Generate Weekly Passive Income with this Options Strategy

#optionsstrategy #optionsincome #passiveincome

[abcphotography]

Please discuss the way to handle this when you get assigned and the market goes down for 6 months - a year and the premiums shrink to almost nothing at the price you were assigned. Cherry picking scenarios where the market rallies after you sold the call is nice but often it won’t rally and the market will continue to run away from you. Thanks!

[demetriusm]

Is there a volatility threshold where this strategy shouldn’t be employed?

[edwardsavela]

I use both Schwab SSE and TOS platforms. I know they are in transition but I currently use both for different reasons. I signed up for the webinar. Just wondering if the program uses a different proprietary platform, or any other comments on trading platforms.

[ethansommer]

I assume this only works in an up market. But my question is, if you back tested this, would your returns (22.6%) outperform the SPY?

[ACR]

Thanks for the video, but this is just the wheel strategy. It would probably be better to move further out of the money when you sell a covered call to capture some of the profitability on the up move.

[hsuwarcraft]

FYI - exercising takes some time for some brokers so perhaps a bi-weekly strategy is better since you lose a couple days if you get assigned. Currently using a monthly wheel with Tesla. But agree that you need an underlying that reliably goes up. Otherwise you get stuck with the shares. Maybe I’ll switch to SPY, lol!

[kaavincraig]

What if I don't have the cash collateral to cover the put I sell?

You make it sound very easy but I have been burnt with selling calls before too.

[GrowingPIGs]

I've been targeting delta's, where did the at least $2 premium requirement comes from, and what is its basis? Thank you.

[xcccp]

Can anyone tell me what’s better, we not taking about cost of this, just trade itself: spx: 1 lot 15, 20 spread or 3, 4 lots with 5 spread, for credit spreads

[speciallyme]

Question why are we not doing weekly calls ?

[defi-z]

Love all the content you have shared with us.

[tomasgryczka]

Thank you i am starting my traiding and your viedeos r very helpful

[eduardoagarcia]

Hi Seth. I just wanted to say thank you for your informative video. However, I have a question regarding your example. In January, the user needed $37, 700 capital to sell the first put. If the user had purchased SPY instead and held it for the entire quarter, they would have ended up with more than $40k since the stock went up to $409.39. This would have resulted in $2, 400 in cash flow, higher than the options exercise cash flow. Am I missing something here?

[johnanderson]

The first trade was made on Dec, 30, 2022 for the option expiring the next Friday 1/6/2023. Seth says that the option expired worthless and he mentions the word "closed".
Does that mean that the next trade actually started on Monday the 9th for the option closing on Friday the 13th. The new trade could not be started on the 6th because the market had already closed. I'm confused and need help. Thanks

[markschellhammer]

What do you do when the stock price drops drastically below your buyback price?

[saldigitalzone]

Instead of letting CSP be exercised on expiration, why can’t we roll the short PUT down and out for credit. Your thoughts?

[MrSimp]

The catch is, after being assigned, SPY falls more and maybe 10% plus more, so you end up holding it with very little cover called premium. So, you collect pennies year long and empty your bank in one big down move.

[Ed_G]

10:15 Some Brokers don't offer that. Make sure they allow to use your cash as a collateral while being paid MM %

[nancymarie]

Today is 1/5/2024 SPY closed $467.92. If I sell 1/12/2024 SPY put to receive $200 that’s the $467 strike. That is way too close to being ITM. That’s a delta of .42.
Seems like you’re asking to get assigned.
Too risky.

[ytb]

It’s a bit confusing for me. Maybe it would be better if you indicate sell and buy next to ‘call’ and ‘put’ option. That way, we can see clearly when to sell and when to buy.
Or use different color fonts for sell and buy. Because I have to try and listen very very slowly when you said 'sell' and when you said ‘buy’. It can get a bit overwhelming for me. Nevertheless, thanks for coaching.