Cash Secured Put Options Strategy | Passive Income | Interactive Brokers Tutorial

Interactive Brokers kvli.link/ibkr
Free Options spreadsheet ko-fi.com/s/94f3ab6baf
INVESTING
► Interactive Brokers kvli.link/ibkr
► Webull (free stock) kvli.link/webull
► moomoo Futu SG (free stock) kvli.link/moomoo
► Tiger Brokers (free stock) kvli.link/tiger
► CMC Invest kvli.link/cmcinvest
► Longbridge kvli.link/longbridge
► uSMART (free stock) kvli.link/usmart
► ProsperUs (free stock) CODE "KELVIN20" kvli.link/prosperus
► POEMS Cash Plus kvli.link/poems
► Saxo kvli.link/saxo
►‌ FSMOne CODE "P0425931" kvli.link/fsmone
► moomoo US (free stocks) kvli.link/moomoous
► Syfe kvli.link/syfe
► StocksCafe kvli.link/stockscafe
ROBOADVISORS
► Endowus (free $20) kvli.link/endowus
► Syfe kvli.link/syfe
► MoneyOwl (free $20) kvli.link/moneyowl
► StashAway (50% off fees) kvli.link/stashaway
► AutoWealth (free $20) CODE "KelvinLearnsInvesting" kvli.link/autowealth
► UOBAM Invest kvli.link/uobaminvest
CRYPTO
►‌ Gemini (free $10) kvli.link/gemini
► KuCoin kvli.link/kucoin
► Crypto.com app (free $25) CODE "kelvinlearnsinvest" kvli.link/cryptoapp
► Crypto.com exchange CODE "kelvinlearnsinvest" kvli.link/cryptoexchange
► Coinhako (20% discount) kvli.link/coinhako
►‌ Coinbase (free $10) kvli.link/coinbase
►‌ Independent Reserve kvli.link/independentreserve
►‌ Tokenize Xchange kvli.link/tokenize
► Ledger kvli.link/ledger
► Trezor kvli.link/trezor
RESEARCH
► Seeking Alpha (offer price) kvli.link/seekingalpha
► Simply Wall St kvli.link/simplywallst
► TradingView kvli.link/tradingview
PAYMENT
► Trust Bank (free $10) CODE "R2MQBA4S" kvli.link/trust
► Instarem Amaze CODE "plTefu" kvli.link/amaze
► CardUp ($30 off) CODE "KELINVEST" kvli.link/cardup
► ipaymy kvli.link/ipaymy
► Revolut kvli.link/revolut
► YouTrip (free $5) kvli.link/youtrip
► BigPay (free $5) CODE "QBHVUHL7HU" kvli.link/bigpay
► Wise (free transfer) kvli.link/wise
► SIA Kris+ (free $5) CODE "T425139" kvli.link/krisplus
► DBS Paylah (free $5) CODE "AHVULE614"
► FavePay (free $1) CODE "FAVETANKEL" kvli.link/fave
LIFESTYLE
‌► Envato kvli.link/envato
►‌ ‌Ohmyhome kvli.link/ohmyhome
0:00 - Intro
0:35 - What is cash secured put
1:53 - Scenario 1: Out-of-the-money
2:40 - Scenario 2: In-the-money
4:42 - Unrealized option loss
5:25 - Scenario 3: Rolling an option
6:51 - Scenario 4: Closing the option early
8:04 - How to sell a cash secured put
10:18 - How to close an option
10:50 - How to roll an option
11:34 - Conclusion
None of this is meant to be construed as investment advice. It's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites.

[@KelvinLearnsInvesting]

Interactive Brokers kvli.link/ibkr Free Options spreadsheet ko-fi.com/s/94f3ab6baf INVESTING ► Interactive Brokers kvli.link/ibkr ► Webull (free stock) kvli.link/webull ► moomoo Futu SG (free stock) kvli.link/moomoo ► Tiger Brokers (free stock) kvli.link/tiger ► CMC Invest kvli.link/cmcinvest ► Longbridge kvli.link/longbridge ► uSMART (free stock) kvli.link/usmart ► ProsperUs (free stock) CODE "KELVIN20" kvli.link/prosperus ► POEMS Cash Plus kvli.link/poems ► Saxo kvli.link/saxo ►‌ FSMOne CODE "P0425931" kvli.link/fsmone ► moomoo US (free stocks) kvli.link/moomoous ► Syfe kvli.link/syfe ► StocksCafe kvli.link/stockscafe ROBOADVISORS ► Endowus (free $20) kvli.link/endowus ► Syfe kvli.link/syfe ► MoneyOwl (free $20) kvli.link/moneyowl ► StashAway (50% off fees) kvli.link/stashaway ► AutoWealth (free $20) CODE "KelvinLearnsInvesting" kvli.link/autowealth ► UOBAM Invest kvli.link/uobaminvest CRYPTO ►‌ Gemini (free $10) kvli.link/gemini ► KuCoin kvli.link/kucoin ► Crypto.com app (free $25) CODE "kelvinlearnsinvest" kvli.link/cryptoapp ► Crypto.com exchange CODE "kelvinlearnsinvest" kvli.link/cryptoexchange ► Coinhako (20% discount) kvli.link/coinhako ►‌ Coinbase (free $10) kvli.link/coinbase ►‌ Independent Reserve kvli.link/independentreserve ►‌ Tokenize Xchange kvli.link/tokenize ► Ledger kvli.link/ledger ► Trezor kvli.link/trezor RESEARCH ► Seeking Alpha (offer price) kvli.link/seekingalpha ► Simply Wall St kvli.link/simplywallst ► TradingView kvli.link/tradingview PAYMENT ► Trust Bank (free $10) CODE "R2MQBA4S" kvli.link/trust ► Instarem Amaze CODE "plTefu" kvli.link/amaze ► CardUp ($30 off) CODE "KELINVEST" kvli.link/cardup ► ipaymy kvli.link/ipaymy ► Revolut kvli.link/revolut ► YouTrip (free $5) kvli.link/youtrip ► BigPay (free $5) CODE "QBHVUHL7HU" kvli.link/bigpay ► Wise (free transfer) kvli.link/wise ► SIA Kris+ (free $5) CODE "T425139" kvli.link/krisplus ► DBS Paylah (free $5) CODE "AHVULE614" ► FavePay (free $1) CODE "FAVETANKEL" kvli.link/fave LIFESTYLE ‌► Envato kvli.link/envato ►‌ ‌Ohmyhome kvli.link/ohmyhome

[@Samyap9491]

Isn't the option data in IBKR delayed and would this affect your trading?

[@weiluntan4077]

Great sharing! What is the “option buying power” equivalent in IBKR? Need to make sure that we dont go into margins when selling puts

[@curiomusic4962]

Nice video! Can share your performance on option so far???

[@jeffinvests7729]

hi Kelvin, i have enough USD in my IBKR, e.g 10k usd, i sold a put option with strike price $95. Why i still receive liquidity warning? Thanks

[@cej1987]

Hi Kelvin, Just a newbie question. If let’s say i have done a cash secured put and collected the premium, but I decide to close it early. What will happen to my premium? Thanks

[@Huathuat88]

your premium will be used to buyback the CSP if you intend to close it early, if ITM then you'll have probably have to topup cash ontop of premium collected to close the option

[@ToxicMadridista]

Hi Kelvin, quick question as I'm beginner: If there's a risk that an option can get exercised before expiry, does that mean it's best to roll the option immediately once it goes in-the-money?

[@KelvinLearnsInvesting]

It’s not guaranteed, but the deeper it goes, the higher chance it can get exercised. If u dont want to get exercised, can roll atm or even better, roll even before it goes in the money, as the higher extrinsic value makes it easier to roll for profit.

[@anycurry1336]

Consistently selling

[@maleman67]

Statically, it's been proven it's better to close the options before expiration too.

[@desmondlee5806]

Just a question... options are hard to digest... lol So if the contract expires in the money, will I own the shares if I close the position? Do I need to "buy" if I want the stocks? BTW can this be done in moomoo or webull?

[@KelvinLearnsInvesting]

If you close the position before you are assigned stocks, you won't be assigned any stocks. But once you are assigned stocks, you won't be able to close the position, because the option would just disappear. Yup, can be done on moomoo and webull too.

[@kentng3920]

Hi Kelvin, do IBKR provide real time market data for options trading?

[@KelvinLearnsInvesting]

Not by default, need to buy

[@youtubekings3853]

You don't need real time market data for options since you're not day trading

[@andrew871124]

Which brokerage platform offer the best rate for option trading?

[@youtubekings3853]

Ibkr, tiger brokers, or moomoo

[@stevenz558]

Hi Kelvin, really good video. Just one question, will IBRK hold the money or deduct the money as the amount needed for collateral? How does it work on IBRK? Thanks

[@KelvinLearnsInvesting]

They won't hold nor deduct. Just make sure you have that amount in the account

[@stevenz558]

@@KelvinLearnsInvesting Thank you so much Kelvin. Really appreciate your time and effort to reply me!

[@crippledham7927]

Hi Kevin! Can you do a video for small portfolios? I am a student who have invested S$300 so far with all in US Stocks and some Fractional Shares. I would like to know in your opinion what would be the best way in ensuring decent returns from small portfolios?

[@jacky5297]

It is better for you to invest in ETF, not individual stocks. But again everyone goes through the money losing journey before realising the correct way of long term investment. :)

[@TEKKENEnterMyDragon]

Dear Kevin, do we have to pay tax for trading stocks in SG?

[@KelvinLearnsInvesting]

If not doing as your profession, no need to

[@hpmf19780203]

Hi Kelvin, I heard that most of the Put and Sell buyer don’t really exercise the option. They will just resell the contract. If that is true, that means the wheels strategy may not always work?

[@KelvinLearnsInvesting]

They usually don't exercise early, but if it's in the money, it will 100% get exercised

[@jiaweiliu5226]

Is IBKR the lowest fees in term of option trading ?

[@Jinsh0]

It's one of the lower one, but might not be the lowest lowest.. Though I found in general for options the fees is about the same, as long as it's not crazy fee (like above 10$) it should be okay, as we are generally aim to get more than that from the options itself..

[@muzzapj86]

My god. iOS needs updating