Covered Call Millionaire

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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[henryh]

I do this exactly! I have a slightly different philosophy, but I can't fault anything this man is saying. My only difference is that with Tesla for example, I don't mind the Delta being a bit higher as I don't mind the volatility. Look at it this way, TSLA is around 248 and I sold an OTM call option for about $4.00 expiring in three days counting today. I don't care if the price goes up or down, I want my $3-4.00 a week 'Dividend' if you will. So do the math with me. 3.5 bucks a week x 48 weeks (I don't normally trade on earnings weeks) $168.00 per share or about a 68% ROI, not counting any capital gains or losses. Park 100k and trade like this and you can live well. (use stops as needed to protect yourself) CHEERS!

[quartamile]

Thank you Henry!
1. Who is the financial advisor you mentioned?
2. How can I find a financial advisor who does options strategies? Every one I've met does lame buy & hold speculation or ETFs.
3. It seems this works best when stock goes up or sideways, is there an accompanying strategy to use along with this to account for times when it drops? Making more of an all-weather income.
4. Other vloggers prefer futures to options, I think because no Greeks. What reasons do your prefer options? I think one is that options are insured, correct?
Thank you again!

[Art]

Cool video - again. Selling cash secured puts until you get put the shares, and selling covered calls on those shares. Not too sexy, but always making those singles and doubles for consistent, safe income.

[charliewest]

I used to think everybody went broke during the Great Depression and other major crashes but they didn’t… Some made millions, I also thought everybody went out of business during these times but they didn’t, some went into business, there's always depression/recession for some people and there's always a good time for others, it's all about perspective.

[knightwriter]

Also, if the stock goes down, you have REDUCED your average cost basis and been PAID FOR THAT!!! You can wait out the market downturn and collect money in the process AND reduce your overall cost basis.

[Hammyankee]

@henry… Do you recommend or have ever tried selling covered calls strictly for profit, meaning you would sell covered calls at a straight price that is in the money but the difference in premium is higher than the current stock price. I know some people do this just wanted your take on it?

[kevinr]

What do you do when the underlying stock price starts cratering nobody seems to ever talk about that case

[ImaginationBlue]

Thank you Henry, this is excellent. When writing covered calls, would you always want to aim slightly above where you think it's going to go (if you think AAPL may go to 148, then sell a one week exp covered call at 150?) This way you collect the premium but hold onto your shares.

[eduardosaucedo]

Hi Henry, I have been hesitant to try this strategy beacuse of all the volatility in the market right now. I personally do not want to give my shares up. Also what are your thoughts on doing this strategy on a weekly basis with something such as SPY ?

[ChuckHolland-ib]

This is great. I'm generating 3k a month in premiums from tesla stock I own. That goes right into a dividend account that currently generating 5k per month. Every month, I pump those dividends up by 100 bucks. By years end it will be 6k per month. By end of next year should he cracking 7k in dividends a month. Going to maximize this strategy until it's generation 20k per month and quit my w2 job. Not that I need that amount to live on, but to help my loved ones out when needed.

[markarroz]

Idk if I missed something or what but, do you need to have atleast 100 shares of a stock to sell cc?

[disco]

$300 per month if the stock goes sideways. Not sure how that's worth it? Or is can you do multiples for every 100 shares of that stock? So 3 of them would be $900 per month but you'd have to own 300 shares of the underlying stock?

[KO-gjug]

How would you manage a covered call where the underlying has dropped enough such that a decently profitable strike is below the cost-basis of the underlying shares? Pick a date further out?

[DinoTamer]

What you do in a bear market though Henry? Seems like your 3 strategies (wheel, selling puts; and covered call)s are all for bull market….

[kevinhall]

Covered calls is my favorite strategy. I learned this before any other options strategy. Great way to make constant premium.

[Geore]

In a taxable account, you just have to think about tax consequences. If you get assigned. I’m fine with it, but if it could be done in a tax advantage account that would be better. ETF wrappers that dedicate themselves to this benefit from the wrapper like $JEPI.

[investorrossi]

A covered call is a slightly Bearish strategy! You're selling someone the right to buy your shares at a certain price! The most bearish single leg option strategy is buying puts, but if you're expecting your stock to go slightly down or stay the same... that is why you would use a covered call and it is a slightly bearish strategy!

[jamesmack]

It's super interesting but what I dont understand is why should I do this myself if there are professionally managed funds that do the exact same strategy? You are saving management fees but they aren't much. I would love an answer to that.

[rezabaram]

What do you do in the scenario that the price goes above the strike prices, and the stocks are sold? Do you buy again right away and continue? How do you avoid higher entries followed but price drops? If this happens you end up losing comparing to the case when you simply kept the stocks.

[Natures-fury]

Plus if you have a dividend stock your collecting dividends