SELL PUTS WITHOUT COLLATERAL (POOR MANS COVERED PUT) - EP. 92

Let's take a look at the poor mans covered put. In this video I talk about how you can closely mimic selling a cash secured put without actually having enough collateral needed to potentially buy 100 shares of the underlying stock on Robinhood. This is called the poor mans put, or the poor mans covered put. Robinhood is an app thats lets you invest in stocks.

Affiliate Links:

Follow Us On:

[Gettin_chunky]

No collateral? Proceeds to spend 1000’s

[aurinator]

Great video! I had been looking for an explanation/example of a Covered Put, and what I've been able to find so far has been shorting the underlying stock. This is the first example I've personally found using a LEAP PUT to accomplish that part of the Covered Put. I personally have experience with LEAP CALLs and selling Covered Calls on them - so you're predicting the underlying stock will go up, and had been wondering about a similar strategy in the opposite situation where you think the underlying stock is going down longer term, and this explains how to collect those weekly Premiums using them too similar to Covered Calls. Thanks for making this one!

[winmix]

If stocks goes up.. your totally fucked for good

[chriswaring]

You lost me at poor man and 4000 dollars.

[llathem]

I don't think this is as viable as the poor man's covered call. I mean, you're essentially betting the stock will go down in the mid to long term but, in general, stocks of any respectable company move up as time goes by. I suppose you can use this strategy on a shitty stock, but why? Just stick with poor man's covered calls on good companies...

[celtekrider]

This strategy is genius!! I can't believe I never thought of this! God damn! Thank you sir!

[martinlazar]

That's more like max risk / low profit strategy. Perfect to wipe your account out.

[htowntexwreck]

💪😎🚀
Nice!!! ... Thank you for all the strategies. Can you make a poor man's covered call video please??🤔

[causingcomflict]

So did he explain the collateral part? The max profit chart is not telling you that's what you're making it's telling you there might be a chance to make that much depending on what bullish or bearish move your making

[SolidBased]

It’s gunna cost some money… lol only a couple grand!! Definitely can find way cheaper ones!

[jeremylysiak]

How come you wouldn't buy a longer term OTM long option to save on capital? Is that a different strategy? Call or put side, taking premium while you wait for the stock to move in your favor.

[firenhell]

I never understood why its called the poor man's covered call/put when it isn't really feasable for a poor man.

[scottpi]

90% Delta on your covering put is wrong. Too much risk. .60 to .80 is fine.

[XxKlAidManxX]

So your betting on the stock to go down for the buying the out otm I get that I buy calls and puts all the time but what I don’t get the selling the put at the strike off 100 so your still betting the stock to down but u don’t want it to go down to far because then u buy the 100 shares so do u end up closing that position on both if u like how much it went down? Or do u let the selling out expire? And just close the bought put

[ArmySGRetired]

I'm thinking of wheeling PMCCs and PMCPs

[lord_chunguso]

I have a question, how do you check the “commission fee” on a certain company or stock?

[samiralasgar]

Thanks for this video, very informative and overall learning a lot from you. What would you suggest if I hold a long put (losing) position with a 120 strike 6 months away, can I sell a short dated option (poor man's covered put) but at 130 strike. Current stock price is 134$? What are the pros and cons of such strategy or any other that you can suggest to recover losses? Highly appreciate you advise here.

[amesa]

Can you talk about if those play when they go against you

[diego]

Can you make money with an out the money call leap? Or is it just a waiting game? Example $xpev 100$ strike expire 1/20/23

[DearApolloZ]

So if I’m okay with owning the stock. I would sell a put at the price I’m okay with buying the 100 shares at and then let the option expire. It will be either in the money and I’ll be assigned or out and ill collect the premium. That’s its. I wouldn’t have to worry about IV because I’m okay with either outcome. Correct ?