💰 Selling Puts for Beginners | Make Money EVERY Week 📈

[@TheFinancialMinutes]

linktr.ee/finimizeLINKS

[@financialconspirator3080]

Lol already a member

[@Princeofmath]

How to do it ?

[@Jocheche]

APLE (reit)

[@billestep6804]

If I had the 26k id sell a put in the money on fb. Collect a nice premium then if got assigned sell covered calls on the way back up on 30% delta strike price It’s at the bottom and will rally back up to 280 in a couple weeks.

[@TheFinancialMinutes]

@@billestep6804 That’s a great idea! I’ve been adding more FAANG as the rally in growth stocks continues to get out of hand since these are seen as “cash equivalents” in the stock market That being said, I’m buying into them rather slow and I only expect them to make up around 10-15% of my portfolio balance

[@brothernumpcee]

Your channel is Godsend! I recently started my journey into options and have been trying to wrap my head around selling puts as a strategy. There are tons of videos on this topic which are a labor to watch but you cut through the BS and explained this in the most easiest way any novice can understand. You just earned a subscriber and thanks for the content!

[@TheFinancialMinutes]

Thanks for your support! Glad I could help you out, let me know if there’s any questions you might have.

[@DavidWong1228]

3:20 is exactly what I’ve been looking for but no one actually shows this on other videos I’ve looked for. Thanks man!

[@cmhwilder]

Finally a video that makes it clear! Thank you my friend. Now only need to know difference between sell to open vs sell to close.

[@TheFinancialMinutes]

Glad I could help! Selling to open is when you open an option by selling it like this strategy, and selling to close is selling an option that you bought to take profit or loss.

[@sonnylovesfreddy340]

Dude. I've watched like seven of these and this is by far the best and easiest explanation of how to generate some income from puts. Thank you so much for making this!

[@TheFinancialMinutes]

Thanks for watching! Glad it helped let me know if you have any questions

[@jross6338]

Thank you for this explanation. I’ve been trading for a while now and selling put/call options always confuses me. Thank you for being the first person to make it easy to understand!! You’re the man

[@TheFinancialMinutes]

Glad I could help J!

[@jwbnscacpt]

I just wrote my first puts today, in fact my first options ever! Very knowledgeable about buying, but first time selling. Feels good.

[@MauriceV3]

My man this is the first video I watch from you. I'm no stranger to derivatives due to my background but selling puts can be recieved complicated. Normally when a youtuber explains difficult topics like I'm 5, I don't understand what they're saying. Even if I know what the product is. This video is great and makes complete sence

[@TheFinancialMinutes]

Thank you 🙏🏻

[@amit687]

I've watched countless videos over the past decade, read books, etc. but could never grasp the concept in a way that made me confident to start trading. But your video changed all that - thanks!

[@TheFinancialMinutes]

Glad I could help. Good luck in your trading 🍀

[@therelaxedcompany]

You made this so simple for me to understand, thank you so much!

[@TheFinancialMinutes]

Thank you for your support 🙏🏻

[@waltermercado9152]

Great video. I've been selling put options on Tesla for the past 3 months. Been averaging a 3% return per week.

[@TheFinancialMinutes]

That's solid! I wish I had the capital to run the wheel on TSLA I'm sure it pays REALLY well.

[@andrealreeves]

Thanks Greg :0) pretty awesome job of explaining how to sell puts. I have started teaching people this strategy and plan on forwarding this video to them as a reference guide. One critical piece that's missing here though, is rolling your contracts and buying to close before expiration when that doesn't cost you a lot to do so. Maybe you could make another video on this? I also happened to discover how high premiums can be when implied volatility is high... but you have to be careful at the same time.

[@comblitz]

I watched 5 videos about selling puts. I've also had Wall Street friends explain it to me a few times. I never got it UNTIL I saw your video. Thanks so much, I'm selling put NIO tomorrow.

[@alonhansen4419]

Joined your Dicord & subscribed after viewing this video. Concise, simple, descriptive with examples. Thank you, I've been wary of selling puts. The information shared allowed for a different perspective-a courageous one when dealing with puts. Appreciated.

[@TheFinancialMinutes]

Thanks for the kind words and for joining the community 🙏🏻

[@josephjones836]

If the primary goal is to grow account vs collecting consistently. Question #1: Is it more appropriate to collect premium weekly + compound the equity weekly or trade to monthly up to 45day to collect a higher premium? (Big vs small account) Question #2: What strategies would you use in different IV ? (big vs small account) (Low IV): 0 to 14 (Medium IV): 15 - 20 (High IV): 21 - 25 (Very High IV) :25-30 (Insane IV): 30 + (Madness IV / circuit breakers): 70 - 200

[@reid1045]

Clearest explanations on KZbin, and I've watched a lot! Well done!

[@TheFinancialMinutes]

Thank you, means a lot! 🙏🏻

[@babygamer405]

@ 01:13 to 01:20 This is the one KEY nobody ever tell you. Thanks bruh, just bought my first Sell-A-Put.

[@TheFinancialMinutes]

Yup also known as a sell to open order

[@babygamer405]

@@TheFinancialMinutes 👍

[@AnNguyen-us9bt]

Even tho I know about selling puts I always like to watch videos people put on the topic to see what stocks people are doing it with. Idk why I didn't realize Workhorse is a great stock for this! Great vid!

[@TheFinancialMinutes]

Well you should only pick stocks you're comfortable holding 100 shares of, it fits my own risk tolerance but I wouldn't recommend it for everyone. Thanks for the support 🙏🏻

[@MrsGG-id1os]

Good idea thank you for sharing

[@_Brohan]

i know times are different now, but what are the chances i'm thinking about WKHS options, and that's the example you use? wondering also if you still feel the same way about them

[@TheFinancialMinutes]

They're likely to go bankrupt in the next couple years considering their burn rate. They only have $120M cash left and over the last 9 months they burned $80M, $60M from operating activities so if they keep spending at the same rate they only have ~18 months left of cash.

[@thedreamgreenshow603]

Golden 👍 I keep saying that trading and investing is easy and safe with the right help and guidance

[@TheFinancialMinutes]

Yup, options trading isn't nearly as "gambly" as most people assume. With the right knowledge, skillset, and enough capital it's completely possible to make a living from options trading.

[@alphansoengland392]

Hello Greg how do you exit this trade? Meaning you sell open the put so do you selling close this? Or just let it expire?

[@danieltan3026]

Majority of people let it expired, I think.

[@alphansoengland392]

@@danieltan3026 Thank you!

[@TheFinancialMinutes]

If you wish to close the option before it expires then you'll need to "buy-to-close," basically, the exact opposite to how you "sold-to-open"

[@comblitz]

This is still one of my favorite sell put videos. In your video, you suggested some good stocks to try for around $20 / share. Those have all gone up. Do you have any new suggestions for current times... not as advice, just for entertainment. I'm a fan!

[@TheFinancialMinutes]

Good value stocks around $20 are harder to come by since this video is a bit dated, but one that I really like lately has been MAPS trading at $19 right now. WeedMaps Technologies, tech-based cannabis company. I've got plenty of DD on it here on my channel.

[@louiedog685]

@@TheFinancialMinutes Today, 2/16/2022, maps is$5.50. So do you expect it to go up or down?

[@meing4853]

Love your video. If market goes against my trade , can I do the roll option before the expiration date for just a one leg? Or it has to be on a spread or IC trade? I just started option trade and your answer on this would help. Thanks.

[@TheFinancialMinutes]

You could roll cash-secured puts as well, buy back the old put to close then sell a new one with a new expiration/strike price to open

[@meing4853]

@@TheFinancialMinutes Thank you 😊

[@reid1045]

Most clear explanation I've seen on KZbin. Thanks

[@TheFinancialMinutes]

Glad you found it useful!

[@saimiride]

Hi thanks for your greats videos, I am following your advice very carefully. But I have a question, nobody talks about a strategy that seems to be very powerful, it is a kind of poor man's covered call "inverted " Instead of buying deep in the money, you sell puts deep in the money (With a maturity of more than one year) and you sell puts OTM to protect your premium. You receive a big premium at first and you protect it by accumulating small premiums. So we lose less money in extrinsic value and you lower your breakeven significantly , what do you think of this strategy? Thanks

[@TheFinancialMinutes]

You would receive a premium selling a deep ITM put, so you wouldn't be protecting anything. You'd be agreeing to buy the shares at a much higher price than its trading and receive a high credit, but you need enough cash to buy 200 shares using this strategy since you're selling 2 puts.

[@saimiride]

@@TheFinancialMinutes yes Exactly, what I meant : with an expiration of more than one year, it gives you enough time to sell more secured puts to lower your cost basis and decrease your risk

[@mikegayda715]

This is what most people DON"T explain to newbies like me they make it sound like you sit around and collect fees from people never realizing that if the stock price goes below the strike you would have to buy 100 shares of the stock.at that strike price. If that stock is $120.00 a share (just an example) you better have $12000 set aside to buy that stock because your obligated too. You may have gotten a few hundred dollars in premiums up front but that's not going to cover it. Good info thanks

[@TheFinancialMinutes]

Right, that’s what the collateral is for. Surprised other people don’t mention that in their videos, seems very misleading. If there’s anything else I can clear up for you let me know!

[@theccpisaparasite8813]

Yep, that's why you select shares you would be okay owning. You write your put at a price you'd find acceptable. Thus, worst case scenario, you are buying a stock you want at an acceptable price. Additionally, if the stock gets put to you ... start writing calls on it. If you can support the cost ... it's a good gig.

[@Jfarrellvideo]

The only person that actually made a simple video thx

[@TheFinancialMinutes]

Glad it helped! Let me know if there's any other tutorials you'd like to see

[@jay871212002]

Is it possible to exercise a sell put option? For example, I sold a put option for 138 strike, stock is 160 now. Can I exercise that option and actually buy those shares at 138???

[@TheFinancialMinutes]

You can only exercise an option if you buy it. The seller on a put has the *obligation* to buy the shares at the strike price if it expires ITM. The buyer has the *right* to sell the shares.

[@stockwizard1398]

It’s called “ cash Secured puts” ( short puts) . Love love love this video !!!!! KEEP SHINING LIKE DIAMONDS!!!

[@nikkisur4511]

oh my gosh! my dad wanted me to get into selling put options but he wanted me to do my own research lol and this video really cleared things up. Thank you!! You just gained a sub :)

[@TheFinancialMinutes]

Glad this helped and thanks for your support, much appreciated 🙏🏻

[@feueraugex8493]

Do you have to have the money for the shares in your account? As safety?

[@TheFinancialMinutes]

Yes and you can’t use it for other trades

[@feueraugex8493]

@@TheFinancialMinutes thanks for Answer speed

[@HowToSandAFloor]

I’d love to see the user retention chart on this video when you get that message from Mona. I bet there’s a big spike from people rewinding and pausing to read that text

[@TheFinancialMinutes]

😂😂😂 It jumped from 65% to 70% around the time she sent that message, too funny!

[@elijahwoods5970]

Very articulate and helpful video thanks! I subscribed!

[@Amy-ej2px]

Just wanted to thank you. This is the video that made me get into selling options last year. I like your way of explaining things, too... I intentionally didn't buy the stocks that you mentioned bc I didn't want to feel like I was just jumping on the bandwagon and being lazy. But, as I was watching this again, I realized that some stocks that you mentioned, like BAC and WFC, are $10 higher than they were when you posted this. And, AMD had been on a roll. Gotta go through your vids again now. LOL

[@TheFinancialMinutes]

AMD has been killing it lately, gotta love that stock!

[@cluggyahoo]

Very well explained . What broker app do you use ?

[@TheFinancialMinutes]

Robinhood

[@xxcameron05]

I like the way you explain things. Everyone else is so damn dramatic and flashy.

[@qbdesigner8845]

Which broker/platform do you use to sell options?

[@TheFinancialMinutes]

I mostly stick with Robinhood but I've used almost every broker under the sun

[@qbdesigner8845]

@@TheFinancialMinutes the options are european styled right?

[@kedduff1814]

1:13 I dont know much but this just sounds wrong. If there is absolutely no way to lose money selling puts, then would anyone do anything else but just only sell puts all day.

[@TheFinancialMinutes]

You lose money on the share price going down, after you've purchased the 100 shares. The credit is yours to keep so long as you decide to hold the contract until expiration.

[@saiyan_princestudios9790]

If you already own the stock do you have to have money for collateral? Or just use your own shares?

[@mutmanns]

If you already own the stock then you start by selling covered calls. That is assuming you own 100 shares. If at some point those shares get assigned to a buyer, you then sell a put. If you continue continue doing this you will hear people refer to it as the wheel strategy.

[@jasongutierrez2463]

Very simple explanation sir. New sub🙋‍♂️ thank you

[@TheFinancialMinutes]

Ayyyy thank you! 🙏🏻 Glad I could help you out cheers to profits brother 📈

[@georgemorales4264]

Agreed NEW SUB

[@Stealth11574]

What are you thoughts for BYND put options?

[@TheFinancialMinutes]

I wouldn't buy BYND but I don't follow their company too closely

[@magikeddy9326]

Best one I’ve seen. And I have watched a lot

[@TheFinancialMinutes]

Thanks Edward 🙏🏻

[@ABCDEF-no1cv]

What IV and theta is good to sell puts ?

[@TheFinancialMinutes]

IV and Theta will vary a lot stock to stock. To make the most money from IV and Theta you want to sell Puts during times of high volatility or expected volatility around a catalyst like earnings, and set your expiration 30-45 days out to maximize profits from Theta since an option loses most of its time value in that time range.

[@financeabcs]

Agree 100%!!! Selling puts is the way to go

[@TheFinancialMinutes]

Nearly a fool-proof profit strategy!

[@theccpisaparasite8813]

Spreads anyway.

[@financeabcs]

@@theccpisaparasite8813 Spreads is one way to play it but it reduces your yield which can be used to counterbalance a decline in price. I only sell puts on stocks I like to own and would be happy to own at a cheaper price (market today less premium received)

[@theccpisaparasite8813]

@@financeabcs that's a fair point. However, if you want to get into more expensive stocks like Amazon you can sell your put at a price where you feel comfortable. Then buy a far out of the money put to give you a floor, to reduce your outlay. For example, were you to write a single AMZN $3000 put for say $50. You'd have to cash secure that put for 300k, a tidy sum for a small account. However, if instead,, you also buy, say a $2800 put @ ~$15 ... you reduced your max yield from $50 to $35. However, instead of needing 300k to cash secure your put, you only need the delta between the strikes to secure the spread. Accordingly, you'd only need $20,000 to secure that put. The down side is if the AMZN price stagnates between $2800-3000. It is also worth reflecting that for the $300,000 required to cash secure the $3000 put for $50, you could write 15 $35 spreads ... at the risk of landing in the wrong spot. So its a trade off. Great video BTW .

[@financeabcs]

@@theccpisaparasite8813 You make a very compelling argument for the spread based on the reduced cash collateral requirement. However, I prefer selling a straight put at the money of a long term maturity to maximize the time value and downward protection. Sometimes I even choose to sell a deep in the money put so that I get a larger premium and also participate in some upside up to the higher out strike price!!

[@quez]

Really informative video. How you are taxed on selling puts?

[@TheFinancialMinutes]

As long as they’re less than a year in expiration you’d be taxed at your normal income tax rate

[@quez]

Thank you sir

[@dwaynelattimore819]

Excellent video. Very informative. Now tell us more about Mona. 😄

[@Swing_Edge]

I enter Put or Call Credit Spreads each week on SPX. No risk of assignment since SPX is cash settled after expiration.

[@TheFinancialMinutes]

Ya I like that about SPX you don’t need to close @ 330 on expiration

[@izdatsweets]

Earned my sub! You explained this so well!

[@TheFinancialMinutes]

Thank you!

[@izdatsweets]

@@TheFinancialMinutes you're welcome ❤️

[@Pigskin1234]

i have a question. Lets say I sell a put thats way out of the money... say for a $10 stock I sell a $20 put and collect $900 in premium. When I get assigned those 100 shares at $20, instead of selling call options, am I still profiting if I were to start buying the stock so I can cost average down...Would I still come out further ahead or would I just be taking a longer route to get to the same spot?

[@TheFinancialMinutes]

$20 put is *in the money* if the stock is trading for $10, hence why you're getting so much premium for your cash

[@Pigskin1234]

@@TheFinancialMinutes Right, but my break even is 10.57. When my 5 options (4 at 12.50 and 1 at 20) get assigned, I'll have a cost average of $14 a share, without figuring in the premium received. The stock is still at $11, which Im fine with. Im having issues trying to explain exactly what i'm asking. If I start buying the stock for 11 or better and start to cost average down, would I be "earning" my premium. Like say I could cost average all the way down to my break even of 10.57, would I come out more ahead than if I would have not sold the put option (since i collected the $1700) in premium?

[@Javypilot27]

I really would like to thank you for explaining this topic, you made it very simple and easy to understand. I just subscribed to your channel. Awesome job!!!

[@TheFinancialMinutes]

Thanks for your support and feedback! If there’s anything you’d like me to include in my tutorial videos that I’m not already let me know 🙏🏻

[@bl4ckb3ll]

@@TheFinancialMinutes Hi, I'm not from US does anyone around the world can do this? also how if the price drop, we should buy back (closing). while if the price goes up, we can just let it expire, am i right?

[@TheFinancialMinutes]

@@bl4ckb3ll Depending on where you live, you might be able to use Tastyworks. If the price goes down I usually buy it back for 50-75% credit and if the price goes up, I allow it to be exercised and buy 100 shares.

[@harikrishnanchandramohan4209]

@Everything options. Does theta decay favor option sellers the most during weekly or monthly trades?

[@TheFinancialMinutes]

Theta decay is greatest in the last 30-45 days of an option's lifecycle. This means monthly trades are usually best for option sellers.

[@harikrishnanchandramohan4209]

@@TheFinancialMinutes If Theta decay increases over time, how could LEAPS be a good strategy. Its more like playing roulette on steroids.

[@TheFinancialMinutes]

​@@harikrishnanchandramohan4209 LEAPS start out with a significantly lower Theta value and you expect the Delta to offset time decay. For every $ gain in stock, your LEAPS will gain the option's Delta value in premium. Choosing a LEAPS with a low breakeven will also increase your odds of profit.

[@harikrishnanchandramohan4209]

@@TheFinancialMinutes Lets say I pick a stable stock like Apple with an average yearly growth of 30%. If the premium I pay is roughly $750 for 750*100= 7500 shares trading at $170/share. So even if the stock increases by $10 by the end of the end, I will have $75000 if I assume delta will offset theta. Is this calculation right or totally wrong?

[@juliefox8183]

This was a great explainer! Simple and easy to understand. I would be interested in the process of rolling options, I don't see any way to do that on RH. I know they don't support certain types of trades, not sure if this strategy falls in their no go zone or not. Thanks!!

[@TheFinancialMinutes]

I'll be posting a video on rolling options very soon!

[@danielboldroff]

The cleanest explanation

[@TheFinancialMinutes]

Thanks for that 🙏

[@CareerProgramming]

Very simple and clear explanation. Thanks for making this!

[@TheFinancialMinutes]

Glad it was helpful!

[@jumperthruster3354]

Great vid! So do i HAVE to only use collateral for selling puts or can I use my shares I already own in the stock as collateral like when i sell calls?

[@TheFinancialMinutes]

You have to use cash as collateral

[@AntonisPapageorgiouPapagamas]

I understand that stocks do not only go up, but historically the S&P500 in the long term does. So I was thinking, assuming that a crash might happen in the next couple of years or even months from now, would it be wise to sell VOO/SPY puts at a strike price 40-50% lower than the current price? Worst case scenario, you end up buying an ETF that will eventually go up, at a huge discount. Right? Am I missing something here? PS: I have zero experience with option trading

[@TheFinancialMinutes]

Sounds like a solid strategy if you’re assuming a large correction. Usually a correction is anywhere from 10-20%. Being so far OTM though, you won’t receive a lot of credit unless your expiration date is super far out. This means you’ll be locking up a ton of money for suboptimal returns, compared to shorter dated and closer to the money options.

[@etheshow]

Video is fire! Subscribed!

[@JaeTask]

Great content but make the sound effects much quieter than your voice. Also, lightbulbs look like earings. maybe a simple backdrop would be better? Nice one

[@TheFinancialMinutes]

Thanks for the advice. I’ve got a new backdrop in recent videos and moved my lights further out.

[@frankzvonec6817]

@@TheFinancialMinutes Great, but what about the annoying sound effects?

[@27228443]

If your put option gets filled and you buy the 100 shares, do you still keep the premium you were paid up front, or do you have to redeposit it into your brokerage account so they can take it back?

[@hanahamel2804]

Good job explaining Writing puts options Greg. Please make more videos on options 🤙🙏🌺

[@TheFinancialMinutes]

Glad you gained value from my content! I will be posting weekly tutorial videos on option trading strategies from now on. Are there any strategies you want me to cover?

[@hanahamel2804]

Greg Talks Money - Stock Market & Options Trading Much appreciated Greg 🙏 If it’s possible go a bit deeper in selling puts strategy: - How do you pick the stocks based on their fundamentals - Options Greeks as a way to measure the risk - and anything else you use in your selling puts strategy. Thanks 😉😇

[@TheFinancialMinutes]

@@hanahamel2804 As far as fundamentals, I would choose a stock with a healthy cash balance in case of another market crash. The companies with the best cash balances are usually able to innovate more quickly to overcome the issue causing the recession. Pattern is also important, you want to look for stocks that have a solid upward trend or one that offers a large dividend and trades flat. If you were to be own the 100 shares on dividend day, you would receive the dividends for holding their stock which could be a big paycheck. As for Greeks, I only use them whenever I BUY a put/call. I don't find them useful for selling. Usually, whenever I decide on a stock to sell a put I'll wait for their share price to drop significantly to get the most premium out of the option as I can. The opposite goes for selling a covered call, I sell my call option when they gain significant value. I definitely want to cover The Greeks in-depth, that may be my video for next week!

[@hanahamel2804]

Greg Talks Money - Stock Market & Options Trading Awesome. I really appreciate you taking the time to explain this. Looking forward to more of your videos 🙏🤙🌺

[@MT-qq1rq]

Hi Greg, awesome video on selling put option. Just a question, if you don't have the cash as collateral, brokerage would not allow you to sell put correct? If my collateral is other stocks, can I use them as collateral to sell put? I just subscribed and looking forward to more insightful option videos. Cheers!

[@feueraugex8493]

Question 1: Do I only have to pay the difference if the price is below my put? Or always the total amount? Question 2: Do I have to deliver money or just the 100 shares if I have any?

[@TheFinancialMinutes]

2. You have to buy the 100 shares so you need the cash 1. You only need to buy the shares if the stock is below your strike price, and you need the whole 100 shares * strike price as cash

[@MrAlecksTv]

4:34 did you ever end up reading about China's Tech export rule ?

[@TheFinancialMinutes]

😂😂😂

[@frugaljamaican2223]

@M A loool

[@WillieCWoody]

Wow...!, very clearly and well explained. I get it a lot better than tbe other vids. Thanx.

[@TheFinancialMinutes]

Glad I could help 🙏

[@theforestgardener4011]

It would be interesting to see a comparison of how much you would making selling puts vs just owning the stock shares outright.

[@TheFinancialMinutes]

Sure I can do something like that! Maybe run some backtests on popular stocks for this strategy and show the results. Of course, the past shouldn't be used as a direct indicator of future results but we can get a good ballpark number. Thanks for you ideas!

[@pbvince8036]

That's a tough one because buying shares outright means you can have the negative weeks and months. Microsoft has been in the red this month but in the green over the last 3. If you put the same amount of money as one contract of microsoft, you'd make more by atleast $1000 vs if you strictly used puts in a conservative manner. But if you used puts and others on the option chain, there's more money to be made, especially with reinvesting. You'd have enough to keep placing puts and calls and outright buy a share of microsoft atleast every other week

[@mikeylovespizza4012]

That’s a good one. Selling put has more ways to make money. 1. Market price goes up. 2. Market price is flat. Buy to close prior expiration. 3. Market price is slightly below strike price. Buy to close prior expiration.

[@swing_trades_setups]

I think it's important for people knowing buy to close and rolling a week. Buying to close can be helpful when closing early to make partial profit and rolling can stop you from having to buy it and many times can lower strike for same money 🤑

[@BeardandBanter]

Great video

[@TheFinancialMinutes]

Thanks Steven!

[@aguiremedia]

Watched the first 5 seconds and immediately had to hit the like 👍

[@TheFinancialMinutes]

Thank you 🙏🏻 Hope it helps!

[@m.a.4829]

Okay but serious, did you read about Chinas tech export rule?

[@TheFinancialMinutes]

😂😂😂

[@HowToSandAFloor]

This is a great video. Second time I’ve seen it 😂 how is the strategy going now?

[@TheFinancialMinutes]

Haven’t used it in months. Knowing the right strategy for the right market is one of the keys to success in options trading.

[@financialconspirator3080]

This aged well

[@TheFinancialMinutes]

I'm very surprised with Workhorse share price holding up despite Tesla's huge drop! +12% on Friday, one hell of a rally for their stock.

[@paulb8939]

Hi will i still get the premium on the interactivebrokers set up so will it work exactly the same as robinhood? kind regards

[@TheFinancialMinutes]

All of my trade alerts are through Robinhood but I can certainly help you set them up on Interactive Brokers if you'd like

[@pghvids7200]

This didn’t age well…

[@TheFinancialMinutes]

Ya good thing I got out while I was ahead

[@Jonathank1997]

Bro finally someone I can understand and i can actually wrap my small mind around this lol

[@TheFinancialMinutes]

Glad I could help! Good luck trading

[@tulor007]

Good thing you didn't continue buying WKHS.....

[@whitelex]

Thanks for detailed explanation

[@fitacular]

Greg, I use TOS and back tested a simple "short-put option" trade (selling a PUT option) in the OnDemand mode (back testing and simulation-trading feature). I let the "short-put option" expire out of the money; hence, triggering no assignment or obligation to buy the stock. The issue I am having though (and maybe it's a quirk of the on-demand mode of TOS) is that the ($2,500) in simulated margin that was secured by the broker when I initiated the trade, wasn't credited back to my simulated account and still shows as a $2,500 debit a week after the expiration date under the Margin Requirement column of my P&L. If this had been a real trade under same parameters, wouldn't I have been credited the margin back and simply show the premium dollar amount in my P&L? Wouldn't the option be closed out automatically even though I let it expire without doing anything as it was In-The-Money and well above my strike price? The TOS OnDemand mode has me all confused due to possibly not simulating the process accurately. Please advise. I appreciate it.

[@TheFinancialMinutes]

Thanks for reaching out with your questions! The option should automatically be closed out of when it expires, which is typically at 8pm (after-hours close) and not 4pm so maybe you didn't let the simulation play out long enough is my guess there! When you open a short put option, you're actually credited that money up-front and it's put toward your collateral (the $2500 you mentioned) So let's say you opened that trade for a credit of $100, that $100 will be put toward your collateral so you're only 'technically' putting down $2400 (at least, of your own money) This means that $100 you saved due to the credit stays in your account and when your option expires, you get your $2500 collateral back. Adding that $100 you saved and the $2500, if that's all you had in your acc your balance should be $2600. Hopefully I explained this well, let me know if there's anything else I can help with!

[@Kylewiththesmile]

Now that wkhs is at 4$ have you still be selling put options ? Also what if you own the shares and sell puts ?

[@TheFinancialMinutes]

No I've been out of WKHS for a while now. If you sell puts then you would agree to buy another 100 shares of the stock.

[@Kylewiththesmile]

@@TheFinancialMinutes thank you for your fast response . So it wouldn’t affect the shares you owned before selling the put? Besides the cost average right

[@TheFinancialMinutes]

@@Kylewiththesmile Right it would only adjust your average cost if you got assigned to buy another 100 shares

[@Kylewiththesmile]

@@TheFinancialMinutes looks like it’s bout to pop . Little bit of good new will send her flying .

[@3SIDEGOOF]

do i have to invest money in order to sell a put or am i only losing money when the market goes down ?

[@3SIDEGOOF]

is collateral the money i'd be investing ?

[@TheFinancialMinutes]

Yes you can lose money if the stock goes below your breakeven price, or your strike price minus the credit received. You will buy the shares and be at an unrealized loss. The collateral is locked up so you can’t make any other trades with it.

[@3SIDEGOOF]

@@TheFinancialMinutes if the market is beneficial to me, can i get back my collateral money, in addition to my premium ?

[@marvinrandolph4008]

Great video! Thanks for explaining things the way you did. You really helped me understand this topic!

[@TheFinancialMinutes]

Glad I could help!

[@RR-et6zp]

what trading app are you using?

[@Eastside-c3n]

You explain that well

[@fitacular]

If you structure a "Put" calendar spread would that save you from having to be filled if you are wrong on the direction of the "put" you sell? For example, say you buy a 90-day "put" at the same strike as say a 30-day "put" you are selling??

[@TheFinancialMinutes]

You could use this strategy as a sort of hedge against being wrong on the underlying stock but I prefer to use this on a stock I’m absolutely comfortably buying and holding 100 shares of I set my strike price to what I’d ultimately like to buy the stock for and typically don’t close unless the short put option has realized most of its value and there’s still time left in the option

[@andreandree4384]

Caveat here with cash secured put is that this strategy is only perfect if the price doesn't keep falling pass your strike and keep going way below your strike, you will be stuck with that losing stock for months to come; for instance, if you sold put in royal caribbean stock during covid-19, you will be with that stock and losing money for certain amount of time. So, you should precise to new traders that selling cash secured put is only good with stocks that trade in range; sell the put at the support level so as to avoid losing too much in the stock falls way below the strike.

[@TheFinancialMinutes]

Never said the strategy was perfect and I specifically said which type of stocks work best with this strategy, including slow and steady growth, high growth, and stocks that trade in a range. Try watching the video all the way thru before trying to criticizing me, thanks 😊

[@joefinance]

Thank you this deepened my understanding of options.

[@TheFinancialMinutes]

Glad I could help 🙏

[@littleturtle5818]

Sounds good. There's only one problem, if the market drops (even if just for a very short period of time), your long stock trade loses and your short put options loses substantially. You may say, you are 100% sure the market won't drop. If so, why don't you go long? And let me tell you, nobody can be sure, nothing is impossible.

[@TheFinancialMinutes]

Well, in general the stock market goes up right? Of course it will have it's cycles but even if your option loses a ton of money, which is possible in a big market crash, you can make some of it back with the other end of the wheel selling covered calls. Eventually, the stock is likely to come back to the price you bought it at so even if you didn't run the wheel strategy you would be at a profit if you held instead of panic selling.

[@tabbygirl7487]

hello I need help. I just bought a put on BYND and I'm in the negative. is that how it works? I thought either way the market went I'll be making money. I don't think I made the right decision 😕 do u buy puts or sell them to make profit?

[@TheFinancialMinutes]

You get to keep the credit for the trade as long as you don’t buy the option back. When and if you buy the option back for a higher price than the credit you sold it for you will take a loss. For example if I sell a Put for $90 and I decide to buy it back later for $100 I would take a $10 loss.

[@befreetofly8152]

thank you for the summary and timestamps in the description, true effort and makes it so much easier for me to grasp this concept! Merry Xmas and happy holidays!

[@TheFinancialMinutes]

Glad I could help. Merry Christmas and a happy New Year 🎊

[@MaritsaDarman]

What is the difference between the premium being in red or green?

[@TheFinancialMinutes]

On Robinhood it signals whether you're profitable or at a loss from the previous day

[@MaritsaDarman]

hum so what you're saying is that the premium section will say -.03 and then maybe a .00 and then a green .01 meaning it's getting less profitable or more as it goes towards the green?@@TheFinancialMinutes

[@TheFinancialMinutes]

The change in premium is based on your setting in the app. If I remember right, they allow you to show the premium change since the position open or the premium change for the day.

[@vision1707]

I'm now a sub ! thanks for the explanation but could you please mention how to get out of options positions as well. Maybe I missed it but I did not hear you explain how close out or get out of selling put option.

[@TheFinancialMinutes]

You would close it with a buy to close order, or if your broker has it by using the "close" feature

[@Myscentsei]

I think this sounds like financial freedom. Ty

[@TheFinancialMinutes]

It’s one way to get you there

[@Myscentsei]

@@TheFinancialMinutes one of the option ways you saying?

[@TheFinancialMinutes]

Trading options, creating your own business, making content from your experience. There's a million and one ways to monetize yourself and opening yourself up to any of these possible income sources is what will get you to financial freedom. Best of luck to you!

[@mariannep1212]

Thanks for explaining!!!

[@beyourself3889]

Do you need to wait till expiration? How do you exit this strategy?

[@TheFinancialMinutes]

No, you can buy to close before expiration

[@fashionsense6956]

Hi! Thank you for sharing! I would like to ask how much is the starting investment capital in selling put options? Thank you

[@TheFinancialMinutes]

Depends on what stock, multiply the stock you want to buy by 100 and that's how much you would need to trade this strategy. I would say probably $3,000 to $5,000 because it can be pretty hard to find a good stock under $30.

[@phoenixraven5692]

What about selling puts for penny stocks like aau? Is that profitable?

[@TheFinancialMinutes]

As long as it’s on the NYSE or Nasdaq. I don’t think they have options for OTC market due to lack of liquidity.

[@יעקב98]

Can you still collect a premium selling a put option if there is no buyers? just wondering, thanks!

[@TheFinancialMinutes]

No the bid would be $0.00 if there were absolutely no buyers

[@יעקב98]

@Everything Options okay, just one more question, if there are 100 put sellers (asking) but only 90 put buyers (bidding), would you still collect the premium as a seller?

[@TheFinancialMinutes]

@@יעקב98 Yes if you met a seller at their price. The lowest price a seller is willing to sell for is known as the “ask” price.

[@narayguy]

Dude you are the man!! Sooo if I get you correct here, if wanted to buy a stock I thought had good upside, and didn’t mind it going down, I’d be wise to sell put on it? Take DNMR for example...I plowed in 200 shades at 52 and it’s now at 46. So when I bought at 52 I obviously thought it was going up. I could have just sold the put there? And probably been in the same situation now, just woulda had the premium 🤩

[@TheFinancialMinutes]

Exactly! You could have probably sold the $52 put for a couple hundred dollars and been filled to buy 100 @ 52.

[@narayguy]

@@TheFinancialMinutes that woulda helped with rent for sure. Now I have to find a stock to sell puts on where I’ll net a full $2k lol. Maybe SQ. So is this your fav option style of trade or do you buy calls too? Have you kept going with work horse or have a new fav??

[@TopDawgGamingOffical]

So do you get the collateral back if the strike price doesn’t hit?

[@01mannyy]

Yes

[@miamiviberealtor1385]

What timeframe you use

[@TheFinancialMinutes]

Usually 30 - 45 days until expiration

[@CriticalBlue]

Great video. The best explanation I’ve seen. Keep it up, boyo!

[@TheFinancialMinutes]

Thank you 🙏🏻

[@batves4750]

Thank you,Dude for the great videos

[@TheFinancialMinutes]

Any time!