Make $8000/Month In Safe Passive Income Selling Covered Calls (Free Options Trading Course)

a financial adviser for pro NBA players recently told me the strategy he uses for multi-million dollar portfolios and you won't believe how simple it is and the best part is it works for small accounts as well which means that this one simple strategy can grow your portfolio and make easy monthly income no matter what size your portfolio is let me show you how this works I'm going to be using apple as my first example of many in this free course on covered calls and creating $88,000 month in income all right so first of all apple

right here I'm up $32,000 I have a big size position on Apple this is my favorite stock for safe passive consistent income and I'm going to first show you this example I'm going to use different expiration days and go over every single thing that I look for in opening a covered call position first I'm going to just give you a quick example then I'm going to explain to you step by step in five easy steps why I'm doing this in my whole thought process and then I'm going to show you the example one more time

and go over many different examples okay so real quick I would go to trade Apple options if I have 100 shares right I'll teach you about all that in just a second and picking the perfect strike price and buying the shares at the perfect time this is a real quick example and I'll explain to you if I go to sell call option and I go to let's say I'm going to sell the 230 which I already have a decent amount of covered calls sold here if I pick an expiration for November 15 go out you

know 5 to 6 weeks it doesn't matter when you're watching this video this the same thought process can be applied anytime time in the future if I were to sell this right here and if I just sell five contracts I can essentially collect $3,600 okay if I can sell 10 contracts I would collect about $7,200 in 44 days this along with several other positions in your portfolio can easily produce $8,000 per month in income all right now let me explain to you every single step the very easiest steps with all the details on why I

would do this how would open up a covered call Etc and then we'll go back to many more examples so here's how it works when you sell covered call you're giving someone the right but not the obligation to buy your shares at the price that you set in exchange for that you collect a premium cash that you pocket immediately the beauty of this is no matter what happens you keep that premium so if the stock stays below that price that you set the strike price you just keep your shares and you can sell another covered

call the next month collecting another premium it's like getting paid to wait for your stock to go up this is is the best strategy for having highquality companies that you love in your portfolio and making them work for you making these companies spit out cash flow via selling covered call options the key here is selling covered calls on stocks that you don't mind owning long term that you really enjoy having your portfolio and then just making them work a little bit harder okay so this way no matter what happens you're in control and you can

generate a steady stream of income each and every single month this strategy scales very well whether you have a small account or you're managing Millions like those NBA players that I mentioned earlier that financial adviser went to my college and I've learned a lot from him I've also taught myself a lot from working at Goldman Sachs and just experimenting with covered calls picking the best Deltas I made a lot of mistakes guys so in this video you have a blessing something that I didn't have which is a mentor someone that has gone through the tough

times the good times and everything else in between is going to show you everything that you need to know step by step in five easy steps uncovered calls and generating $88,000 a month in fact it's one of the safest option strategies out there because you're never risking more than the stocks that you already own and that's why it's perfect for beginners to generate safe passive monthly income and I'm going to show you later in this video that even if it goes into the money there's a lot that you can do like rolling that option higher

so here's what we're going to cover in this free course step number one own 100 shares of a stock step number two pick a strike price step number three choose an expiration date step number four sell the call and collect your premium step five wait for expiration or manage the position let's get started and go into step number one owning 100 shares of a stock this is the foundation of selling covered calls because well you need 100 shares to sell a covered call now this 100 shares you want to be very confident in the stock

and I always recommend in a lot of my videos to own between 10 to 15 stocks in your portfolio because owning 10 to 15 stocks in your portfolio means that you are Diversified without being over Diversified because if you have too many stocks you might as well just have ETFs so let's break down the logic and the best practices behind owning 100 shares a stock which is the very first step to running a covered call strategy each option contract covers 100 shares of a stock so in order to cover your covered call because it has

to be covered if you just sell a call option you have a lot of risk in fact unlimited risk never want to be in that situation you always want to be covered so to be covered and have your call be a covered call you need to own 100 shares of a stock if you sell a call without owning the shares it is very risky and it's called a naked call where you're obligated to buy the stock potentially on much higher prices again not recommending that our first step is owning 100 shares and that gives you

exposure into a stock that you like now here's the best practices okay this is really important the first one is you want to pick a a good stable company a quality stock start with large well-known established companies often referred to as Blue Chip stocks this can be apple which I showed you an example of in the beginning of the video it can be Microsoft it can be Coca-Cola it can be Johnson and Johnson it can even be a grow stock like Nvidia as long as you don't have more than 10% of your money this is

just a general rule and a general standard then you should be okay if the company has larger than a $5 billion market cap these companies tend to have very stable growth they sometimes pay dividends even Nvidia has a small dividend but they don't have to pay a dividend all that you're looking for is a company that is profitable it has a PE ratio companies that are not profitable don't have PE ratios because they don't have any earnings at all you want to pick a company that has a price earnings ratio and the lower that price

earnings ratio typically the better however be careful because not all stocks are the same and not all PE ratios are the same so sometimes you look at a stock like Nvidia here you can see on the screen that Nvidia has a high PE ratio it doesn't mean that Nvidia is a bad stock it just means that it has a lot of growth investors expect a lot of growth and therefore a higher PE ratio is Justified you do not want to run the strategy on highly volatile or speculative stocks that could tank or basically be very

unpredictable that's because if you want safe steady passive income of $88,000 a month very consistently without having to experience the highs and lows the highs are fun but the lows are definitely not fun if you want to actually retire just on this strategy which I think is very possible especially if you have a portfolio that you scale to six figures and Beyond then you want to focus on Blue Chip stocks you want to focus again on companies that are S&P 500 okay and ideally the top 100 stocks so Tesla is a good example also stocks

like Exxon Mobile okay oil and gas companies they can also be viable uh picks in your portfolio you don't want to run this strategy on highly volatile stocks that are have poor Brands poor cash flow lots of debt okay you don't want to run that strategy on these type of stocks you you want to run them on just the highest quality stocks number two okay we we went over the first step for owning 100 shares but I want to continue on getting the 100 shares because this is the most important thing the stock selection is

the most important thing you pick a good stock you'll make money in the strategy you pick a bad stock the strategy won't save you all right so number two uh you want to have a long-term investment mindset on the 100 shares that you buy make sure that the stock is one that you be happy holding for the long term even if you can't sell calls on it for a while let's say the stock drops a lot in value you can't always sell covered calls if a stock and we have a stock market crash which I'm

not in control of guys we can't control that or predict the future if the stock market Falls a lot you will still want to be comfortable owning the stock because you have a long-term investment mindset on the stock itself so if the stock market drops the stock drops you won't be able to sell covered calls for some time because it would probably be better to wait for a recovery if the stock market pulls back 10% or more in 30 to 90 days then in almost all cases because we do get really big and fast rebounds

I would not be selling covered calls because as you'll learn later on in this course that if you sell covered calls you have a risk of losing your shares and if you potentially lose your shares that are under your average cost although a lot of that is psychological it's still not really the best practice in many ways debatable okay so if your shares get called away or sold when the buyer exercises the call option you want to feel confident that you're selling the stock at a price that you're happy with okay so it's really good

to have a long-term mindset on the stocks that way you don't panic your 100 shares you're going to be holding and selling covered calls on a regular basis but if we experience a market crash or a pullback which can happen at any time all right it happens when you least expect it and I think we are in you know we could be in store for a pullback in the near future you want to be prepared for that regardless of the market condition so you always want to be in a high quality company that has good

cash flow good PE ratio revenue is ideally growing you do not want to be in a company where revenue is not growing okay just simply go to a you know like Yahoo finance or something like that and look at the income statement if it's growing that's all you need so here's an example of nvidia's Revenue and as you can see it is growing very fast so that's a very positive sign and that's why the price earnings ratio is higher now number three I want to talk about diversifying your stock Holdings because again as I said

getting into high quality stocks and buying 100 shares is Step number one so step number three in Step number one if that makes sense right in number one of buying shares you want to diversify the stocks that you're holding while selling covered calls on one stock is fine it's better to diversify across several sectors or Industries this way you aren't really overly exposed into one company's performance if you own multiple stocks you can sell covered calls on different ones at the same time maximizing your income potential while spreading out your risk I have several students

of mine who I do work one-on-one with I do Zoom calls and I give them my trades and I look at their portfolios with them handson I have several students that are in the it space and they work for the biggest companies you know fan companies meta Amazon Netflix Google Etc right and I look at their portfolios and often times see that they're running covered calls but they're doing it only on tech stocks please don't make that mistake if you work in a certain industry you actually want less exposure to that industry because your life

is already dependent on that industry you're already working in the industry you know if you work at Amazon it does not make sense for you to buy a lot of Amazon stock and to be similar companies like it just doesn't really make sense okay so make sure that you keep this in mind when you choose your 10 to 15 stocks make sure that you're picking different Industries that's really important for generating $8,000 a month with the covered call strategy safely and consistently is part of that safe component is you need diversity you can't just be

invested in one stock now I will make an argument that for me Apple is a really big position that I'm running covered calls on and I have 50% of my money in apple in my main portfolio out of my two portfolios my main port folio which I've been tracking on YouTube transparently and authentically with every single trade I've made I show it all the time my wins my losses I have tough times I have good times but we've got my portfolio from low six figures to multiple seven figures which is beautiful and the proofs in

the pudding that this is a very good strategy to use so be aware of that now number four within buying 100 shares of stock all right is know the stocks volatility all right more volatile stocks can provide higher premiums but they also increase your chances of losing that stock in the chances that the stock price might exceed your strike price leading to your shares being sold if you're comfortable with that it's fine but for beginners it's often better to start with less volatile stocks okay it's less fun because something like Nvidia has a lot of

volatility so it's fantastic to have Nvidia in your portfolio and I would say it's very useful as well as paler two stocks that I cover on this channel quite often I've been in for a number of years and I've made money hand over fist bicep over tricep we made so much money on it but it's still important to watch out for volatility less volatile stocks you can still collect consistent cash flow and premiums without worrying too much about your shares being called away let me show you a quick example let me show you guys an

example of different covered calls that I would have and I'll show you my portfolio actually so you can get a sense of where my portfolio is at if you're watching this video in the future to be honest with you my portfolio doesn't really change that much I'm always paying attention to the same stocks I get to know them on a very deep level and I just s covered calls on basically all of these stocks you'll see right now so I'll go over position by position you can take this with a grain of salt because I'm

not a financial adviser I'm just a guy that's made multiple millions of dollars trading options but again take this with a grain of salt use this on the stocks that you personally believe in more or feel free to kind of mimic and take ideas from me all right I organize my portfolio from biggest position to smallest position so right now my biggest position is Apple I am selling covered calls on Apple if I show you my positions on Apple I'll go step by step right now into each position and then we'll go into the rest

of this course I just want to show you examples so you understand we're talking about stock selection guys stock selection is very important and I'll tell you why I hold some of these stocks first of all apple apple is Iconic brand right I have I have an Apple iPhone I'm in Poland and this is also an Apple iPhone everyone has Apple iPhones right I've been across the whole world apple is one of the best companies because apple is a good company they keep having followup products they have a great brand one thing that I like

about Apple actually price earnings is reasonable dividend is reasonable it's one of the biggest companies but it still has good volatility the options are still H have good volatility so I'm selling 230 covered calls I'm selling puts as well I'm just doing covered calls all around and selling covered calls is really profitable like as I showed you in the beginning I mean you can make $7,200 just on Apple alone doing covered calls okay so biggest position for me is Apple now the second biggest position and this is controversial because a lot of people think that

you can make a lot of money on boring companies but that's just not true it's just not true it's a complete myth made a lot of money on Walmart so if I go into Walmart and I'll show you how to protect your gains by the way because I have a lot of covered calls on my stocks and I do not want to lose my stocks because I'm up a lot of money on them I'm up $175,000 on Walmart and I'm selling currently I have 81 covered call now Walmart is actually a little bit above 81

so this option is a little bit in the money I will be having to roll this option I'll teach you in this course later on towards the end because rolling is the more advanced topic it's really how to manage this position which is at the very end of understanding this whole strategy all right so Walmart I'm slightly in the money but I'm not worried at all I have not had a problem with covered calls for 7 years all right I've been trading for 10 my first three were a little bit rough and then my last

seven have been extremely profitable I've done very well enough to not have to work a day in my life again so I make these videos not cuz I have to I make these videos because I want to I enjoy it a lot love helping people a lot I love working with folks and that's why I became a one-on-one coach recently I got tired of just working with too many people I did get burned out even though I love this I now prefer to do one-on-one coaching calls and just like just helping folks like that so

Walmart is is fantastic PayPal has been very lucrative as well PayPal paler obviously has contributed a lot to my growth on this channel and to this portfolio a lot of these gains in the portfolio are from paler as well as Tesla all right so I'm just looking at the same stocks and for me low volatility Apple very low volatility Walmart PayPal is medium volatility Aller is higher on the volatility but it still is an option Traders Paradise it's just a paradise absolutely uh Target uh similar reasoning to Walmart I made a lot of money let

me just go into Target I made a lot of money on the options themselves specifically obviously my options have expired over and over when a covered call expires by the way just open up a new covered call that's all you have to do so I've had options expire over and over and over for Target over a long period of time I'm up $21,000 on the stock which isn't too much good gains for sure 25% returns but I made absolute killing on the options themselves you know what I can go through my history real quick just

for like transparency purposes and I also want you you guys understand I'm going to go to my history and we can just take a look it's been a long history of Target so you can see here have some dividends I have some covered calls I've sold more dividends covered call rolls we'll talk about covered call rolls in a bit I've been in this for a while October 25th 2023 which is forever ago it's like over a year ago or it will be at some point when you're watching this video will be well over a year

I was selling 109 puts beautiful I've done very well on target so and I'll also show you my watch list because you may have different ideas for what you want to buy so let me just go through this I respect your time let me just go through this I just want to give you everything I want to give you everything in this course so you understand on deep level covered calls so you got it all so you got it all and you understand everything Amazon obviously Amazon speaks for itself American Airlines guys this is a

top tier s tier stock that I think is fantastic just absolutely fantastic if I go into American Airlines this is the pattern that you want to look for when you're looking for a stock for covered calls you don't have to pick the best stock that's going to go up you have to pick a stock that's not going to go down that's something that I bet no one talks about you don't have to pick a good stock that only goes up you just have to pick a stock that doesn't go down is that powerful you can

make a lot of money in cash flow $88,000 a month for sure on good quality companies that don't even have to go up company can just stay the same and make money how awesome is that it's literally awesome like option trading gives you that safe passive income without a lot of risk and you don't even need the stock market to really move ah just love it just love it so look at this over the past 5 years besides it being right here American aines has really not done a lot it just goes up goes down

goes up goes down goes up goes down goes up goes down over the onee return it's negative but if you're doing selling puts and covered calls you're going to be acquiring shares of like 10 bucks and right here you would have acquired shares of n bucks so you can see here my average cost is $10.91 I have recently gotten out of the stock not because I don't like it but because I've made a lot of money on the wheel strategy and my covered calls the wheel strategy is selling puts to get in and then covered

calls to get out my covered calls ended up selling off my shares at a gain so I did lose shares and now I'm back in the stock and I'm looking to acquire more shares and keep selling covered calls this is literally a stock that I've been covering since 2020 been at this game for a long time and I've coached many students many students now I've coached a large quantity of students and now I'm focusing on more the higher more Hands-On approach more old school approach of working with folks that want to get to retirement that

want to retire and focus on retirement income and I think that covered calls is that perfect retirement strategy this is my higher risk play very small amount like less than 1% of my money Google very good since it pulled back Chipotle is a top pick for me and Adobe I have several 101 students that work at Adobe and I like what they're doing okay I like what the stock is doing a lot so other stocks that you can own and feel free to create your own list as I already mentioned the most important factors in

picking a stock you can look at Disney you can look at Nvidia for sure Microsoft is fantastic nit is see I wouldn't have meta right now in my portfolio the reason is because when I look at year to date it's about to be 20 to2 5 but the 64% return that it had in 2024 is just a little too much the Stock's at a all-time high and you don't want to do covered calls when a stock is on an all-time high you want to look for a stock that is uh well away from its all-time

high um unless it's in a really big bull run but I don't know if meta is going to continue the Bull Run Nvidia yes meta I have some doubts about but regardless this course is all about using the cover call strategy and you can use it on the stocks that you believe are really good again you don't have to listen to my opinions I'm just some gu with opinions right on the internet Chipotle is very good craft hindes is fantastic guys so look if you're trying to generate $88,000 or $10,000 a month you still need

some dividend paying stocks because when you sell covered calls on dividend paying stocks you kind of amplify and get a bigger dividend you essentially get dividends from the stock and then you also get upside because the covered call gives you upside and you get the covered call Premium how can it get any better than that right fantastic used to work at IBM I've had a lot of jobs in the past guys I've had many intern ships I've worked on Wall Street multiple times I've actually worked in tax accounting I worked at IBM I have it

on my watch list it's a high dividend paying stock they're not really growing a whole lot but I also have a lot of one-on-one students from IBM again I mainly work with medical professionals and Engineers that seems to be a majority of my students right but also any 925s a lot of 925s that want that safe passive income so they can leave their jobs right I really enjoy traveling the world and having Freedom time Freedom Financial Freedom location freedom I love freedom feels amazing I don't need to be a billionaire I don't even need that

much money you can live a fantastic life just selling covered calls it's really good so I follow IBM now Starbucks has been a very good money maker very good one I'll show you in the bonus material at the end of this course more about Starbucks and different strategies like the poor man's covered call but in general selling covered calls for income on Starbucks I think is pretty good especially it's under $100 new CEO there's a lot of good stuff coming for Starbucks now I would not do covered calls on you know HS for example or

sweet greens so these are more volatile companies and these would be more for advanced Traders now you know maybe intermediate Traders as well I wouldn't do that I wouldn't do it on any China stocks I would just literally do it on Blue Chip companies okay so Nike Nike's down a lot today now check this out the Market's not open just yet but when the Market opens up I'm going to be doing a covered call on Nike you want to look for a stock that has pulled back when a stock has pulled back and you do

a covered call you get a better entry price you get a better entry price you don't want to buy it at alltime high looks like Nike went up a lot and now it's pulling back down this is a very interesting pattern Nike was a $122 stock now we're at 82 so I would say that this is a great time to sell a covered call so um just for an example and we'll talk about strike selection in just a moment but typically I like to pick strikes that are just slightly out of the money at a

30 Delta so if I were to go for an expiration date like in October or you know let me just go for something like closer to 2025 like January I usually go for like a 30 Delta so if I expand this option right here this is still a high Delta actually wow it's very high if I go for the 100 30 Delta right there this right here would be a really good return $282 and you get a lot of upside so this is how you can make $8,000 a month is on Nike if Nike goes

to $90 per share the next you know 3 months or so you essentially get $800 plus you still get to keep the premium of almost $300 you make over $11,000 on just one contract on Nike on a safe play that's how the covered calls can stack up in your favor so look I want to cover the last thing about buying shares and then we're going to move on to step number two I think I've made my point here on how to pick stocks and select them so look it's important to understand dividend impact some stocks

pay dividends which can be a great way to earn extra income in addition to selling covered calls however you'll want to keep track of the Stock's X dividend date if a call option buyer knows the dividend is going to be paying out and it's coming they actually might exercise the option early to capture that dividend meaning that you could lose your shares before the payout by following these best practices you'll make sure that the stock that you're selling covered calls on fits your overall financial goals while minimizing unnecessary risks the last thing that you want

is a stock that sh up a lot of money on and if the option is in the money and it's ex dividend date there is a heighten chance of getting exercise which is why it would be better to close out the covered call however it's always good to remember that the primary reason for owning 100 shares is to control is to control the 100 shares and once you're in the money you don't really control as many shares I'm going to explain that in just a moment it's always good when the option is out of the

money on a covered call you're turning your stockh holding into an active income generating asset while managing your risk okay once the option goes into the money it's not really providing you as much income anymore what that means is when a stock goes beyond your strike price on a covered coal it's usually smart to start thinking about closing that position and we'll talk about that and managing your risk now finally let's go into step two we understand owning 100 shares all right you sell a call option on your 100 shares okay we we understand the

100 shares part but now let's talk about selling the call option part once you own 100 shares of stock the next step is selling a call option that means that you're selling someone someone else the right but not the obligation to buy your shares at a set price called the strike price within a specific time period called the expiration date in exchange you collect a premium which is your income from the transaction let's dive into the logic and best practices for this step here is the logic of selling a call option when you sell a

call option you were agreeing to sell your stock at a certain price if the buyer chooses to exercise the option the buyer will not choose to exercise the option as long as it's below the strike price if it's above the strike price that doesn't mean that the option buyer will automatically exercise there's many different conditions okay the premium that you receive is your compensation for taking on this obligation if the stock doesn't reach the strike price by the expiration date the option expires worthless and that's a good thing you get to keep both your shares

and the premium if the stock does hit the strike price your shares may be sold but you still need to keep in mind that the premium is yours regardless and you also sell the stock at the higher price that you have bought the stock for so let me explain if you bought a stock for $100 and you sell a covered call at 110 what that happens is you sell it at 110 it's not going to be sold off less than 110 and at 110 it also doesn't mean that it's going to be exercised right away

it's only going to be exercised basically at the last day towards expiration okay or maybe the last couple of days what does that depend on it really depends on the volatility it also depends on the Delta typically if the Delta is very high in the options very in the money I'm going to tell you right now and later in this course it's def definitely better to close out a position a short call option to not lose your shares if the Delta is above 70 okay if it's above 70 you definitely want to close or closing

is very simple or roll which we'll cover later so here's the best practices for selling a call option so now we're in Step number two and we're going to talk about step number one and step number two all right so step number one is you want to choose a strike price that fits your goal if you don't want to sell your shares set a higher strike price above what you think the stock will reach by expiration okay the stock will likely stay below the strike price so you can keep your shares and still pocket the

premium so let's say that um we're going to take a look at uh Nike we were talking about Nike we see that Nike is at $82 $82 per share when I sold the $100 covered call as an example I don't think Nike is going to go to 100 so that's why I'm selling the 100 covered call is because I think that'll stay below 100 and that's why I would use this covered call option right here on the screen if you're okay with selling your shares pick a strike price closer to the current market price the

option is more likely to get exercise meaning your shares may be sold but you're also going to collect a higher income the reason why you collect a higher income when the option is closer to the current price is because there's a bigger chance of it going into the money and because there's a bigger chance you get paid because there's a bigger chance because you're taking on more risk and because you're taking on more risk you get paid more premium Now number two within step number two is selecting an expiration date wisely a shortterm or a

weekly or monthly expiration date is preferred okay so selling options with closer expiration dates allows you to collect premiums more frequently but those premiums are typically going to be smaller but that's okay because you can collect them on a more frequent basis now a long-term or a long-term expiration so selling longer term options called leaps typically provides larger premiums UPF front right away but you'll be tied up in the contract for a longer period of time reducing your flexibility there's absolutely nothing wrong with that I have many students who are busy Engineers doctors lawyers medical

professionals and they don't want to look at their portfolio all the time and actually research shows that investors that look at their portfolio less often outperform so there's actually was a research study that showed that teachers Preschool teachers kindergarten teachers they had bigger returns than financial professionals working on Wall Street because they made less decisions so I think there's absolutely nothing wrong at all to sell covered calls that are 30 days out 90 days out even 6 months out as a beginner shorter expirations 30 days or less are a good place to start because they

give you basically faster learning you get to see how to open how to close and how a position works out but as you gain more experience and as you have a bigger portfolio and as you get into retir it's very easy to just sell options that are 30 to 90 days out for regular income that's where I make a lot more than $110,000 a month in income but that's where a lot of my students are making um their desired incomes you know for their retirement needs within a reasonable amount you know I have students that

have few $1,000 portfolios and they're easily generating a five figure amount with six six figure portfolios so as a beginner I will say that it is actually good to go for shorter EXP expiration dates because you have faster learning not necessarily because shorter term options are better than longer term options okay now the next thing I want to talk about is understanding moneyness I mentioned already out of the money in the money okay and out of the money option is a strike price that is higher than the current stock price okay you know looking back

at Nike if you look at the current price of 82 or you know thereabouts anything above 83 84 85 uh 90 100 that would be considered an outs of the money option now I want to go over and at the money option and show you guys some examples I'm going to show you an at the money option and an in the money option okay let's start with actually in the money because if I go to my total return if I go to a stock where I have a covered call like we can actually choose Walmart

Walmart is currently at $812 my covered call is at $81 so this would actually be an in the money option because Walmart is above my covered call so I'm up a lot on Walmart $175,000 but I'm slightly down on the option itself so it's going to be important for me to manage this position once the Market opens up not even necessarily today this is actually not that big of a deal because it's very slightly in the money and as I just mentioned it's only important if it's a 70 Delta and if I go into this

option it's only a 55 Delta so it's not yet really that much of a risk um but I will still want to transition and kind of roll this option and and adjust it just make a slight adjustment so this would be an in the money option at a not at risk in the money option okay I don't have any high risk in the money options right now but hypothetically if I had let's just go to Adobe real quick I think I'm doing good on Adobe 535 so I'm doing good on the option I'm down on

the stock but let's say that the stock shoots up to $600 per share okay and I have a 535 call that would be a deep in the money option and that would probably be a 70 Delta or higher so I would really want to close out this option otherwise I would risk the chance of losing the shares which I wouldn't really mind I would not mind losing it because take a notice here my average cost is $534 per share and my Adobe covered call is at $535 so the Adobe covered call is higher than my

average cost so and I collect a premium I wouldn't mind at all now there's another term called at the money option and at the money option is basically a strike price that is very close to the current stock price so the current stock price of adobe is 54 and if I were to sell a covered call at 505 this is technically out of the money but we can also call it at the money so ENT that's the difference between out of the money at the money and in the money you always want to start off

almost 99% of the time by selling outs of the money options this gives you upside this also gets you income and it gives you very low risk now I want to talk about balancing Premium versus risk higher premiums often come with greater risk like having your shares called away from you if you want consistent income while holding on to your stock opt for slightly outs of the money options like I said out of the money options are going to give you that upside and give you like lower risk of losing the shares which offers a

good balance between premium size and the likelihood of keeping your shares very important Point consider implied volatility or IV stocks with higher implied volatility the expected movement of the stock offer larger premiums because there's a greater chance of large price swings however this also increases the chances that your stock price will hit the strike price leading to your shares being sold for beginners it's better to avoid highly volatile stocks and stick to more stable ones as this will provide safer more predictable premiums monitor your stock and options regularly once you've sold a call option keep

an eye for the Stock's price movement you don't have to do this every day but if it goes into the money that's when you have to pay attention if the stock price approaches your strike price you'll need to decide for yourself do you feel comfortable do you think the stock will continue in that direction because if so it might actually be wise to close before it goes into the money remember if a stock goes into the money with your covered call it's actually not that much of an issue if you're happy to sell the stock

at that price anyways it's only really an issue when you have a really big gain and you don't want to pay taxes in that case you just want to close out the covered call and sell a new covered call and I'll show you the process for that later on now this is also very important because selling a covered call this is like this is the bread and butter right here don't sell a call right before major events okay avoid selling covered calls before earnings reports dividend payouts or other significant news events that could cause the

stock price to spike or for the stock price to drop because if it's going to spike you are going to underperform okay I love options I made millions of dollars trading options I teach options but even myself I will tell you it's not worth selling options if a stock spikes and it goes up by % it's not smart to have a covered call you better just ride the stock now if it drops you probably ideally want to avoid that event obviously the stock market is not predictable yeah having covered calls actually before drop is very

can be very smart because you're giving yourself a margin of safety so for example let me show you let's take a look at when Adobe has earnings we'll just take a look at Adobe as an example so if I scroll down here so let's say that we're going to sell a covered call that captures earnings could be okay and I'll tell you when it can be okay so if I go for December 20 which would capture in the earnings let's say that your strategy is more for income you don't really care too much about upside

you can go right here at 505 which would be an at the money option you can collect $33,000 on this covered call and if it goes down I mean you couldn't predict that obviously you shouldn't be in the stock if you think it's going to go down but let's say you're 50/50 you don't know this covered call would provide you a good source of cushion $3,000 worth of cushion you can think about it as subtracting $30 off of the price so essentially you're buying the stock for $474 per share so you get a good cushion

so actually kind of like covered calls before earnings because the volatility is higher Therefore your income is also Higher by following these best practices you maximize your chance of generating consistent income while keeping your risk manageable the goal is to strike a balance between premium income and the likelihood of selling your shares giving you control over the stocks portfolio while earning steady passive income so I hope this course is giving you a lot of value if it is I hope that you subscribe and use this course to actually make consistent income and get to five

figures plus per month and income so after you have sold a covered call the next step is managing your position this means monitoring how your stock and the option are performing and decide whether to hold on to the position let it expire or roll the option to extend your profit potential let's dive into the logic behind this and the best practices for managing your covered call position here's the log IC of managing your covered call position once you sell a covered call your goal is to either keep the premium while retaining your shares or to

sell the shares at the strike price for a profit however things don't always go according to plan which is why managing your position is very crucial if the stock price approaches the strike price or moves unpredictably you need to make an informed decision to protect your capital or increase your income the main decision you'll face is whether to roll your option this means buying back the option you sold and selling another one with a new expiration date Andor a new strike price rolling allows you to adjust your strategy without closing out your stock position here's

the best practices for managing your covered call position first you want to monitor the Stock's price regularly if the stock price is approaching the strike price you need to assess whether you're comfortable selling the stock at the price or if you'd prefer to keep the shares and roll the option to a higher strike price or a later date keep an eye on the news or events that might cause a significant price move such as earnings reports or economic data releases although I personally don't do that myself because I think that a lot of this stuff

is priced in or not really foreseeable I think it can be very helpful for understanding your covered call risk which is also very important in and of itself set a profit Target for the option premium if the value of the call option has decreased significantly say 50% or more of the premium you originally collected you you can buy back the option early to lock in a profit and close the position and just take your profits at that point this reduces your risk of the stock price hitting the strike price and it gives you the flexibility

to sell another covered call now avoid holding on to the option until expiration if you've already collected most of the profits this can be tough to determine but let's say that youve sold a covered call that's out 6 weeks and on the third week halfway in you've already made a profit of 90% in my opinion it doesn't really makes sense to hold a covered call for three more weeks which is half of the total time for 10% of the profits so closing out early can kind of minimize your risk of unexpected price movements upward but

also taking a large profit early giving yourself basically the opportunity to sell another covered call for more money is a really smart move next you want to roll the option if necessary if the stock price is close to or above the strike price and you don't want to sell your shares you can roll the option by buying back the original contract and selling a new one for a higher strike price or a further expiration date now rolling gives you the flexibility to keep the stock collect more premiums and adjust your strategy based on the current

market conditions this is especially useful when the stock price is rising steadily but you still want to maintain your position you don't want to lose your position yet you can roll and adjust the strike price let me show you an example of what that looks like in my portfolio so what you can do is say that I have a covered call on Walmart so the Market's about to open up and here's the exact trade that I'm going to make it's a very simple trade so Walmart I have a 81 covered call and the stock is

at 8116 so this is literally the perfect timing for me to roll this option higher so on Robin Hood it doesn't matter what brokerage you use they're all just Vehicles they do the same thing not an expert there you can roll this option from 81 right in just one click I just clicked roll option I can roll from from my current 81 position and this expires on October 11 which is like really really short term and I can roll it out for 1 month further okay so I can go from October to November if you're

watching this in the future just copy and paste this logic and do this for yourself whatever month it is roll out by about 30 days or so so I can go from 81 and I can roll this higher to something like 82.5 and this is an absolutely amazing roll this is like money right here so look I can move from 81 on a covered call to the 822 covered call okay I'm moving out by about 30 days I'm actually going to get paid $474 by Rolling this position out and up okay let me explain to

you what that means if I roll it out that means I'm going from October to November or any month to another month so I'm rolling out by 1 month and I'm rolling up from 81 because currently Walmart's at 8116 so it's just a little bit in the money I can roll this option up from 81 to 82.5 giving myself an extra 1.5% of upside that is remarkable if this wasn't reason enough that you could make a lot of money trading covered calls for safe passive consistent income I don't know what is this is literally the

number one strategy and even when it goes into the money here's the best way to fix it you just move up you go from 81 uh here to 822 so this completely fixes my position it actually makes me $474 and I'm only having to wait one month that's exactly what time has to do with option trading this time that I'm adding to this option completely changes the profit of the option by a lot okay so I want you to pay attention to time Decay or Theta because as the option goes to expiration as the expiration

date gets closer the value of the option will decrease due to time Decay which is a good thing because when you're selling options you want them to decrease in value you want to sell them expensive and buy them back cheap this option works in your favor as a seller since the options value roads over time in the last week before expiration time DK accelerates which is a great opportunity to capture profit and a lot of people like to sell shorter term options so if we actually look at my portfolio I do have a covered call

on Apple for um very short-term expiration which is actually completely okay it's currently showing me as a loss don't be shocked or worried if your covered call is a loss unless it's in the money apple right now I have a 230 covered call but it's at 225 it's currently out of the money my option is showing a current loss now why would that be the reason why is because Apple has gone up and I have made money on the stock itself but the option is is more likely to be at 230 and because of that

higher likelihood the option has become more expensive it has gained value and because as an option seller when an option gains value it's actually a bad thing for you because you want to sell expensive right but this became more expensive so essentially it has gone against us slightly but I'm not worried at all it's still out of the money absolutely nothing to worry about and actually this option has extremely high Theta very high Theta each contract here is going to lose about $37 a day and I have 57 contracts so if I do the math

it's like $2,000 or so it's like $2,000 a day which makes a lot of sense because this option is going to expire in a couple days worth about $4,400 out of the money and two days from now to make $4,000 which is about $2,000 a day so I hope this is really starting to make sense to you that selling options covered calls for income is a fantastic way to retire generate income that's safe and this is exactly how options Works um you sell them you give it time they expire out of the money and you

do it all over again they go in the money you roll like I just showed you here on Apple I'm excited I think this is going to work out very well so I always pay attention to time DEC um and I know this option is safe I just know it because we're out of the money it's at 225 it's at 230 if it goes to 230 I'm going to do do exactly as I just showed you on Walmart I'm going to do exactly that so I'm going to roll it higher I'm going to roll it

out in terms of expiration date and up in terms of expiration strike price in the last week before expiration time DK really accelerates you can see how I'm making $2,000 a day on Apple so it's no surprise that you can get $8,000 a month with a smaller portfolio you don't need to have s fig portfolio to make this kind of money you just need to have multiple different positions and count the time Decay and scale up and grow your portfolio and this works in your favor because as a seller of the option the value that

decays every day is the value that you make so the last week before expiration time Decay really accelerates which is a great opportunity to capture profits if the stock price remains below the strike price now the next thing that you want to be very aware of uh with this strategy is decide what to do if the stock is near or above the strike price if the the stock is trading close to or above the strike price as expiration approaches you have several options I've showed you several of them but let me go over them in

detail first of all you can let it expire and sell your shares if you're happy with the strike price and profit you'd make from selling the stock you can let the option expire in the money and just you know you'll sell your shares you'll be ass signed you'll lose the shares and that's fine you'll lose them at a higher uh price you'll make money number two is you can buy back the call option and keep your shares if you don't want to sell the shares you can buy back the call option usually for a loss

but this allows you to retain the stock okay so it's not a problem to to buy back at a loss I can buy back this covered call right now for $1,000 loss but I'm up like hundreds of thousands of dollars on Apple so it's really not a big deal now the next thing is you can roll the option which is probably the preferred strategy for me if you're in a rising market and you still want to keep the shares rolling the option to a higher strike price allows you to potentially collect another premium and keep

profiting from the stocks appreciation so I always pretty much 99% of the time prefer just to roll okay I roll all my options so I showed you an example on Walmart an app I would just roll from 230 to 235 here's actually a 235 covered call on Apple that I'm up $100 on here's a covered call on Adobe I'm up $535 on Adobe some my one-on-one students that I work with I do I do Zoom calls I give them trades I they have unlimited texting with me a lot of them work at at Big tech

companies so Adobe is one of them and I I really like Adobe a lot so um the total return here is $657 on covered calls and Adobe and I'm bullish on it I want to acquire more shares but it is very expensive even even for me Adobe is quite a quite an expensive stock to do 100 shares of which is why later on in this video I'll show you how to basically improve improve that situation and not be in that situation of having to put up um so much Capital other stocks I would basically go

for right now one of my top picks is going to be Chipotle and on Chipotle I see if I have a covered call going on right now I believe I do so I have shares at $55 per share and I have nope just more i' I've sold some puts cuz I want more stock as I mentioned if you're really bullish on a stock you don't actually want to sell covered calls you want to wait for the stock to appreciate in value and then sell covered calls when you think it won't appreciate too much more which

is why I don't currently have any covered calls on Chipotle but to be honest with you I could easily and I may sell some if I go to sell call and I go to an expiration date that's in January I can easily go ahead and sell a $60 covered call here and I have 1,000 shares so if I go for 10 contracts 10 contracts would be ,000 shares $3,000 $3,000 you can see how collecting premiums really really adds up and uh this would be opening up a new position but you know rolling is essentially closing

a position and opening up a new one now something that I would never do is I would avoid chasing a stock if the stock is moving quickly upward don't panic and don't roll too aggressively into a higher strike price selling too far out of the money can reduce the premium that you collect and limit your income potential keep a very measured approach and stick to the plan okay evaluate the opportunity cost don't just go ahead and roll options too aggressively if the stock price has risen significantly above the strip price and you've already made a

good return it might be worth letting the stock just getting called away and realizing the gain you can then reinvest the profits into another stock where you can repeat the covered call strategy always weigh whether keeping the stock is worth more than taking the profit and moving on to another opportunity so paying attention to opportunity costs is very important and reassessing your position after expiration so often times these options will expire out of the money like Chipotle I have made money on covered calls I don't have any covered calls right now and have shares and

I'm reassessing my position after I've had expiration and I'm thinking to myself should I open up a new position or not once the option expires either worthless or in the money reassessing the stock a strong long-term investment if it is and you think it's going to rise a lot in the short term then don't sell a cover call but if you don't know which is most of the time we don't know as investors we cannot predict the future no amount of news or research can really help you predict the future no no good investor knows

not even the billionaires so that's why I prefer to always be selling covered calls I am always selling covered calls guys I really believe in it I have all my money in covered calls and I'm also doing other strategies in my portfolio of course and videos that I cover on this channel in fact if you want a video on selling puts um I made a course on selling puts I don't know if it's out just yet but if it's out check out in the description it's a full course on selling puts for income very similar

to this video so uh you want to reassess for yourself is it uh does it makes sense to sell a um a covered call and most of the time I think yes as soon as my position expires on Friday right you know the expiration happens 400 p.m. on Friday and you know in the morning or whatever Saturday the options typically settle Monday morning when the options Market opens up and the Stock Market opens up you have an opportunity for yourself to say hey do I want to sell another covered call and for me I almost

immediately sell another covered call uh to keep generating monthly income I did mention I'm a one-on-one coach but in all my one-on-one coaching Discord and group coaching is included in the one-on-one coaching so I have Monday calls and that's where I'm basically selling put options and covering covered calls and all the other strategies I use and every Monday when I have shares that are uncovered I'm typically selling covered calls because I want to make income I depend on the income by the way I do have a high income I I have multiple businesses and I've

been very successful and God has blessed me with the knowledge and the ability to learn quickly and to to make good things happen in my life so I'm very thankful and blessed and grateful um but I try to basically spend around what my income is from the options Market which is pretty high so I can't really spend that I do donate my mom's animals and stuff like that I just want to say that you want to grow your portfolio steadily and the money that you generate it's either you can reinvest it or spend the money

the income that is made and generated is meant to either retire and and spend or or to continue to reinvest and grow your wealth so I do I do a lot of both of those things I either reinvest or I you know I find something to to use the money for and uh either for my personal reasons or for you know lifestyle whatever so if the stock if you pay attention to the covered calls that you're doing you should have again 10 to 15 covered calls that are generating income and if each position can generate

$1,000 a month or even every two months right 10 to 15 stocks is 10 to $15,000 every one to two months something around that range right so also pay attention if the stocks fundamentals have changed I said that I open up covered calls every Monday morning but I pay attention to covered calls if the fundamentals have changed you know I see some stocks in the portfolio that can pull back a significant amount if it has changed I will aggressively sell covered calls now let me actually quick look at my total return for my positions I

have mainly good positions kind of embarrassed to say this but I made a mistake on Snapchat all right so it's a very small position luckily I don't make big mistakes I'm very good at what I do been at this game for 10 years and very good at what I do but I'm not perfect I'm I'm only human I uh put a small amount of money into Snapchat and it went down a lot so I will be selling covered calls actually the Market opens up very shortly so I'm going to show you an example of selling

a covered call as the Market opens up here in couple minutes I want to give you some more tips on managing your wealth and then I'm going to make a trade here which is going to be below my average cost now I'll be honest with you um this is very interesting because it has to do a lot with psychology but um in this present moment I'm okay selling a covered call below my average cost right below my average cost of 1429 I'm okay with that because at this point in the moment I want to make

money my average cost is actually something that's old and it's psychological it doesn't really matter if I sell my shares above 1429 or not the only thing that matters is if I get good results every single month in consistent income right so if this meets my consistent income needs then it's okay to go below the average cost because average cost is a something in the past it's a sunk cost okay a sunk cost from economics give you this quick story while the Market opens up a sunk cost is very important to be aware of because

your average cost doesn't truly matter as much as you thinking matters if you bought a train ticket then you're going to New York City you lost a train ticket you're not you're going to have to buy another train ticket right that train ticket that you lost is called a sunk cost okay same thing with the average cost I really view it as a sunk cost although it's interesting for me to look at because from an ego level right we all have egos and we all have like psychological emotions right that drive us both in our

personal lives and our financial lives it's important to be aware of this because most a lot of my students even the smartest ones the doctors the lawyers business owners my typical student who has over $50,000 to invest they still fall for this trap where they're not selling covered calls for income because the stock is below their average cost I don't personally believe that so let's actually go into the trade because we have uh what is it like less than 60 seconds before Market opens up so let me open this up right away by the way

first thing in the morning options are more volatile but if you're selling options that's not necessarily a problem I have average cost of 1429 I have 3,700 shares I'm going to go to trade snap options I'm going to sell call now I said that I don't mind going out a little bit further in terms of date I'm retired myself uh I enjoy what I do so I continue to work but by choice so but I do prefer monthly options so I'm going to go for a November 1st expiration day here November 1st okay I'm going

to go ahead and just sell a covered call the premium here is very high this is very good so look you might think to yourself am I scared to sell at 11 and A2 yes and no so from one perspective I don't really want to sell snap at 11 and a half but from another perspective this is a dollar away I would make $1 per share and then I would also collect $49 of income so I'm going to go ahead and do this on all 37 of my shares wow the bid ask spread is awful

this is a very bit bad bitas spread very bad now this is not good I cannot sell the November 1st this $49.99 is really bad so I'm going to go for and that's also because it's an 11 half strike it's not it's not as popular so I'm going to go for a January 17 2025 covered call so here the bid ask is 78 and 113 that's better and here it's 113 46 not bad this is a really high income I'm not going to sell all 37 my contracts I'm just going to go for 17 which

is basically like a two grand return and I'm going to go for 1 Point 1.2 I'm trying to be quick with this video and not waste time so I'm going to go for 1.2 but just so you understand I could go for 1.25 and likely get filled for more but for the purposes of this video I want to make it quick so I just kind of lost myself $5 time 17 which is like $85 so hope you leave me a like and a subscribe for that but it would have been smarter if I would have

went for like a higher limit price but doesn't matter uh I just collected some income about $2,040 on Snap by doing a covered call so yeah it's very good to sell covered calls for income and the average cost doesn't always really matter so if the stocks fundamentals have changed or it no longer fits your strategy consider selling it and moving on to another stock I'm not married to anyone's stock I am just trying to get monthly consistent results for myself and for uh my students because that's all that really matters we care about risk money

return and time here so manage and assess your risk this is very very important if the stock goes above the strike price you might get a sign early meaning your shares will be sold and that's important to pay attention to but if the stock has pulled back a lot you may still want to sell covered calls that are going to be out of the money while rare this can happen particularly if the stock pays a a dividend or there's an event or dividends don't really affect the stock that much but you get what I mean

things happen in the market and you want to be prepared to understand all scenarios and when it makes sense to sell covered calls I've showed you multiple scenarios I'm going to show you another one but I first want to say that it's also very important in this stage of selling the covered call to stay disciplined covered call writing selling covered calls is a steady long-term income strategy avoid the temptation to chase big returns by taking unnecessary risk stick to high quality stocks and manage your trades in a way that prioritizes steady income and capital preservation

by following these best practices you'll be able to manage your covered call position effectively adjust when necessary and maximize your income while protecting your Capital how awesome is that just everything everything that you could hope for in making money trading controlling risk whether you're dealing with a rising stock a falling stock or a sideways Market discipline management ensures long-term success with covered calls now with that being said let's go over several covered calls in my portfolio and I want to review them and teach you from real practices okay so um because the Market's open we're

going to have a fun time and put some of this money to work and yeah let's make it happen all righty so we're in my live trading portion I want to go to my account real quick I want to go to investing and uh let's see how much cash I have so $245,000 okay I don't know how many trades I'm going to make my videos are typically unplanned let's see what kind of opportunities I can spot first of all I want to look at my watch list and just look for a stock that I like

Chipotle is a stock that I like so likely going to do Chipotle I'm up very little bit of money on it I don't know why it says pre-market but the stock markets open so I'm going to go for shares I'm going to I'm going to buy 100 shares here I'm going to review and buy so I just bought 100 shares uh there we go so I just purchased 100 shares and I currently don't have any covered calls as I kind of mentioned I think tripol will rise but I'm not against selling some 60 covered calls

on it I will go for a November 15 expiration again if you're watching this in the future just copy the logic and the teachings here yeah hope that this is really helpful for you that's really my mission and um yeah that's really what I want to do I just want to help create passive income and steady income for everyone so 60 covered call very good because it gives me good upside and I just bought it for obviously like $56 so if it sells for 60 I'm totally fine with that I have 11 uh contracts so

I'm going to go for all 11 and this will be uh good return I'm going to go for 1.7 although I can go for 1.75 but I want to get filled for sure and not waste any time in this video so I'm going to leave some money on the table like 60 no $55 I left on the table there play around with a bit ass spread you should go somewhere in between so I just went for um the bid which basically guarantees me a quick quick fill right but um could have went for $1 175

anyways I collected uh $1,869 there there I on all my shares of Chipotle so just being honest like that wasn't from the one contract it was from 11 one contract would have made me $170 when it made me$ 170 that is good that was a good trade there we can track how much income I made the bottom pretty good go and see what I can do with another stock by the way just being honest with you the premium collect isn't realize just yet it has to go to expiration obviously Starbucks is a good stock I

don't have any of my portfolio it's been a while since I've traded this stock so I'm going to go ahead and buy 100 Shar of this stock just showing you how this works so review the order so first you buy the stock so there you go I bought 100 shares and now I'm going to go to trade Starbucks options and just go to sell call I can go shortterm I can go medium-term I do like 30 to 90 days so let's just go for 30 days and um oh my goodness I'm turning 30 basically at

this date Halloween November 1st I'll be 30 H 30 days I'll be 30 H well I take care of myself keep making money and keep teaching doing what I love can't control that right can't control as you age but yeah so sell the 97 covered call I'm going very close to the money guys because um I don't know if Starbucks is a great bargain right now at this price level it's definitely not bad um but by going close to the money I get good income and I get a decent margin of safety so I'm happy

with this this is a 50 Delta there's no volume today but there's open interest of 159 ah the bid ask is it's kind of bad though no I don't like the bit ask here that's because I'm going for a weird expiration the third Friday is the best expiration it's the typical standard expiration so third Friday is going to be better we're going to go for the third Friday and you know what I can go for the 95 covered call so this is going to be interesting I said that going out of the money is good

but if you want that that really steady safe passive income then you can go for an in the money option there's nothing wrong with in the money options why this would be good is if Starbucks pulls back it's not really that much of an issue for me I'm still pretty good because look if it it's if it's above 95 I'm going to sell it off I don't mind my break even is 100 here I'm guaranteeing myself 100 Exit point but if it goes down it's fine I'm going to be better off than a stock investor

because a stock investor would lose money here I also lose money if it goes below 995 minus what I collect five so my break even here on the top end is 100 so I guarantee myself 100 Exit point and I guarantee myself an entry point of around $898 cents amazing that's because um a 95 is basically the where I would have to sell it and I'm collecting 500 I'm not really liking the bid and ass spread too much and I'm not going to put 515 for the bid as spread because I can I'll show you

an example I can probably easily go for 5.4 see it says medium fill likelihood medium all right so I can go for 5.35 let's see if I get filled here so let me go ahead and submit this right now so I've submitted the trade and I got filled for 540 basically $539 97 so add that to the premium collected these are not big positions and these add up if you have 10 of these positions this would be $5,000 a month that's not really I'm not investing crazy amounts of money on this one so there we

go let me see what else I can buy right here so we have two trades we've made over something on the bottom here some good income all righty let's take a look at what other positions I can do Palance here guys we made a lot of money but I'm sorry you've kind of missed the boat not very expensive but it's getting more expensive I haven't traded Square for a very long time so Square could be something that I might look at let's take a look at the one-ear return turn we do have pretty good support

here we can see how there's a huge bounce at $57 and now it's at 65 I do follow this stock I know cash app is pretty strong so I will do a sellp put I'm going to go very safe here I'm not going to go for nothing crazy I'm go for November 15 oh darn I'm used to selling puts up right away I'm used to selling puts right away usually I run the wheel strategy button it's the same thing coverboard call right off the gate is also good let's go ahead I'm going to do uh

shares okay I'm going to do 100 shares here I'm not trading crazy amounts of money and you can definitely get to five figures a month if you have six figures but even if you have less I mean this is a great way to skill your portfol I have a 65 average cost I'm going to go to sell call I'm going to go for just a yeah I'm going to go for the November traditional expiration the third Friday all right and then I'm just going to go for 65 right at the money collect $5 of income

big money big money the bid ass GE is phenomenal 5.25 5.35 that's a beautiful bid ass spread again I can go 530 but I'm not trying to waste time on this video so there we go I got filled good stuff so we're going to add to the screen we made another $525 beautiful beautiful all right so I showed you a little bit of a mix of like my old strategies oh by the way look at that look at that guys the market opened up look at that Theta oh Theta kicked it oh Theta just kicked

this options butt look at that I was just showing you guys like what 10 minutes ago 15 minutes ago how I was down, 1300 on this position but today Theta is oh Theta is coming in like a I don't even know like like a professional athlete just smacking this option on the face this option just completely exploding in value decaying like like it's going to the graveyard that's some quick money I was showing you earlier in this video this option was 4,400 now we're at negative $2,000 so I made $2,400 in one day on this

option so things are looking good and guess what it's because the option isn't going to 230 so on a covered call when the option doesn't go to the strike price time kills the option it kills it and when you're selling options that's a good thing right I sold this option 21 hours ago so I guess I did on my live call I did this very recently so goodness this is only one day I'm already up $1400 so a little bit of volatility but hey this is this is looking beautiful this is exactly how you want

to trade okay so that's up all right so I've showed you guys some ways to on Old positions on new positions now I still want to open up another option trade here let me see I got to do one more option trade we got to do one more got to do one more C is a little bit expensive bit afraid of that one you know what I know what I'm going to do American Airlines AAL a is a good one a very good one all right this stock just goes sideways I like it a lot

so I'm going to do AAL I do have no covered calls on it I'm going to go ahead and buy let's see how much 400 shares would be $4,000 not much to be honest let me do 900 shares yeah it's less than $10,000 so bada bing bada boom we're going to buy 900 shares and there you go my average cost is 1064 1,000 shares and now I'm going to do a trade covered call on American Airlines we're going to do something for you know I can go shorter term as well nothing wrong with that do

11 covered call and make that short-term income so I got 11 how much contract I got 10 contracts so 10 contracts 3535 boom so we just sold it and we got filled let's go we got filled 10 contracts we're going to add $358 here um obviously if I start selling covered calls on Apple I can I can make tens of thousands of dollars so yeah if you want help Hands-On trading like this so I can show you my my plays and help you rearrange your portfolio get into some profitable covered call positions I'd be more

than happy to help you you can visit the first link in the description hope this course was very helpful for you and uh I'm looking forward to making more content to help you scale up and generate consistent passive income and I'll catch you guys in the next video and I'm going to leave a video here on the screen that if you want to get better at Option trading keep watching this is the best skill that you can learn how to make online income safe and passively with good risk management this is another video that I

definitely want you to watch and looking forward uh to helping you out some more