How I Pay My Mortgage Every Month with a Small Portfolio!

In this video I break down for you how I am able to pay my mortgage every month with only $45,000 capital. I break down the selling options strategy that involves selling covered calls and cash-secured puts and the specific index ETF's I use to run this income strategy.

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This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles.

[AverageJoeInvestor]

Hey Everybody! Happy Tuesday! Make sure to leave your $0.02 in the comments! I appreciate you! =)

[ANTHONY]

*Quick Survey:* For your shared investing ideas, what do you think will be the next Apple/Microsoft in terms of growth?

[handdle-ho]

so selling those puts on the qqq so close to the money would seem you frequently need to either take the shares or roll you kind of glossed over that as if its something that never happens. I think it calls for an explanation. Thanks for the video

[Eqnotalent]

I wish it was this easy. 2% down day you are out -$1300. They doesn’t mention stoploss or assignment risk. 1 bad day is 20 days of profit. Also when you are itm you won’t be able to roll for credit. You can roll for debit. Will losing cash flow.

[jasonreviews]

you can lose. I have before on these option plays. Everyone is genius when the market is bull

[erics]

I like this idea, but all these wheel videos people publish never talk about what if price goes WAAAY below your put, or WAAAAY above your CC. You could potentially get knocked out of the strategy if price runs above your CC and keeps running. You wouldn't even have enough capital to sell a put against the new price.

Would love to see how you handle the what-ifs, because they're more frequent, especially on QQQ and IWM, than this video would lead you to believe.

[ameerskater]

Appreciate your content but could you make a video that’s more realistic and deals with assignments, price swings, corrections and risk mgmt ?

[johnt]

This strategy can fall apart so quickly. All it takes is a fast downturn in the market. And then you cant even sell covered calls for any decent premium, and you are stuck with the shares hoping they bounce back.

[brianhall]

IWM the one that could run another 20% to get to all time highs. I think showing an example of rolling a contract, or even closing for a slight loss to prevent assignment would be helpful. I roll a lot if it's something I want to either keep, or don't mind having, but want it at a slightly lower price

[jayharold]

You are making it sound way to simple 😊

[RobertBullock]

If you want to use less capital, buy a further OTM put/call to create a super wide spread. I have an SPX with .05/.03 delta wings that only takes 20k of capital. Right now, a 13 DTE position in these wings is about $360. The wider the wings the lower the capital/profit since you aren't losing to theta. Synthetic strangle. Normally even with portfolio margin, this takes about $76000 but with a small hedge you can cut it by almost 75%. **Critically**: SPX Capital gains are taxed 60/40 long/short term gains vs SPY which is all short term. That probably saves you enough to offset the long options you buy to create the synthetic.

[CoryTC]

Out of curiosity. Since you are coming in at the END of the day to open a new position, are you closing the original due to capital requirements? Or are you just using margin to float the capital until your original expires? If you ARE closing, how much on average are you losing of that original premium?

[AlphaInvesting]

Why make it so complicated just sell the qqq call at assigned 443 collect more premium then next week sell the put back at 30 delta rinse and repeat

[cyberbrox]

Hello, I’m confused. I see that your spending a lot of time saying how much you need to cover the mortgage like your at an ATM and you show both a call option and a put option to cover that….but that doesn’t explain how your predicting if the market is going up or down that month?

[brx]

1st Comment! Woohoo!

Seriously though, Thanks for all the great content, Brother.

[slugwaffles]

Idk man it’s alot like gambling but good if you can figure it out

[mikesurel]

As others have pointed out here, with this small of a buffer between the amount of capital and the price of the assets, a few days of big movement in either direction will price you out. A big run up and you will not have enough cash to sell puts. A big drop and you will not be able to sell calls with enough premium to meet the stated goal.

This is like going all in at the poker table. It works until it doesn't.

Been there, done that. Good luck.

[ameerskater]

what are you not doing to be worried about IWM or QQQ crashing considering were at all time highs in a shaky market?

[regsmultiservices]

IWM now has daily expirations. Thank you for your videos

[RobertBullock]

Everyone asking about the setup: keep a small amount of positive delta, as over time that will favor you as we all know there is upward drift if your time period you look at is long enough.