Selling SPY Options For Income - Simple Options to Build your WEALTH.

[@wealthadventures]

Happy Father's Day!

[@dlipp23]

Thanks!! Same to you

[@richardthorne2804]

Yep SPY and QQQ is great but my favorite has been IWM for the past 2 years. Its been really range bound. I also have portfolio margin so i just monitor my capital/buying power usage or notional amount when VIX is lower. I made $63K last year selling options and this year I have done $30K so on similar pace. I am predominantly a long term dividend investor but having a separate wheel strategy has been such a blessing.

[@wealthadventures]

Nice! The last 18 months have been good for selling PUTs on the indexes.

[@Fighter4Street]

Well I don't know as I started to sell puts on IWM, now I'm sitting with a $198 put and $200 put, watch me get these assigned and I will have to stick with them for a long time.

[@Jeguia85]

I appreciate the fact that you talk about the risks and how to mitigate them without hyping everyone about selling puts. I would love to do these on Indexed Options like SPX and NDX to get the 60/40 tax treatment, but I am too poor for that lol

[@wealthadventures]

Index options are cash settled. No risk of assignment. You can use spreads to play at a level you are comfortable trading. It might be an option.

[@IronCondorSimulations]

Good video. Glad you warned the kids about the risk and let them know about VIX. Once someone experiences high Volatility for the first time, then they can develop balls of steel.

[@wealthadventures]

Ha!

[@Seoulsearch616]

Happy Father's Day and thank you for all the great videos! 👍🏼

[@wealthadventures]

Same to you!

[@OneStrangeJourney]

I sell puts and credit spreads, but sometimes I question if it's worth the hassle. My main account is up 5% for the year from selling options, but my IRA account, where I dollar cost average daily into SPY and JEP,I is up over 9%. You mentioned that some of the SPY puts only yield around 5%. Heck, Robinhood will pay you that just on your cash with no risk. It's not as exciting, but is it worth it?

[@binarybrian]

I find options to be a hassle and not worth it if it's a stock or etf I'm not particularly interested in owning, i.e. I'm just managing purely for income. However if it's a stock that I'm interested in reducing or increasing a position in, i.e. taking more of a long term investor mentality, I find it quite satisfying to get paid for trading a stock at a better price than I would get by just setting a limit order. That allows me to feel like I can come and go to options when I'm motivated. Otherwise, like you point out, I'm more than happy to just sit in cash or let a covered call ETF do it for me.

[@OneStrangeJourney]

@@binarybrian absolutely agree with that!

[@marcalvarado1915]

I enjoy selling options and collecting premium almost feels like I am getting away with something but at the end of the day I too have noticed my buy and hold portfolio is doing better. I have tried selling covered calls with expiration dates a year out to lock in a 10% growth and all that has done is limit me to 10% when the market has gone up 20%+! It’s still fun but I don’t think it’s more lucrative.

[@ILoveVehicles]

I think the 5% yield on SPY Sell Put is for a few months, compared to a 5% high rate yearly yield on some cash accounts.

[@ericjohnson829]

@@ILoveVehicles Those cash yields should begin to drop over the next year, or next few months.

[@nsharma99]

Selling cash secured puts in my fidelity account getting that 4.98% + options premium while it sits is really nice.

[@wealthadventures]

I agree. But if rates start to fall will you go back to bonds or stocks?

[@nsharma99]

@@wealthadventures stocks 100% due to the rate drops.

[@nsharma99]

@@wealthadventures love your channel btw, great vibes with your presentation.

[@suthamm]

Thanks for sharing. I have a question nobody addressed it. Do all income seekers look at the market condition before selling CSP each month? What's the point of getting a hefty premium but holding a big loss on the underlying when the market is down? Am I missing something here?

[@wealthadventures]

I sell PUTs on stocks that I would be interested in owning if they drop to the strike price that I sell. If the market pulls back, I typically buy the stock or roll the option out and down. If the market is stable, I keep the income. Make sense?

[@suthamm]

@@wealthadventures Thanks for the clarification. I guess September to October is a good time to sell cash-secure puts for a juicer premium because of the high implied volatility.

[@Starry737]

Hello. I really learn a lot from your videos. Have you heard of anybody trading at least 15 SPY contracts of covered calls to make a monthly income? Thanks.

[@wealthadventures]

Thanks. Why 15? I'm sure there are plenty that focus their investments on SPY and options. It could be a good strategy.

[@johnmaxwell1356]

Great video WA's. I have an unrelated question for you. I know you have done a couple videos on TSLY but I'm curious about YMAX. YMAX is Yield Max's ETF that is made up of all of their other ETF's. Do you think YMAX has sufficient diversification to justify owning it, or do you think it is still to volatile due to the underlying ETF's lack of diversification? Love your content and would love to hear your opinion on this particular ETF. An FYI I own a little YMAX due to it's incredibly high dividends and lower stock price but am hesitant to stay with it long term. Thank you in advance.

[@wealthadventures]

Hi. I'll add it my list of ETFs to review. Not a fan of these overall and hate the 1.28% expense ratio. At least if you buy your favorites yourself and rebalance, you can save 0.27% in fees.

[@SummitMan165]

Good video! For a option newbie like me, it makes paying the 0.65-1% options income ETF management fees a bargain to let the pro runs the strategy for me ! Thanks for your good works !

[@wealthadventures]

I think a lot of people agree. I still like to manage the bulk of it but understand.

[@SummitMan165]

@@wealthadventures it looks a interesting challenge to learn options trading, and I may learn it in the future for a “early retirement hobby” where/how did your learned it ?

[@Fighter4Street]

The issue I have with buying an ETF fund is that they will close out positions in the ETF to sell more options. Normally, if stock moves down drastically, I would just let the shares get assigned and sit with them and usually they would recover very quickly. With an ETF fund, they take the loss, then the next week the stock rebounds. You just lost all that money.

[@wealthadventures]

@@SummitMan165 I learned mainly from articles I read online many years ago. I paper traded for a bit and started to experiment. These days there are a lot of good places to learn including KZbin and sites such as tastytrade.com

[@SummitMan165]

@@wealthadventures thanks !! Ill have a look !

[@jboy1757]

Would love to see a review of SPYT; supposedly this is a very popular ETF. Why?

[@wealthadventures]

Not sure but will take a look and add it to my list to review.

[@aftabkrishna7274]

Can you please share your option calculator spreadsheet (with formula) downloadable link? Thank You.

[@wealthadventures]

There is a version and link in the description of this video: kzbin.info/www/bejne/l4Tcqp-Ih6mjgqc

[@aftabkrishna7274]

@@wealthadventures Thanks a lot!

[@amauta5]

Brokerage gives you % on sitting cash?

[@wealthadventures]

At Fidelity, cash deposits to a money market account at around 5%.

[@amauta5]

Bro, so you can double dip? 5% return on cash secured puts while the cash just sits there at 5%?

[@ampiciline]

Hello coach, hope all is well !! lets say I have an investment property( second home) that dose worth ( 4 contracts of spy ) and it gives me$ 2000 of rent Monthly. Also , lets say a black swan event happens ( China attacks Taiwan ) and the price of this home drops by 50 % overnight, BUT I still get my $ 2000 monthly income ( regardless of the black swan event ) ..........Now , my question is :: if I sell this home( before black swan event ) and I get 4 contracts of SPY and that generates ( X ) dollars months of money per month ( just by selling single leg simple cover call ( ATM or OTM conservatively ) as you mentioned here ) AND then a black swan events suddenly happened and SPY drops by 50 % over night , and( VIX charts reaches above 20 or higher ) AM I STILL ABLE TO GENERATE THE SAME amount of (X ) dollars THAT I WAS GETTING BEFORE BLACK SWAN EVENT ???? I mean , regardless of what happen to the market I am still able to have my 4 contracts of SPY and generate the SAME income monthly that I was making before black swan events? AM I missing something here ??? please kindly advise

[@Fighter4Street]

There are too many things going on to answer this question to many unknown variables. However, if you keep selling covered calls, the great risk here is that after SPY dropping 50%, if you continue to sell covered calls, and SPY goes back up 50-75% quickly, you would lose all that rise. This is the great risk of selling covered calls like this. If you kept the money in the house, and the house property rose back up 50%, you would keep that rise in the price. Covered calls are such a risk once the price of the stock drops.

[@ampiciline]

@@Fighter4Street as you may know , after Japan stock market black swan event it took 20 years for Japan's stock market to get back to the same level before crash ... V shape recovery of post COVID in US was exceptional, I am assuming after 50 % crash , SPY needs at least 3-5 years to get back to its same value , then can i continue and roll this cover call till gets back to its original value ???

[@Fighter4Street]

@@ampiciline I guess you can roll that covered call at its original strike until it recovers, but you will not earn any premium the whole time as the call will be way out the money. What you need to learn is that, none of these strategies work any better than if you purchased SPY and held it long term. Almost nobody really beats the SPY long term. You are just wasting your time for the most part. I've seen it with many traders. Covered calls really don't offer any more than if you purchased SPY and held it long term. You will not beat the SPY performance long term either. Studies have also shown that mostly no traders actually beats SPY performance long term.

[@JayZhou-bt8hv]

Options is crap

[@brendanquinn6894]

You shouldn't spy on people you know. When we were kids we used to play "I spy with my little eye", it was a weird game. Who ever would have thought that one day some dude in Wall Street would decide to name an index after that game ! I bet the Chinese government is heavily invested in the ole SPY index as well, if you know what I mean, wink wink, say no more.

[@wealthadventures]

Ha ok.