Covered Call Option Strategy Explained For Beginners

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Covered Call Option Strategy Explained for Beginners
This is how to use call options to create passive income in the stock market by utilizing covered calls. This is your call options explained video.
If you would like to get started in the stock market, here is our WeBull link for your Free Stocks sign-up bonus: act.webull.com...
We hope you enjoy this video about call options and covered calls.
Please check out our other videos about investing in stocks for beginners and how to invest in stocks. We're making these videos so that you hopefully avoid investing mistakes that beginners are prone to making. We will also be doing stock market news talking about stocks, the stock market, gold, oil, bitcoin, and the economy.
ClearValue Tax and affiliates and related parties do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Legal Disclosure: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[@clearvaluetax9382]

Our Free Stock Options Videos: Options For Beginners (The Complete Guide): kzbin.info/www/bejne/hIiUq5yLec91bdk Call Options Explained: kzbin.info/www/bejne/oXSVaYCrhrWsq5o Put Options Explained: kzbin.info/www/bejne/qp3GdIOOadlsr5I Covered Calls Explained: kzbin.info/www/bejne/ema1m6uVbL16aLc Cash-Secured Puts Explained: kzbin.info/www/bejne/j5emaHePp85nmdE Free Beginners Guide to Stock Options on our Website: clearvalueinvesting.com/education/options-and-trading/ GET up to 14 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax

[@neutralcommentor3742]

Really bad focus. Please remove cinematic mode

[@NotyourBusiness-urto6]

Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...

[@devereauxjnr]

It's not difficult, but you have to learn and handle. Another thing is that if you can't manage your home, maybe you shouldn't invest on your own. If so, you should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.

[@Harperrr.99]

@@devereauxjnr true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.

[@Harperrr.99]

@@freedomisEexpensive-08 I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "NICOLE DESIREE SIMON" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.

[@jasontell7481]

@@devereauxjnrwhy would I hire someone that can’t manage their own house

[@waltpro1945]

"I'm gonna be speaking to you as is you know nothing about call options or covered calls." That's perfect, because that's literally me. The only thing I know about them is from preliminarily reading the comments is that you can get severely burned by them if you aren't careful.

[@stjepanhauser7595]

I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.

[@mathebulamkhize876]

Investing in stocks is a good idea, a good trading system would puts you through many days of success

[@quokkapirquish6825]

90% of traders lose money! Be careful, don’t chase your losses and it’s a lot easier in a bull market, wait for inflation to get to 2% - the feel good factor will return. It was easy to double or treble your money after a massive crash like the covid crash. Just as many people lost money in the crash though

[@SteveRam]

Me This week: We’re getting fancy! Watch out Webull, here I come! Me next week: lost all my money; please provide a stimulus check update, kinda need it, lol

[@clearvaluetax9382]

LOL Steve. And thanks for that Coca Cola video, I enjoyed it hahahahaha

[@shesoonstar90]

🤦🏾‍♀️😂

[@StockInvestmentAnalysis]

Really well explained. You do a great job of simplifying this, breaking it down, and explaining the pros and cons from both sides. To all of the new investors, keep in mind that for many people this is going to turn into nothing more than betting. Don't make bets with your money. Focus on investing instead of gambling!

[@shirleysaidsew1969]

Saw the title and automatically screamed "YOU'RE THE MAN!" I see people doing this and have no idea what they are talking about but I will like to learn.

[@Mac-ih7rb]

Same! I see calls puts dates cents they might as well be speaking French.

[@StockInvestmentAnalysis]

Just be careful. A lot of people start betting/gambling with these and lose money.

[@rod6189]

Brian showing the masses the door to the most dangerous casino in the world! What could go wrong? 🙈

[@-_-_-_-_-_-_-_-_-_-_-_-...]

STONKS only go up!

[@StockInvestmentAnalysis]

Hahaha, I was just thinking the very same thing!

[@-_-_-_-_-_-_-_-_-_-_-_-...]

@Dennis Durkop that statement ..... doesn't seem right.... hahaha

[@-_-_-_-_-_-_-_-_-_-_-_-...]

@Dennis Durkop so I should be a gay bear then?!

[@cjshelley14]

Covered calls aren't that risky, I think like 90% expire worthless

[@tareqislam1434]

oUTTA EVERYTHING, THE CAMERA FOCUSES ON THAT HAIRSTYLE....do a hairstyle video

[@MoneyJourneyWithSonny]

On another note regards to Stock Options, you can only trade options in group of 100 shares. Each option is controlling 100 shares of stock, in regards to the video above if a stock cost $100 a share. You would have to have 100 shares of the stock for 1 option trade. So, you would have to have 10k dollars worth of stock and if you received $2 for each share it'll be $200 for 1 option. Which is 2% return for a 10k investment for one month. If you done this every month at the end of 12 months you'll have $2,400 or 24% return if the stock never gets assigned. You would of doubled the S&P for a one year period. Remember investing in the stock market you can make or lose money, always paper trade before using real money. Another Great Video!

[@memyself4431]

Hi, so if you invested your money in a high yield saving say about 26k wouldn’t you be making more in interest a month! Wouldn’t it be about 80 a month and you would risk losing your money wouldn’t that be better?

[@karinae.schofield5605]

They're not teaching this in school because...???? This is stuff our young people in our society need to know. 🤦🏻‍♀️

[@msmforever100]

THANK YOU SO MUCH!!! The way you break down concepts that use to seem too complicated grasp is AMAZING!!! So glad I found you!!

[@unequallytwisted]

Now this is what I'm talking about!

[@clearvaluetax9382]

Hi Mike! I hope this video is helpful!

[@latoriamartins4643]

I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $450,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.

[@vargaskenneth8837]

Just seek professional help from a mentor or a financial adviser.

[@jakethompson8737]

i watch youtube videos and take courses, baby steps but it works for me

[@august9050]

It is very easy to make huge profit over a short period of time by investing with the guidance of an expert, i began investing Nov 2019 with AGATHA CHRISTINE ROBINSON a licensed broker and within 2months i made $258,000 from my $75,000 investment.

[@latoriamartins4643]

That's wonderful, i've always been told that investing with an expert has its advantage but i have no idea how to find one. Please how can i reach this broker?

[@august9050]

Google search her name ‘Agatha Christine Robinson’ she is quite known for her works.

[@meeshiemeeshie]

Please please please be responsible and explain to people about what happened with the RobinHood glitch that caused a 20 year old to take his life thinking he lost 700k!!!! (Likely with options!!)

[@meeshiemeeshie]

Simon4Belmont not sure what details you’re referring to. Appears the call (/option) hadn’t settled and he didn’t owe that amount but didn’t understand how things show as they’re settled. Robin Hood has now made changes to eligibility and to be more blatant in explaining how numbers (debt/credit) may appear when a call (/option) is being settled. And then some. Even RH understood that retail investors don’t likely know these things or know enough to ask. It’s all very sad. And I’d hate for another to misunderstand -suicide or not. 😔...

[@davidliang913]

Remember. The ones that got rich during the gold rush were the ones selling the shovels. Great stuff.

[@snowballisg]

Nahh

[@wintagestudios]

yeah because even selling a million shovels equates to a ton of gold... logic

[@clearvaluetax9382]

What a deep and true statement David.

[@snowballisg]

@@wintagestudios they all got rich?

[@jacobbuettner8463]

You should do a video expanding on this and tying it into the wheel strategy. Specifically, I wanna know WHEN we should be selling covered calls and cash secured puts if we're using the wheel. The strategy is great, timing option assignments is tough right now Thanks, love the channel!

[@protestssopeacefulweneedad2017]

Is this different than call girl options?

[@clearvaluetax9382]

I believe that is correct.

[@johnnystech8392]

Lol savage

[@AnotherBluntPlease]

So when your in the green and up on a option should you sell it early or exercise it???

[@KBCrochets]

It’s your choice to take profits or let it expire or risk it going in the red

[@rtacher]

This is what I do with my stocks. I invest in the actual stock and then sell covered calls on them every week to two weeks. It is great passive income. I use the proceeds to buy more shares and do more coveted calls. I have doubled my money doing this:). It is very safe and a good way to make money!! Very well explained!

[@MarkDanger777]

Even when its volatile?

[@bigbigdog]

How long did it take you to double your money?

[@steveno7058]

Selling covered calls is picking up pennies in front of a steamroller...

[@StockInvestmentAnalysis]

Haha, that is a great comparison.

[@clintfalk]

@@StockInvestmentAnalysis Its an idiotic comparison and you need to change your user name as its obvious that you don't have a clue.

[@arnold2428]

Don’t touch options if you’re new

[@clearvaluetax9382]

Yes, proceed with caution!

[@-_-_-_-_-_-_-_-_-_-_-_-...]

yup can get very hot lol

[@trila7675]

Too late I’m already $760000 in the holes

[@more_money5583]

It's not for me. Will play it safe!

[@VaddyFC]

@@trila7675 Too soon man, way too soon

[@VaddyFC]

Very informative video, I first started out trading options buying puts in March 2020 which turned out to be great as the market came down a lot. I was always stuck on the sidelines playing it safe, only buying stocks. It's good to have a portfolio for long term investing, but option trading can make you money right away if you learn how to do it correctly.

[@ThinkMoneyBenny]

Options make my heart race! 😲 you can either have a very bad day or have a very good day when playing options 🤑

[@clearvaluetax9382]

Naked options is gambling. This is really a boring way to make consistent $$$

[@michaelangelos5117]

Thanks a lot. I've been trying to figure this out for a while. That explains it very well. Love your channel.

[@Skorp-eon]

so let me see if i get this right, the "call" option is me "calling" that the price would go up within X-amount of time (in this example, 30 days) i pay the $2 and if it goes up within that time frame i see the difference?

[@angelfury8182]

Not sure why anyone would ever want to buy a covered call option unless they have gambling tendencies. It seems like the only one that wins is the seller of the option.

[@Ishowbest]

Instructions not clear, so I ended up selling naked SPY call $320 07/01/2020

[@ELI4SZ]

man I wish I understood wtf he’s talking about I watch the videos but I can’t get it trough my head lol I really wish they taught us this stuff in school

[@ELI4SZ]

Shut up scammer

[@BruceWangOfficial]

the bokeh is on point but the filmer should open the aperture so we can see the board. ✌️

[@HughJass-jv2lt]

Buy a "call"... is buying a *RATE LOCK* on that stock. 😆😆

[@codaq4043]

I think apple is the best stock for this, average 200 a week plus growth and dividends

[@MA-lq6eb]

EXCELLENT EXPLANATION👍 PEASE DO MORE VIDS LIKE THIS EXPLAINING...OPTIONS, CALLS, PUTS, MARRIED CALLS/PUTS, LIMIT ORDERS, SAFELY SHORT TRADING, NAKED SHORTS & NAKED LADIES👀...ETC...LOL.😅

[@j.tradeforexinc.2819]

Hey Brian!! This is cool. Keep teach the masses bro! Much respect. I started trading options in 2006. This is way cool 😎. Keep up the good work!

[@clearvaluetax9382]

Thank you J. Trade Forex, Inc.! 2006 nice!!! They've made options trading easier and easier these days. Must have been a different story back 14 years ago.

[@j.tradeforexinc.2819]

@@clearvaluetax9382 to be honest making money back then to me was much easier. But that's just me I've moved on to Forex. 5 trillion traded daily... 😎😎💵💵💵💵💵💵💵💵💵💵💵💵💵

[@TwiLightVids]

Speaking to me as if I no nothing about call options, which I didnt! Thanks!

[@jodiford9905]

Nice video, loved the way you broke it down. Stocks can serve as a means of earning passive income, weekly or monthly. I'm glad it worked for me . I recently just added my $15k profits to my portfolio, bought more of Tesla and Exxon.

[@humacomrad8394]

I'm a complete beginner and the stocks markets has recently been very confusing to me.

[@lolarosebeasley2187]

Huma, try investing in Blue Chip stocks like Walmart, Disney, Coca Cola etc and try earning of dividends.

[@vigilwicks2837]

Even with this stocks markets fluctuations I still earn my $5k monthly profits from my investment.

[@eilishthomas3419]

I recently just invested in the Berkshire Hathaway Inc. Class A at $272,800 and I know it's definitely going to make me unimaginable profits when it goes up.

[@millierosemiranda2864]

Vigil how did you get those results, how do you carry out investment?

[@rvirzi]

Covered calls is losing strategy over time. Limited gain, unlimited risk.

[@justthao9921]

love this! Very informative and so easy to understand! Thank you.

[@xavierturbo6220]

Was bored ty for this

[@clearvaluetax9382]

I know how you feel Xavier.... LOL.

[@MrWardo2012]

If I understand correctly, its $2 per share?

[@fadisalem5961]

Great video as always. Ebay is so useless btw. Tried to find a lighter, but instead of that I get 39,000 matches

[@clearvaluetax9382]

LOL Fadi... what happened? Are you serious?

[@fadisalem5961]

@@clearvaluetax9382 LMBO yeppers

[@chinwendun6401]

Excellent video content. Investing in Stock trading would be the wisest decision to make especially in this recession season, the only fear is ignorance and lack of good brokers.

[@chinwendun6401]

@Abelard Jamie He's at

[@DemetriPanici]

Yes! I Needed something outside stimulus check content in my life! Great video!

[@clearvaluetax9382]

LOL I'm glad you enjoyed Demetri!

[@ghosttracker8580]

U have to close position on 30th day or on 29th ??

[@BenFreedmanRacing]

This was explained to us like we are Micheal Scott learning about what a surplus is

[@keigop5668]

I'm Asian but I'm slow. I dont get it.

[@tricemcc4458]

Paying attention, in the front row with my hand raised. 👋

[@shesoonstar90]

🙄 Already?! Put yo hand down😝

[@bl4ckmamba24]

Don’t touch options until you do extensive research. Gains and losses are amplified. Mostly losses

[@VIRTUALJAPAN]

Too much Toneh....F8+ plz

[@bluemammal]

Yay i feel like I'm 6 again

[@theropemonster]

Great content. Much appreciated

[@edmundwong5571]

Brian Do you know how to do cash spread? If so, would you do a video on it ?

[@kdefensemartialarts8097]

Thank you for your videos.

[@eddyepepin8516]

Brian should be our next President

[@losmaldonado9655]

Can you do a continuation video with calls and puts and how to use Robinhood?

[@clearvaluetax9382]

Good idea Julian! I'll need to make that for sure!

[@ZhangtheGreat]

Instructions unclear, still deciding between my...options... *sound lame joke horn*

[@oyamsbabe4028]

You are the first person who explained this in a way I could understand. I now fully understand it. The other thing is that mu understanding is that the option contract must be 100 stocks?

[@KBCrochets]

Correct, 1 contract equals 100 shares.

[@gucci50cal63]

Hey there! Feedback and some questions (if you don’t mind): This video was a little more confusing than some of your other beginner tutorials because I feel like I was getting confused on which role you were assuming in some of the scenarios of being JPM/being the investor. In regard to the actual technique of generating passive income - it was a bit hard to follow what the bottom line strategy was. Overall, maybe I just didn’t fully quite catch the right details to understand how to do this. Additionally, it seems there’s a lot of concern for new investors coming from the users in the comments section. Would you possibly be up to follow up on how to do this - as safely as possible - and how to read the stocks for risks/red flags? Any tips are appreciated. Thanks for all you do!

[@KBCrochets]

From my experience, pick a good stable company that pays dividends that you want to invest in, buy 100 shares of that stock at a price you’re willing to pay (e.g. $100). If you’re new and want to limit risk, wait for the stock price to go above your cost basis to sell covered calls and collect the extra credit/premiums. If the price trades above your strike at expiration, your 100 shares will get exercised and you will lose those shares but you gain the difference between $100 cost and what you sold to for. Hope that makes sense

[@femiairboy94]

don't know if this is still useful or not but the bottom line strategy for a covered call is to limit the risk involved in buying a stock or any underlying asset. The premium shrinks your downside losses. For example, if you buy XYZ stock at $20 and short a call for $2. If the stock goes down to $0, you would have lost $18 on the downside as opposed to losing $20, if short 2 calls, your loses would have been further reduced, however this also reduces the profit on the upside. A Covered call is like an insurance for your asset.

[@BigSQL]

Out of all the “covered calls 101” videos…this is the best one.

[@michaeldavis0721]

Get video!! From your example in addition to having 100 shares to write your contract, I always tell my students to have 10 to 20 shares on the side that way you can ride that stock up from $100 to $120 without missing out!!!!

[@mp0391]

@ClearValueTax I appreciate this video Brian and would encourage more of the same. Very precise and easy to understand. Thank You. I can not say I know nothing about calls. In 1980-81 I taught classes to an incarcerated society (kind of a captive audience if you know what I mean) on Building Wealth Through Stock Market Investing and covered both Options and Futures. As a group we kept daily records on as many as 80-100 stocks through a typical class of 12 weeks. Since then I have been investing since 1983, however I have never traded Options nor Futures myself which is why I enjoyed the video. I've watched the video twice and it is informative and very easy to follow. But, if I might help with a suggestion, you could point out that trading options are only allowed in round lots. Remember your audience is just starting and even if they have the $500 portfolio they only have 1 share 2 companies. And, they might not even know what a round lot is! Just a suggestion, take it as you will. When's the next video for this series? You covered the intention of it but if I'm on Robinhood or TD how would I go about it? And, how did you come up with the $2? I subscribed to your newsletter but haven't heard anything yet. Guess I'll just sit here and wait.

[@steveno7058]

From personal experience selling covered calls suck. You limit your gains and in return get very little risk protection. Add to the fact that the premium you receive will be taxed at higher rates.

[@StockInvestmentAnalysis]

Yes, that is exactly right. A lot of new investors don't recognize this and learn the hard way.

[@Je.rone_]

Hoping I can get that good explaining things

[@ChiefCedricJohnson]

John 14:12 Verily, verily, I say unto you, He that believeth on me, the works that I do shall he do also; and greater works than these shall he do; because I go unto my Father.

[@kikomontes8444]

You should run for President I will vote for you.

[@clearvaluetax9382]

Thank you Kiko!!!😁

[@joymae]

So fast

[@clearvaluetax9382]

Hi Joy Mae! I hope your day is going well!

[@joymae]

@@clearvaluetax9382 Thanks Brian! Good to see you are still actively on youtube

[@Parthmehta63]

I've been, with no success been able to explain to my friends about the rewards of selling puts. Please make that video if you haven't already

[@ebonyanderson2309]

Some people have issues 💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟💟

[@CodenameEnVoR]

Lol you really explained this to me like I was a 4th grader and I understood everything you said thanks for the incredible information 🔥👌🏽

[@SurroundedByGreen]

Could you please go over the issue with the person who was negative 700k+ in Robinhood???? How did that happen??

[@bobchant1529]

That’s so awesome that you guys are showing your long term short term investments, it’s genius, and This is how we can grow together. I’m not going to say it but you know what I mean motley.

[@cucubee444]

Gaining wisdom with numbers thanks to Brian!!!! 🎉🎊🙌✨🌟💫🎊💫🎉🙌🌟✨🙌🎊💫✨😌

[@clearvaluetax9382]

That is so awesome to hear Cucu Bee Cucu Bee! Thank you for sharing that, it means a lot to me! And thank you for all those emojis!

[@cucubee444]

ClearValue Tax 📣📣Brian can you hear me???? You are most welcomed!!!!!!📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣📣

[@clearvaluetax6878]

@@cucubee444 make sure you invest

[@clearvaluetax6878]

@@cucubee444 invest $500 and get $5k

[@clearvaluetax6878]

@@cucubee444 bill_biker20 on IG

[@eminalopatyuk6812]

That is the best explanation possible. Bingo! Thank you and safe trades.

[@wdtripps6537]

Cliff notes: call up, put down. You can be right and still lose and be wrong and still win.

[@gimpfoot]

Finally someone who explains everything perfectly thank you 🙏

[@gaorenhe13]

Hello. may I ask how much about your exclusive content every month or quarterly? I can not see it on ur page. thx

[@clintfalk]

Great explanation, but too many people who made comments below didn't bother to actually watch it, or at least couldn't digest it.

[@MCROCOSM]

PLEASE HELP. Washington state is all screwed up, I will not be able to return to my job for a while, and I just started receiving the Unemployment benefits that I applied for 3 months ago... PLEASE HELP... can i invest and buy and ... sell stocks, while on unemployment? Or will that impact my unemployment benefits... I cannot find a straight answer anywhere but I trust Brian. Some people say only daytrading would affect my benefits...I don't know...

[@randygravel2057]

A 20-year-old college sophomore who had been trading on Robinhood apparently killed himself after believing he’d run up huge losses trading options, according to published reports. The Naperville, Ill. man, identified as Alex Kearns, reportedly believed he had a negative cash balance of $730,165 but may simply have not understood the financial statement, CNBC reported, citing a family relative.

[@xkrimzonxrsps]

Are there 3 options to go from the call going up for us and you? So example 1 strike 105 jpm 120 i buy at 120 then give em back at 105 pocket the rest. 2. Sell the option (if thats better for you or if me closing instead of selling is better i dont know if you can refuse and cancel it and still make premium) 3. ur fked u just sold ur shares at 105. 3. I also want to know if the market is bullish is it better to sell puts so you hold onto your shares? Would be apreciated if you or someone can answer. Thank you in advance

[@taimuongtean]

What about Puts? What is the difference compare to Calls? please response Mr Brian Kim, thank you for everything you do for the poor Americans, God bless... Sir...

[@geraldfoushee]

so i don't actually buy the stock (the call) unless it appreciates?? and worst case i lose my 2 bucks???

[@michelled4388]

Please remember me. When I get my inheritance, your going to be my first call and I'm going to listen with both ears. Your a good human being and I'm confident your the guy for me.

[@chrislindsay3104]

I don't know if it's still true, but you can only write a covered call for every 100 shares of stock you own.

[@Faith0929ROK]

If you’re a beginner in trading, do not get into options trading. Just do your DD much as you can and buy stocks with potential if it is a low cap company with good product. Safest is to buy a blue chip stock so you minimize your losses or have gradual slow gains with company that pays dividends. I know too many people buy micro penny cap stocks thinking they will 10x 20x and lost everything because they panic sold on down days or didn’t have patience to hold for long term. I rather get into crypto and buy a good altcoin because we are in a super cycle.

[@Prosper_Pun]

Disclaimer: He is not your financial advisor please do your own Due diligence and proceed at your own risk⚠️ nothing is 100% guaranteed its an educated guess😝 learn before you burn. 🙌🙌🙌

[@ee-sj8qr]

just wanna say THANK YOU FOR CLEARING MY DOUBTSSSSSSSSSSSSSSS I UNDERSTOOD FINALLY JESUS CHRIST BUDDHA

[@max99991]

So in the scenario of the price going down to $90, I make $2 for the contract but I still get to keep the 100 stocks as obviously no one would like to buy them but I can keep them for longer term, right?

[@turnerbrewer7188]

Your channel is my go to source each day for the latest investment and stimulus news. Is there a video that covers the pro's and con's of the CARES ACT 401K withdrawal?

[@clearvaluetax9382]

Hi Turnerbrewer, thank you so much for that feedback, I appreciate it! We don't have a 401K video for the CARES Act. However, that should almost be a last resort. And if you have the capability to refund it within the timeframe, then you should to avoid the taxable income.

[@turnerbrewer7188]

I agree with you in that if you are able to refund the withdrawal then you should. Point- The tax brackets are currently at their lowest. Why would someone not take a withdrawal against their 401k if they could pay off their mortgage or unsecured debt? The current market as of 6/21 is at a record high. It makes perfect sense to pull out your money under the covid 19 plan and pay off your mortgage and debt.. How is a person expected to retire 10 to 20 years from now with a mortgage debt while being able to afford to pay the exorbitant taxes that surely awaits a 401k in the years to come., If you have $100,000 + in your 401k then it makes perfect sense make a 401k withdrawal and to pay off all debt and regroup after the market tanks which will happen by end of 2020... The fed can only pump so much liquidity....If you want to avoid taxes then 2020 is your year!

[@clearvaluetax6878]

@@turnerbrewer7188 why not invest with Mr Bill?

[@clearvaluetax6878]

@@turnerbrewer7188 invest $1k and get $10k under 24 hours

[@petersison7804]

Thanks for your knowledge you absolutely RULE.

[@clearvaluetax9382]

Thank you Peter!

[@drpill1230]

I am a swing trader buying naked call options for 1 or 2 years until expiration When the stock market goes up rapidly one day I sell my calls for a 20-50% profit of the call option bought I usually hold my calls for 1 month then sell then buy the dip a week later do it again

[@crichessill]

This was good. So can you confirm that if stock had gone down to 90, yhe seller/writer would still keep the stock and the premium (2$)

[@jcole3450]

Ive been studying options for awhile. Never really "hoped over that understanding silver line". You simplified it for me and made everything "click". THANK YOU BRIAN!

[@whenlambo9759]

Question: Can you still make money through Webull/stocks if you're in debt?

[@modernconflict9888]

no

[@whenlambo9759]

@@modernconflict9888 why not, and where does the money go?

[@chopstix3]

Also for educational videos using a whiteboard, it’ll be better to have the camera not be have too much bokeh - since the attention is on what your writing, it gets blurry because the camera focuses on you. But since your pointing, the viewers attention is where you are pointing at. Just a suggestion for the viewing experience.

[@shubhamnarayan2077]

Covered calls put simply is a technique where You are limiting your gains but you are not limiting your losses(Stock value loss).

[@Breyker83]

Question: Is the seller of the call paying for the Stocks at 120 or is the buyer only having thoose stocks at the strike price and selling it in the market at market price?

[@cuzmariosaidso]

Covered call is when you own the call option & 100 of the underlying stock. Super easy barely an Inconvenience

[@hidanhan]

You really broke it down for me. This should be the complete and utter idiot's definitive guide for covered call options. Thank you!

[@RandyLy]

If anyone is interested, the method that he's performing is known as "the wheel". It's basically "Selling a Put" with cash that you have and collecting the premium. And if you get assigned, you now own the underlying stock. Then what you do with those stocks is "Sell the covered Call". You collect the premium using the method Brian explained and hopefully, you set the call option at a strike price HIGHER than for how much you bought it for. It's basically a win-win situation assuming the stock continues to go up and if you had sold it for higher than when you bought it for. Thank you for the explanation, Brian! I just discovered this recently and am glad you made a video about it just to confirm what I learned.