How I Turned $1,500 to $60k in One Month!

we're coming on the air with breaking news this is the new york stock exchange the trading day is just beginning on wall street and there are fears that the dow will drop and drop quickly and we're already seeing that all right so uh opening bell just happened but it does look like that the circuit breaker was tripped and trading has halted since we dropped seven percent [Music] if you've been paying attention to the stock market at all in the year 2020 you probably noticed that in march it took a huge nose dive and that actually coincided with me getting into trading stock options around that time but i was able to take a brokerage account that i deposited 1500 into and within less than a month i turned that into 62 000 so in this video i'm going to break down the exact trades i made in order to make that happen oh and before i begin i am not a financial professional and anything in this video is just for entertainment purposes only okay so the way i turned 1500 into 62 000 was by trading stock options now if you aren't familiar with stock options here is me in a bubble bath to explain the stock option is a contract that gives you the option to either buy or sell 100 shares of stock at a predetermined price by a set date in the most basic sense if you think a particular stock or etf is going up in value you'd want to buy a call option if you think it's going to go down in value you'd buy a put option now off it's worth noting that stock options aren't some golden ticket i am willy wonka they can be fairly risky to trade and so if you don't have that risk tolerance to trade stock options that's totally fine it's even more risky when you're not hedging your options or implementing strategies such as spreads the way i did it was fairly risky and i only did it with money that i was okay with losing if things went south of course the higher the risk the higher the reward so let's get into it [Music] i first opened my robin hood account in july of 2019 with a 1500 deposit i didn't do much at first i bought a few shares i made a few more deposits and then by february of 2020 thanks mostly to tesla my account was valued just under five thousand dollars that's when i decided to start trading options so back then it was a bull market and my first options play was a call on microsoft for 185 dollars expiring on february 14th i bought five contracts for a total of five hundred and five dollars i held them for just two days and then i sold them off for a total of one thousand ninety eight dollars for a profit of 593 now my next options play was t-mobile i was bullish on them as a company and i knew that they were trying to acquire sprint and that was uh coming up so i decided to get some call option contracts so on the sixth i bought five contracts for a total of five hundred fifty dollars and then i decided to buy twenty more on february the seventh for an additional twenty eight hundred dollars now as luck would have it just a few days later a judge approved one of the stepping stones in the merger which brought them that much closer to acquiring sprint and their stock price shot up and as a result so did my option contracts i sold most of the options on the 11th for a total of thirteen thousand seven hundred fifty dollars in the next few days i sold the rest for an additional two thousand two hundred and sixty five dollars realizing a total profit of twelve thousand six hundred and sixty five dollars needless to say after that i was pretty hooked so while robin hood is fine for buying and holding stocks if you want to be a more active trader it definitely leaves a lot to be desired when it comes to reliability charting killing orders etc you may recall robin hood made headlines when they had an outage for an entire day leaving people locked out of their account and unable to exit positions not a good look anyways knowing that robin hood had its drawbacks i decided to make a td ameritrade account because their thinkorswim platform is widely used by traders all over the u.s on february 20th i deposited fifteen hundred dollars into this account and this is the account that i took to sixty-two thousand dollars just less than a month later my first trade was buying two contracts of the etf qqq now this fund is weighted towards nasdaq tech stocks tech stocks and it's fairly volatile so i end up buying some puts on qqq and i was betting that the price would be lower than 216 by march 6th so i paid 424 for each contract for a total of 848 luckily for me the market took a little tumble and i sold each contract for 1 a piece resulting in a total profit of two thousand four hundred and ninety two dollars my next big trade was as follows on march second i bought 20 contracts of las vegas sans puts i figured that vegas was going to get shut down soon due to the pandemic and that the casinos would take a hit well i was right and the stock did tumble and by the 16th the share price had gone from 58 to 40 so my options were now worth 800 each i decided to sell 14 of my 20 contracts for eleven thousand two hundred dollars netting a nine thousand dollar profit and i still own six contracts in case that stock continued to fall i end up selling the final six on april third for 810 dollars a piece this total trade netted me thirteen thousand eight hundred dollars in profit not a bad deal okay then on march 4th i bought two contracts of spy puts for 547 dollars each and in case you aren't familiar spy is an etf that tracks the s p 500 so it's not just a single stock like apple just five days later these same contracts worth twenty three dollars and ninety cents so i sold them for a profit of three thousand six hundred and eighty six dollars okay so then on march 10th i decided to place by again i purchased five contracts of puts for 805 a piece six days later i sold four of the five contracts for 28.55 a piece netting a profit 7395 hundred and ninety of leaving me with one contract again in case the market continued to fall i ended up selling that last contract for three thousand nine hundred and fifty six dollars for a grand total of eleven thousand three hundred fifty one dollars in profit on march 18th now if i would have held all five of my contracts till the 18th and then sold i would have made an extra 4 000 in profit but you never want to let those green trades turn red so it's better to lock in the profit you can leave an extra contract as a runner to see what happens and maybe you'll make more money on that one contract but as i say pigs get fat and hogs get slaughtered so lock in the profit as soon as you can i played spy puts a few more times i bought three contracts for 661 dollars on march 10th again and sold those eight days later for three thousand two hundred ninety dollars per contract for a total of seven thousand eight hundred and eighty seven dollars in profit at this point time all my puts were really paying off but i did decide to play some spy calls on march 17th i bought five contracts of calls for 620 each and i sold them all that same day right before the market closed for 845 each which was a quick 1100 profit i think my first losing trade was on march 18th i bought 10 contracts of codx for 110 each that trade went against me and i sold them the next day 40 each and i lost 700 so that's the bulk of the trades i made that first month with that account i won't bore you with absolutely every single trade but i will post a screenshot of all the trades if you want to take a closer look the link will be in the description so as you can see i took my 1500 deposit and turned that into roughly 62 thousand dollars by march 18th pretty awesome right and as much as i'd like you to think that i'm some sort of options wonderkind people keep calling me a wonderkind i don't even know what that means that is not where the story ends on march 24th the market started to regain some of its losses and i still held a lot of open spy put positions so i was still betting the market would continue to fall now instead the market recovered over the next few weeks and i did not exit those positions so i ended up losing roughly twenty thousand dollars out of that sixty which was a pretty tough lesson for me to learn i was a little over ambitious with my positioning and i probably should have held more of a cash position to protect some of those profits so i'm glad i learned that lesson now and can apply that moving forward so i really wanted to make this video to illustrate the power of options and back when i made all of these gains the market was really on easy mode all my positions were paying off handsomely it seemed like every trade just went my way ever since then though it's been pretty choppy and unpredictable so i don't want you to see this video and then just put a lot of money into options without doing your own research and developing your own strategies so take the time learn about options as much as you can before you even put any money into it if you do want to learn more about trading options and getting started with that let me know in the comments below and i can try to make that video happen now if you do end up making a significant amount trading options or stocks remember to make occasional withdrawals to your bank account to one save some aside for the capital gains that you have to pay and two lock in those profits for sure because you don't want to be tempted to yellow on some tesla puts and blow up your entire account losing all those hard-earned profits that's all for this video once again if you want to see all the trades i made i'll post a screenshot and put in the description below hit that thumbs up button if you like this video really help me out subscribe if you haven't already and i will see you in the next one bye [Music]

Channel: Daniel Inskeep

Views: 1,461,785

Keywords: daniel inskeep, stock options, passive income, robinhood, make passive income, personal finance, making money online, passive income ideas, trading stocks, how to make passive income, grow portfolio, options, thinkorswim, best passive income ideas, personal finance tips, make money online, dropshipping, passive income 2020, shopify, personal finance 101, small account challenge

Id: 7iEZct-i6S0

Length: 10min 0sec (600 seconds)

Published: Mon Aug 03 2020