Options Secret for Producing Smart Passive Income

SMB Options Workshop: bit.ly/4e3Nb1g
#optionstrading #optionsstrategy #daytrading
SMB Disclosures www.smbtrainin...

[@CamillaStenmark5]

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.

[@RyanMaverick12]

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

[@Avery.Brice1]

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.

[@ShelbyThompson1]

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

[@LlauniGavin]

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.

[@DeonLlewis]

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

[@lukeelliott2128]

Great video and explanation! Feel like I learn so much from SMB.

[@adamdinsmore6712]

At 4:50 I think the chart should say “Cash Received Seling 10 Puts”, not buying

[@dannytetreault]

Yes! This sounds like a collar not a strangle!

[@facemakerable]

right , both sell correct money

[@matthenry7]

Yeah. That was driving me crazy.

[@derekcummins4512]

Great Videos. Even though I have a small account, it is slowly growing. I cherish the knowledge that you provide. Thank you.

[@JS-no7zq]

I feel like it’s a gift when you give your time to make these videos. I really appreciate these videos. I’ve been a subscriber ever since I found your channel Sir.

[@i486DX66]

RE: 5:39 - Holding 1000 shares of a stock has a much different risk profile than holding 1000 shares of stock + short 10 puts. The risk is all on the downside. The delta of the calls and puts may roughly cancel out initially, but you're gaining delta the lower it trades. You're hedging risk by adding more risk. If I'm neutral, I'd rather do a front ratio or asym call butterfly with short strikes close to ATM.

[@user-ht7jt2gr5j]

​@@randythayer8440 so you are saying SMB folks are millionaires and the commenter is not. It may be True. But, 1. This channel has a habit of Not telling the Risk part of the trade. They did that tons of times. Extremely dangerous info for newbies who take trades as is. 2. You didn't counter the commenter with facts or logic. It will be good to counter argue with facts / logic instead of blind faith statements. One of my good friends blew of a 50k account yesterday because of a blind faith in a paid membership channel. Wishing you good luck!

[@hee163]

Another incredible trade from Captain Hindsight.

[@thefrankperspective4247]

Hahahaha

[@somethingclever1234]

lol, Capt Hindsight, I like it

[@howiesoc17]

I haven't even watched, but checked the comments to see if this was going to be another one of 'those' videos. Sounds like it! Thanks for the heads up haha.

[@dondadondon1213]

@@randythayer8440ummmmmmm.I watch SMB a fair amount and usually start out a bit skeptical. Till I put it to a test and often, yes often, they end up in my toolbox of strategies. Especially the high probability ones for when I need a win after a few losses😢 And I will go on to say the videos on using market indicators has turned up my trading multiple notches. But this is one I do not think I can wrap my head around. I cannot see a world where I am selling puts a year out, especially a 10 lot with $160,000 risk. Not sure how portfolio margin works cuz I’ve never had it, but I would guess my individual margin account would require at least $55,000 of reduced buying power for this trade. FOR A YEAR!??! And then on top of it he’s adding the extra stress of offering up his shares with a short call on ALL 1,000 shares at a price a year from now. Good Lord the more I think about this, the worse it gets. We won’t talk about the dividend risk and early exercise in the eleventh month when extrinsic value goes away. Sorry about this and I’m not trying to be a pain.

[@joewalker2089]

this guy is painful to listen to ...

[@CarolleP]

you are truly a blessing in the way you teach. the way you explain things are easy to learn . Long life to you Seth and thank you, you help me vision what i have learned with good examples and change my financial life.

[@MrFabian714]

Very interesting trade! Thanks for sharing. I would have been more comfortable doing a call ratio spread. Although your calls are covered, selling naked puts bring another level of risk, unless you are ready and comfortable to take assignment .

[@mrNashmann]

seth is that the view behind your window looks so great

[@OmarHoffi]

There is a mistake in the video/slides. Its written as Cash paid for buying puts, when in reality its cash received for selling/writing the puts.

[@Mateo-hr4to]

true, right at the beginning. is sell call and puts.

[@Tell_me_something_good]

What about the $170,000 in cash held? 5% of that is $8500. If you are "prepared" to buy more shares, just run the wheel, or is this what a wheel looks like with 1/2 ownership?

[@ChristopherRobert-ic4ub]

to sell those 10 puts requires 1000 x 160$ of capital to be put up for that year, which locks up 160K of capital for 7600$ which is a little over 4%. And if the stock were to go below the put price, you would be losing the share value on top of however much lower it goes from the puts strike price. Whats the benefit of selling the Puts, rather than just selling 10 covered calls and collecting the premiums on that? Its not the worst case for the stock to end above the call strike price, but if it ends below the put, you are exposed to lose a lot, especially if theres a big drop for some reason.

[@Arsenal2045]

These options videos are absolutely useless, there were so many mistakes in the slides that it was hilarious

[@carlosquitosantillan4356]

Thanks for the key information. I would recommend you to use graphs to see the underlying price in the axis "x" and the P&L in the axis "y"

[@jonq21]

ok, can you explain if the trade goes against you, what you should do. he may get the comm from the short call, but has to buy 1000 if itm on the short put. if price goes itm on short put, does he close the postion.? what if it goes really deeep itm. ? do you hold? when do you sell.

[@matthewcauthorn9731]

Good info tx

[@OakSantosh]

I do this regularly in the NSE IE Indian stock exchange NSE. In India different companies have different lot sizes depending on their shares price. In USA Nvidia,Game Stop,Chewy all others have a uniform lot size of 100 shares.

[@MattAiden001]

I will be forever grateful to you, you changed my whole 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 Catherine Gauthier.

[@Adriannegutman21]

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.

[@CharlotteOlivia215]

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

[@AnnaMacko764]

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

[@BruceKovner273]

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

[@MattAiden001]

she's mostly on Telegrams, using the user name

[@lockloaded922]

Can't the shares be called away anytime the price gets above $180 or only at expiration?

[@Mateo-hr4to]

Could you do this same strategy but with 10 leaps contracts expiring next year instead? What would be the pros and cons compared with this strategy, and how would you manage that position? Thank for the video Seth!

[@RPlum-xn1vx]

You don't collect money by buying puts. You collect money by selling puts. Slight error in Video.

[@southpaw487]

During the year, Pepsi dropped below $160. Wouldn't the buyer of the put have forced the investor to buy PEP at $160, while still owning the original 1000 shares?

[@davidgiusti5501]

Only if the option was executed by the buyer or if the option expired while the price was below 160.

[@wouteredeling8589]

The buyer would be throwing away the time value of the option by exercising early.

[@greywaver8398]

It appears that the puts could have been exercised in Oct as price moved below the 160 strike (assuming options are American). Could be wrong, but seems that was a possibility.

[@Mateo-hr4to]

no one would exercise early in most cases... mainly because selling the contract pays you more. it will pay you the value gains plus any intrinsic value the contract has of the price to keep going up... in really rare scenarios someone would want to exercise early

[@dannytetreault]

Is this not the same thing as a collar?

[@danielperkins9347]

I collar would buy a put financed by selling a call. Here we are selling both. Disregard the error on the slide.

[@yohant5813]

Why exactly the %5 mark above and below the price? Why is there no Buy for protection? Isn't that very risky?

[@dondadondon1213]

Yea. Ties up a bit of buying power for…….a year!? Benefits of being part of a huge prop firm, I guess. Next he’ll say it’s a good strategy for small account. Wow. Just wow.

[@dondadondon1213]

@@randythayer8440well sure. That covers him on the call side, but he’s also selling (yes, selling. His video has a huge mistake in it where it shows buying rather than selling) 10 put contracts a year out at $160 strike. Even with margin, that’s a bit of buying power used for the short puts.

[@pauliusmatiusovas4102]

At 160$ put, you can also sell your 1000 shares, to buy new 1000 shares if put is exercised. So you are even. Still keep 1000 shares and 23k

[@TotalClarity]

A couple of points on this one. When PEP hit $196 in late April, more than likely the CALLS gets exercised early by the CALL buyer for the Dividend benefit in June, no? Also, mustn't forget that the overall value is $6,000.00 lower ($171 vs $165) at expiration so it's closer to $17K net if the shares did not get prematurely called away.

[@dondadondon1213]

No. Those calls still have 6 months of extrinsic value in them. Nobody gonna exercise those , even in December. I’m more concerned about the buying power used, for a year, on the short puts.

[@braddeicide]

I wish these started with a tldr to see if it's something we already know

[@learnzz9255]

You can't sell cash secured puts without cash, and if there is cash your not counting gain in cash in first scenario

[@krisjackson923]

The issues with this strategy that I see would be having to secure the put price . So you wouldn’t be able to trade with that money at all for the entire year ???

[@krisjackson923]

I’d be happy to text you and even take a phone call, I will warn you I doubt I’ll be signing up for any classes. However I’m grateful to you and a few others for providing educational material, I have started running wheel trades in my trading Porfilio for 2 months now and have gotten my acct to 50k with more additions coming it will be 80-90k by year end I hope. Thank you

[@somethingclever1234]

All roads lead back to risk management

[@ricorunUSA]

bro BITO, MSTY, NVDY

[@LewisLudwig]

This basically writing covered calls and cash covered puts on the same stock.

[@chillin363]

I did not hear enough about risks to understand them. More emphasis on same would be helpful.

[@nicoleharewood1074]

But I cant do this if I don't already own those shares...😢

[@cal4865]

$FERG $ROST $MDB $PDD $HIMS

[@facemakerable]

money make money ,

[@ChrisPy00]

There are several "buying" and "selling" flat out errors in this video. You should pull it and correct it.

[@CynthiaMorgan-qp8zl]

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 Rathe

[@OnurYenigun-oh1wy]

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

[@CynthiaMorgan-qp8zl]

she's mostly on Telegrams, using the user name.

[@CynthiaMorgan-qp8zl]

@RATHE5 💯 ..that's it

[@OnurYenigun-oh1wy]

Thank you

[@janjanlang1229]

😂

[@DanetteKshlerin]

Anderson Margaret Williams Dorothy Anderson Michael

[@KatteCatherine-m2n]

Jackson Barbara Clark Margaret Young Eric