Transcription
All right, what's going on today, guys? I got a fantastic video! Today, we're going to learn how to make $1,000 to $2,000 a week using a $40,000 portfolio. This is going to be a wheeling strategy, so we'll be doing covered calls and puts. If you don't know what that means, it's okay; tune in! We're going to get through it, we're going to get into some good stuff, and make sure to like and subscribe if you enjoy the video. Without further ado, let's go!
All right, so we're going to be using a highly volatile stock for highly volatile returns. For this one, we're going to be using MicroStrategy. This is a company that has made a convertible bond strategy to basically sell people the rights to Bitcoin. It's giving a lot of Bitcoin exposure. It isn't a direct investment in Bitcoin, but if you're bullish on Bitcoin, you should also be bullish on MicroStrategy. This one does actually have a lot more volatility than Bitcoin, which means it goes up and down more violently. That's actually going to help us with this strategy, though, because this strategy will actually help us lower the risk of playing this stock. So, every week that goes by, we'll be making $1,000 to $2,000 off our $40K, and that's actually going to continually lower the risk.
So, without further ado, let's get into the strategy. The strategy we're going to use is the wheel strategy. Again, I have a video on the channel for what a covered call is and what a cash-secured put is. If you want to check that out, I highly recommend it to understand this concept. But essentially, we're going to be selling cash-secured puts and covered calls. So, we're going to be saying, "Okay, you can give us 100 shares of MicroStrategy; you could put it to us, let's say, at $405. Then, if a week goes by and it hasn't passed here, we're going to be put at $405 and also keep the premium that we get from giving the person the option to put us the stock."
The call is going to be the opposite way. We're going to have 100 shares, and we're going to give them the right to the shares at a certain price. Maybe we could do $440 up here at the previous high, right? And that's going to also give us premium.
So, let me show you a little bit more about what this is going to look like in the actual options chain. Okay, so here we have a 7-day out cash-secured put for MicroStrategy. We can take a look at some of the premiums here. We could see right now it's currently at $408, so an at-the-money put is going to actually net us $2,200, basically if you round up a few dollars for collateral $40,000. Right now, you might say, "Hey, I don't want to get put 100 shares at $407.50. What if it goes down to $300 or $350 or $380?" Right?
So, that's the cool thing about this. We could actually grab it here, drag this, and we could take this down a little bit. Right? So, we could take this down. Let's say you're comfortable at $380. So, okay, if it goes down to $370, you can give me 100 shares at $380; that's fine. I don't think it's going down there. You're still going to be making $1,000 a week, right? And you could literally just be rinsing and repeating this strategy.
I also very much like covered calls. Let's take a look at the covered call chain as well. So, we're just going to go here to build, going to go to covered call. I already have the ticker here, MST, 7 days out. So, yeah, we could see now the volatility has gotten very high; it's 104%. So, we could see the gains here are huge. We could get a credit of $1,800, then it goes to $420. That's another stock gain of around $1,100. So, we're going to be getting a lot of money here, guys.
The cool thing about covered calls is you have the 100 shares, so you're actually getting not only the net credit from selling the covered call, but you're also getting the profit of the stock gain. Because if I sell a $440 covered call and it goes to $450, I still get to sell my shares at $440 all the way from $408, right? So, I'm thrilled. I'm happy. I'm making $3K on that.
So, yeah, this covered call strategy is really powerful. The wheel, in essence, I don't want to get too in the weeds because I assume if you're watching this video, you already know about the wheel; you already know about basic options. So, we're trying to sell covered calls until our shares get taken away and then switch back to puts. Again, $1,000 to $2,000 a week. This is a volatile stock; you know it's pretty high implied volatility. So, do with that what you will. Play the game at your own risk.
But yeah, make sure to like and subscribe if you want more of this content. I really think MicroStrategy is going to be doing really well. We just got news also that they're added to the NASDAQ 100. They are outperforming Bitcoin historically now with their convertible bond strategy. Michael Saylor is a great face of the company because he's a billionaire; lots of people like him. And yeah, I don't know why you'd be in any crypto miners or anything right now. I mean, I am in Mara, like a little bit, which is another crypto miner, Marathon Digital. But at the end of the day, I think MicroStrategy is the way to go. They just kind of have so much attention; they're in the S&P 500, about to be in the NASDAQ 100, lots of inflows coming in.
Anyway, guys, that's all for now. Hope you enjoy the video. Peace out!