lot of

other people and maybe I can help them

or at least maybe open their eyes to a

new way of thinking which is what this

whole thing is by the way all right

listen thanks again uh I'll catch you

later bye hey it's Mark Yi and if you

haven't subscribed to this Channel

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