Mark Yegge is a recognized Wealth Architect, Hedge Fund manager, Author and Teacher in the Financial sector and the personal development arena. He has helped thousands of 6- and 7-figure investors create strategies for increasing returns, decreasing risk and reducing tax impact from investing. He is a co-founder of several mastermind groups helping successful people augment their lives in the areas of wealth, health, relationships, spirit and lifestyle.
Some of his recognized programs include: The Cash Flow Machine The EPIC Mastermind Stock Trade Genius University Trade Like A Pro Hacking Money (book, course, and website) Negotiate To Win-Win (book, audio book, course, website) The Secrets of Business (book, website) The Regular Paycheck Strategy ...and much more.....
This strategy seems very efficient if the underlying stock is not bearish,. Nice because you lower your net cost basis by repeatedly selling calls against the LEAPS. The big difference with stock is that the LEAPS EXPIRE .You risk losing your investment (with stock, you still have the stock ownership). If the stock tanks below the net cost basis of the LEAP long call option (adjusted for the premium eventually received) , you are left with the right to buy the stock... for a loss. You investment becomes worthless at expiry... ON the way down of the stock price, you cannot find any premium to lower your cost basis...the only premium fonud are now for strike prices below your net cost basis...you are stuck in purgatory. Unless the stock rebounds significantly you lose your investment... Would be interesting to have your thoughts on this risk please.
My view is that you always need to plan ahead: what will I do if the stock goes up? sideways? or down? and write down my primary ans secondary exit plans beforehand. I am puzzle to write a plan for the bearish hypothesis.. except buying puts, which is expensive insurance...
@@jeancaraux386 You are absolutely right. Everyone MUST have a trading plan and that includes what happens if the price threatens your strike price on the longs. Still LEAPS are a way to control more of the shares with less money, but they are not without risk. Every trader must remain vigilant in case of a stock decline and have a contingency plan that includes that possibility. Thanks for your very astute comment.
Hello RU-vid Star- I have watched all your videos. Your videos are very nice but there is some problem with your channel. Your channel is not optimized properly and your channel SEO score is very low due to which your channel is not getting good views. If you solve your channel problems, you will get many Subscriber views on your channel. Have a Good Day
Hey Mark, thanks for sharing your travels. I have accomplished a lot of traveling to various countries as well. I share you comments about Americans may not have it all figure out, there are pros and cons to every country I have visited. I just returned from South Africa and was surprised at the some of the things we (the US) share. I can’t wait to retire from my W-2 job to have the freedom to travel but in the meantime I will take my periodic week long vacations to indulge in other cultures.
Be careful with those, that's all. There are lots of nuances to investing in synthetics, but they can be a great tool. (And we are each "rich" in our own way)....
I hate the saying “the market will do what the market will do”. All trades cannot be winners…rule #1. Who knows what direction it will go, but there is a war looming. I don’t know if that has anything to do with it. By the way, I follow mostly the technicals. More money is to be made, just not right now.
Haha. You can hate the saying but it's actually a true statement. And in the 2 months since you made this comment, the market has rocketed to record highs. Not a knock on you, just a point that NOBODY really knows which way the market will go (the market will do what the market will do) so instead of trying to predict, I try to react and play the probabilities. Let's hope that the bull market continues in 2024. Happy holidays.
Well, I don't know if it is going to wait until after you are gone, but yes, we are going to be adding another option to global currencies. It doesn't have to be an all-or-nothing, but more of a "give me some of that too."
Mark, even though TSLA was down, it looks like your TSLA synthetic call with an 11 day period to expiration, worked out with a profit with the built in downside protection that you had on this trade. Nice job!
Most of the time on assignment, you are short the stock. If that happens, and it sometimes does if the stock is over your strike at expiration of your short calls, you just buy the stock back and then I usually just sell another call(s).
