This New Options Trading Strategy is INSANE... (I made it)

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I just made this new options trading strategy that I like to call the Double Dividend Strategy...
This may just be one of the best options trading strategies for retiring safely and early. Watch this entire video to find out exactly how you can use the double dividend strategy to your advantage!
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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[@fredroy8387]

2024 is a landmark year for Bitcoin, marking its significant growth and acceptance in finance. The introduction of Bitcoin ETFs, the anticipated halving event, and changing attitudes in mainstream finance position Bitcoin as not just a digital asset, but a symbol of technological progress and a sound investment choice. Its growing role in global economies, attracting attention from institutional and retail investors, highlights its potential in financial diversification. However, navigating its volatility requires careful risk management and technical analysis. This year could redefine Bitcoin's role in the financial landscape. At the heart of this evolution is Lehrer Kappel, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. His holistic approach to investment and commitment to staying abreast of market trends make his an invaluable ally in navigating this new era in cryptocurrency investment.

[@PhoebeMcCoy756]

Nice info, i appreciate your concern this will help a lot especially to the young bitcoin investors who have no or lesser knowledge on how bitcoin market works.

[@Fasojo]

Becoming a good trader takes time and patience. When i first got into trading i was liquidated twice, and lost my entire mortgage deposit.

[@SteffenMauer]

I wholeheartedly concur, which is why I like giving an investing coach responsibility for making everyday decisions. Given their specialized knowledge and study, as well as the fact that every one of their skills is aimed on leveraging risk for its asymmetrical potential and limiting it as a buffer against certain unfavorable turns, if is practically impossible for them to underperform.

[@curtisgibson7808]

I am confused also by this strategy. If I sell a covered call at a strike that below the actual price wouldn't the buyer just exercise the option to get 100 shares lower than the price and then they could just sell them in the market and make money. Seems silly but I'm also not savvy with options yet.

[@24_Delta]

The premium you'd receive would be slightly higher than the price paid for the shares due to theta. The deeper ITM you sell the call, the closer your strike+premium will be to the price paid, but it would provide more downside protection. There are two issues that I have with this strategy. First, there's a strong likelihood that your shares will be called away early near the ex-dividend date, leaving you with no dividend income - and second, selling ITM covered calls guarantees that you won't participate in any share appreciation.

[@xkrimzonxrsps]

​@@24_Deltanot option savy but if you sell a itm cc past the ex date the dividend is somewhat already included in the share price at that point you're just collecting the stock price + div in the stock price and then collect premium. Usually the stock goes down after ex div date similar to the nav of an etf or a covered call etf if you look at yieldmax it always drops on div date

[@GodfreyWilberg]

The Ripple-SEC case highlights the urgency for clear crypto regulations, setting the tone for future industry-wide rules. Embracing the financial shift via cryptos like XRP, Ethereum, and Bitcoin requires up-to-date knowledge and a focus on financial targets. Despite the risks, crypto offers unrivaled growth potential. With Jacob Kucia expert analysis and tactics, my portfolio surged to 17 BTC in just 9 weeks. His skills are crucial for anyone wanting to bolster their investments, epitomizing the financial empowerment cryptos can bring.

[@Demetrius655]

Simple step-by-step process, excellent communication and response times. The service was extremely streamlined and friendly throughout. Would recommend them to anyone give him a reply

[@ElianteWish]

What's his Telegram Asking ?

[@GodfreyWilberg]

kuciajacob

[@ElianteWish]

thanks mate

[@Hakeemblue]

Nice info, i appreciate your concern this will help a lot especially to the young investors who have no or lesser knowledge on how bitcoin market works.

[@kevinejohnathancueva-llano7076]

I thought about this and started doing this with dividend stocks and seeing you making a video of the idea i was cooking. Makes me know im doing everything right when it comes to my small account. Love it. Thank you.

[@jeffgoggin1394]

Did you say ~40 Delta for just the Call? Or should the entire position (Cov Call) be ~40 Delta?

[@user-ji7ui3qk1x]

Henry, I really like your channel, but honestly this strategy makes no sense to me at all. Why would you sell covered calls with a strike below the current stock value? This is bearish and how one would “bet” on the stock price going down. If the stock price goes up, it only makes it worse and more likely the stock will be assigned. Early assignment is also always a big risk with dividend stocks. Can you explain why you think this is a good strategy on stocks you feel are undervalued?

[@InvestwithHenry]

I do in the video. What exactly are you wondering?

[@user-ji7ui3qk1x]

Mainly I'm wondering why you would sell ITM calls on undervalued dividend stocks. The chances of early assignment before the ex-dividend date are huge plus you will miss all the upside above $102 in your example. @@InvestwithHenry

[@matthew7910]

@@InvestwithHenryI agree. You should make a video showing a specific stock and explain how to decide which strike to choose, and what the profit would be based on when you get assigned if the stock stays above the strike vs below the strike because I don’t see this strategy being very profitable. I feel you could easily miss out on the dividend and lose money

[@yvdveer8330]

Henry, you are showing the example of KHC, but those selling call are above the current prices and not below like you mentioned...so that just selling covered calls on higher prices instead of lower..

[@odomn]

This would work, but here are my thoughts. Selling deep ITM CC, especially on a dividend stock, you're going to get assigned fairly often. You wouldn't lose money by getting assigned, of course, but it is annoying. Second, with the high interest rates available today, you can get even better returns on alternative investments with no work at all and very little risk. For example, I am in a RE syndication for accredited investors that is paying 9%. Now that money is tied up for 5 years, but I can live with that while I get that quarterly check like clockwork.

[@alphatv1503]

Mr Henry you are the man I'm in school of learning in your video very very kind of you I really appreciate you, keep up with the good job, more video of double dividends please 😊

[@jonathanlafleur15]

Could you make a live trade video? I have been following your small account strategies playlist specifically the chrismas tree. But when i try to put an order on robinhood, it asks me if credit or debit?I don't know which to pick. And for the limit price i dont know what i should put in. I also get an error sometimes that says "limit price cannot be greater than collateral". Something like that but i dont understand what that means. Im starting with a $50 account on robinhood and im not sure if thats the problem. A live video would be would be appreciated. Thanks! Ps: im thinking about buying your book, does it explain your strategies?

[@fabuloussnuffy]

Thank you for sharing your 5 favorite awesome stocks Henry😊

[@fabuloussnuffy]

Get lost scammer

[@christymilton6829]

I’m so glad you shared this uncle Henry. I’ve been struggling to save my ira thank you thank you. God bless you.

[@yougenzhan749]

Could it be called away in several days ? You have no away to collect dividends.

[@debbieshapiro9779]

On your first example, with the stock trading at $100 and doing a $90 strike covered call, there's nothing preventing the stock being assigned. Your cost basis would need to be lower than $90 to really profit in that scenario.

[@thedalehayes3]

the risk of being assigned on an option is very very low, around 7%. its not as likely as people think to get assigned

[@debbieshapiro9779]

​@@thedalehayes3not that low a risk. I recently got one of my option trades assigned early.🤷

[@jethrox812]

I've been assigned twice in the last 3 months, but that's ok. If I hadn't have had options on them I'd have set a stop loss at a similar price and lost out on the premium

[@disco4535]

Contract was sold for $12

[@AlexSauceda1]

If gets assigned. He will only make 2dlls per share. Correct?

[@jordanthompson5484]

dont you mean selling a put? Maybe im confused, but dont lose your money unless it goes down past strike price like you said. selling a call, wouldnt you want it to go below the strike to make the money? im confused

[@ronaldtan4776]

Can someone help me understand? Selling covered call at $90 in this example when the price is $100, although you earn $12, wouldn't the options be exercised before expiry? Also wouldn't it make more sense to sell a $110 covered call and still achieve a double dividend strategy although yes premium may not be as good. Any advice appreciated

[@joshbane1]

I was confused too.

[@suchismitasaha1177]

I am also confused here.

[@suchismitasaha1177]

Do like this double dividend strategy.

[@apple_fury3454]

Why would you want to sell the call below the current price? you would be selling at a loss to current stock price and decreasing your returns if you buy the stock to run this strat?

[@4GWCNY]

I love your videos, Henry. But this solar eclipse has been brutal and so this one's got me every which way but loose (not entirely unlike Clint Eastwood and that lovable orangutan). Your stock gets called away at the strike price if it expires above the strike price. You don't get a dividend on a stock that gets called away from you. So the only way to earn a dividend is if your stock drops below the strike price and offsets your premium. In which case your left with just a dividend. What am I missing?

[@rahulb9027]

@Henry - Good video but an observation: in the beginning you mentioned owning stock with market value $100 & selling call at $90. This means it’s in the money & delta will be more than 60. But towards the end, you mentioned to go with delta 40 call. That means it’s out of the money. So can you clarify?

[@sandeegardinier8567]

I was wondering a similar thing. Why buy the stock at $100.00 and sell a call at $90? It would be $10 in the money and likely to get taken for $90. ?

[@AngelPerez-nw5cd]

If I’m selling calls under current price doesn’t this means the person at the other side of the option can exercise the contract taking my shares?

[@xkrimzonxrsps]

​@@sandeegardinier8567if stock is trading at 100$/share and you sell itm 90$ strike you automatically get 10$ + premium so when you sell the option the premium would look something like 12.75 if you're selling 80 strike it would look like 22.75 or 95 strike 7.75 If it drops from 100 to 98 and u already wrote a 90 strike then it would look something like this you sold @ 12.75 contract now worth 10.75 written in green profit 2$

[@jonathanbrown1914]

I understand what you’re doing, but I don’t think the the strategy is any better than call credit spreads that yield around a 13% to 20% return. You also did not mention to your audience that selling a covered call below your strike price will cause assignment. Maybe even early assignment. And you will have to start over and re-purchase those shares again. In addition, did not mention the varying dates on dividen payouts which may not happen while you are selling the covered call against your shares. So, adding that dividend to your return is most definitely not a guarantee. again, decent concept, but you just left out a ton that your audience probably doesn’t understand.

[@ETXYardSolutions]

100% agree. Other videos are made the same way. Small bits of real info are given, then it’s a bunch of slides claiming x amount of yield/returns. And using the “I worked at Goldman Sachs” in every video isn’t going to give you publicity if you aren’t explaining your strategies.

[@peb3232]

For those without a lot of experince with this sort of strategy, you need to account for the $1,200 credit received for the call he sold (100 shares @ $12 each): in this example, owning 100 shares @ $88 is equivalent to owning 100 shares @ $100 since you've been "compensated" for the $12 difference between $88 and $100.

[@aarondavenport9488]

I'm still confused. Assuming you start with 100 shares at $100 and you sell a $90 CALL for $12 ($1200). If the stock closes under $90 you keep the $1200 and the stock (and the Dividend). You've made $1200 (12%) in premium which offsets your loss on the stock. At $88 you break even, because the 12% premium equals the 12% loss on the stock but you still collect the Dividend. Great hedge against a falling market. If the stock closes between $90 and $102, you are assigned because the CALL is ITM at expiration. You still make $1200 on the premium, but you lose the stock to the $90 CALL for $9000 ($10,200 total) which is a 2% gain on the trade. You also lost the Dividend however (unless the ex date was before you were assigned). If the stock closes above $102, you are again assigned on the CALL, and you still make 2% total ($9000 + $1200), but you again lose the shares and the Dividend. Where is the "Double Dividend" 8-12% earnings when the stock price doesn't drop below your ITM CALL before expiration/assignment? And what's the next move to reset and open the next trade after you've been assigned and lost the stock? Rebuy stock with your 2% gain at then current price and resell another ITM CALL?

[@Art65483]

Excellent.

[@Brayness]

If you've read about this from leading banks that said it worked, how are you the one that created the strategy? Also, please explain how Bank Of America has benefited from higher rates. The bank has lost over 100 billion dollars from its bond and mortgage portfolio due to rising interest rates

[@mattg9085]

Great video

[@WendingWayfarer]

Doesn't JEPI do monthly dividends too ?

[@mattg9085]

Yes. Implied volatility is bad, but even worse is options volume is super low. You want a stock with more options volume

[@nicholasfinamore4261]

How can selling a call below the current price ba a 40 delta???

[@rineleff2009]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $750k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[@user-fb2hk7vu3q]

Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.

[@maxwelltroy2375]

I stopped listening and taking financial advise from these KZbinrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice.

[@gilbertbrien2280]

That’s impressive, if you don't mind me asking have you always had a financial advisor?

[@maxwelltroy2375]

My financial advisor is Camille Anne Hector . I found her on a CNBC interview where she was featured and I reached out to her afterwards. She has long helped me with my portfolio and is exactly what you need right now.

[@KarenLynnOlsen]

Wow I know Camille. Her platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not she outperforms i will always stay invested as her methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit

[@DipQuip]

Is Exxon "Mobile" a telecom? 😛

[@Brofabloke69]

Henry's humble brags are hilarious 😂

[@InvestwithHenry]

hahahaha

[@jeffl8549]

Recently, I've been looking to buy some "beaten-down" dividend stocks based on someone pointing out that many of these market stalwarts are currently at a great valuation. Accordingly, I've put some money into Bank of America and Pepsi. After watching this video, I feel great about having picked BofA and Pepsi doing my own analysis. Realty Income looks like a great one, too. I'm going to try to dollar-cost invest into BofA, Pepsi, Realty Income and Kraft. Intel I'm not sold on though I can see the AI-bullish ties.

[@mikemills2852]

What do you think about the new QQQY and JEPY ETFs? What about creating an ETF doing the wheel strategy? I’d buy that one if you ran it 😂

[@00076Paint]

Wouldn't you sell a call at a price higher then the stock price so you wont be assigned?

[@mikemills2852]

This is my question as well. If the stock is at 100, why would I sell a covered call at 90? wouldn’t I want to sell a call at 110? I’m missing something here

[@garyfritz4709]

Yes, you should sell the call ABOVE the current price. Then, if the stock closes above your strike price, the option buyer can buy it from you at the strike price. If you sell a call with a delta of 40, you will have about a 40% chance of the stock getting called away. If you don’t want to hassle with the stock getting called so often, you can pick a lower-delta (higher-strike) option. That will lower the chance of the stock getting called away, but it will also reduce the premium you get paid.

[@mattg9085]

You guys aren't getting it. You sell the call in the money 3 months out. You pocket a couple percent in premium and you get the quarterly dividend... double dividends... the stock gets called away. You buy it back and do the same thing again.

[@mikemills2852]

@@mattg9085 interesting. Question (since I’m knew to selling calls), if I sell a call in the money, can’t they exercise the call immediately or does it have to close (ie in 3 months) before it gets called?

[@disco4535]

@@mattg9085 Why wouldnt the stock get called away instantly by the call buyer so they would get the div and have an instant $10/share profit (minus the premium paid)

[@tomsettles6873]

Henry did you run a 4-8 year backtest to see if this works? What happens when the stock goes down and you sell it? Do you buy back at the new lower price and set the call 10% below that new lower price? What happens if stock price goes up 5-10%? what then? Please explain how this works in an ongoing situation where market goes up 60% of the time, flat 30%, down 10% of the time. This is real world.

[@aaron6806]

Don't hold your breath for an answer

[@tomsettles6873]

selling covered calls usually only works in a flat market. A bunch of these youtube guys pushing this probably haven't run it for more than a couple weeks. If the stock price goes up or down more than 5% you're screwed on trying to find a good re-entry to keep making more money. @@aaron6806

[@EvanEvansE3]

​@@aaron6806😶

[@Saoyaron]

If you sell a covered called at a strike price below the stock price, won't it always get exercised when it expires? You're forced to sell your 100 shares at the strike price of $90 even though your stock you bought at was $100. Yes you made $12 dollars on the premium but if the stock price goes up to $120, don't you effectively lose like 18 dollars? It sounds like you protect the downside but don't protect the upside.

[@DS-uq9hb]

In the ITM call strategy, the upside potential is traded for the downside protection. It is for those who want income while protecting their principal.... like retirees.

[@Saoyaron]

@@DS-uq9hbTrue, make sense if you're a "retiree" as you'd say. But the it's a huge downside for building a portfolio. Part of building a dividend portfolio is not just the 4% that you get from dividends but also the upside of your portfolio moving up. By selling a covered call, you're basically saying you don't care about any upside and you're eating just the premium + collecting dividend. Also, you'd have to remember to rebuy the stock after expiration because 90% of the time it'll be exercised. Your new entry could be X% higher than when you sold the option thus effectively costing you extra money to buy it back that's greater than the premium you gained. Ex. if stock goes to $120, and your premium of $12 at $100 basically means you lost $18 dollars when you rebuy the stock.

[@DS-uq9hb]

You are correct, if you are in accumulation mode and want to keep the stock, the ITM call is not the play....

[@oksanalihacheva4424]

man, please, make more videos with lessons about binary options I wanna know all about it

[@glennhaggard6633]

"O", Reality Income is NOT the only stock with pay monthly dividends. (11:23)

[@microstreams]

I usually like Henry's content but this one had a lot of inaccurate or misleading info

[@soronos8586]

Yo homie, Theta gang wants to chat with you out in the back alley about “your strategy”

[@sonny5982]

Great video straight to the point

[@latinwizr3000]

Nice

[@hugomeza2910]

So if I own 100 shares of XYZ stock that’s trading at $100 a share and I sell a $90 strike covered call, the price of the stock has to be under $90 at the expiration day, if it’s above $90 then I am forced to sell my shares at $90, correct?

[@InvestwithHenry]

Basically

[@kellyja8]

Correct. You want to sell an out of the money call, say 110. Also, the owner of the call might exercise near the ex dividend date.

[@kellyja8]

Also, INTC cut their dividend last year. They are in very competitive space.

[@mattg9085]

​@kellyja8 not for this strategy. I don't think you are getting the strategy

[@kellyja8]

@@mattg9085 guess not. I don't understand why I would buy a stock and then sell a call just so it can get called away at a lower price....

[@alexpoon9048]

Alan Ellman like to use this strategy

[@SaxyTTV]

Could you do a video for broke people but with option 2 trading. Im personally stuck at option 2 trading for another year, been watching alot of your videos and i love how slow you are on explaining everything ez for me to keep track!

[@jeffeisert2371]

Love it. Selling options on dividend stocks is the holy grail! So good. I'm doing that on my smaller 50K account. But I'm 50 years old so I'll be compounding that chedda drippy style till retirement.

[@InvestwithHenry]

Agree!

[@mattkol5754]

the only question remain "how much taxes need to be paid on yield ,dividend, earnings"does uncle sam consider as a short term investments? cheers

[@emanueltosado4818]

I love your channel. But this video felt like you were going ti sell me some service. And this strategy does not seem sound. And this strategy if yours is just selling cc on dividend stocks... you seem like you want to make it sound like a novelty that you came up with. 😞

[@brunodouglas]

I thought the same! This one was a bit controversial... Why would you want to sell deep ITM calls on a stock that you want to play the long term game? Specially if that stock pays dividend? You'll likely get assigned before the stock going ex-dividend, and whenever that happens you'll probably not tbe able to buy the shares back at with the premium + strike price... Just saying...

[@cancanturco]

Not clear!

[@Chop_69]

you did not invent selling covered calls...

[@miguelteran-raful2718]

Dia pays monthly dividends!

[@user-jq2vb5px8e]

Best channel about investments! Always useful info

[@alexpoon9048]

Selling ITM covered call is equivalent to selling OTM cash secured put😂 Their profit/loss graph profile is exactly the same

[@Lathom_Yt]

Yes, but with cash secured puts, you do not own the stock, and therefore do not collect the dividends.

[@alexpoon9048]

Agreed depends on what stocks you gonna own. Those stocks without dividend will have no impact. I used to trade covered strangle where I bought stock n sell ITM covered call n simultaneously sell OTM cash secured put

[@starr8111]

2:05

[@starr8111]

6:00

[@stanleyzac1648]

This is a great video I really appreciate the dedication in each video you post, I learn a lot watching your videos and it has always been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to John Desmond Heppolette for improving my portfolio. keep up with the good videos.

[@WiolciaMrozowska531]

I just discovered his exceptional resume when I Googled his name. I consider it a blessing that I discovered this comment area..

[@AnnaFed015]

There are a lot of independent advisors you might look into. But i work with John Desmond Heppolette and I have been working together for nearly four years, and he is excellent. You could proceed with him if he satisfies your discretion. I endorse him..

[@Windarti30]

I can say now is my life has changed since meeting John Desmond Heppolette . He has helped me become debt-free and save for retirement.

[@lucauau]

So.. the double dividend strategy.. is a covered call strategy? 😮

[@aaron6806]

Yeah, ITM covered calls. Brilliantly original.

[@brunodouglas]

While dreaming of not getting early assigned and losing the dividends 😂

[@regimesoftruth]

The basic strategy wasn't very well explained. Need to make clear your cost of ownership for the shares and the relevance of the $90 strike price in relation to profits.

[@InvestwithHenry]

Discord/Trading Application - coaching.investwithhenry.com/signup-matten

[@sahilsharma9757]

Do you have to book a call with you in order to join.

[@richardbaxter7343]

assigned assigned assigned anyone??

[@beerbuff]

Another example of poor KZbin financial advice. #1, Selling an in the money option with an upcoming dividend vastly increases the chance of assignment. #2 This strategy fails to take into account tax consequences.

[@AngelPerez-nw5cd]

This is a bad strategy and bad video, you only covered what to do for 2min and only explained what would happen if market goes down. When you create this contract you are receiving a premium because someone now has the right to exercise the contract and if market goes up bye bye shares.

[@mylesjenkins8915]

I used to watch your videos as soon as they came out. I bought your first options product and had good success with the information you provided. However, in an economy we’re in and I keep receiving emails about your subsequent programs and how your jacking up the prices after such and such date, it’s a scum bag thing to do. Why not just create a good product at a good price and stop the nonsense. The self imposed “time is running out” bs should be left to used cars salesmen.