@personaltrainersg
My Strategy - I have large cap stock that I want to keep if possible. Goal - low risk income. First, use chart to read Weekly Bollinger Bands & Daily, Weekly, Monthly Support/Resistance Levels - If in upper range of BB & at resistance - Sell 30 day higher delta covered call (0.25) - If in bottom range of BB & at support - Sell 30 day lower delta covered call (0.15) - Take note of earnings. Sell options that expire before earnings. Did I miss anything?
@genericwatcher2439
What people don't realize is that the money you make on these per option is $50-100. So unless you own LOTS, you are making very little and you aren't going to get rich. Not saying you cant' do this over and over and over and over and it will add up... but just want to keep people's expectations realistic.
@skyrychenko
This did not age well. NIO is 5.40
@LeTigre22
I think expiration date is a function of checking that your gaining time value premium in a linear fashion for each week you go out. I’ve found sometimes it’s best for 1-2 week expiration because going 3-4 weeks out barely gives any extra premium. Just something to evaluate each time
@charlesjames4956
I have to cut you off just 2:30 into your video. Selling CCs is NOT a bullish strategy. It`s not. The ideal scenario for selling CCs is the flat-to-slightly-bearish direction. Why? Because the flat part insures that the NAV will PROBABLY not rise above your strike price (if you followed recommended Delta choice of 20%ish) and cause your shares to get assigned away. Slightly bearish because, slightly bearish is at least not falling knife bearish, and as long as you keep collecting option premiums you continue to lower your cost basis, and so you can handle slightly bearish because overall you are stil in the black. The bullish strategy is NOT doing CCs at all, it is owning the stock, or the index, so your upside potential is not capped, as it is by definition when you are doing CCs. Your 'double bottom' thesis as your downside protection also was not valid, as NIO is way down since your video, to 6.08 as of 2/15/2024. Good luck in your trading.
@Brigadorski
I like NIO at $6-7. I think we will see NIO at these depressed levels in 2024, Q2-Q3. I would love to sell calls on NIO. I remember when it was in the 60s, I flipped NIO for 2X when I bought it at $30 some time in 2020.
@J123G
A safer stock for option sells would be one with a rising chart, not falling. If the stock gets called away you make money on both your OTM sold options and the shares.
@dogegamer3288
The problem with covered calls is the only ones with decent premium are the high vol assets like Tesla, Bitcoin Miners, tech small caps. Then you end up blowing your account when you get called away. It's better to just hold the assets and take your own premium in interest payments at the end of the day.
@ChristopherCrockett-f8z
Hi Henry I bought my first contract which was American Airline. I bought a put at $7 which was out of the money, and it went up to $9 then down, to $5 I then sold it. I’m a beginner, and now can see the fundamentals of what you are saying it’s good, for me because I’m learning thanks, for the information now I can go closer to the share price. I’m just being cautious I want manage my risk, and thanks for helping me.
@vijaysaiveerapaneni
Love your videos. Way different compared to people who try to sell something in the name of quick money. Very educational. I have a good amount of experience in stock market but I have never made a consistent returns. Your strategy seems interesting. I tried out a couple of times, and it worked. I need more experience to be able to say if it's gonna work in a long time or not. However, my question to use that you do make YouTube videos, trying to educate people and make revenue out of them. Can put a small video of how much YouTube pays you for the number of subscribers or the viewers? Talking about transparency will help a lot in people trust in your videos.
@416sfavorite
Do you sell options in a company name? Or, do you sell in your personal name? Salute
@Brigadorski
Ok, I fomo'd. I took 100 shares of NIO at 9.20 and sold the CC at the 10 strike for 0.1 credit expiring this week.
@hgg6310
Great move Henry. Thank you!
@kuanhhuang
Thanks Henry. It looks like it's time to trade OTLY again. I sold 10x $1 Put a couple weeks ago. The premium is juicy.
@dedysetiadi2851
try itm covered call and a call credit spread on top of that. supercharge income!!! 3-5 week expiry. let mek now what ya think. if youre shorting the underlying do a itm covered put and pcs.
@entertainmentinternational1087
Ill tell u something i had to do which was great and i didnt relaize it.. i was stuck in 8.50 cc and price is 1.45 above.. i made alot of premiums.. i then rolled it out made 5k more to 9 strike..then it went up i rolled it back to 8.50 collected 18k more.. then it traded sideways and on a dip i rolled it out same strike 4 weeks 8.50 and picked up another 24k.. i figued if im stuck at 8.50 i pulled out extra 50k in premiums with same 8.50 strike... o well... if this pulls back 1 dollar and i can buy them back for cheap it would of been best move i did....and im in 8.15 a share.. never thought id hope for a pull back..lol
@jonowens910
Henry, at the beginning of your video, you discuss selling call options, but your screen is set to buy calls. This would most likely bring the premium collected much lower than shown, but it’s still valid content for today and the future. Continuing to show how we should repeat the covered call process is important, just like in the wheel. Thank you
@franklinminnis349
Thanks for this Henry! I been watching you for about a year now! I finally sold a couple call options! Thanks for all this!
@erinjk123
I'm doing in the money ones and buying back when it drops. Getting rid of anything Tesla related before earnings. ..
@ClaraAnke