3 Reasons Why You’d Lose Money Trading The Wheel Strategy
3 Reasons Why You’d Lose Money Trading The Wheel Strategy
To get the transcript and MP3, go to: www.rockwelltrading.com/coffe...
This morning I woke up and my account was down $25,000 ($18K at the time of this video). This is on a margin account with $500K in buying power.
3 Mistakes:
1) Panicking and closing your positions at a loss.
2) Not having a plan.
3) Not having a tool that helps you make the right decisions. (PowerX Optimizer)
Solutions:
1) Don't Panic.
2) Don't close your positions.
3) Evaluate what's happening.
4) Follow your plan/strategy.
5) Have the right tool to make the best decisions
5 Positions in my account:
- AMD: if it stays above 83.50, I will make money = $576 in premium for the week
- DBX - Needs to stay above 21.50 I'll make $611 in premium.
- GDX (In Trouble): Last week I got assigned 2,100 shares at $48. I sold the 49 calls (21 contracts X $75) for $1,575 in premium.
- RIDE (In Trouble): If stays above 21.50, I'll collect the premium. It is unlikely it will probably get assigned 4,700 shares at $21.50. I sold 21.50 put s (47) and collected $1,974.
- AAPL (In Trouble): Got assigned 800 shares at $133.
Collected a total of $4,736 this week.
I am excited to get assigned. If you are not ok with getting assigned, you violated the number one rule of "The Wheel Club:"
"Don't Sell Puts On Stocks You Don't Want To Own"
After assignment, I will sell Calls and collect premium.
I will get assigned 4700 shares of RIDE at 21.50.
I will sell calls on Monday for about 0.43 and collect 2,021 in premium. (this is if RIDE opens on Monday around this price).
GDXJ: Got assigned at 47, and was assigned 2,100 shares. If GDXJ stays about where it is on Monday and can sell calls at 0.60, I'll collect $1,260 in premium.
With AAPL if I sell the 133 strike, I will get 0.13 making $134.
Recommended Links & Videos:
Trading with Margin: • Trading With Margin - ...
Options Trading 101: bit.ly/2V7Nf9T
The Options Wheel Strategy: • The Options Wheel Stra...
The PowerX Strategy Playlist: • The PowerX Strategy
#Options #SellingOptionsForIncome #StockMarket
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Пікірлер: 48
How is your trading plan going? Let me know how you're doing in the comments below. Recommended Links & Videos: Trading with Margin: kzread.info/dash/bejne/h3ytmpaMf6rSZLw.html&feature=emb_logo Options Trading 101: bit.ly/2V7Nf9T The Options Wheel Strategy: kzread.info/head/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq The PowerX Strategy Playlist: kzread.info/head/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB
@faihasan2020
3 жыл бұрын
boss you made a mistake and posted the video from last week
@rockwelltradingservices
3 жыл бұрын
It is not a mistake. This one is the cut/edited version. :
@forestphillip3317
3 жыл бұрын
InstaBlaster
Markus thank you so much for this. I have been trading the Wheel Strategy for over a year and am earning around 50% annually. I often watch your videos to get my "mind right" as well as learn. Thanks!
@rockwelltradingservices
3 жыл бұрын
😊 You are welcome! I am glad that this helps!
Wish I knew about you and options trading 2 years ago when you made this. Better late than never, only 6 weeks in but amazed not many people know about this. I appreciate you sharing all your experience and knowledge with everyone, this stuff really helps people!!
@rockwelltradingservices
Жыл бұрын
I am glad that my video helps. ;) Keep learning!
This is helpful! Please continue to review your trades
@rockwelltradingservices
9 ай бұрын
Awesome! Thank you for watching!
Great Stuff Markus, super explanation and years of experience and trading wisdom. Well done.
@rockwelltradingservices
3 жыл бұрын
Awesome! Thank you for watching! :)
Love these vids, helps keep our moral up on these markets. I'm about to acquire some stock from these puts by EOW. But that is fine....Moving on to part 2 of the wheel !!
@rockwelltradingservices
3 жыл бұрын
Awesome! Thank you for watching! :)
I really like your videos, so many trading videos guys are trying to show off how much money they make and you’re very down to earth with it. Thank you
@rockwelltradingservices
9 ай бұрын
Thank you for watching. We always show realistic trading. ;)
This is great... I watched live ! Thanks, Markus !
@rockwelltradingservices
3 жыл бұрын
Awesome! Thank you for watching! :)
Great stuff. Thank you!
@rockwelltradingservices
3 жыл бұрын
😊 You are welcome! I am glad that this helps!
Don't forget rule #2 of wheel club. You do not sell puts on stocks you don't want to own. lol. Thanks for the video!
@rockwelltradingservices
Жыл бұрын
Yes! ;)
what happened Markus did you post the wrong video? You just posted this video last week
@rockwelltradingservices
3 жыл бұрын
Hi Steven, it is not a mistake. It is the shorter/edited version. Last week was a live stream.
Excellent video Markus...
@rockwelltradingservices
Ай бұрын
Thank you for watching!
Great video, thank you!
@rockwelltradingservices
3 жыл бұрын
😊 You are welcome! I am glad that this helps!
Hi Markus, whenever I feel lost with my trades I read your book on the wheel strategy and it helps so much, thanks. I have still one question : when the price is falling I keep buying power to sell puts in order to reduce the cost basis. But this waiting money doesn't "work" do you have any advice about how much of your portfolio has to be in the market and how much has to remain outside in order to keep buying power? Thanks for your great work
Mi Markus, please make a video on managing naked puts which price falls significantly way below the strike price :like apple.
Hello Markus, thanks for your videos. I have learned a lot from you. I just wonder if you buy any stocks or your total $500K ($250K +$250K margin) you play the wheel stratedy. Would you please answer this for me? Thank you.
Markus i like this strategy. With respect to AAPL would you sell the very small CCs and slowly claw your way back in case it takes months to come right? Do you mark your paper loss against your profit?
I have a stock I'm in the apple situation except I don't really want it but don't mind. Its dropped 50% of assignment but with the premiums collected I'm back up to only being down 20% and if this week pans out I'll be that much closer if not I'll roll it out and up until I'm even and only lost time. It's hard starting out with a tiny account but this video really helps. Thanks for doing it
@rockwelltradingservices
6 ай бұрын
You are welcome! :)
What happened to Ride after the Hindenburgh(sic) report. Is the strategy the same hold and sell calls?
Great video
@rockwelltradingservices
3 жыл бұрын
Awesome! Thank you for watching! :)
So I have a question about your Ride position. What would you have done had the stock drop to 15 or 16 dollars and then stayed there for at lease 6 months and had real no cataylst to send it higher or back to 21.50.
ok thank you for letting me know I will go ahead and watch it.
@rockwelltradingservices
3 жыл бұрын
Awesome! Thank you for watching! :)
I sell options - and piggy back them as much as possible. My question is setting up in a covered option. I click on the covered option and it breaks down to a three leg table. Where I am selling and then has it where I am buying. That isn't anything you're showing, so that is confusing. I see the single option option, then I can change to covered option.
Why is 104 dollars on your apple call not a good trade? You break even on your share price plus 104 in premium so your still in profit... Or is it not a good trade simply because you can wait for better?
Markus ... is your monthly target 15k profit or collecting 15k in premiums?
hey markus, how are you getting taxed on your earnings?
Why not sell farther out calls on AAPL at $133 or higher instead of just waiting?
@KRIPSYNODUTS
3 жыл бұрын
As he selling weekly, $133 call only brings .13 or $13 a contract (8 of them) = $104. So as per his strategy, $133> Markus goal is to make $15k a month or using his $250k (+ $250k margin) to earn $180k a year. So I believe he only press the button when it’s fall under his strategy or just wait for the opportunity. Sometimes it’s best, because last week I sold a call in the morning $133 for .7c or $7 a contract but when market went up in the afternoon it shoot up to .26c or $26. I still keeping the $7 but I can make $26 if I wait a little.
I think this is a repeat video.
@rockwelltradingservices
3 жыл бұрын
You are right. This has been updated. :)