Covered Calls in a Small Portfolio - What I've Learned After 1 Year

FULL COVERED CALL TUTORIAL

FULL BEAR CALL SPREAD TUTORIAL

FULL ROAD TO FINANCIAL FREEDOM SERIES (PLAYLIST)

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TABLE OF CONTENTS
0:00 - Introduction
0:32 - Portfolio Balance Update
2:03 - Lesson #1 and How I've Changed My Covered Call Strategy
3:59 - Discussing Current Covered Call Trades and Lesson #2
7:39 - Discussing LEAPS Trades and Lesson #3
9:18 - Discussing Long-Term Holds and How I'm Changing my Strategy

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*This video is purely for informational and entertainment purposes, and should not be taken as investment advice*

[MoreMoneyLessProblems]

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[ALADEMUSTAPHA-orfx]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[kathyanderson]

I love how transparent you are! Owning your mistakes but then changing your strategy. You explain things so well!! Thank you!!

[richardbornemann]

May I just say that out performing the market by 5 points, in my view, is not slight, it is OUTSTANDING. Nice work.

[Bob-kein]

Thanks for that. It's always nice to hear what others are doing without having to worry being bullshitted. Best of luck to you.

[kelownafirst]

I like selling weekly covered calls out of the money enough to give a 20% yearly return in option premiums plus increased stock value.

[BlitzKing]

When you made this video two years ago Chargepoint was like 25 dollars a share. Now it's 1.65 a share. Lessons to be learned for anyone trading.

[royzeilstra]

I've learned nothing in this video.

[DS-uqhb]

Great stuff! Thank for doing this exercise, good to see examples of both the good and the learning curve. I'm practicing w PMCC now, very interesting way to boost ROC %.

[خالد-بصخ]

انت مثلي الأعلى في العزوبية استمر يا صديقي

[Rey-yots]

A good rule to have when picking a stock to sell covered calls on/do pmcc with is avoid recent IPO stocks. They almost always have major dips from their start value. Playing covered calls on a less than 1 year IPO stock is CRAZY. Choose stocks that have a good history and almost predictable cyclic movement. If you don't have enough capital, do poor man covered calls, which are great for small accounts when done right (no need to avoid assignment when you sell calls above your initial break even -> strike price + contract cost).

[billklein]

I like your site because you actually show losers along with winners.

For a portfolio the size you have, THE most important goal should be capital preservation. The best way for that to happen is to set a stop loss as soon as you open a trade. Don't ride a stock down. It may very well come back but your $$ would have been tied up while you wait. Take the loss and use the money on a better trade. If it turns back up and you still believe in it then buy it and ride it up.

[MalcolmKirbyJr]

Really agree with your thought process and methodology, video production is getting real nice to man. I have to move to more covered calls, so used to selling puts because the premium is usually a bit juicier but I agree with your reasoning and approach, now that the market is going a bit bi polar and more bearish these puts are going against me more often that not lol. Good stuff dude! Appreciate the insights and transparency.

[ChuckHolland-ib]

Im now up to 4k in premiums and 3k in dividends per month. Once thats hits 30k per month Ill be pulling the plug on the w2 gig.

[juanm]

Hi Charlie, Thanks for your videos. Your approach to trading is quite good for someone who is starting since it is simple, and you play safe (dow jones stocks, uptrending, with volatility).

Many other channels try to show you the amazing trades that 5x their money in a few months, but that will not work for someone that is starting, since it is too much risk and you may end up without money in your portfolio (even worst if it is in your IRA or Roth, since you can not add more money until next year). I tried selling bull call spreads before but ended losing most of my money, and then I did not have enough to keep trading. Because of that I decided just to buy stocks and LEAP calls for the last year and things went better.

Thanks to your videos now I am starting again slowly to sell short term calls on stocks that I own, just as an insurance if the stock price goes down, to have less loses (rather than buying puts). If you do it as a complement to the stocks you are going to own anyway because you like to invest on them for the long run, it seems as a strategy to reduce loses and make some money if the stock doesn't fall too much. Otherwise rebalance the portfolio to other stock that is performing better.

[ryancoldiron]

Heard you say in a previous video you’re switching this from Robin Hood. Is there a specific reason for that? Was interested in them because of no fees on option trades

[kennethw]

Check out Energy Transfer (ET). A blue chip like stock trading around $11 per share.

[beejay]

What do you think about buying 100 shares and selling covered calls on ETFs like QQQ or DIA?

[amercyreceived]

You ended up switching around to oter call scenarios, hard to keep up with, looking for videos on covered calls only

[adriana-jnru]

do you buy a put to get your 100 shares to start trading?