Trading The Wheel Options Strategy - 3 Reasons Why You’d Lose Money With This Strategy

[@BessieBlazejewski]

You're absolutely right. I use the Cash Secured Puts so I can own the shares for a lower price. This is my favorite strategy.

[@Harrop58]

My aunt passed and I inherited some of her portfolio and cash savings, I’m 28 with about 400k cash in savings and as usual everybody’s preaching invest, so what stocks are a good long term buy, only major purchase I intend to make is buying a home in 5years from my returns

[@rockwelltradingservices]

Keep learning first. You can listen to my audiobook here loom.ly/BV2QgYY

[@SallyW414]

Vivian Jean Wilhelm is her name. She is regarded as a genius in her area and works for Empower Financial Services

[@Harrop58]

Thanks for the advice. The search for your coach was simple. I investigated her well before using her services.

[@RodSerling-y6p]

Yeah…..Listen to Warren Buffet.

[@RodSerling-y6p]

@@SallyW414. Sure she’s a genius at marketing on KZbin. I heard that. 🤪

[@singh2189]

I like that you are sharing your account. Good or not so good positions No sugar coating. Tough love thanks.

[@rockwelltradingservices]

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

[@themrfabio2459]

While ride did not go as planned, I personally believe it’s one of the most valuable aspects of your KZbin channel. It shows the reality of trading and that it can quite literally happen to anyone if they get loose with their strategy.

[@rockwelltradingservices]

Well said and very true!

[@jackieciamarro2690]

Great video. Thank you for your transparency.

[@rockwelltradingservices]

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

[@tsleong1]

I'm a little confused about why you were assigned AAPL shares and were "unable" to sell premium against it, why not just sell above the assignment price, regardless of the amount you would collect? Isn't collecting $100 better than nothing? If it does go up you can roll another week to collect more premium which would give you a more respectable gain, if it doesn't go up to the sold strike you keep the $100. If it keeps falling another 7% you still collected more money? I would think the only premium which is not worth collecting is if the commissions would be more than the amount collected.

[@RolfOptions]

I am of the same opinion

[@undedmunky]

I think it's better to wait for it to get closer or at least have a rapid move upwards to collect more premium, when he'd roll he would have to keep moving it out farther or higher and could even have to pay a debit of he wants to stay too close to the strike he chose for a premium that's not worth it

[@oudishaked1828]

Hi Markus, missed the live show today, watching the recording now. Made money with the wheel this week despite the last 2 days. Thank you for teaching us NOT to panic and to follow the plan, I too love to get assigned. Love the wheel! 👍 have a great weekend :)

[@rockwelltradingservices]

Awesome! Thank you for watching! :) I am glad that you are doing well.

[@luismanuelmendoza789]

I remember when I saw the start of the strategy and also tought that you where overly conservative... now I see! In Tuesday I had to close some of my positions to maintain the margin and had to close at a lose, almost 25% of my already small account was wiped out 😅😅, this time i let some room and thankfully fared better. I like the way you put even your loses! A lot of traders only put their wining trades and kind of want to make it look easy, almost like a scam! Thanks 🙏

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@HawkIjr]

Sorry to see the drawdowns, but I really appreciate the transparency you are sharing with us.

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@marshgray]

Loved it. Im following this strategy in Indian market and it works perfectly fine there as well. Currently im in trouble where I might need to take delivery of a stock called HDFC Bank. But after this video I wont panic and will do more call selling of next expiry. Cheers!

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@desiexpat7]

doing options on AMD and Aapl now after 3 years....@202 and 165 strikes.....validates your point...good stocks go up significantly...just buy them if you get assigned and keep doing covered calls. What fo you think of etfs like SOXL to do options with including covered calls?

[@RolfOptions]

SOXL pays much more premium. That is my number one stock to sell a wheel on.

[@Joeltraylorart]

I'm learning so much from your videos and books. It's a little overwhelming at first but so worth it. Thanks for sharing your knowledge and experience!

[@rockwelltradingservices]

😊 You are welcome! I am glad that my books and videos help.

[@scotthenderson4376]

I'm very late to the party but am looking forward to doing this with those types of stocks but for now I'm stuck with cheap stuff to make the cash for the big boys. All in time.

[@rockwelltradingservices]

Awesome! All the best.

[@ArtificialNightmares]

So lucky to have found your channel this week.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@alleneverhart4141]

So, instead of rolling the option on Friday afternoon, Markus prefers riding "bareback" over the weekend - smoking the hopium of price improvement in the underlying on Monday ... or Tuesday ... or whatever. At some point, if the price does not come back you gotta close the position for a big loss or write that option that "locks-in" a loss, just to lower your cost basis. This is the tricky/art of the wheel trade Markus ain't tawkin-bow cuz he wants to blow sunshine up your xxx.

[@johnp7739]

What gets me are all these really young guys who started KZbin channels last summer doing the Wheel and other option-selling strategies. They don't even have a track record during last March when the market tanked. They seem to think the market can only go up and selling premium is free money.

[@richardthorne2804]

@@johnp7739 there is risk in the stock market. And yes you can stress anything to the point that it’s impossible to recover. But that’s highly unlikely. The market has always recovered after every correction and bear market particularly quality companies. If you have fear stay out of stocks b/c you will panic and make poor decisions.

[@thomasd5488]

@allen everhart "At some point, if the price does not come back you gotta close the position for a big loss or write that option that "locks-in" a loss, just to lower your cost basis." Rule #1) NEVER close a position for a loss. That includes, NEVER sell a cc with a strike BELOW your cost basis. Obviously you missed his video showing how he ended up with a profit even after TQQQ tanked. It was EXATLY the tricky/art of the wheel trade he showed us. Jealousy is wanting what someone else has. Envy is not wanting someone to have something, if you can't have it too. I'm guessing you are both. You are jealous and envious of his success, as a trader, and a teacher. Sour grapes, man.

[@alleneverhart4141]

@@johnp7739 Sorry for the harsh words but I think maybe people needed an injection of some trading reality. Sometimes stocks go down and they don't come back. And if they do come back it could be years before they recover. A perfect example is GE, my personal wheel waterloo. I started a wheel trade on GE when it was trading in the $40 range. As GE's price fell, I took assignment on my shorted-puts and rolled call options on GE stock down to $20. Then, the roll premiums I was getting at $20 would have taken some 3 or 4 years to break even on the +$20 loss on the shares. Eventually I wised up, took the loss and found a better wheel opportunity. Given that GE went down into single digits and has barely recovered into the "tweener" price range, I consider taking that loss at $20 to be one of my better trading decisions.

[@cramsa]

@@alleneverhart4141 exactly... my parents had GE Corporate bonds that blew up on them... “lucky” they only lost 80% when they dumped them... some fools stayed on the sinking ship and lost everything. Markus gave some VERY BAD ADVICE about holding a losing position forever.

[@mithundas1439]

if we enter a bear market, would the wheel strategy work?

[@sunyun4425]

@@ChristmasLights2 keep buying more of the same contract of it starts to lose money?

[@natusfreedom472]

Find a stock that has an up tend , so T.A is a guide Don’t sell options on down trend stocks ,

[@maurizioraspa1041]

sell calls without shares, buy protection instead. You could loose, but if its really a bearmarket it should work most of the time. Choose higher strike to give you space.

[@grltrader]

I just found you - I’m going to test the wheel strategy on Monday using PLTR - just 1 contract. By the shares and then sell a covered call as long as the market looks like it might try to pop. I like and subbed and will be following your channel. Thanks for the great, detailed content .

[@rockwelltradingservices]

Awesome! Please reach out to [e-mail] if you need assistance.

[@DougNaden]

Good good good good good!

[@rockwelltradingservices]

Super good, good, good.

[@richardthorne2804]

You have been such a blessing to my trading. I love the wheel; my plan isn’t as aggressive as far as ROI so I’m selling way out of the money puts but I’m still making a good monthly income. I have not yet been assigned but I know will likely make way more when I do get assigned. Thanks so much.

[@randallewebb]

That is really great. I am curious just how far OTM you are going? To me that is the benefit with options....you can take on as much risk as you want. That way you are balanced and can always stay calm. Also it is important to invest a certain size of your portfolio and have enough cash available for assignment.

[@rockwelltradingservices]

Hi Richard Thorne, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@rlg222]

I've done this a few times last years and a little this years so far. Mostly penny stocks and not mid to large cap stocks. I hold them no matter what....

[@RodSerling-y6p]

The only thing that I would do differently is sell my cover call further out of the money. Perhaps at a 22 Delta… or one standard deviation. You will miss out on a lot of upside if you sell your strike at the same price that you were assigned the stock . Having unlimited downside but limited upside doesn’t resonate with me :-(. However, I would sell cover calls at the same price that I got assigned the stock if the stock was trending downward.

[@rockwelltradingservices]

Here is what our AI Rocky think what would Markus say : Markus Heitkoetter would likely agree with selling covered calls further out of the money, such as at a 22 Delta or one standard deviation, to capture more upside potential. Selling calls at the same price as the assignment could limit profit if the stock rallies. However, he might also emphasize that if the stock is trending downward, selling covered calls at the assignment price can be reasonable. This approach helps to collect premium while managing the position during a bearish trend. He would suggest adjusting your strike price based on the stock's trend to optimize profit potential while managing risk effectively. By the way, this is available in the PowerX Optimizer. Cool right?

[@johnbeach2770]

I was assigned WKHS at $35 a few weeks ago. I was excited to own and then sell premium, but now the equity is half the price after it lost the USPS bid. I will continue to sell calls, but its looking like it will take a LONG time to make enough premium to turn green on this one trade. Is being patient a good decision. I am NOT nervous or panicking - but I wonder is closing the loss will open up the capital for better trades? Thoughts?

[@sethmatlock7424]

I am not a financial advisor and a beginning trader IMO the best way to recoup your loss would be sell CC closer to current trading prices if they are in danger of being called away roll your price up and out a week

[@christophermatthews4896]

love the energy!

[@rockwelltradingservices]

Thank you! :)

[@scubasteve117]

Would love to join your live chat on Monday if it's still going.

[@rockwelltradingservices]

Hi Steve we have the webinar, you can register here loom.ly/nOOtotk

[@michaelhernandez4932]

Why didn’t you buy to close the puts and roll them out farther out in expiration?

[@financeabcs]

That would have been my preference!! Just roll the put forward and offset the loss to cover the put with the premium of the next put you sold!! That gives you more time for the underlying to move in your favor!! 😊

[@stevemeyer6308]

Great video!!

[@23johnnyy23]

Awesome video AGAIN! Markus...ty you for your openness, positivity and explaining situations. BRAVO! STOLAT! your friend JOHN S.

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@goyummytrends]

This guy is high all the time. Love it

[@rockwelltradingservices]

Lol! Thank you!😉

[@CH1NOify]

.. fantastic.. this is very educational channel. I love your personality sir and ty.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@captainkrunch6372]

I was gonna get assigned 1k shares of NKLA on Friday but I closed position, however I didn't want any open positions this week because of Q2 data thus week, possible recession. That was my plan.

[@tonysierravista2280]

I am learning and appreciated the explaination.

[@rockwelltradingservices]

Awesome! Thank you for watching! ;)

[@sunyun4425]

In your first example with AMD GDX DBX RIDE AAPL, the cost to cover all those contracts would be close to 400k, are you playing with cash or using margin? How much margin? Can you cover how to use margin with options?

[@rockwelltradingservices]

Yes, I use MARGIN, and I'm using the "standard" 2:1 margin for all my calculations, even though I have portfolio margin, which is 5:1.

[@aironwhite6533]

Very nice video. I always like to look at how things can screw up and what you can do about it to help the trade in your favor.

[@rockwelltradingservices]

Thank you, Airon! ;)

[@chocotv3573]

I like this strategy you just leave your trade until expiration it's so simple. Unlike other option channel they are discussing IV rank, standard deviation, broken butterfly, and so on and on... is so difficult to follow complicated graphs.

[@rockwelltradingservices]

Awesome! :) Thank you for your feefback.

[@joshuaphillips49]

Why not just close your position immediately at the same value as soon as it assigned if we are only keen to collect premiums anyways? personally id rather the safe money than worrying i could miss a run up on a call once the shares have been assigned

[@gregbabin365]

Very helpful video! I am in very similar position, just different stocks and much smaller scale.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@kinlee823]

Agreed. Please advise your updates on these stocks and why you didn’t roll positions.

[@cabindude7656]

Thanks, very beneficial! 👍

[@rockwelltradingservices]

You are welcome. How are you trading so far?

[@lawrence6075]

Great Video Markus !!

[@rockwelltradingservices]

Thank you! ;)

[@SuperDave328]

This strategy is working well for me! Thank you Markus!!!

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@eggzy53]

Hey! Markus, you're a really useful person. I'm asking you to make more videos about Binary Options and their strategies. I hope you see this comment.

[@chrisdove1659]

yes

[@lukshmebain5714]

This video is very helpful and please make more like this

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@722guy]

What if you got assigned a stock like CCL in Feb 2020 . and then March happened. How would you trade?

[@wesguild7804]

Markus did a video on Black Swan events. Hopefully no one would be Wheeling cruise stocks at the onset of a pandemic, which was obvious in February 2020

[@brucey5585]

Buy that nice dip at $8 to avg down

[@biqingtan4926]

Hi Markus, this video is so helpful. Thank you.

[@rockwelltradingservices]

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

[@jwrbike]

Why not sell the AAPL calls for small premium? Get paid a little to wait a week and try again. Or are you hoping for more premium early next week. Thanks

[@billhunt6562]

This is my question also. Why not sell AAPL cc at .30 Delta (or whatever; maybe go to .20 Delta for a position "underwater") to optimize income of that position at this time? If it gets called away, fine, sell CSP again next week. Sitting on the stock seems to expose you to more downside if we are headed into a bigger correction.

[@alleneverhart4141]

Markus made a judgement call here. He believes that AAPL will recover sufficiently for the next-Friday 133 calls to be worth something. IMHO, that is smoking a bowl of hopium. I think he should have rolled his 133 calls to the 128 strike, a delta of .24, where he would have collected $1.13 per share and have less than a 50% probability of touch. There is no reason why AAPL couldn't decline more. It has a +30 PE and pays a paltry .67% yield - why do you think Uncle Warrants is lightening his AAPL cart!? At the current dividend payout AAPL would have to go down to $41 to have a 2% yield - comparable to the other DOW and S&P stocks. This idea of avoiding "locking-in" a loss by selling a call below your assignment price is bogus. If he sold the 128 calls and they got called away - he would have recovered some $8 or $9 of a $13 loss and could turn around and sell puts again - and maybe AAPL would pay him back ... maybe.

[@dukeofearlyretirement]

@@alleneverhart4141 Yes, I wonder about selling calls underwater too. Perhaps selling underwater weekly calls and if the share price starts popping back up within striking distance, roll up and out... a cat and mouse strategy. Or would the mouse just get eaten? I might take that chance.

[@alleneverhart4141]

@@dukeofearlyretirement Yes. Markus collected a premium for selling a 133 put and another for selling a 133 call that expired worthless. His cost basis is around 131. So, it appears that the Markus strategy is to never book a trade that is a loss through the assignment mechanism. It's a bit specious but it kind-of works in terms of capital gains. If your'e in an retirement account where capital gains aren't really a concern then it's a different game.

[@RodSerling-y6p]

​@@dukeofearlyretirementmouse gets eaten

[@rlg222]

Keep doing this Sir! I like it!

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@audricfafchamps9615]

"But we'll worry about this in just a moment" >> That's what I call keeping your head cold =D

[@diggingdeeper7158]

You use a 250k margin. What´s the interest you pay for this money and where do these expenses show up in your accounting? With regard to risk management, what happen´s when markets tank like they did in 2008; aren´t you afraid of blowing up your account? Thanks.

[@dagmarski4133]

“Only when the tide goes out do you discover who’s been swimming naked” -Warren Buffett

[@RodSerling-y6p]

Sorry about your RIDE stock being delisted.😮. Sucks…but it just goes to show us the risks.

[@What2expectinthehospital]

I like you investing mindset

[@rockwelltradingservices]

Thank you!

[@sfx1971]

Hi Markus. I love all of your videos but this is one of my favourites. Thanks for the great advice!

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@lisamontes-bradsher9752]

Sometimes…wait! Another Big character trait a trader needs is: Patience!

[@rockwelltradingservices]

I agree! 👏🏻

[@financeabcs]

Patience is very important. Most of the time successful investors have very little activity. 🙏

[@SnRGlobalIndustries]

It reminds me of that classic song: Roll your trade roll, roll, roll your trade! Its a boat? who would roll a boat?

[@masoudmokhtari8997]

Thanks Markus

[@rockwelltradingservices]

You are welcome! ;) What have you learned so far?

[@masoudmokhtari8997]

@@rockwelltradingservices a lottt. Wheel strategy, power x strategy, indicators, support & resistance, and keep going and learning with your amazing and unique teaching videos. Thanks for every minute you are spending for teaching

[@rockwelltradingservices]

Awesome! ;) I am glad to provide value!

[@JRInTroy]

very helpful, thank you

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@jaelee56]

l am learning.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@investandcyclecheap4890]

Damn hope this guy still doesnt have RIDE

[@wesguild7804]

Thanks for the video Markus, I'm stuck in a trade with WMT at the moment... Your AAPL trade is similar

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@sinmaan7568]

Very good video. Very useful. But how can you lose money on the wheel? Your trade were all pretty positive? Thanks for sharing the wisdom!

[@rockwelltradingservices]

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

[@larosa4574]

Why not sell the calls when you’re deep in the money at expiration(Friday)? Is it smart to risk what the stock will do on Monday?

[@CodeMonkey188]

There is always a risk of not being assigned at all, and then you'd be left with naked calls and be much more vulnerable to pre-market moves on Monday.

[@cryptopanda6641]

Yes! Markus.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@donaldjones8920]

I like your enthusiasm but the reality is.....most people dont have a half million dollar account and can't get anywhere near those numbers that you post. And this is probably just ONE of your accounts. For the person with a modest size brokerage account, say $10,000, those weekly gains come to around $80.00 a week.

[@jjabrony1973]

$80/$10,000=.008 * 52 weeks = .416...what’s wrong with potentially making a 41% return on your $10,000 account?

[@sunyun4425]

Markus, how much margin do you use when trading options?

[@financeabcs]

I don’t use more than 20% (notional amount of underlying compared to entire portfolio).

[@HormigasRD]

Yes very helpful thank youuuuy!!!

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@HormigasRD]

@@rockwelltradingservices wow you replied thank you !!! I call the weel my little cows of profit selling calls and puts

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@johnsaleem470]

aBSOLUTELY HELPFU mARKUS!

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@jsm6557]

Very good

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@Nicolasdu5]

Are you always selling one week out ? For the wheel strategy

[@financeabcs]

I prefer longer option terms. But if one week provides 1% to 2% returns that is fantastic!! 🙏

[@John.Mendes]

Wondering what happened with the RID shares... hope he got out soon enought

[@jonathanseeman1438]

does the premium go into cash or does it go to buying power?

[@rockwelltradingservices]

The premium you receive when selling an option typically goes into your cash balance rather than directly increasing your buying power. It adds to the cash available in your account that you can use for other trades or withdrawals.

[@phils.2884]

I think we have a beautiful word in German for this type of investing: _Stillhaltergeschäfte_ (Yes, one word :) Actually, I am quite curious to hear you speaking a couple of German words :D

[@eyoblibla3947]

He is German bro :)

[@phils.2884]

@@eyoblibla3947exactly, that's the point, Bruder! 😅 A fellow German that I only know with his "English voice"

[@CH1NOify]

I believe from Spain not germany.

[@DefWorlds]

How well did this work in March 2020?

[@paulstewart9639]

It worked out great last March, so long as you didn't panic sell.

[@ericnastelin6610]

Do you ever sell calls against stocks that are falling? You could sell a call to collect extra premium when your put is in trouble. This should be risk free as only one of the options can be assigned whether the stock goes up or down. If the call is assigned you will be short shares and then you could sell a covered put against them. Sort of a reverse wheel.

[@VirmanaMarketing]

If the fluctuation happen before expiration and you do this you won’t have a way out. You may depending on volatility be trapped on both sides. If you want to play bith sides that would be a. Completely different strategy. With the wheel everything happens at expiration

[@sonnyn5119]

Hi, Does it make sense to buy to close once you reach your max profit, before expiration date, to avoid losses and getting assigned? Are there any pros and cons to do this? Thank you in advance!

[@rockwelltradingservices]

Great question. I did a video explaining this topic last weeK. Take a look and let me know what you think: kzbin.info/www/bejne/jWjUkJ96aqmLpMk Does this help?

[@billslaughter9518]

Do you have a preference Covered Call or Cash secured Put? What (if any) defensive actions would you take if it looked like you were being called away, more specifically if the stock shot up much higher and you were now (FOMO) missing out on those profits? Or does the wheel not care and banks the premium.

[@sethmatlock7424]

Roll up and out

[@financeabcs]

I prefer the cash secured puts!!

[@vishalsinghal7234]

Assignment of share, before expiry or we wait till expiry.

[@rockwelltradingservices]

Hi Vishal Singhal, thanks for watching. Much appreciated. "See you" in the next video 👍

[@libyawedisabe5680]

How do I learn to trade options ?

[@financeabcs]

Watch a lot of KZbin videos!! 😊

[@RosePigCooking]

When you sell puts do you use cash or margin?

[@tholm4307]

Love your content! So helpful thank you!! We’ve been trading the wheel for just 3 weeks now and got our first assignment today. How do you know at what point to sell the CC on Monday? When do you pull the trigger? Thanks!

[@financeabcs]

I would sell calls with a strike price 5% to 10% above the market price. 😊

[@lucauau]

Would be nice to check also the % profit to be sure we could be happy 😂

[@rockwelltradingservices]

Watch this kzbin.info/www/bejne/al7YYpWGaq1giNU

[@tervelacademy]

Marcus, would you recommend to sell put verticals instead of naked puts to save/optimize some capital? At the end not all of your positions will be assigned.

[@rockwelltradingservices]

Nah.... the math. just doesn't work out. When you trade verticals, you are buying an insurance. that you don't need. 95% of the time. For me, that's wasting money. But every trader is different. Just do whatever works best for YOU. Selling cash-secured puts works well for me. 👍

[@bluestarindustrialarts7712]

He Mark, how do I access the Optimizer??

[@rockwelltradingservices]

Hi! You may email [e-mail].

[@froggy9068]

So what would you do if you sold calls on a stock, but the price rises way more than expected? Now its $8.00 MORE per share than when I sold the calls... and it expires next week. Would you buy back the call and lose the premium? Or lose the gains?

[@financeabcs]

Sometimes you have to take your profits and be satisfied!! It’s a good problem to have!! 🙏

[@froggy9068]

@@financeabcs hey! Thanks for answering my question. Wow, That was 5 months ago. And yes, I understand now. I was paying too much attention to what I would have made if I hadn't sold the call, and not just sticking to the plan. A guy on here, James, showed me how to roll out my positions too, and I've done that a couple times when it made sense. Anyway, thanks for your response!

[@stevekozlowski969]

He who has planned when he who panics loses

[@rockwelltradingservices]

Thank you for watching! :)

[@mkaberli614]

Do you have any trading strategies where you'd never lose money? I thought so.

[@rockwelltradingservices]

Losses are part of the game, what's important is you know when to exit with a profit or with a loss.

[@alexanderboiko5566]

Hi Markus. What are you going to do with RIDE now?

[@evandawson]

Would also appreciate this answer. Just hold until the premium makes sense? Could be 6 months- just wanting to hear your thoughts.

[@investandcyclecheap4890]

@@evandawson Hopefully youll see a turnaround long term!

[@achrafelchurafa5982]

How can we get the question and answers the notes here shows question

[@rockwelltradingservices]

Just drop it in the comments. 😊

[@achrafelchurafa5982]

@@rockwelltradingservices Thanks Markus !

[@rockwelltradingservices]

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

[@donaldjones8920]

And......if you have a VERY large account, you can afford to hold the "losers" until they make a comeback, which might be months. The strategy is pretty good, but not all roses like you say.

[@rockwelltradingservices]

That is right. 😊

[@VancesSpot]

I really don't understand all the people whop want to own RIDE at anything over $9. It, like most EV companies, is insanely overpriced. All these companies are falling to earth (or soon will be).

[@davejones7483]

Need assistance

[@rockwelltradingservices]

Het Dave! What do you need help with?

[@jaredtami6738]

You took a position in ride? I see you're a man of good taste, sub'd.

[@financeabcs]

What is “ride”?

[@dustinmartin4621]

I thought if you sell a call and the stock goes above the strike you lose on that trade

[@jjabrony1973]

No, you are obligated to sell your 100 shares for the strike price so you still get your money from that sale plus you keep your premium. You simply miss out on any additional earnings above that strike price. Basically it just means your profit is capped.

[@abr2926]

11/4/21 Ride update: $5.87 This guy trades way to large for his account size.

[@Nicolasdu5]

I am the only one who can't sell cash cover put in a tfsa account but can sell a cover call? So I can't do the wheel strategy :(

[@onatski]

yes, unfortunately, you cannot sell puts on a tfsa account..

[@zahariaquazi8996]

You never show example how to set up wheel trade options all jargon

[@rockwelltradingservices]

This is not a Wheel101 video. If you are a beginner you should go to my beginner's playlist. kzbin.info/www/bejne/pHPQgXabqZ2ZsK8

[@Suherminmak]

How about sell call on aapl far out to get decent premium instead of waiting for stock to go up ? Is this sound good to you ?

[@huinyavaina]

Not really. Far out won't get you a decent premium

[@Suherminmak]

@@huinyavaina what if your stock stay low like this for few months , are you keep waiting not selling call ?

[@bluesky5587]

@@huinyavaina not sure about that ,,,the further out he goes premium is way higher.....he could make extra cash ....he held over weekend for $24 or 2 cents ....proven that best dte is 45 to 60 days .....

[@huinyavaina]

@@bluesky5587 maybe i misunderstood "further out". i meant further OTM will not have enough premium. Further expiration date will have higher premiums, but the time decay is not linear and you will earn more selling twice for same week expiration, than selling once for expiration in two weeks.

[@huinyavaina]

@@Suherminmak I'm new to this wheel thing, so it's just my common sense here. I'd use technicals and maybe macro (for the beta) to see what to expect each week. If I'm awaiting a bounceback and my risk allows it, I could double down on the stock, either directly or by selling further OTM puts.

[@danielpenchev4136]

You haven't talk about the trading plan when RIDE goes to $3 a piece and you own 4700 shares...

[@touyang1069]

Doesn't that mean he'll have fork over 14k to have the 4700 shares ?

[@sunyun4425]

This guy looks and sounds Irish to me, not Bavarian

[@rockwelltradingservices]

Lol. You are not the first person to say that. 😊

[@stevekozlowski969]

Alex loses he has planned wins

[@rockwelltradingservices]

Thank you for watching! :)

[@rockwelltradingservices]

How is your trading plan going? Let me know how you're doing in the comments below. Recommended Links & Videos: Trading with Margin: kzbin.info/www/bejne/i3ncaWeJhKyfars&feature=emb_logo Options Trading 101: bit.ly/2V7Nf9T The Options Wheel Strategy: kzbin.info/aero/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq The PowerX Strategy Playlist: kzbin.info/aero/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB