Selling SPY Options for Monthly Income. EVERY. SINGLE. MONTH.

In this video we are talking about how you can sell SPY options for Monthly Income. This includes selling covered calls on SPY as well as cash-secured puts on SPY. You can sell these options monthly, weekly or daily to adjust how much income you can receive selling options.


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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.

#spyoptions #coveredcalls #sellingoptions

[AverageJoeInvestor]

Happy Friday Everybody! THANK YOU for watching and being part of the community! Make sure to leave your $0.02 in the comments! =)

[SummitMan]

You’re definitely the best to explain the mechanics of trading options for beginners ! Good job! Would you be able to delete the fake comments that baits about probably fake portfolio managers in your comments ?

[la]

I love this however spy can swing by 5 dollars a day now. So a .2 delta is more vulnerable than it used to be

[tolik]

For Charles Schwab, you have to actually buy into money market. It''s about 5% right now and you can use it as a collateral for cash secure puts. If you get assigned, you'll have to sell your money market shares. So, it's not as dynamic as Fidelity.

[mrpremiumoftheoption]

Yes! Schwab also pays over 5% on your CSP collateral....absolutely game changing!!;)

[mjss]

Possibly a dumb question as I might be missing the obvious here.

Why did you refer to puts, especially at the money as having more risk than a covered call?

If you are going to buy SPY at say $530 and sell an ATM CC and the SPY drops to $515 by expiration, how is that any more risk than you selling a put at $530 and the index drops to $515? You are still $15 below your entry price (not accounting for premium collect of course).

It seems like with the put you would have that $53, 000 earning interest until assignment on top of the premium but with the buy/write you took the interest on cash off the table. But, again, both trades you are down $15 per share.

Thanks!

[Sylvan_dB]

Schwab interest rates are ridiculously low (0.45% IIRC). Furthermore they don't allow using a money market fund as cash to secure a put (and won't auto-sell to cover purchases).

[jimmy]

Great vid, once you receive the premium can you spend it right away or do you have to wait until expiration?

[NQT]

Hi there, since the market may be due for a correction soon and if it becomes a bear market for years, is this selling covered call strategy still viable? I am on the verge of buying my first SPY. Thanks so much!

[hl]

Do you prefer SPY or QQQ for DCAing and buying & holding? Thanks

[jaypaladin-havesmartswilll]

You really have to have the capital to do SPY options at a delta that makes it worthwhile to do this option. Getting $47 per contract per week doesn't cut it because you can get the same return in a money market account of T-Bills. Sidenote: don't use the Schwab cash reserve money market that only gives 0.25%.

[jtshannon]

Am I mistaken or was the video the day before about how daily or weekly calls were better than monthly because of more premium?

[liaoweien]

Thanks for the content, what option tool are you using on the web page？ optionplay? Thanks in advance.

[scottamolinari]

How about a debit call spread for bullish outlooks and debit put spread for a bearish outlook?

[davidmyre]

At Fidelity, do you have to use margin for your cash to also earn interest when selling puts?

[tubetop]

What if price drops and keeps on dropping? Premiums will be less. For covered calls, do we just pray and hope price to come back up?

[Lou_Snuts]

On daily call writing, wouldn't it be optimal to establish positions for the next day within an hour of market opening? This is because of the high level of "Theta Decay."

[amywestermann]

Is the option premium taxed if I sell a cash secured put and it is not assigned?

[dizzyflow]

Can you add an analysis for selling ITM covered calls? Thanks!

[sergeysachkov]

Annual interest is calculated wrong. It will be more, as you grow your capital weekly or monthly, you'll be getting more and more interest paid every month