Finding The Best Stocks For The Options Wheel Strategy

all right so welcome to coffee with marcus today is episode 73 and i'll show you what's happening in the markets because the markets went on a wild ride today and i want to know i want you to know what's going on and i'll show you how exactly i find the best stocks to trade for the wheel which is a trading strategy that i recently taught here on youtube all right so that's our program for today so good okay let's get started now if this is your first time here welcome i'm marcus hyde cotter and before we get started let me give you a super quick intro why i'm doing the show because here's what i'm seeing most people who start trading expect their accounts to explode and they've seen the ads and and emails that promise them to turn two thousand dollars into a million dollars or something crazy like this and then they start trading and they quickly realize that it just doesn't work this way so if you are sick of all the hype and empty promises then this show here is for you because my goal is to give you the strategies and the tools that you need to grow your account systematically because that's the key see everybody can get lucky every now and then but being able to grow your account in a systematic and predictable way that is the key to success in the market so in this show here i'll show you the tools that you need i'll i'll give you trading strategies that actually work trading strategies that i personally trade and we will talk about the right mindset of a trader because that's super important and also in the show it's all about facts and real trades now talking about real i'll show you all of my trades winning trades and losing trades because losing trades are part of our business as traders there's absolutely no hype here just the facts because i want you to succeed and if all this sounds good to you then click on like right now or or just type yes in the comments and we'll get started all right awesome so good to see everybody here so good to see all the likes so let's talk about what is happening in the market that's our first segment and this segment is for you so that you know what's happening right now so let's jump right in and uh what is happening right now markets are getting whipped around so uh take a look at this this here is a five-minute chart of the dow jones you see this morning started higher than mere room went to session lows and right now we have a u-turn going around here and it seems that even though earlier it looked like we were negative for the day that we might end positive for the day so the dow jones here are just slightly down right now uh probably turning positive in the next few minutes uh the s p 500 already positive by point three percent and the nasdaq today skyrocketing and i'll show you why that is today but let's also quickly talk about yesterday because yesterday we we didn't see each other so yesterday the gdp was released and yesterday the gdp was the worst gdp ever minus 33 by the way gdp stands for gross domestic product uh so this is what has been happening yesterday and this is why yesterday the markets were already a little bit shaky as you can see uh yesterday opening here going all the way down and coming back up and today very similar picture so what is moving the markets right now well there's three big thing things that are moving the markets right now yesterday and also today so first of all four of the biggest companies in the united states have been reporting earnings yesterday uh after the bell so who are these four biggest companies in the united states well it is facebook so facebook had an 11 revenue growth in in spite of the the coronavirus over the past quarter here and as you can see today it is up seven and a half percent now another company that reported earnings and did really well is amazon so amazon reported earnings yesterday after the bill after the bell and sales skyrocketed no surprise last quarter everybody's staying home ordering uh goods from amazon even groceries from amazon household staples from amazon right so here as you can see pulling back a little bit right now but open with the huge gap still up four percent for the day now another company that reported earnings apple now apple is on fire apple blasted through all profit expectations uh it's now up 10 for the day and the most valuable company in the world and this is where apple also said well we want to make our stock affordable to more people so they announced a four to one stock split meaning that pretty soon an apple stock will only cost a hundred dollars again they already did a stock split i think a few times and they love it when their stock price is anywhere between 100 and 300 and again it's a four to one split so don't be fooled if uh in in the next few weeks you will see apple hovering around 100 again anyhow so the fourth company that reported earnings here is google so and google also one of the big five companies here the uh of the largest companies actually did report better than expected earnings but as you can see google down 5 right now 4.14 to be exact and and why is this because overall their revenue was down for the first time ever in their history so needless to say that uh these companies so i mean pretty much facebook google apple amazon and microsoft those are the five most valuable companies in the us and when they move then of course the overall market moves and this is what we saw here today but but what is happening why did we have this dip here in the markets if everything looked so good well this thing number two that is moving the market right now as you know there's another trillion dollar stimulus and right now it's stuck in congress today the 600 per week for for being unemployed expires today and there's no new agreement so there's a deadlock and this is why markets didn't like it and were going down also we saw today gold i mean this is the third thing that is moving the markets gold today was above 2 000 for the first time ever making new record highs but overall what does this mean for the markets well the markets are still trapped in this sideways pattern that we have had for a while let me just show it to you see right now here we are 38 bars which is trading days this means 53 days for almost two months we have been stuck in this nasty sideways pattern that makes it markets tricky to trade but i want to show you today exactly what i'm doing and how i'm approaching these markets and we see the same happening here in the s p 500 so when we look at this you also see that here we are in this sideways pattern yeah we broke out a little bit but come on who are we kidding as you can see for the past few days we have been exactly going sideways so this breakout was just like uh peeking above the the uh support line here the resistance line and uh right now still going sideways same for the nasdaq here and as you can see the nasdaq also stuck in this nasty sideways pattern not for as long as the the other markets but as you can see here also over the past 20 bars 29 days so over the past month and this is what we are dealing with and this is why today i want to show you how i i trade the wheel which is a trading strategy that i trade in addition to the power x strategy which is my bread and butter strategy and i want to show you how i find the best stocks for this strategy okay so this is what's happening in the markets here before we move on let me take a look at the questions here and this is where yeah i mean wellness uh nyc says um tgif thank goodness it's friday actually for me it's pretty sad that it's friday because tomorrow the markets are closed and on sunday the markets are closed so i'm actually looking forward to monday i'm one of the weird guys who's really looking forward to to mondays anyhow so it says i hope you had some fang stocks uh these are the facebook apple netflix google so you see this is what i talked about in the beginning everybody can get lucky and maybe was in one of the stocks and today had a 10 game but the key is consistently and growing your account systematically so i do not have any of the fang stocks because i don't want to be the the guy who maybe got lucky and what if yesterday they did report earnings that markets did not like i mean just think about it uh recently we had um intel intc oops that's not intel intc uh report earnings and that didn't go well at all as you can see here so the these earnings plays they're hit and miss and also we talked about google here where everybody thought oh my gosh google will just go up forever well right now they're struggling because for the first time in their history they do uh not grow in terms of revenue it's not that they made a loss they still made a profit and in fact they made more profit than everybody expected but their revenue was not growing anyhow good to see everybody here yeah all right jim says uh none of my positions are positive though ooh well this is what we're going to want to talk about today jim so um i i know that you have been in the class with the wheel so we talk about a few things because yeah right now if the markets are as crappy as they are right now and just being stuck here in this sideways pattern that we just talked about now for almost two months the longest that i've ever seen well this is where we need to make sure that we have strategies for these market conditions now according to the power x strategy as you know this is my bread and butter strategy i love trading the power x strategy and right now i have the same the positions in the power x strategy are not doing well right but the positions in the wheel are doing really well so i want to talk about that today anyhow so good to see you so zia said i got stuck buying intel when it dipped oh uh ken to the wheel cross-selling call says not much premium so this is why uh see a great segue so that i can show you exactly how i find the best stocks for the wheel and why intel was not on my agenda so let's talk about let's talk about how i find the best stocks for the wheel now the wheel is a trading strategy that can relatively safely produce 30 per year now i've shown this strategy here on youtube and today i want to show you exactly the trades that i'm in and how exactly i find the best stocks for this strategy so let's get started let's actually share my screen here and i want to use the notepad so that i can give you the five steps on how i find the strategies now important when you are trading the wheel you must be okay owning the stock so by the way if you're not quite sure right now what i'm talking about when i talk about the wheel i'll post a playlist in the comments and this playlist explains you exactly what the real trading strategy is um and it's a really fascinating strategy where you're selling puts selling calls cash covered puts and then you also have covered calls uh really relatively safely where you can make 30 but the absolute key to this strategy the key is to select the right stocks and i know that there were quite a lot of questions around this this is why i thought today i'm going to show you exactly my process how i do it and it is a five-step process so first of all i'm looking for high for stocks with high volatility voila utility how do you spell this there we go almost thank god for autocorrect because high volatility means that there's a lot of premium in there and the first part of the wheel is that you are selling puts right so um this is why we want to have high premium because the first step in the wheel is selling puts for premium again uh this is where um you will have the playlist here that shows you exactly what it does anyhow so here is one of the tools that i use for this um it is actually bar charts so there's a website called barchart.com and when you are a premium member you can actually configure an option screener now in order to be a premium member it's like 200 a year so i am a premium member and this is why i have set up an option screener here for me so let me just show you before we look at this option screener here and the results let me show you the filters that i'm using here so that you know exactly what stocks i'm looking for so let me just uh click on the filters here now first of all we want to make sure let me make this a little bit bigger so that you can see it so we want to make sure that we are not trading into earnings i'll talk about this here in a moment now in terms of exchange i'm fine trading at all the exchanges the uh the implied volatility that i would like to see is between 30 and 50 when it is above 50 the volatility is too high and you can run into the danger of having a stock that is whip sawing all around here and if it is below 30 then usually you don't have enough premium in there anyhow so the days to expiration 7 to 21 days our last trade made within the last two sessions i prefer trading only stocks with this right and i want to make sure that there's enough premium in the put here so i have a few more filters regarding volume open interest and for a stock price i'm looking for stocks that are trading between 30 to 200 dollars so um when i'm clicking on this filter this is the exact filter that i use uh then you see the results popping up here and right now it is finding a lot of puts and you see there's quite a few companies for example there's aa ada see quite a lot of puts there amat amba so this is where right now uh let's just go to to step number two here before i show you exactly how i use this information so um step number two i want to make sure that there are no earnings before expiration because we we have just seen it in the comments so uh zia said that he got stuck in a trade because he traded into earnings so i want to make sure that i'm not running into earnings especially right now where we have still the pandemic going on the crisis i mean earnings are a wild card here so i want to make sure that there are no earnings before expiration and you have seen how i set the filter here now number three i want to make sure that these stocks are in an overall uptrend or have strong support so let me write this down so i want to see an overall uptrend or strong support and i'll show you exactly what i'm looking for i should capitalize this just to make it nice again these show notes are available to you you'll find in the description a link where you can get all of these notes so let me show you exactly what i mean this is where i can go back to to bar chart here because it shows me you see i have a total of 1052 results but there are not that many stocks because it's giving me a bunch of options for one stock so um you see there's a total of probably 10 pages and what i can do here at the top is that i go to flip charts and now i can take a look quickly at the first 10 stocks here and i see okay a hln technologies that actually looks pretty good looks overall in an uptrend so that would be a possible candidate and i'm writing this down so then i have adi uh you see this is all over the place here not exactly what i'm looking for uh alc then we have amat so this looks pretty good it's overall in an uptrend here actually i like to see more than uh just the last six months let's just look at the last two years so that you get a better idea so um i mean a was a good opportunity amat is a good possibility here so amba asd you you get the idea what i'm looking for so obviously something like this is not at all what i'm looking for right so anyhow so after i've identified a few candidates uh that i like then i check the wheel the calculator to see if all of this makes sense so this were for example for ageland well if you look back over the last two years not too hot on this one amat let's see applied materials that's so bad overall an uptrend because again keep in mind absolutely super super super important i can't stress this enough you must be okay owning this stock so let's just talk about am amat so that i show you exactly how i now go through the calculator because this is where step 4 comes in where i want to make sure check the wheel calculator by the way uh in a moment i'm going to show you also how to how how to make this process way quicker for you than all this manual work here if you're interested in this uh just click click on like really quick um if you're interested in learning how to make this this process quicker here or type in yes in the comments and also if you're enjoying this thus far is this helpful at all uh if it is helpful do me a favor and click on like this way i see here on my little monitor that you're enjoying this i actually will have a like counter behind me in a little bit i'm working on this anyhow let's go back here and now let's go to the wheel so we talked about amat okay so amat want to just bring up the stock here and uh it was actually a trade that i was in so we need to see what is a strike price that would make sense for us at what price we are okay uh owning the stock and again it's all explained in detail in the other videos that i have here linked in the description so let's just fill it in here so i'm using the calculator here making this a little bit bigger so that it is easier for you to see here are a few positions that i'm in right now and i'll be happy to show you in a moment how they're doing because they're expiring a few of them in 10 minutes from now okay so amat right now the current price is 64.08 and a strike price that would make sense here is 59 meaning that we could have an 8 drop now right now it is july 31st so we're looking probably for an august 7th expiration now let's switch over to the trading platform to see exactly what's happening here and we go to amateur uh we look for the august 7th 59 expiration how much money we could get and you see right now there's not a lot of premium in there so there's probably 16 cents in there that's probably not enough because if you type in the 16 cents here now it's only 14 so obviously that didn't work all right this means that right now we go back to uh look for the stocks that have overall an upstream or strong support so um let's see what else did we have here uh what did we find a did we like a not really too much it's a bouncing around here so let's see atge av av er not really strong support here bam not the biggest fan although that's not bad you see overall it wasn't an uptrend was hidden by hit by kovit and right now seems to have found some strong support here so we could actually take a look at bam anyhow i i don't want to bore you with this too much because i also want to show you the positions that i'm in so that you know exactly what stocks i'm looking for so let's jump over to the account if you're interested in this so we're looking at the positions as you can see right now i am in atvi and this is one that expires here in the next eight minutes uh so and when it does i will get the the full profit the 55 dollars per one option uh that i traded and i traded three options so i will keep the full 162 dollars as you can see i started trading this strategy um a week ago and thus far we are up 500 so not bad at all right the goal here is to make 30 a year so my goal is uh on this account which is a a relatively it's a mid-sized account it's a 100 000 buying power 50 000 in there but it is a margin account so the goal here is to make thirty thousand dollars a year thirty percent you can trade it with larger accounts no problem at all so then we also have marriott that expires in seven minutes from now and uh this will expire worthless so here i made uh 70 cents which is 70 dollars per option traded two options so this will be 140 that i can keep and then i have nike jd that's an alert that i issued today but let's just take a look at these for a moment so that you know exactly what i'm looking for so atvi if you take a look at the chart ups not stbi we are looking at atvi so activation blizzard as you can see overall in an uptrend uh even not really hit during the pandemic because it's a it's a gaming company and this is why i felt comfortable if it would dip below 76 owning this stock here what is the other one that we were just talking about marriott so marriott here today moving lower but you see this is a stock that has found some solid support that's what i was talking about just so that you see some examples here uh first of all you must be okay owning the stock i can't stress this enough and then i want to make sure that the stocks are in overall uptrend or have strong support now in a moment i'm going to talk about step number five but let me just ask you is this helpful at all so that you see the stocks that i'm looking for would you like to see a few more examples if you want me to show you a few more examples just type yes in the comments really quick or even better click on like because this way i see that you're enjoying this video and then i'll go a few minutes a few more minutes but i show you more examples because i think it's important that you know what exactly i'm looking for and then we'll talk about step number five does that sound good all right i see a bunch of likes coming in thank you for smashing the like button here so let's talk about a few other stocks so another stock that i really like is ba boeing again super volatile stock as you can see being hit during the pandemic right now has found some support it's just going sideways and this is exactly what we are looking for with the wheel stocks that are either going sideways or slightly up overall i'm bullish on boeing uh but right now i just think that it won't drop below 150 and if it does i'm okay owning boeing 450. so this is another stock that i'm in and especially if you look at a weekly chart here so you see a weekly chart of boeing look at this i mean boeing has just gone up up up up over the years and then here has found some support at around 320 has been trading between 320 and 380 right now at half the price so i believe that boeing at some point will go back up there anyhow so let's talk about another stock that i liked really a lot nka nike as you know nike solid look at this over the years going from twenty dollars to a hundred dollars recently got hit by the pandemic going all the way down to sixty dollars but right now already bouncing back and it seems that nike has found some support here and this is why i'm okay owning nike at 94. so um but let's talk about uh let's talk about step number five because this is the shortcut for you if you want so step number five what i do after i place the trade and send out the newsletter what [Music] yes so if you've been following me for a while you know that i offered a class for this wheel and with this offered a newsletter for free for the first month and so when you enrolled into the class you get the newsletter for free and let me show you what i do so as you can see here um for example jd was something that i issued this morning so i'm i'm writing the newsletter here i'm exporting it to pdf so that it looks like this okay and then i'm emailing you the pdf and i'm sending you a text and i'm also sending you a notification in our app that now we have a new newsletter and this is where it shows exactly okay so this morning i issued jd and ssy and you see the idea is we believe jd will stay above 60 by august 7th so that's a few days from now and i'll give you the exact trade of what to trade i'll let you know how much buying power is needed per option so that you can adjust the size for your account and here is what happened to the two trades that i issued earlier today so let's jump back to this so we talked about jd and ssy right here these are the trades that i sent out this morning and as you can see thus far they're nicely up 45.40 right now boeing is down a little bit but i'm not too concerned because all i need is until next week for one week i need boeing to stay above 150 and today boeing had a down day anyhow not a big deal right okay so let's talk about let's talk about the class and the newsletter if you're interested as you can see it is a very logical and systematic process to go through the stocks and it is time intensive it takes me a while and then as soon as i find a stock i'm also discussing it with a mark my head coach so as you can see we're going through a lot of effort to actually find the very best stocks to trade but the cool thing is that both mark and i have nothing else to do so we love trading we love looking at this so if you're interested in uh this class and getting this newsletter uh just go to rockwelltrading.com wheel uh this is where you can sign up for the class so that you know exactly what i talked about uh plus you're getting a month of the newsletter and again here are the trades of the newsletter um over the past week as you can see they're up 500 and uh i do believe that the class is priced below 200 so within one week within one week depending on your account size but within one week you could make the money back that you invest in the class and in the newsletter anyhow so um i i hope this was helpful because i wanted to show you my exact process what i do because that's my promise here that i show you the strategies that i personally trade that i show you the tools that i personally use and that i show you my trades the good the bad and the ugly right because some trades are losing trades thus far with the wheel it has worked out anyhow if you enjoyed this video please make sure to to like it and if you want to see more videos like this then click on the subscribe button and click the little notification bell because this way you get notified whenever i release a new video and if you enjoyed watching this video as much as i enjoyed making it for you please feel free to share this video with with anybody who you think that might benefit from this video and then i'll see you in one of their next videos or click on one of the playlists all right cool now i see that there's a lot of questions and this is why i enjoy hanging out with you live here so we can uh we can go through the questions here so good to see everybody here oh my gosh we have uh what 190 people on here right now so uh mike said tgf is now odif oh darn it's friday right i'm looking forward to monday when the markets are open okay so benito says the the wheel awesome lost about two percent trading some of my pxo picks during june to mid july the wheel is letting me get to break even by next friday [Laughter] then better things to roll right i mean i mean eventually we will break out of these nasty market conditions that we have right now pyrex optimizer will work like a charm we will get to our goal of making 60 a year per year i have no doubt about this i mean i have seen it all i've been trading this strategy for the past 10 years so absolutely we will get back okay afternoon said hey you got your park strategy book fantastic by the way if you're interested in learning more about the park strategy here's the quick 20 second commercial i've written a book 150 pages 160 pages you can get it on amazon for 25 or i'll be happy to ship you a free copy all i ask is that you pay for shipping and handling which is 4.95 and as you can see i am actually shipping these out okay no strings attached if you want to do this okay gary says doing good with the wheel thank you and uh john says roll those dice i mean the wheel yes absolutely so andres is asking can we trade powerx optimizer in this market uh yes i am trading it and i think somebody mentioned it earlier that said well you know what my my power expositions are down so are mine so are mine but as you can see the other positions are up so i'm still trading the powerx strategy because i know that these markets will get back to normal right now these market conditions where we are stuck in this sideways range is not normal at all anyhow okay hector got his good good good mug i need to grab a sip of coffee so we have several marks here this is my trade what you see not what you think but and uh we do have uh more marks let me just see when you're good to trade anyhow they're too far out of reach right now okay get good good so peter says uh love your thought process now reading your books doing many of your videos well so good uh peter see you yeah i mean feel free to share these videos watch the videos binge watch them absolutely so jim says um i've now set all my positions i own into 100 packs starting part two of the wheel since they're all negative but not close to stop loss okay not quite sure jim what do you mean by this i mean feel free to to post this in the facebook group and we can talk more about your individual positions here because uh i i know that you are in the facebook group and uh love to to talk to you about this so andres is asking um is this only a bar chart is finvis possible for the wheel screener probably probably i'm pretty sure that maybe there's even a free screener like this out there um you see for me and my trading i don't mind paying a few hundred dollars a year uh for a service right that helps me and makes my life easier here so uh but andreas could be that it's also in finlways it could be that we can do a scan like this maybe even in trading view who knows right here i was just too lazy to do it myself because this is what tools do tools make your life easier right and for me it's all about saving time here okay good uh so joseph is asking how often do you usually get assigned when you sell the puts 10 of the time 20 percent of the time okay so it is the the probabilities that i'm looking for is uh around 20 probability that i might get assigned so in the long run it's probably closer to 20 now honestly the wheel starts getting really really fun when we are getting assigned so i actually don't mind getting a sign because then we can sell calls and uh right now there's more premium in calls than there is in puts so this will help us then to to really probably exceed the 30 per year and go to 40 per year so joseph i actually don't mind at all being assigned so just make sure that you do your position sizing right okay position sizing means that you don't over trade your account here good good good okay uh teddy says show selling the call i will of course as soon as i'm getting assigned i have not been assigned yet uh but uh teddy i'll be happy to show how i would sell the call as soon as i'm getting assigned on any um on any of these uh these stocks so michael says strong support is defined as a flat level drawn on the daily chart only yeah you see um especially let me just show it to you so here right now there's a lot of premium in the weekly options so this is why this is like a a weekly paycheck basically right so um that's why i'm using a relative short fuse here and this is why i'm also using support that is very close you see it's it's pretty easy now you could draw support with nike uh also down here yeah at the 83 level and if i would sell a put with an expiration of maybe two months i would do this but here since i'm selling something with an expiration of less than 10 days i'm absolutely fine of going to the to the daily chart and hear what has happened over the past few weeks but great question hope that helps okay so um anthony says i see jd has earnings coming up um will you sell before then so great great great question so let's actually go to this let's actually jump over here to stock earnings dot com let's take a look at jd so we're bringing up jd.com here we go and you will see that their earnings date is on tuesday august 11th it is confirmed so they have confirmed earnings it's on tuesday august 11th now here's what i did uh let me just jump back for jd i sold the put that expires august 7th so it expires before they do earnings yeah i i do not like this here especially right now since we still have the pandemic going on we had the worst gdp on record so i want to make sure that i'm not catching any surprise because you have seen the the big four today facebook apple amazon uh they the big three actually they jumped up but google was going down i don't want to be caught in this volatility because then you're suddenly getting assigned and you might be underwater way more than you want so yes you're absolutely right jd has earnings i'm factoring it in this is why i said let me just show you my notes here again okay no earnings before expiration after expiration i don't care after expiration we're all good okay good good good julio is saying how do you draw the support line horizontal value well let me show you a very quick tutorial here on uh on trading view what i like to do i have a uh a macbook pro and there's a shortcut so if i click on option h it appears now if you have a pc might be different so see here right underneath this crosshair on the left hand side you can actually draw a horizontal line and you see it shows you the shortcut there might be a little bit difficult to see but you can draw a horizontal line anywhere you want and then you can move it anywhere you want okay so the magic of trading view by the way if you would like to know more about trading view i have a tutorial for you and if you also go to rockwelltrading.com tradingview there's more information about this and uh i'll be happy to link to the trading view tutorials that i did uh in the description we have a playlist for this anyhow sound good we put it in there okay so benito says uh thank you for the solid entry signals to use with the wheel yeah as you can see i mean we were when we're spending quite a lot of time on this on finding the the best signals here the best stocks to trade so uh caleb is asking if your account is double uh why do we double position size instead of number of positions um well okay so good good point uh let me actually go to the chart so caleb's question is let's say uh that we have the wheel and we right now have a hundred thousand dollars in buying power so uh let's say here for uh for jd i traded three options now if you have twice as much if you have 200 000 then we would trade seven options right and caleb is asking well instead of trading seven options why wouldn't i just stay at 200 000 but trade 10 positions well for me personally if i trade 10 positions it's like herding cats it gets exhausting for me so it's like or like herding sheep or like herding chickens my daughter has chickens my daughter vivian has chickens try to hurt chickens this is how i feel when i have too many positions in my account so again personal preference caleb absolutely fine if you would like to have 10 positions in your account that is okay i prefer to have with this strategy around five positions here uh aj is asking what will be the cost after a month still talking to the team are definitely less than 200 dollars because i want to make sure that it is super easy for you to make back the investment but you also see how much work goes into this newsletter here uh that i'm preparing for you how much i do in the background so i do believe that two hundred dollars a month is a fair price uh might be a little bit more might be a little bit less um it doesn't automatically renew if you're asking this so don't worry about this we will let you know as soon as we uh decided on a price the team will let us know both me and you and then there will probably be also quarterly or annual options i'm pretty sure so stay tuned we should know more next week okay good good good good okay so uh ken is asking so you would suggest staying away from entering stock positions using the pxo strategy no not at all not at all i am trading the px uh the power x strategy every single day every day every day i'm running the optimizer every day i'm looking for the best stocks and options to trade every day i'm also looking for black bars stop loss profit target and yes recently as you know mainly you're getting stopped out with black bars so ken please this strategy here is a great addition to power x strategy i'm trading the product strategy because i'm setting myself up for when the markets are ready to break out to the upside or to the downside i don't care as long as they break out of this this nasty stupid sideways thing i mean it's it's really it's getting exhausting i don't know about you i mean this this sideways move look at this uh yeah here we are back on the on the dow jones didn't want to have this yeah this sideways move is just exhausting so it will get back to normal we will see an uptrend or a downtrend and so i'm trading it right now so that i am positioned that i am in stocks and options when the market starts trending so ken yep um i am trading this in addition to powerx optimizer ex-dividend says hi markus the wheel has been my number one strategy to be honest that's great i mean every trader is different right i mean the wheel can give you very safely around 30 when i'm trading the power x optimizer for me it's more typical that that i make 80 to 100 percent a year and this is why i like trading uh the power x strategy and the power x optimizer now again as you know we have talked about it over and over again june and july sucked yes i said it because it was frustrating but it will change it will change and i will make sure that i'm positioned anyhow okay so uh let's see oh ken says uh while in earnings session sorry hit send quickly uh you see this is where um we can discuss it more in the facebook vip group but as you know with powerx optimizer we are looking for stocks that do not react to earnings hence the no gap rule right we want to have stocks that are not gappy it's one of the rules of powerx optimizer so therefore uh i'm again i'm trading stocks and i'm trading the stocks that are not gappy here anyhow okay good so ex dividend says uh likes the wheel it's your favorite strategy what's your main strategy the parex strategy okay there we go okay so caleb is asking for the wheel do you allow it extra to expire in the money or would you prefer to close the option at a slight loss prior to expiration for me personally for me personally i am fine getting assigned so i'm letting it expire so that i'm assigned i'm not closing out for a small loss so um yeah just uh just to let you know good samuel says hi mentor hi samuel so good to see you okay uh oh zaya or oh okay i will butcher your name i really love the the wheel strategy as i work mostly during the week will be a good strategy for light touch training that is true it is uh it's super easy because when you get the newsletter from me you get an email you you get a text message uh you you get a an app notification right so it's super easy to then place the trades if you're busy and can stay in front of the computer absolutely okay good so uh bill says sold the boeing i don't know why bill's comments got a little bit smaller here let me make this bigger there we go bill says sold the boeing 150 put today for 1.75 because i missed it yesterday that's fine and it's still a valid trade still a good trade so i'm in it as you know and uh you probably got a better price than i did so that's good all right so j.r ewing says uh if your stock does not get assigned do you let it expire um see if okay great question here and i answered that in the facebook vip group here as well um if you see that you enter for example today i entered jd if on monday i can buy it back for only a few pennies for five cents that i that i have ninety 90 of my my profits then i would take it off the table because why would you wait until friday everything can happen until friday right so if you can make 90 or maybe even 80 depending on how aggressive you are eighty percent of the move in a matter of few days you can absolutely buy it back because when you're buying it back i mean two things happen first of all you get all your buying power back and therefore you can now trade another stock for the wheel and secondly you're taking risk off the table right so if you can make 80 to 90 it might make sense to take it off today i let them expire because uh yesterday let me just show it to you when i'm sharing my desktop here so as you can see for the two that expired by doing this i got another 21 and 24 dollars so 45 by letting them expire from yesterday to today amat is a trade that i was in i was able to trade to close it a few days ago so i did but here if i can make another 45 dollars by waiting one more day i'll do it okay good good good so uh rather saying can we do the wheel in reverse for falling stocks so selling calls first after buying stocks that are ultimately unfortunately falling um i wouldn't it's there's probably a strategy might be called straddles strangles iron condors right that takes advantage of this for the wheel i personally prefer to do it in stocks that are going up because think about it the natural direction of the market if you look at the markets ever since it started the natural direction of the market is up that is the natural direction and so i i don't want to swim against the stream if this makes sense um so mark says uh thanks for being transparent you guys are awesome happy to be part of your mastermind group we are so happy that you are uh that you're part of the mastermind you know we love you um appreciate the extra nuts and bolts around the wheel just a little bit behind the scenes so that you know what is happening when you get an alert of what has happened before this is why you rarely get an alert at 9 30 when the markets open you get an alert uh what a few hours later after i had a chance to digest all of this okay aj says thanks for being so transparent amazing thanks for being here watching i mean i i know that you have been here for a while now um and if you're new to this and you're enjoying this please make sure to subscribe here okay so aj says is there video for trading options from uh powerx optimize i'm not sure if i should sell or buy yes there is it's on a website it's called mytradingroutine.com it's a website that i built now i'm lying i asked alex to build it for me alex is my genius webmaster and there's a video on there on how i trade options with powerx optimizer and yes it is buying you're buying calls or you're buying put so it's the exact opposite from the wheel basically anyhow anyhow okay so ah time flies when you're having fun so good to see everybody here and uh i i'm so so grateful for you uh watching these videos supporting this channel i think we now are at almost 35 000 subscribers and this is because of you thank you so much so please make sure to keep liking it to keep sharing this video if you enjoy it and if you're new here and you thought i don't even know how i stumbled across this video but now you say this is actually pretty cool make sure that you subscribe to the channel hey today is friday as i'm recording it so i wish you a wonderful weekend stay safe stay healthy this nasty virus is still going around right do the smart thing wash hands wear face masks do social distancing right enjoy the weekend and we'll be back here on monday when the markets are open again and on monday i'll talk about the day trading because i received many questions around day trading like should i be day trading what are the advantages of day trading does day trading make sense for you do i personally day trade so this is what we are going to talk about on monday in the next video in episode 74 have a great rest of the day enjoy the weekend and i'll talk to you soon

Channel: Markus Heitkoetter

Views: 41,858

Rating: 4.960362 out of 5

Keywords: options wheel strategy, finding the best stocks for the wheel, finding the best stocks for the wheel strategy, best stocks for the wheel, best stocks for the wheel strategy, the wheel strategy stocks, the wheel trading strategy, the wheel strategy, the wheel options strategy, the options wheel strategy, the wheel strategy, the wheel strategy options, the wheel strategy returns, run the wheel options strategy, wheel strategy options explained, the wheel options trading strategy

Id: HNYavABueuo

Length: 50min 38sec (3038 seconds)

Published: Fri Jul 31 2020