what's happening youtube all my robin hood traders out there that
follow these videos trying to make that extra money
because you've learned that's taking the money instead of buying air jordans
saving that money and letting that money work for you puts you in a greater
position for quality of life which is what we call life
gains today i'm going to review just how to do
the wheel strategy of selling calls selling puts
but before we do that please subscribe to this channel
share this valuable information with other people that are looking to make
money doing nothing but letting their money
make it form now i've been doing this for a couple of
months now and i've been keeping track and this is my documented track of what
i did in september and so last week i did a workhorse
put for 28 dollars and it dropped below 28
i got assigned to 100 shares but i still made the 115 remember they pay you that
money up front and right now i took that work course
that i got assigned last week and as you can see in the second to the bottom line
the one that says workhorse 29 strike
i took that workhorse and i sold a call meaning that i put those 100 shares back
up i got paid 135 and we'll see what happens at the end of
the week this friday but overall i had a great month in
september and as you can see um my profits for
september was 1706. i had to subtract
666 dollars that i lost on best buy because i did a put the damn straw damn
stock dropped in price and i got stuck with it and i just did
call actions and so i decided to sell it when i seen
it seemed like the market was going down so i sold it and i lost 666 dollars
but the name of this game ladies and gentlemen is you continuously make more
profit and you hedge your bets which is why i
came out this month 1700 in the good
and in doing the wheel strategy for me it's a whole lot safer and easier
than trying to get up here and look at stocks
every single day it gives you time on the weekend
to study a company that you're going to put money on
um understand their balance sheets making sure that they're a good company
and with this wheel strategy ladies and gentlemen you
will not lose money the most things you'll lose
is time now best buy did drop so in essence you can say i lost money
but i didn't feel like waiting for it to go back up and since time
it has gone back up and i just didn't wait for it
so the only thing you really have to lose in this game if you're going to use
the wheel strategy it's time and now we're going to jump on
my robin hood account and i'll show you guys how this thing
works all over again because i know some people are just finding these videos for
the first time but if you really want to just make some
money in the stock market being as safe as possible not having to
be a day trader being beholden to that computer every single day
by only having to take a look weekly this is a great way to do it
and you can also do these calls for two weeks out months out whatever you want
to do but i don't like tying up my cash that
long i like to be in and out quickly so here we go we're going to
jump on my account and i'm going to show you how to do
calls and puts and i'll show you what i did with workhorse
all right so this is my robinhood account and if you've been following
along i'm gonna do this every single time i
make one of these videos showing people how to use the wheel strategy
of option trading to make some consistent weekly money
again i did workhorse and you can see there's my option right there i did a
call and if you're not familiar with how that
works let me show you again so i'll start here from the very top
workhorse and i'm sorry i'm a little late we're getting this video out
so when you come to the stop you see that's the stock price right there
over here it says trade workhorse for options
and we'll click in there and i'm gonna just kind of walk you through it real
nice and simple and you would come here and you always
want to be doing sale you can either sell a call meaning that you'll be
taking 100 shares of the stock putting it up on the market and you get
paid the premium or you would sell a put meaning you
would put up cash times the strike price 100 and you would
get this premium times 100 and before you do that
it is important that you guys check a couple of things so let me back out of
here and show you what you need to check so
number one always go in there and check the price of the stock see if it's close
to the bottom of the 52 weeks or the higher
the 52 weeks and for this particular stock let's see
here you would click show more the low
was a dollar and 32 cent and the high is 3059 and with this stock being
so very close to his 52 week high i would definitely do sell a put
unless you've already for whatever the reason got stuck with the stock in the
way i did so you want to sell a put you coming
here click on trade workhorse sell
a put the next thing you want to check is you click on let's just say you're
going to do this strike price you click on it
and check this number imply volatility what's important about that there is no
specific number range that is set implied
volatility is kind of pertinent to each individual
stock but the higher this number means the more volatility is going on with
that stock meaning people are either doing a lot of buying
or a lot of selling and for me when i really don't want to
lose either the call or the put i like to see this number under 50
but again that depends on the stock because some stocks
implied volatility of 50 might be high the scale goes from zero
up to i've seen it 240 but it's just up to you
and robinhood also gives you you see this this little line that says chance
of profit it tells you your chance of making money
on that stock so right here with 144 implied volatility on this
thought you have a 72 percent chance of making money
so if you wanted to sell the put at a strike price of 26 bucks
which is a dollar and 50 cent below the share price
you would just come over here and knowing that you're going to get 75
dollars because remember you will multiply this by a hundred and
that would be 2600 in cash you would have to have in your
account to get those shares and robin hood is going to pay you this
which is 75 up front you simply click that you click
continue you review your order you go ahead and
put in one share make sure that's good for the day and
that day expiring is october the second and then you will
click review and you're done and that's how you would
make weekly money in the stock market and you could also
do a call now if the stock
is i like to do calls when the stock price
is really really close to the 52-week low i like to just go ahead
buy the stock at this price and do calls because just think about it like this
ladies and gentlemen you bought the stock for 27 okay
and then you would say let's just say you you decide to sell a call meaning
that you're going to put those 100 shares of the stock up
let's say you did it for 29 you're gonna make a dollar and
50 if they call your stock at friday meaning that the price of the stock goes
above 29 plus you would have made the 95 so
you're gonna get a dollar and fifty times a hundred
plus the ninety five dollars you've walked away with a pretty good lick
on that week some stocks that i'm looking at doing
probably in the upcoming week is this thing right here
i'm probably going to try this in about two weeks millie
millie is basically like um a shopify but they've been around for a very very
long time they're doing big business around the
world and you can also look at the balance
sheets if you want to um i do and
let's just take a look at what their lowest see their low 52 week low was
422 their high is 1270. and right now they're they're closer to
the high than they are the low so i would sell a put on this stock
depending upon what the implied volatility is so let's
go see sale put that would expire this coming
friday october and damn they paying a whole lot of
money so it's just a matter of which one of
these stripe prices would i want okay and for me i like to go as low as
possible and still make a good amount of money
and on this stock you can go real low down here i would go to about 10 25
you have almost an 80 chance of basically getting your money back
and this the share price is 10.40 right now i mean excuse me the strike price is
10.40 right now the share price is 10.78 so it would have to drop somewhere
around 30 bucks and even if it did you're still kind of
well below the 52 week high and you would make
1025 off of it but let's check the implied volatility
now see that's pushing it for me i like to see mine
65 is probably about my max i really like to stay around 55
but again it just depends on the particular stock now i've seen this
particular stock run up to 155 so this is relatively low
like i said you kind of want to keep it low so you would have to have
let's see here that would be a hundred and four thousand dollars
and you would get that but you would get your money back at the end of the week
ladies and gentlemen as long as the stock price doesn't go
below this number it's a good way to make if you've got some cash just
sitting around somewhere you find one of these stock that's fits
what you've got sitting around and you just make money off of it weekly
now what happens if you do get caught with the stock and it goes below this
number you just take those 100 shares and then
you would sell a call and you make sure you sell a
call higher than that number that you got called on so if they
called you on a thousand and forty you want to sell higher than
that and then you would just pick one of these numbers that you would go
higher now i think that um we're getting ready
to see some volatility in the market because of
the elections and so i guess i want you guys to just
be very safe when you pick these numbers be very very safe and that is going to
definitely do it for this video don't forget to like the video comment
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instagram if you got questions now not too many questions now i ain't
i'm giving you all this stuff for free but simple questions i can get back to
you guys pretty quick and let me know how much money you guys
have made so far that have been following me on these videos
and until that next sexy as hell video i'll see you