Learn the top 3 trade setups we are using on the desk here: bit.ly/3MQedxv #optionsstrategy #tradingmistakes #coveredcalls SMB Disclosures www.smbtrainin...
Simple fix. Don't write ATM calls if you are trying to generate income. Keep them around 20 delta and you have alot lower chance of being excercised and having to buy back the stock. Also, rather than buying the stock back outright, you can sell puts at your original basis and wait for a pullback.
Agree, but I would sell the put just slightly below the strike price of the previous call (minus fees and a little margin) and not at the original basis. Provided of course, that your basis is lower than the strike price of the call (should be the case anyway...). Agree with that or do you see it different?
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $730K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Sandy Barclays can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
If the market has taught me anything, it's that it always recovers, but I can't seem to focus on the long run, when major factors like my retirement and my reserve are wreaking havoc on inflation. I require a solid data trajectory and solution as soon as possible.
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I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Margaret Bryant.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
First, instead of buying shares, I'd buy deep ITM (90delta) leap (long term) call (poor man synthetic stock). That way you use your capital more efficiently by using about half the capital you'd use for buying shares. Second, always update your basis cost for buying the options. Third, always sell your call above basis and leave room for the shares to grow. Afterall, you're bullish on the stock otherwise, don't do CC on this stock. Forth, If stock climbed above short call and you're still bullish, you can roll out in time and or up depending on the premium you collect and the potential of climb in the stock. Fifth, you can decide to sell less calls then the 90delta leaps you hold, that way even if stock climbs you'll gain more on the options you hold then the ones you're short on. Still better to sell above your basis cost.
So, the moral of the story is, don't do CCs at a price below the price you bought the stock for. I'd expand this to also be, if you do CCs below your basis price, give yourself room/ time to roll up and even out, so not losing the shares. Do a 30 delta or so.
@@insurancecasino5790, the only way to avoid getting stiffed is not to sell ITM calls. No matter how seasoned you are, you will get burned, or you can extend your time period to a later call option to meet your expectations in return.
yes, but what if underlying drops a lot? I still do CCs at around 15-20 Delta and keep an eye on underlying price and if option premium increases to around 50% I roll the option up and further away on calendar...
@@Majki70 Draw your lines, see what the stock is doing overall. Uptrend, down, or sideways? Even in an uptrend there are support and resistance areas. Once you got a feel for it, you can sell calls and putts inside that price action. Look at the spy now, it has not stayed out of the lines for days.
Better yet, when those first calls get exercised and your shares get called away, sell puts at your original acquisition price till you get assigned shares.... wheel that bad boy...
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Nicole Miller.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
If you are trying to do what S.M.B. capital is showing DO NOT BUY THE SHARES OUT RIGHT RUN THE WHEEL, SELL PUTS JUST OUT OF THE MONEY MAYBE A WEEK OUT. The strike price of the put you sold if you get assigned is the minimum price you can sell the short call against your new shares. This is safe even if the stock drops you do not incur loss unless you cash out, you might get your collateral locked up. You must not sell calls below the price you paid for the stock.
Don't allow the call to be exercised do a calendar roll down all the way until you hit support that's when the stock has reached its lowest and then can be exercised
I still do CCs at around 15-20 Delta and keep an eye on underlying price and if option premium increases to around 50% I roll the option up and further away on calendar...
I don't get it. When my CC strike price is breached, I just roll up and out if I want to stay in the position. In most cases, the price will pull back and I'll be whole.
Do you have any videos about selling for a credit Butterflies that are long dated (maybe 21+DTE) with the long strikes at the money with narrow short wings (wings no more than 15% to 30% of the expected moved)
So if the stock keeps tanking and you hold the stock, you just have increasingly large unrealized loss. That slight rebound might be your last chance to get out. And SMB Capital is a top prop trading firm in NY?? How about try Jane Street?
Here's another way to do this you wait for the stock to recover but in the meantime what you can do is check the straddle prices the straddle prices tell you how much the stock will move. So now if the straddle price is 11$ that the price of the stock may go up and down $11 therefore you can go to the father edges of that $11 and sell the call
Happened to me this week with AAPL. I sold a few puts on it and collected some premiums for a couple of weeks until I was happy to have it assigned. Then this week, I stupidly sold a covered call under my average price by $5 and AAPL rally hard Thu and Fri. I had a few choices. I could roll out a few weeks and pick a price that’s close to my average or slightly out but I’ll get hit a bit. Or… just let the option expire and just let it taken away and then sell another put later which is what I did. I’m selling put this week depending on the chart. But essentially, I went from making big gains to losing all my previous gains. Pretty crazy.
There are certain covered call ETFs in Canada that does exactly the same thing what this video is asking not to do. That’s why I am not a fan of covered call ETFs - albeit I do sell covered call options on securities I hold in my retirement account.
@@MertDincMDMD not true, last year i was doing CC on TQQQ and I was all the time in negative territory....I still came back positive even when i had to buy several time expensive calls back and roll them up and further away on calendar.
After a headline-making stock market crash last week, if you didn't panic and simply did nothing then you'd be up more than 5% this week. If you are an Nvidia shareholder, you'd be up 11%. That is how the stock market works.
I disagree with you a bit this time. If I have a long position at $129, and the stock is down to $113, I am still going to stick to my strategy of selling covered calls at a exercise price and duration consistent with my normal target delta. I am not going to be governed by my basis in the stock, I am governed by the probability of how much the stock will move. This example is even better illustrated let's say if my basis was $179. Would I only write a three week $180? Nope.
NEVER..NEVER...NEVER write covered calls on NVDA ...My cost basis on NVDA is significantly lower than current price... but I am still not selling CC. Because NVDA can have incredible runs and I am not going to lose my shares. Pick another stock that moves sideways.
@@johnt697 Eh ? No the strategy roller allows you to automatically roll 10 points away only on upside. If it's below your basis the strategy won't execute. I've been using it since NVDA was in the 100s.
Depending on your position size, you could trade around a core position with a few contracts, and if they get assigned, sell puts. You'd still have a core position untouched. Look at where resistance is, and use multiple strikes rather than everything in one spot.
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
I'd avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
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How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
NICOLE ANASTASIA PLUMLEE' is her name. She is regarded as a genius in her area and works for Empower Financial Services... She’s quite known in her field, look-her up.
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
I began investing in stocks and Def earlier this year, and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you're quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, and maximize it.
I began investing in stocks and Def earlier this year, and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you're quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, and maximize it.
One of my best working strategies is Deep In the Money covered calls (80-90 Delta)...you just need to find underlying that has high IV options and that has weeklies and no upcoming earnings season. I manage to make 0.8-1.5% profit weekly on these.
