Glad to be of help

If you're asking about brokers to use (and their platforms), scroll to the bottom of our FAQ section - www.smartoptionseller.com/faqs - for some ideas.

@leelowell thanks last question when you sell put what happens when you pass dividends you get credit? Many thanks

@@mdon1662 - no, the option seller doesn't get the dividend.

You can buy-to-close at any time you want, but our goal is to do it when the option price is cheaper (by 80%). And yes, if you buy it back when the option price is higher, you will lock in a losing trade. Just so we're clear though, when the stock price moves higher, the put option price will move lower, which works for us as put-sellers.

Thanks for watching

Who said there aren't non-directional strategies? This video is focused on those types of option traders (and stock traders) who are directional and need help getting it right. Non-directional strategies like selling straddles, strangles, iron condors, etc, are great types of trades, but it's not the focus of this video.

Most individual stocks don't have much news on a daily basis outside of their earnings every three months, so they'll usually follow the general market (SPY) in between. As for new stocks, I like to see it trading for at least 3 to 5 years and then I do the same kind of analysis that I show in these videos.

Thank you. Glad to be of help.

Lee, you always are. Really good solid foundations for Options trading. Very informative, emphasis on getting the basics correct without and frills or BS ‘get rich quick’. I believe the people who follow you value the effort you put on and the consistent message you put out. Study, study, get the basics, understand the charts and which direction the stock is moving etc. I hope to get into a position where I can start trading

@ - you will. Keep plugging!

Thank you

Thanks for watching

Great! Thanks for sharing with the community.

Thanks for watching

Yes, for 30+ years. Crude oil, nat gas, heating oil, unleaded gas, gold, silver, coffee, sugar, cocoa, cotton, oj, hogs, cattle, ES, NQ. Now, it's mostly stock options.

@ I’ve been trading options for 5 years now, Irwin Zetos group before you came on board. I read your book also. I am interested in learning to trade futures via options, any advice to get started would be appreciated.

Hi, not sure what you mean. Any option that you buy will be dependent on the stock moving in your favor. Pretty simple.

IBKR offers a reporting tool. You can generate a report for the year that shows your realised profit or loss for all your trades.

Ah, you'll have to discuss with your tax person (accountant) or do some research on your own. I don't want to give out incorrect info. Sorry!

Thanks for watching

Thanks for watching

Hi - the video is about using a cash account or margin account. Not sure where the idea of covered puts came from?

Thanks for watching.

Thanks for watching

That's up to you. Where is your line in the sand? Only you can decide.

It was roughly an 8-month expiration.

You're wanting me to take a look at AI stocks or stocks breaking out?

I have a group of stocks that I've curated over the years that I look at on a daily basis - about 100 companies. I'll add & subtract from that list a few names here and there, but pretty much stick to that. Screeners are good for looking for specific option trading strategies and the ones I put in the video description are worth taking a look at.

@ thank you..

@ - no problem

Yes, thank you for catching that. It should be -1.60%, not +1.60%. Thanks for watching, too.

As I mentioned in my other response - the point of the video isn't so much predicting which way the stock will go (AMD has moved lower since), it's more about how to reduce upfront cost and lower overall dollar risk, while getting massive returns (versus buying the shares) if the stock moves in your favor. No one knows whether the stock will go in the direction you intended, but it's never a bad thing if you can reduce your risks while getting almost the same moves as the stock itself (high delta). As far as having a realized loss with the DITM call - yes, that can/will happen, and the shareholders can/will lose as much money, if not more money than the call holders. If the option buyer is still bullish, they can always buy another DITM call to stay in the game. Time decay (theta) is not of great concern when you buy very high deltas and the option's breakeven is very close to the current's stock price. That's a fact. And as far as delta - yes, it is a moving/changing value, and it will work in the buyer's favor if the stock goes down because the DITM call won't lose as much value as the stock on the way down (delta gets smaller).

​@@leelowell While DITM call options offer certain advantages, they come with a crucial distinction from stock ownership: expiration dates. This time-bound nature necessitates active management, potentially including rolling over positions to maintain exposure. In contrast, stock ownership allows for a "buy and hold" approach, aligning well with long-term bullish views without the pressure of timing the market. For the average investor, index funds often present a more suitable choice. These offer broad market exposure, diversification, and a passive investment strategy that doesn't require constant monitoring or complex decision-making. Options trading, including DITM calls, belongs in the realm of more sophisticated investors. It demands a deep understanding of various complex strategies, risk management techniques, and market dynamics. DITM calls, while potentially useful, are not a "set it and forget it" solution. It's crucial to approach financial advice, especially from online sources, with healthy skepticism. Many self-proclaimed financial gurus on platforms like KZbin may oversimplify complex strategies or present them as foolproof ways to accumulate wealth. In reality, there's no easy scheme to get rich quickly in the financial markets. Successful investing typically requires education, careful analysis, and a well-thought-out strategy tailored to individual financial goals and risk tolerance.

AMD went from $84.65 to $165/share that same year. Wtf are you talking about haha.

Of course. But, depending on what type of strategies you want to use, you may have to get approved by your broker (even if using a cash acct)

@leelowell thanks so much

As long as you know what your losses could be, and have a plan for that, then the profits will come if your thesis/strategy works out. And then the fun part is taking profits.

You can close a position at any time, but whether there will be a loss or not is not knowable at this time. If the collar is held to expiration as shown in the video, it will produce a profit. As far as using a scanner that can find these trades, I’ve listed a few scanners in the description.

Thanks for watching

Yes, if the stock finished below $80, the call buyer would lose the full $3,020, but the stock holders would lose almost $3k as well. Also, just because the call would expire worthless doesn't mean you can't buy another DITM call option to stay in the game (just like the shareholders would). If the covered call was exercised by the call option buyer, the DITM call option would still "cover" the short 100 shares of AMD, so there wouldn't be any type of extra risk.

Thanks for watching

Thanks for watching

If you're talking about covered calls, option spreads, or married puts, then no, they're not the same.

@@leelowell any big difference on covered calls or they don't work the same with naked cover calls

@ - there's only one type of covered call, and that's when you own 100 shares of stock and sell 1 call option against those shares. Selling naked call options (without owning the stock) is the THE MOST RISKY type of trade you can do. Unlimited risk. There is no such thing as a naked covered call. It is just called a naked call. The word "covered" implies that one option contract is covered by another trade, whether that's stock shares or a different option trade. A "naked" option is one that is just traded by itself with no other trade to cover it.

@@leelowell i see okay so i hve covered calls or puts only b.c i own 100 shares already how would I apply for the naked one thru webull?

@@crazyegyptain510 - you would have to apply with Webull for a higher approval level. Selling naked calls is the most risky you can do. Selling naked puts can be risky also, but only to the point of the stock dropping to zero. Can't lose more than that. But selling naked calls can be unlimited risk.

No, you don't need to own any stock prior. You just need enough free cash in your account to cover the initial margin requirement when selling the put option. For most brokers (in the U.S.), that amount is roughly 20% of what it would cost to buy 100 shares of the stock at the strike price. When the orders executes, the margin requirement can fluctuate higher or lower depending on where the stock moves, so it's good to have a buffer of free cash beyond the original 20%. And if ultimately assigned the shares, then you'll need the full 100% of the cash to pay for the stocks in full.

@@leelowell gotcha. Great explanation, makes perfect sense to me. Thank you!

@ - glad to be of help

Thank you!

Thanks for watching all the videos!

Glad to be of help

Yes, many times, but it's still smart to spread the money around into different strategies, in my opinion.

@leelowell I like to put profits into index funds for long term growth.😁

@@quantum7401 - Excellent

Go Cavs!

What do you need at that point? Happy to help.

@ thanks for your response. That’s where I stopped, and will continue to listen from that time.

Thanks for watching. Get started early! Not really following EIX. Could be worth a look though.

Thanks for watching all the videos. Glad to be of help.