Selling Puts Options to Become A 👑MILLIONAIRE 👑

right now I'm going to teach you about selling put options and why it's the best trading strategy hands-down actually it's the best passive income strategy you can find on YouTube and I'm teaching it all about it in this video stay tuned first off before we get into selling put options let's go over the quick definition of what a put option does because it's so important you understand this a put option for the buyer is the right to sell a specified quantity of the security at the strike price so options they control a hundred shares of the stock and put options allow you to sell 100 shares of the stock at this specified strike price here's a live example right now this is Roku I use Roku for selling option goes all the time because I personally love this stock Roku right now if I click puts on Robinhood you're gonna see all these strike prices if I ended up buying one of these I could trade it or I can hold it and exercise it and what this allows me to do is use this a hundred and eleven strike price to sell my hundred shares of Roku then I most likely own if I'm buying this option let's put option I most likely own the stock 100 shares specifically but if you're selling put options you don't have to own the stock you can collect premium buying the option and if anything goes wrong you just buy the stock and then you own it so this strategy is hands-down the best strategy you can find on YouTube and the best news is it's a never lose strategy I know I thought that was some BS when someone told me but it's completely true with one stipulation you have to pick a stock you believe in a stock you don't mind owning if you do that this is a never lose strategy passive income every single day of the week and if you're excited to hear this strategy make sure to subscribe to the channel like this video I would greatly appreciate it and if you want seven days training with me and my premium option training group hit the link below as well let's get into it so this is every single reason why selling put options is the best strategy out there and then after that I'm gonna give you a live example of a stock I would be shorting put options with right now number one the whole reason this works is because out of the money options go to zero we call those otm options out of the money those are most likely going to zero by the time of expiration and as you know if you're shorting an option you can actually collect that premium the premium is the price the option cost so for this option this put option for 111 it costs 277 so for someone buying it they're hoping the price goes up for someone shorting it there hope this price goes down best part about options options out of the money have a very high chance of going to zero and I'm going to show you why so if I click sell which is what we would be doing it for shorting put options and I'm going to click off this one up here now we're going to start from scratch you can scroll down and the further you go down the further and further we call out of the money the higher the chance this option is going to zero and you're gonna collect the full premium that you're clicking on the right over here so 182 you can collect that full hundred and eighty two dollars if this goes to zero how about ninety bucks collect that no problem and here's the thing we have a chance of profit being extremely high so that's that third row right here as we scroll down we see 69 percent chance you make one hundred and eighty three dollars how does that sound you wake up tomorrow make $183 so I'm curious guys why haven't you grabbed my free option trading course and the link in the bio how does that sound that's not gambling this isn't roulette you don't have a 50% chance of hitting red or black you have a 69% chance of making a hundred and eighty two dollars if you scroll down eighty percent chance of making ninety bucks if you scroll down again 90 percent chance you're gonna make thirty three dollars this is why it's incredibly amazing if you scroll down even further let's say you're not feeling any risk ninety nine percent chance you make two bucks passive income who cares what the amount is two dollars is two dollars so that is why this is the best strategy as well as the other reasons why I love it so much so number two we and get exercise that does happen when options are short when you're sure to call or Shore to put you can get exercise and all that means is you have to own this dock if we're shorting put options because the buyer has the right to sell 100 shares if you're on the other side of the contract and they exercise their chin they're gonna sell those hundred shares to you you're gonna have to own those hundred shares so this is what we call cash secured puts because we need the cash to possibly buy a hundred shares of the stock at any moment so right here this is Roku like I said it's trading at a hundred and ten dollars so if I had to buy a hundred shares of that it's roughly gonna cost eleven thousand dollars so for you to even implement this strategy you have to have eleven thousand dollars in the side of your account to even sell these put options so to sell one put option you probably need eleven thousand dollars but the best part is that further and further you go out of the money the less capital you need because you won't be buying it at 110 dollars you're gonna be buying this option or the stock at ninety six dollars because that's the strike price the best part about this play is you're buying the stock at a discount which is number three or number four we're getting the discounted stock if we get exercise number three we're keeping the premium that's two more reasons why this strategy is incredible and let me explain that really quickly so instead of buying it at a hundred ten the current price is that now if the stock drops and the 97 strike price goes in the money you're probably gonna get exercised there's a small chance but it could happen if that's the case you need to cover buy a hundred shares in the stock at $97 which is a huge discount for where Roku's trading right now so again 97 times 100 is about nine thousand seven hundred dollars so you don't need that much more capital and if you haven't yet make sure you grab my two books bulletproof recession proof setups link in the bio only three bucks you don't need eleven thousand dollars now you only need nine thousand seven hundred dollars so if this small chance Roku sank hit $97 or further below it you couldn't get exercised could own Roku at $97 for a hundred shares but the best part is this 11 bucks that you sure the option for we call that the premium as an option seller you get to keep that so if you're wrong and the trade goes against you you still get paid and then you get to own the stock which is not a bad thing because here's the thing we are only playing stocks that are great stocks and that's why this tragedy works out so well this is the triple Q as you saw we had a huge sell over the kovat crisis and then a huge v-shaped recovery during that time of moving higher and higher and higher if you were selling put options you would collected consistent income because the stock just moved higher all the put options would have expired out of the month but if you did get exercised here's the fact that I want you to look at on the monthly chart if we're looking at the triple Q which is the index one of the safest investments of all time the triple Q the SP why any index fund is considered the safest basket of stocks you can own it hasn't reached levels from the past you know 2008 2002 we haven't touched those levels ever again so with the triple Q as you're seeing owning the stock is not a bad thing with this strategy you want to pick stocks you don't mind owning long term so again if we end up buying the stock and we can't sell anymore put options in the future we can still own the stock and make gains from it if it goes up that's why this is called and never lose investing trading strategy passive income strategy because again you make money when the stock goes up or you can short put options until you own the stock so let's go over four more reasons why this is the best passive income strategy on the internet and then after that I'm gonna give you a live example of the stock I would be shorting put options with right now it's gonna blow your mind but right now this is number five a capped loss this is one reason I love shorting put options and again shorting call options is the opposite you have infinity losses you can lose so much money more than that's in your account a cap loss is the best thing you want to hear as a trader because if I have to own Roku at $97 for a hundred shares than most I can lose is that $9,700 so $9,700 is what you're risking because that's where the stock could go to zero so that's the case where just everything goes wrong the stock you picked was a bad stock and you lost everything in that case there's a very small chance that's actually gonna happen because again we're buying strong stocks stocks we believe in we're not doing this on shady stocks like luck ins coffee that went straight to zero we're doing this on stocks we truly believe in in that case we should never see a cap loss or a max loss ever hit so that's why I love this because you're not going to ever lose all of your money doing this strategy I see so many traders on the internet losing all their money and it really doesn't have to happen like this they don't have to do the riskiest things out there they can just use safe income strategies that are great over time so now it's getting back income that's what I've been talking about this whole show this whole video income from this strategy every single week the best part about this strategy is you don't do it once or twice or three times you can do it every single week of the year 52 weeks of the year you can collect income so roku options all you have to do is go to robin hood and click this bar right here you're gonna see all these options expiring every single week so you're not gonna options 40 days out you're gonna be selling options expiring that week because those ones go to 0 the quickest meaning you're gonna make money very quickly passive income the most you can make if you don't know anything about options it's all because we have this greek called theta which is time decay so every day the options are decaying a certain amount but if you click short you're gonna see this data is actually the amount you're making so this is $42 a day this option is losing 42 dollars a day and you're gonna be making that making that $42 a day because you're short so now let me show you options a little bit further out and why we don't use this strategy with it so those 105 options they're losing $8 a day again what do you want to make $42 a day or $8 a day it's not that high so here all we're doing is going on to the June 5th and then we're shorting these options so this could be the 110 to 109 the 108 the further and further you go lower the higher chance you're gonna just not have to own the stock and collect income so again we can collect 84 dollars 32 dollars a day and we have about three days so the market closes and we have expiration getting hit but once expiration happens on Friday we collect the full 84 dollars we wake up again on Monday and do it again for the June 12th options so we go to those and we're trying to collect income on those and again if we click it it's about 20 bucks a day this strategy works really well if you're using highly volatile options because those options have the highest time decay and we just want to make sure if this strategy blew you away you have to check out my most advanced trading strategies in my options domination course one month in my premium group link in the bio and we're gonna get into this live example later about the best options to pick how to find the ones that decay the most I'm getting into that later in this video but we just got two more and then we're all done I'll show you a live example we're gonna sell the stock and this is cool because if you own the stock you don't have to own it forever what you could do is wait for the stock to go up maybe go up a dollar two and maybe sell it at break-even and then just sell the whole stock and then repeat the process again shorts and puts but we can make money when the puts go to zero but we can also make money if we get exercised own the stock and the stock goes up because over time the stock market goes up there's a very small chance you're gonna lose money in the long run if you pick the right stock or if you're doing this with indexes I mean look this index straight up from multiple decades if you owned it for even a month there's a very small chance you're losing money so again if we sell the stock we make money and the last step repeat the process short puts maybe get exercised sell the stock for again and again and again again repeat repeat repeat passive income you go to sleep you don't have to worry about it because we're buying companies that are great companies if we get exercised now this is exactly what you wanted a lie example of the perfect stock I would be using too short put options with one stock I don't mind owning long term and options that decay huge every single day paying you the biggest bang for your buck so here it is here's my strategy this is zoom everyone's talking about it everyone's gonna be working from home in the future this is gonna be a stock this continually gonna go up so what I'm seeing with zoom is a lot of volatility as you can see from the chart this thing is completely stored went from $60 all the way to 200 since the IPOs inception so percent return just from the stock that's two hundred and forty percent so you gotta ask yourself do you mind having two hundred and forty percent return it ended up owning the stock that's not a bad deal honestly and this thing is straight up with the market conditions with what's happening with society I think the stock continues to explode so right now as you see the stocks at two hundred and seven dollars but this is the one reason why I'm using this stock over stocks like Chuy all these other IPOs beyond me they're volatile but I believe in this one a little bit more and it's newer so that volatility is gonna be a lot higher this works when volatility is usually over a hundred that's reflect the most income so these options right here the sell puts the 205 the 200s the 195 s if we click this the volatility is a hundred and eighty percent that's called Ivy that's gonna bake in a huge time decay for these option contracts so if I scroll down as you can see these options have an 82% chance of expiring completely worthless so if you're shorting it you're gonna collect a full three hundred dollars by the time Friday comes in three days if I scroll down this option decays a hundred and thirty seven dollars a day which is close to a 50 percent recoup on that capital you're trying to get so three hundred dollars it's the king about 130 that's almost fifty percent return right there and it has an 82 percent chance of expiring out of the money which is mind-blowing so again if we ever dropped to 180 for the stock the best part is because it's so volatile you're gonna own it at a huge discount this is gonna be a 10% discount may probably even 18 if the stock continues to go up but my point is the volatility increase gets you an even cheaper entry point if you have to exercise and have to buy the stock at a hundred and eighty dollars so again now many people have this capital it doesn't work for everybody there but that's $18,000 you need to actually do this strategy or you can go even further out of the money these 170s the 160s that means you don't have to put up eighteen thousand you have to put up sixteen thousand or fifteen thousand but you can do this strategy with any other stock probably with volatility around a hundred I would say a hundred percent Ivy that's a good starting point that means you're collecting more money and you're getting it a bit a better discount if it goes in the money and you get exercised but again if you believe in these stocks long-term that dip lower should just be a better entry point to hold the stock and make that ten percent if it pops back up to normal or eighteen percent now let's get into a little bit more technical analysis on how you pick the right strike price to do this strategy again you can be safer try to collect the ones that have a 95% chance of making you all that money or 80 or 70 it doesn't really matter it's up to you your risk tolerance but as someone who knows technical analysis I know when I look at a chart the levels I should be looking to short those options so as you can see right here on zoom' we have this wedge we completely broke out of to the upside so as a trader I do think we come back down eventually retest this wedge but in the meantime I'm gonna be using this wedge to sell some put options because I know we're not gonna fall underneath the wedge very easily we could do it but it's not going to be easy and as a trader I'm looking for places that aren't gonna be easy to pass so right here is 180 dollars so I'm only shorting options below 184 zoom so again a hundred and eighty dollars brings me in three hundred and five dollars for the next three days of this week if I go out till next week those June twelfth options if I go to 180 this one will bring me in five hundred and sixty dollars so again every single week you're collecting a huge paycheck with these volatile options and the best part is if you pick the right areas there's a very small chance you even have to own the stock but even if you do it's gonna be a great stock at a great discount so this is my best trading strategy make sure you like the video subscribe to the channel and if you want another in depth video on my best put option selling strategy check it out - the video to the right of me in this video I'm gonna teach you how to bring in not 100 but 200 dollars a week selling options risk free from someone who runs a professional options trading group stay tuned

Channel: Market Moves - Matt Giannino

Views: 138,560

Keywords: selling put options, selling put options for income, selling options, put options, option trading, selling put options strategy, selling put options on robinhood, selling puts, option trading strategy, robinhood options, passive income ideas, brokerage account, robinhood day trading, swing trader, option stocks, stock trading, beginner investing, day trading, delta stock price, stock market, robinhood investing, robinhood stock, covered call, iron condor, stock broker

Id: 7EW-xavXFdU

Length: 18min 29sec (1109 seconds)

Published: Tue Jul 07 2020