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⏰Chapters ⏰
0:00 Intro
0:56 List of all our June option trades
1:26 Cash flow from selling put options, covered calls & LEAPS/PMCC
1:53 Non-leveraged COC return and return on margin
2:17 Selling put option in QCOM
5:33 LEAP and PMCC in DIS (Naked call and put option)
9:03 Covered call and bearish credit spread in CPB
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More of my favorite books on investing in Options and Stocks:
👉 Generate Thousands in Cash on your Stocks Before Buying or Selling Them: Third Edition: https://amzn.to/3hxnQjL
👉 Market Wizards: Interviews with Top Traders https://amzn.to/30CY1sq
👉 Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East: https://amzn.to/3hzb701
🔴 Watch Next - How to FIX a LOSING OPTION TRADE: https://youtu.be/6dtbDnpfuGM
🔴 Selling Put Options playlist: https://youtube.com/playlist?list=PL3j38I2YtGw2Xlse-w19A42tgVdtn_Mj4
🔴 Covered Call Option Trading playlist: https://youtube.com/playlist?list=PL3j38I2YtGw0GuZi4OOSzGcx3Oq_SMr2K
🔴 TRADE OPTIONS like a PRO Playlist: https://youtube.com/playlist?list=PL3j38I2YtGw0B_XoxfODxNuHU_Ye6kq-E
🔴 Option Trading Monthly Cash Flow Playlist: https://www.youtube.com/playlist?list=PL3j38I2YtGw0W9xSkNpaOw73OmuEA5xf9
🔴 How to Trade Options Playlist: https://www.youtube.com/playlist?list=PL3j38I2YtGw0iADFHZOLZpECYD05JJxLN
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In this video I will show you exactly how much cash flow option traders can make by selling put and covered call options as well as using a Poor mans covered call strategy with LEAPS. I show you every trade we did last month in June and talk through 3 of my favorite option trades and the trading strategy we used for that trade. This will help you see how you can use these same strategies to consistently generate monthly cash flow, in your account!
Here you see a list of every option trade we did last month, in June. The red boxes are the trades we are going to talk about in this video. I will discuss the covered call and bearish call credit spread we did on Campbell Soup ticker symbol CPB after the stock was assigned to us because it experienced an overnight 8+% decline. I will also talk through our Poor mans covered call and naked put option position in Disney ticker symbol DIS as well as the put option trades we did in Qualcom, ticker symbol QCOM which paid us an awesome return!
At the bottom in the blue box, you see that because of selling Options, we pocketed $12,810. In the orange box you see that trading commission cost us $84.51. In the purple box you see that we were charged $32.75 for some option data fees and in the green box at the bottom right you see that we pocketed $153.50 in dividends from Realty Income and BDX as a result of the covered call positions we have in those companies. In all, we pocketed $12,846 from selling put and covered calls options as well as collecting some dividends. If you annualize that return, it equates to a 19.5%% annualized non-leveraged cash on cash return! If you calculate the return on the $136,273 margin requirement, it equates to a 115% annualized return on margin!
The first trade I want to talk through is the short put option we sold and then bought back 15 days later that paid us a 47% non-leveraged annualized cash on cash return in Qualcom (QCOM). Let me talk you through why we did the trade and how it turned out.
The next trade I want to share with you is in Disney and involves a poor mans covered call position as well as an additional naked call and put option. Let me talk you through what we’ve been working to accomplish with this position.
Happy investing!
Randy Perez
#highnetworth #financialfreedom #OptionTrades
Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. The ideas and strategies that I discuss should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. There are financial risks involved in taking on any monetary transaction that I discuss in my videos. I may receive a small commission from the purchase of any item from using the links listed above.
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