How to Yield Consistent Income (Using Options)

[@smbcapital]

Options Class: bit.ly/4es4YzG

[@fercgv1717]

Thanks for sharing. Approximately, what's the balance you might need to perform this strategy with 2 contracts?

[@stelliumX5]

Signing up again for the options class. It’s clicking slowly but surely! Thanks SMB!

[@Ursulapete.r]

I Hit 12k today trading. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Louise O'Brien for helping me achieve this.

[@LozanoHowes]

You trade with Louise O'Brien too? Wow that woman has been a blessing to me and my family.

[@Jill.Armstrong]

That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.

[@Shelby.Thompson]

I'm new at this, please how can I reach her?

[@LauniiGavin]

I'm happy to see Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing.

[@Joey.vasquez]

I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much

[@b_gumm]

Great examples. Thanks Seth. Such a natural teacher.

[@Tell_me_something_good]

Caution, if the stock tanks or slides consistently down while you own the shares, your cash flow will NOT be consistent and will be substantially less until it turns back up. This will work well neutral or bullish.

[@NEPALI-NINJA]

That's why most people like to put these strategies on SPY and not on individual stocks

[@rockylamattina699]

Thought on how to manage this risk? I wish the presenter spoke to this as there was nothing on sideways or downways markets.

[@braddeicide]

Incredible that this video doesn't discuss this.

[@davidvanderstelt6760]

@@rockylamattina699 If it drops… you retain the premium. Then you re-sell the buy-write option If you are upside down… re-write cc It’s a real simple strategy

[@malihakahanum9829]

Both of you are great teacher❤

[@LuKa2sb]

I really enjoy this channel and it's taught me a lot. However, for this video i wish they would have compared to just keeping stock, to show that just keeping the 200 shares of SPY would have a profit of $26286 (and the tax benefit of long term capital gains vs short term) Yes i'm aware selling the calls has the benefit of reducing some of the downside risk by reducing total delta. Math: Friday Sept 20 2024, SPY closed at 568.25; Friday Sept 15 2023, SPY closed at 436.82. that's 131.43 *200 shares = $26286 profit

[@MoIbrahim970]

Awesome strategy, it is like 1/2 a wheel, but easy, profitable and so worth it. Thank you Seth, and SMB

[@learner9187]

This works in a bull market like the one we've seen this year. What if you have a market decline by about 20% and it stays there for a year or more 🤔

[@CasaFassa]

then you mostly collect premiums and make less, but still making money at minimal risk.

[@gagarwal]

Keep averaging down on an index and keep selling C Calls for income….

[@learner9187]

@@gagarwal to keep averaging down, you would have to have unlimited capital.

[@learner9187]

@CasaFassa if you keep the strike at your acquisition price, then the premium collected may not be enough to cover the brokerage charges and other transactional costs. If you drop the strike price to collect half percent of the price you may have to deliver at a price much lower than the acquisition price thereby incurring a capital loss which may be more than the option income earned during the period.

[@CasaFassa]

@@learner9187 gotcha. Yeah you could get bagged and then have to set strikes below your cost for decent premiums and risk taking a big loss.

[@Scripture-Songs-That-Stick]

I'm new to options. Can you explain the downside risk? I really like these videos, but I've never seen one of these options trade examples go the wrong way. What incentive does SMB have to paint a nothing-but-wins strategy?

[@darrens3667]

The downside risk is shown when SPY went past his strike prices and was forced to sell for less than market price. Had he simply purchased and held SPY for the duration and not sold calls he would have made more money than using this strategy. However, that's only the case in a bull market. In a sideways or bearish market this strategy will outperform SPY

[@kortyEdna825]

Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE

[@PatrickFitzgerald-cx6io]

If you don’t understand the markets, stick to an index like the S&P 500. Dollar cost average and hold long term, or better still consider financial advisory to avoid losses

[@Justinmeyer1000]

Sometimes I'm surprised most people don't even know they can do that. I've been making at least 200k every year from my investments by working with an FA. When you realise it, it feels like a life hack.

[@brucemichelle5689.]

Wow, that's interesting . I've recently been exploring the option of working with an FA too. Any chance you could recommend who you work with? in her area and works for Empower Financial

[@Justinmeyer1000]

‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a geniusl Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@brucemichelle5689.]

I checked Aileen up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response.

[@vandanapaigude193]

Thanks Sir.

[@terryw3814]

You didn't mentioned one word about the cash secured put that showed up in you examples. Otherwise, good video. Thanks

[@StephenB2005]

These were all covered calls. No puts were used in this strategy.

[@WorldSpectator705]

@@StephenB2005 One of his slides indeed referred to "cash secured puts". A typo I suspect.

[@NEPALI-NINJA]

​@@WorldSpectator705yes, it confused me, they should pay attention to their words mistakes

[@giurbitser]

Thank you

[@inception9558]

Thank you for the video. One question though - If I have just bought the 200 shares and kept it for a year, then the profit would be around 26K plus, that too unrealized profit, so would not require to pay the taxes as well. How is this strategy better, please do a video on that. Thanks.

[@don5415]

i DID THE SAME CALC.

[@MrSmeage]

This isn't about maximum profit. It's about consistent income, being able to pay your bills each month using options trading.

[@gagarwal]

If you would have been so sure of upside then you would have sold Puts…. I am assuming u have not since u didn’t mention it….. thats why some income can be better along the way (up or down) no one knows in the short term (less than 5-7years) where the market would be

[@inception9558]

​@MrSmeage I know, but we can't just focus on only one criteria, the investment should overall make sense.

[@phhugot1]

question: Why in suggesting to buy the shares outright instead of 2 ATM calls? Is there a reason?

[@GeeE92]

Is this not the same as purchasing and holding SPYI ETF? Only without the work?

[@TheYodaman22]

It’s good to see how all this works, but the amounts required is too high for starting out unless the prop firm put up the money

[@mikemichaele4352]

You can do a credit spread, sell a call and buy a higher one for protection.

[@skunkape5918]

☦❤🕊

[@orangesandlemonade]

Heard someone say it's important to stick to stocks that are recession-proof, hence I'm looking at NVIDIA and other AI stocks, or are there recommendations? I'm 31 and I've got $150k ready money to invest for my future.

[@justlikeasoldier]

the idea is to look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recession, speaking with a proper advisor can be very useful most times in getting the job done.

[@beautifulpeopleonearth]

The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 330% since covid-outbreak to date, summing up nearly $1m.

[@garrickphillips-x1z]

@@beautifulpeopleonearth quite inspiring! could you be kind enough with details of your advisor please? in dire need of proper asset allocation

[@beautifulpeopleonearth]

Katherine Nance Dietz is the licensed advisor I use. Just research the name. You’d find necessary details to work with and set up an appointment.

[@verycautiouspersona]

excellent share, curiously inputted Katherine Nance Dietz on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal

[@KateLewis-eb7we]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Michelle Stewart.

[@MorrisHaugan-z4u]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@ThompsonHarris475]

She is my family's personal broker and also a personal broker in many families in United States, she's a licensed broker and a FINRA AGENT in United states

[@AshleyMurphy735]

Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading

[@nickpatuto9809]

How did she change your life ? Did you buy the SMB Course ?

[@JohnAlbright328]

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

[@deepakvittal6116]

If I had kept the stock throughout and sold in September, my profit would be 113600-87600=$26000, much higher than the $20,534. Am I missing something here?

[@growteamusa]

What would be my initial investment need to be for this strategy?

[@glennramilo1114]

You did not record the stock position loss on the first trade when the stock price went down.

[@julsia6798]

Because he didt sell. It was not realised.

[@mjpyro2458]

Your tally sheet kept referring to cash secured puts when you were selling calls. I picked up on that and understood it was a typo but for the novice trader that you are trying to teach, it would be an issue. I think the better strategy for most would be something you have explained in other videos where you sell the 10 or 20 Delta put each month on the SPY or QQQs. That keeps you from actually having to own either unless the small chance you get put the shares.

[@revaddict]

Okay here is the math that was skipped in this video.. If you would have bought 200 shares at 434.37 and next year sold 200 at 568.25, you would have made 26776 without doing anything.. By actually doing something you underperformed the market..

[@R-vw3uz]

What kind of horrible explanation is this. Yes...the 1st trade was a buy write...the second was just a covered call since you didn't buy any more of the underlying. And on that tally sheet you need to mark down that your are down horribly on the core 200 SPY shares position. You really advocating for people to hold so deep into the red? These hindsight lookbacks are a joke

[@julsia6798]

Im new and it fells they only show the good and hide the bad. Are options good for making money? Trading stock suck, but futures seems easier to make money.

[@harveykeitelsean55]

I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Katherine Miller

[@Tupppas]

I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...

[@jakeroberts220]

Katherine Miller strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started

[@Verablake12]

Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading

[@Lillianclopton334]

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

[@Stevenjones7679]

The first time we had tried, we invested $1400 and after a week we received $5,230. That really helped us a lot to pay our bills.

[@mickeymo2]

2023/2024 is unique in nature where SPY continued to melt up. if you take any other year where SPY remained -ve or was in down trend, the outcome will be very different and the account will be -ve. However since SPY always move up trader can eventually turn positive on stock value but can continue to write otm calls and collect premiums. The recovery can take days/week/months/years depending on the market drawdown but eventually should recover at some point and continue to collect premium. This strategy is solid for long term holders.

[@chenyirui3710]

Should also highlight the downside of this strategy. If the price kept sliding, eventually you will be selling a covered call option that is priced below your purchase price for the shares. If your options are assigned, you will make a loss.

[@reneebuffington2014]

The other downside is that if you had just bought at $434.76 and held, at the end of 1 year your shares @ 568.25 would be worth $26,776. I understand you can’t eat appreciation, but the buy/write example here only realized a profit of $20k.

[@GarciaTheresa-t1o]

Johnson Thomas Walker Lisa Martinez Mary

[@milwaukeeguy7124]

Wondering how would this strategy perform in a Bear market? Would it be too risky to do this if there is a chance of a recession?

[@CesarMalacon]

"This is good for smaller accounts".. Step two: buy two hundred shares of SPY at 434.34 each....with your small account of $86,868 dollars. Cool.

[@fwerper]

You can do this with any stock that you don’t mind holding for a really long time. If you do it on a 10$ stock you only need 1000$ to buy the shares for your first covered call. It just has to be a stock that you’re bullish on long term.

[@CesarMalacon]

@@fwerper Sure, thanks for confirming, I was just referring to how comic it sounded after his explanation of the SPY was good for smaller accounts. Cheers