I just started selling the wheel on IWM. Wild time to start. Learning curve happening but fun so far!

I had to roll mine to 8/16 at 214 strike for a small credit and wait for a pull back or should I use a fancy wall street term "convergence" 🙂

Major trading error is that you had no plan before the trade was started. You don't make a plan in the middle of chaos and hope the market helps you out. You need to establish your stop losses before the trade happens.

You were lucky to get out of IWM with such small losses! A couple of years ago, I tried something similar with NVIDIA (NVDA). Bought a deep in the money call (about 80 delta) with 6 month expiration. Essentially a LEAP option. I was happlily selling covered calls for a few weeks, then China killed Bitcoin and anything associated with it dropped like a rock. The price of NVDA dropped below my LEAP option price and I was stuck unable to sell any covered calls or the LEAP option until it expired so ended up losing my shirt on it. The benefit to IWM, QQQ or SPY is it's an index, so shouldn't be hit as much as a single stock would be. I'm positioning for the PMCC now, so after things settle out a bit, I plan on buying a LEAP and giving it a try. Any additional updates/advice you'd like to include to your original video would be helpful. Thanks and keep your chin up! Bob

For those willing to put in the effort, 8%-10% annually is not overly complicated. A $300k portfolio can generate 8% ($24,000/year) with relative ease. My portfolio of 43 positions includes individual equities, REITS, CC ETFs, Equity and Income CEFs, MLPs, and BDCs. They are all quality stocks/funds, with a long distribution history. They key is quality and diversity. I collect dividends/distributions on every position and sell covered calls on most of my individual equities. My 2024 YTD annualized return is just over 11%, with $300k of working capital; however, it took a few years to get to this point. No bullZh$T, just patience, due diligence, and rational decision making. Furthermore, I sleep at night and don't stress over the undulating market.

This is an important video! Being scared of getting assigned on the LEAPS is why I never did the PMCC. You did great in covering what happened to you. May I suggest a more in depth video/series in explaining this further? ie The options you have if you get assigned and how to handle it for those of us novices

One of the things that impressed me about you is your being willing to admit when you screwed up and learn from it. I stay away from PMCC because I don't really feel comfortable with it and the wheel is easy enough I can explain it to my wife. Carry on and enjoy your trip.

Sorry to hear about the losses, Joe. You’ll make it all back in time, no problem. Appreciate the transparency as always.

I respect you telling this side of covered calls. That's why I just buy and hold a stock then collect dividends. I would miss a call and be in debt.

Thank you for always being so transparent!

Before going away, I always roll the short calls further out to when you get back. IF you get assigned, you need to deal with it right away, drop everything you are doing and immediately buy back the stock and sell the same number of calls. I am sure you understand the way deltas work, the short stock has delta of 1, the long calls won't be able to offset it if the price goes the wrong way. If you wait, it becomes a directional bet and no longer a 'PMCC' strategy.

Great transparency and taking ownership.

Moral of story take the 5% money market and simple covered calls

Great video and I'm very sorry for the losses. I appreciate your transparency. I've been implementing a very basic wheel strategy with IWM and have found it beyond challenging. I got assigned 100 more shares today with another massive pullback. I am heading out of town tomorrow evening and wondering what to do with expiring cc's. Roll is the answer I'm sure, but even a day away gets dicey in this insane market. So, you are not alone - but again, sorry.

I have been cash flowing through the melt up by turning a double diagonal (7 dte short strangle hedged by a 160 dte long straddle) into a double calendar and just rolling both sides to the atm value daily if the market moves up or down more than a few dollars.

Appreciate you taking the hit for us. I had to be away part of this week and i already switched my daily calls to a weekly so i didnt have to be checking my phone constantly. Lessons learned and shared all around.

This is why I do 7dte and roll daily instead of same day expiration

I am sorry for your losses. But I respect that you openly admitting to it. It takes a mature person to say "hey I was wrong"

Excellent trading lesson for us all to learn, even for the pros. Sorry, it happen to you, Joe, But this shows that you have to manage how much financial risk you are able handle if all goes wrong.

Calls and puts at the end of the day is just gambling. Dividend growth investing in blue chip companies and ETFs is the way to go. Best strategy for most any investor.

I love your videos, but I can't believe you took on that sponsor. Encouraging people to gamble on stock-related events basically KILLS your credibility

This was the hardest part when I went on vacation writing daily calls as well

hey Joe, sorry about this. How much time do you have to cover those PPCC assignments? I thought it was supposed to be immediate

I prefer selling calls on a stock I hold that I dont mind holding if the price declines and use those opportunities to buy more. My danger is the stock goes up I am called out and I buy back after but fewer shares at a higher price. Rinse and repeat... But I remind myself I made money and dont be greedy and you only really make money when you actually sell...

hind sight is easy...

Moral of the story: resolve your contracts before you go on vacation.

Sorry to hear that Joe. But we the viewers appreciate the honesty and learning lesson. No trader is perfect and things can happen. You live and you learn, on the bright side you have your health and a lovely family by your side, that is Priceless. Money can be made every day. Another day, another dollar. BTW, I have been making a killing selling puts on CLSK on a weekly basis strike price between $14 to $16, and buying back once I get to 75-80% profit on my trade. Rinse and repeat. Many tactics on my strategy were based on lessons from you videos. I'm not interested in Bitcoin but making bank with BTC related ETF on a weekly basis to buy YMAX with profits.

I agree with your takeaways. I'm running a strategy similar to yours, and I have one additional suggestion: I watch the deltas intraday. If the underlying is increasing in price, then my short and long will both be increasing in delta, of course. But since the short is near expiration, its delta will increase much faster once it becomes ITM. If my (absolute) short delta exceeds my long delta at any time during the day, I know I'm losing money on the overall trade, and I roll the short right away (or close the entire trade, depending on my trade rules), instead of waiting until the end of the day. I find that just glancing at the deltas every so often provides me with an easy trade signal.

Hi Joe. I just wanted to thank you for this video for your openness and honesty about how it went and how it felt to get assigned on a poor man’s covered call. Although it was painful for you, I’m sure this is just a fantastic learning for your community. Thank you so much.

Thanks for sharing your experience

If you buy really really deep ITM and sell OTM further out in time you can't get burned more than if you just bought the underlying.

Ouch! Thanks for sharing. If this is the resolution, what is the benefit of having the long calls?

How come no one is talking about rolling the cover call?

QQQY announced a reverse stock split of 3 to 1 which will take place on August 1st 2024. Do with that information what you will.

Hi your video was great and i am new to investing, so i am a bit confused in portfolio balance column, does it mean including the dividend plus the investment made plus the growth in share price of investment too?

Thanks man… came across these today and plugged in super conservative numbers into a dividend calculator and the numbers seem so great. But obviously your numbers seem much different. Thanks again for helping with the DD.

I think you missed AMZA?

5 years is just noise, tells you nothing. Even 15 years is mostly noise

I don’t get it, for the poor man’s covered call, to sell a call don’t you need to own 100 shares anyway? How do you sell a call on the poor man’s covered call?

I have to say this is impressive . You joined 3 fields in options, the covered calls with pmcc, and 0dte, this is the ultimate plan as I see it. Only need to check and I don’t recall if you talked about it, the value of the leaps when you sell them. Also when actually you sell them and replace them with new one deep in the money. Thanks a lot! Very interesting.

Honestly AMZY is probably the best one you can get. Decent % of income. Very stable stock. Slightly underperforming. Pair that with AMZN stock and that could potentially be a v good strategy long term. Like an automatic Amazon investing machine. Transfer dividends from AMZY to AMZN to focus more on the growth. Or vice versa

If not use even you grow your share price if you cannot sell it.. totally income and you just put it without fuss..

could you do this and like rois for all the ymax monthlys?

Nice info. Why not sell puts against SPY with the 50k on the side?

should try picking 2 diff deltas with diff Leaps say .15 vs .30

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Thank you for the explanation. It makes complete sense to me.

You're going to tell me in the span of those 10 years, the calls you wrote all expired worthless?

Subscribed. I'm 58 years old so don't have 25 years to slowly fund a dividend portfolio and don't have a large amount to put in all at once. I have my 401k. Should I even consider any cheap dividend stocks like NOK or PSEC? Or increase to my 401k? I'm also putting $100 a month in Fundrise. And SWPPX $60 a month.

Hey, do you need any help for your video editing or thumbnails, if so we are here happy to help