My QQQ Poor Man's Covered Call (PMCC) Test is Over!

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Күн бұрын

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In this video we are talking about my Poor Man's Covered Call (PMCC) strategy test with the NASDAQ 100 QQQ. In this video we will walkthrough the QQQ LEAPS option portion of the strategy and how it compared to just owning shares of QQQ as well as how much income I generated with the PMCC QQQ Strategy. The Poor Man Covered Call Strategy is a great way to generate income with far less than the normal capital required on the index ETF's like QQQ.
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#sellingoptions #PoorMansCoveredCall #PMCC

Пікірлер: 61

@AverageJoeInvestor Ай бұрын

Happy Wednesday Everybody! Thank you for watching and for being part of the Average Joe Investor Community! Make sure to leave your $0.02 in the comments and check out the Kalshi website as well: kalshi.onelink.me/1r91/averagejoe -- Have a great rest of your day!

@tohando Ай бұрын

Why advertise some gambling site? Please keep professional.

@manuelsarte5536 Ай бұрын

Hi Joe, can you make a video how to do sell call using leaps (buy call) set up from pmcc. I tried doing it with my iwm leaps $190 expiry Sept 2025. But it won't let me.

@slammer6789 Ай бұрын

Thanks for keeping track of all that data. Can't wait to see the IWM PMCC test video!!!

@AverageJoeInvestor Ай бұрын

You bet!! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍

@LoriRish- Ай бұрын

I started investing in stocks at 18, grew portfolio to $600k by 33. Recently, lost over 30% and want to mitigate risks. Also, plan to pay off my mortgage and want my portfolio to grow. What should I do for stable cashflow?

@StephenTho42 Ай бұрын

Dont think here is the place for personalised investment guidance. However, I suggest consulting with a reliable advisor to ensure appropriate investment planning.

@CaroLewis-j8k Ай бұрын

Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.

@albertzalez32 Ай бұрын

@@CaroLewis-j8k this is all new to me, How do I find a suitable fiduciary advisor, can you recommend any?

@CaroLewis-j8k Ай бұрын

I've stuck with the popularly ‘’Katherine Nance Dietz ” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up..

@Woodstev- Ай бұрын

thank you for putting this out, it has rekindled the fire to my goal... was able to spot KATHERINE after inputting her full name on the web, she seems highly professional with over a decades of experience.

@elliotthall5543 Ай бұрын

To some extent the market gotcha. If you had begun on May 8th and gone through July, that graph would likely be even more semi-parabolic. April was a market pullback. So, I would love if you did a follow up to discuss what happened to cause losses. I suspect the market blew past your strikes, because the Q's have gone berzerk since May. In hindsight, if running this strat for a year, would you push your delta farther to protect your strikes a bit better? Lots of good stuff here. Fun series.

@AverageJoeInvestor Ай бұрын

Quality comment! Yes the market ripping up did cause some NET DEBITS and if market had been flat income would have been nearly double what it was. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍

@fabiGBOtown Ай бұрын

What happens if something unexpected happens and you get assigned? Do you buy it at market price or option price? I mean the strike price you chose for July. Or can you get out of assignment in another way?

@whodidit99 17 күн бұрын

He's selling calls not puts

@torchy187 Ай бұрын

I do this same strategy on 1 deep in the money call of RUT every day. It’s great because if RUT rips I don’t lose my shares because it’s cash settled. I also get the 60/40 tax benefit of RUT. This trade cost me only .65 cents in fees a day. I either roll or on a day like today, I’ll settle with cash. QQQ moves too much for this strategy IMO.

@AverageJoeInvestor Ай бұрын

I can appreciate that. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

@macman231 Ай бұрын

Are you talking about a PMCC or it sounds like you are executing a cov call? Just curious, thanks, sounds interesting.

@torchy187 Ай бұрын

@@macman231yes. Right now I own 1 call option of RUT at 1600. (June 2025 expiration at about a .90 delta). I just sell a daily 1DTE or 0DTE against it. It works well with RUT and it could possibly work with SPX, but QQQ moves so much it would be tough to manage.

@seangreen8262 Ай бұрын

As you mentioned, you had the positive returns because the market was bullish. If the market turns bearish, how would you mitigate the trade?

@NancyH-mi6xc Ай бұрын

I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.

@NianLisa Ай бұрын

bitcoin does not pay any yield but will reward you with growth that you can't find in any other asset class

@jeffbox1torres Ай бұрын

look at the charts, bitcoin has outperformed every stock and banking product ever developed even after multiple pullbacks over the last decade. not a financial advisor but I know what i'm saying

@DannielleRosales Ай бұрын

The key is diversification. Personally, I delegate my investing to an advisor, cos my job doesn't permit the time to perform market analysis myself. Thankfully, my once ago stagnant portfolio has now 5X in barely 4 years, summing up almost 7 figure as of today.

@arloc24 Ай бұрын

I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Evelyn Infurna. I am at $128k right now and LOVING that you have to bring this up here

@BestoFornitero Ай бұрын

i'm blown away! more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one... they all seem to be involved in either real estate, stocks, or crypto

@dagobaker Ай бұрын

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

@DavidB-fo5vu Ай бұрын

I like this strategy on pmcc but not when the markets keep hitting all time highs. Not when i would start a new option

@RobOToole1 Ай бұрын

this was definitely an ideal time to run this test. i feel like the leaps would get crushed in a down market. i'm shifting to married puts now that we're topping out or at the very least very overbought.

@AverageJoeInvestor Ай бұрын

I can appreciate your concern. YES, if QQQ was not as hot I would have had fewer capital gains BUT my income probably would have at least doubled. Still would have been really good. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍

@RobOToole1 Ай бұрын

@@AverageJoeInvestor yeah i'm just feeling way overbought here but looks like it can always go higher. i got burnt on some pmcc calls on individual tickers and don't see a good way to hedge them so going back to shares for now. luckily have the capital to be able to.

@chadphilpott1991 Ай бұрын

Curious if the amount of income was worth the daily work? I think I would rather do a monthly one higher up OTM to reduce the work but I also work rotating shifts.

@TonyHallAus Ай бұрын

Very helpful video thank you for your passion and enthusiasm ! I have 10 leaps of leading stocks which are rocketing but subsequently making losses on my sold 30 day calls even when I sell way OTM. I’m a bit busy to do one day but do you have any research please on how many days out to sell calls and at what delta to maximise returns and rarely get assigned?

@Roots2Skye Ай бұрын

Why wouldn't you let you leap options get assigned then just open a new leap position the next day when there were gains that blew past your call (I got burned on the 4th too)? That way you could avoid any debits.

@steveshadoff8477 Ай бұрын

Do you think it would have come out about the same, between the zero DTE and weekly expiration options?

@Sky1 Ай бұрын

What exactly happened on Thursday?Are we supposed to think that everybody switched from large cap to the russell two thousand all at the same time? Thank goodness I had all my stop set. I was sitting here and heard them all popping off at the same time. Took a short position The following morning premarket.I loaded everything back in and wrote it all back up. Craziest Iest thing I ever saw. Made a bunch of money though.

@gandmemoney Ай бұрын

Thanks Joe. If the strike was hit on a pmcc what happens the next day?

@juliesouth6428 Ай бұрын

Great video sir, I love this strategy but we all know trading is only profitable when you got proper guidance like mine

@juliesouth6428 Ай бұрын

Theresa option

@Amelia___580 Ай бұрын

Seen some good reviews on her , how do I connect

@juliesouth6428 Ай бұрын

She’s mostly on telegaram with the name

@buyerclub2 Ай бұрын

Question. I am using a wheel strategy on SPY. I just had my shares assigned when the shares were worth more than the call I sold. So now I am selling PUTS. Do you sell those at the same price that the shares were called away. Or do you raise the price to the ATM price. I sold them at the same price they were called away, and went out a little on date. But still sold for very little. Curious what you do.

@wecreatescreators Ай бұрын

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

@mrbigcat9 Ай бұрын

Next time, try a triple crown? Stock appreciation, collect a premium, and collect a dividend?

@KeanuReevesIsMyJesus Ай бұрын

Even if you just compare the LEAPS value to the shares value in his chart, it’s clear even LEAPS alone are much more profitable than shares + cc premiums + dividends. Of course, there’s higher risk involved as well.

@janshuster1426 Ай бұрын

I like PMCC I buy 1/2 current price to reduce EXTRINSIC premium.

@eeeffert6042 Ай бұрын

so what would you buy in SPY, currently 561. and when?

@AverageJoeInvestor Ай бұрын

Awesome! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍

@janshuster1426 Ай бұрын

@@eeeffert6042 I would buy the $250 to $300 as far out as I could and then sell a 6 months to one year out to just cover the EXTRINSIC part of the premium. But I would time this to buy at the next market crash and then wait to sell the higher priced option after it recovered a bit.

@janshuster1426 Ай бұрын

@@eeeffert6042 I.would prefer to put this on at a market crash but at a present price of $561, $250 - 300. If I wrote at market crash I would wait for some recovery and sell a one year call to just cover the EXTRINSIC value of the option i bought.

@eeeffert6042 Ай бұрын

you never would have come close to this return. 85% of your profit was based on QQQ RISING. If it was going down you;d barely make $1500. And your QQQ leap would be down so net loss.

@AverageJoeInvestor Ай бұрын

@TonyHallAus Ай бұрын

@Tideo123 Ай бұрын

From the result, it looks like LEAP strategy only is the best because you don't have spend too much time to work for income generating part for a little extra money so you can spend more precious time of your life on other hobbies or family time.

@DrunkRussian3 Ай бұрын

It could lower the cost of the leap itself with the extra premium