Trading Options For A Living - $500,000 Trading Account Update #9 - Coffee With Markus- Episode 169

[@rockwelltradingservices]

So I'm almost $13,000 past my overall goal of needing to make $75,000 by this point, so everything is looking pretty good so far! How are your financial goals coming along for the year so far? Let me know in the comments. Recommended Links & Video: Wheel Playlist: kzbin.info/aero/PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb Wheel book: www.rockwelltrading.com/wheelbook Trading with Margin: kzbin.info/www/bejne/i3ncaWeJhKyfars How To Fly Rescue Missions: kzbin.info/www/bejne/hZ23dWyelL-Bmpo Software: www.rockwelltrading.com/wmc2

[@jobyeldhop]

It seems www.rockwelltrading.com/wmc2 is not valid link. Can you paste the correct link?

[@1927tommot]

Aaaaa

[@1927tommot]

Mi

[@rockwelltradingservices]

Thank you so much in your interest in our software. This promo has just ended BUT I can help you out. Please use this special link rockwell.infusionsoft.com/app/orderForms/PowerX-Optimizer?promo=cristyspecial that I was able to create for you. I'll personally make sure that you receive the advertised bonuses so you don't miss out on the special live trading that takes place this Friday. Make sure you purchase now so I can make this happen for you. If you have questions, contact me directly at [e-mail], 512-337-1885. You can ask for me, my name is Cristy:)

[@udarpavarota396]

You have a very rational approach to the markets. I like that. It's good to remove emotions from the world of trading and investing. I prefer consistent profits over quick big gains. You have to have a system to trade. Trading without a system is impossible. I like your systematic German way of thinking. It's very organized and transparent.

[@rockwelltradingservices]

I couldn't agree more, always trade with a strategy and stick to it. Trade what you SEE, not what you THINK! Thank you Udar. 👍

[@johncarilloiii7828]

Love the Ride updates!

[@danielcampbell6632]

Thank you Markus for showing your results warts and all especially Ride position. No strategy is 100% perfect. Your transparency and honesty is admirable.

[@rockwelltradingservices]

Thank you! :)

[@VegasDominic]

Thank you for sharing your Ride update. Been wondering about it for weeks. Goodluck on those rescue missions. 😀

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@roymax.9852]

Good, good, good. Thank you for sharing!! Can't wait to see your trade in a smaller account.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@hamsinisitini6613]

@@rockwelltradingservices Yep Markus. Thnx! I would also love to see the progress of the 10,000 US$ account (if one has been setup) as that is what some may have saved up. Or alternatively if you have previous content on the same please direct me there. Again Thanks and cheers for the new content.

[@rockwelltradingservices]

I will keep you updated soon! 😊

[@hamsinisitini6613]

@@rockwelltradingservices 👍😎

[@ProfRoofs]

Great content Markus! Thank you!

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@logicuser8382]

Markus, thank you for not using the “soldier description”! You are doing fantastic as always.

[@rockwelltradingservices]

Thanks for giving me feedback. As you can see, even an old dog like me can still learn new "tricks". Talk soon. 😀

[@eugenepark9665]

For a trade like RIDE that requires rescuing, your primary strategy is to reduce the breakeven by selling puts. Could you also sell calls with a relatively low delta - e.g., 0.20 - to also chip away at the breakeven? That way, the capital is at least doing something, and you can always buy back before expiration in case you are close to getting your stock called away... Thank you for your honesty in trades like this

[@rockwelltradingservices]

The problem with THAT strategy is that you could get called away below your cost basis, and then you would realize a loss. It's possible, but for me personally, it's not worth risking a larger loss. You don't get much $$$ for a 0.2 delta call anyways. Making sense? 👍

[@thomasd5488]

@ Eugene Park "Could you also sell calls with a relatively low delta - e.g., 0.20 - to also chip away at the breakeven?" Yes you can, as long as your strike is above your cost basis, or at the very least, above your breakeven. As Markus says, you don't want to risk being assigned at a strike below your breakeven, and suffer a loss.

[@stevenporter9114]

I started off doing a combination of both. I drove for Lyft and traded. Working together I was making $10,000 to $15,000 a month. This way I could start with a smaller account and continuing to work. I will probably always work with Lyft because I love to drive and it gives me a great way to meet people that otherwise wouldn't be able to meet. Plus the tax write offs are incredible.

[@thomasd5488]

@ steven porter "I will probably always work with Lyft because I love to drive and it gives me a great way to meet people that otherwise wouldn't be able to meet." I was a messenger/delivery driver for 25 years. I met lots of new people at the pick up and at the delivery, but I didn't have the risk associated with obnoxious, drunk, violent people sitting behind me, making me vulnerable. Maybe you have been lucky so far, and not had any passengers like that, yet. Taxi, Uber and Lyft drivers are all at risk. There is a reason why many Taxi companies install plexiglass barriers between driver and passenger. I wish you good luck. I hope you will take my advice and look up some KZbin videos where passengers attack drivers.

[@rockwelltradingservices]

I love it!! 😀 Great job of finding a way to start trading!

[@donnareed5816]

Great to know about selling 50% of your pxs profits, I always pick up at least one thing watching you Markus! Thanks again

[@rockwelltradingservices]

Thank you Donna! 👍😁

[@donnareed5816]

@@rockwelltradingservices No problem. I think its about time I flew a rescue mission for my WKHS stock to bring down my cost basis, just like you have done. As I've had this stock for 3 months now. Got assigned at 22.50 and sold calls, have made 450 on this stock so far so my cost basis currently at 21.00.

[@alexander-traderhelp1019]

Hi Which software are you using to make this video.... Really love the hand writing option

[@rockwelltradingservices]

Hi Alexander, it's just my iPad Pro with the Apple Pencil. And I'm using the standard "markup function" on the iPad. Does. this help?

[@alexander-traderhelp1019]

@@rockwelltradingservices Amazing...I will give it a try THANK YOU

[@denniswise1460]

How does one get the Piwer X optimizer

[@rockwelltradingservices]

We are currently doing a special where we're offering The PowerX Optimizer with a 90 money back guarantee. This also buys you a seat to our "Wheel Master Class 2.0" we are having on June 4th: www.rockwelltrading.com/wmc2

[@davidwomack4469]

This account is ONLY for Option trading, right? No long positions (buying stock) unless the PUT is exercised?

[@rockwelltradingservices]

I'm selling puts, and when I get assigned, there will be stocks in this account. It's part of "The Wheel Strategy". Does this help?

[@torchy187]

The unrealized loss should still be figured in the total number. If you had an unrealized loss of $250K then using your method you would still show your monthly gains of about $15K.

[@bastianstieg819]

Unrealised vs cash

[@ExperimentalPerception]

@Markus, consider making a video showing how to do a recovery mission using the 1:2 call recovery spread. I have used this in the past to get out of a bad stock because it lowers the break even by 50% of the spread. Its another good strategy to have in your pocket to recover a poor performing stock.

[@InvestingMadeEasy2023]

You trade 500k but a broker typically reserves only a portion for puts sold. Does this mean if you would take your puts fully cash reserved your trading a higher amount?

[@rockwelltradingservices]

Hi Gert, yes, that is correct. I'm reserving the FULL amount for a trade, even though the broker is only taking a portion. This way, I'm avoiding the dreaded margin calls. Making sense? 😀👍

[@InvestingMadeEasy2023]

@@rockwelltradingservices Thank you Markus. Love trading your strategies and the clear way you explain in your books and posts

[@rockwelltradingservices]

Awesome! Thank you so much for your support as well.

[@jms4406]

Of course you know this but good job. Does it hurt though to miss amc and gme? Cause it hurt me lol eyeballed AMC at 14 and was going to buy calls.

[@rockwelltradingservices]

Yes, it always "hurts" a little when you miss a great trade. But I prefer "SRC Profits": Systematic, Repeatable and Consistent. And YES, it would have been fun to have 14 Calls on AMC. 😜

[@glcamaro33]

Hey Markus love the strategies. But I haven’t seen you say anything about expenses and taxes. From the profits. You taking out monthly 15k. What about taxes on 180k capital gains???

[@gordontomaszewski1420]

If you are paying taxes on gains it means you are successful and just part of the game!

[@glcamaro33]

@@gordontomaszewski1420 yes sir. That is the truth. My cousin told me exact words when I filed this year. And he’s retired irs agent. LOL.

[@rockwelltradingservices]

... and there are ways to structure your trading business to minimize the impact of taxes 👍

[@glcamaro33]

@@rockwelltradingservices yes sir. Seeing your videos on taxes as well. Unfortunately I’m still on w2

[@rockwelltradingservices]

Let's change that! 😀

[@ronmorosey672]

funny how the "wheel " is great until you get stuck with a dropping stock, good luck selling calls on the way down

[@gordontomaszewski1420]

We learned how to manage that problem, have you?🤔

[@ronmorosey672]

@@gordontomaszewski1420 sure..sell take the loss and move on..not difficult

[@udarpavarota396]

That's where rescue missions come in.

[@rockwelltradingservices]

@Ron, just do what works best for YOU. I'm just showing what works for me. This might not be the best strategy for you - and that's ok. As long as you're making money, just keep doing what works for YOU 😀👍

[@thomasd5488]

@@ronmorosey672 ."sell take the loss and move on..not difficult" LOL, you can lead a horse to water, but you can't MAKE him drink. Is this the only video you have watched from Markus? There is more to the Wheel than selling calls on the way down. The Wheel is just what you need, to avoid selling at a loss. Did you see his video that teaches how to Fly a rescue mission on a stock that falls 30%? It works, I've used that strategy to turn a 20% unrealized loss into a small REALIZED profit, selling weekly otm cash secured puts for 4 months, on that fallen stock. If I had the same attitude you have, I would have lost approx. $10k, instead, I made about $1k. Nobody ever went broke by taking profits. They only go broke by "sell, take the loss and move on". Knowledge IS power, only IF you apply that knowledge.