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I'm not sure how I stumbled across you, but I am thrilled that I did. I'm very much a beginner at all of this and it's so confusing at times. You are the first person that makes sense to me. I have only watched a couple of your videos and I already have a much greater knowledge of how everything works. Thank you for helping me maneuver through the sludge of it all. I'm looking forward to watching all of your videos. Keep them coming and thanks again.

As always, fantastic video Chris! I sent this one to my Dad and Uncle to help teach them about how they can sell stock they have in their retirement accounts. Thanks for the graphics and all your hard work. I doubt anyone can make as clear of a video for CCs as this one. Merry Christmas and Happy New Year!

@projectfinance

Жыл бұрын

Wow, thanks Evan! I appreciate the comment and share. I hope the YT algo picks this one up sometime soon hahah. Happy Holidays to you as well!

I think I needed to take the time and write this comment to thank you. I find so smart and convenient that your KZread videos match, your website's explanation. This is very efficient, and straight to the point. Thank you very much for sharing your knowledge. I hope I get to meet you personally someday. Greetings from a Venezuelan living in Germany.

Glad to see you're back! Love your videos. It would have been nice to see selling an ITM put as an equivalent to a CC position, except with a lower BP effect.

Good review of covered calls. I use them a lot. I have shares in one company that I have been trading since 2017. The shares pay a monthly dividend but to generate even more cash flow I have been writing covered calls on the shares. I have actually made more on the options selling than on the dividends paid. I did let some of my shares be assigned as I my strike price was over double my original cost per share so I decided to take some of the profit. At the moment I still hold a number of shares but because of the money I have made from dividends, options premium, and the capital gains on the shares I sold, the current shares I own have been completely paid for with the money gained. So now I continue to receive monthly dividends, continue to collect premium from writing covered calls, and if the shares get assigned I am still in a profit position. Currently my position is in the money so once the option gets closer to the expiry date I will have to decide if I will buy them back or let them get assigned. Who knows, the price may drop and will expire worthless. Time will tell.

Great explanation Chris. Thank you. 🙂

Merry Christmas and Happy New years🎄

great tutorial, appreciated the amzn example (:

Great video! When you get a chance, could you make a video comparing the pros and cons of trading options on stock as opposed to ETFs?

@projectfinance

Жыл бұрын

Thank you! Yes that is a great video topic for sure. Thank you for the suggestion!

@luisdetomaso867

Жыл бұрын

And include index options while you are at it... the cash settled KING with no assignment or liquidation risk and much lower taxes

Really good explanation for something I have had a hard time getting my head around.

@projectfinance

Жыл бұрын

I’m glad it helped you!

Thanks for sharing your knowledge. Your videos are the best.

@projectfinance

Жыл бұрын

You're welcome and thanks for the support.

Everytime I watch one of your videos I feel like I am stealing something. Your shared knowledge is underrated.

@projectfinance

Жыл бұрын

Wow thank you so much! That's a super nice comment and I appreciate it. Thank you for watching and showing your support! Another video like this one coming soon.

Very informative

i think one thing is missing from the video - dividend risk. Especially for poor man covered call

Hi Chris, I wonder if you have an opinion on Tastylive's Lookback backtester and if you would recommend any other software (free or not). Specifically, I'm unsure what stop-looses mean on these tests. I don't know if contracts are immediately opened after a stop (just like a roll), or if your exposure is closed until the next scheduled contract opens.

This was the most helpful video on options that I have ever watched in my whole, entire life. Thank you so much for posting this.

@projectfinance

Жыл бұрын

Wow! Thanks so much for the feedback/view/comment!

Nice presentation !

@projectfinance

Жыл бұрын

Thank you! Cheers!

Question- so on expiry of my covered call if strike price is higher than current stock price why cant I exercise n sell at strike price? After all when stock is higher than strike price shares get assigned so why not when strike price is higher than stock price??

Do you show how to buy and sell calls and puts in Webull?

Hey Chris it seems to me you recently stopped talking about other strategies and mostly focusing on the cover calls. Have you discovered after all of these years that the cover call is the best strategy of them all?. Thank you

@projectfinance

Жыл бұрын

Not necessarily! I am going to be redoing the other strategy tutorials with this new and improved video quality relative to older tutorials.

Great video. I have a question. At 27.37''' you said amzn is getting beaten down, so I wouldn't short any more calls. I didn't understand why? Isn't it better to short calls when the price is declining if I want to maintain my long position on the stock itself? thank you.

@projectfinance

Жыл бұрын

The logic is if the stock price is falling, there could be a reversal soon. You don't necessarily want to short calls against your stock during a big decline because if the stock price reverses then you'll be left with an ITM short call and need to sell your shares or buy back the call for a loss. But yeah if the stock is going to zero then it is better to keep shorting calls against the stock.

Fantastic video Chris. I have watched your PMCC. Can you please make a video of Poor Man Covered Put?. I am a poor Beginner, so I don't know if this exists. Thanks.

@projectfinance

Жыл бұрын

Thank you Linh! I appreciate the comment. A poor man's covered put would technically be a long ITM put (long-term expiration) with a short OTM put (short-term expiration). If you can take everything from this video and flip it on its head, you would get the basics of the PMCP. The time decay + IV changes section would apply the SAME to the PMCP though.

@linhtiensaphora7567

Жыл бұрын

@@projectfinance Thank you very much Chris as a great Teacher. Your investment as such efforts to explain in a professional manner. May God Bless You with Prosperity and good Health. Just 200 hours study to go and hopefully starts with Tastyworks.

What do you think of in the money covered calls?

would there be any benefit to buying a cc that is heavily already ITM?

@projectfinance

Жыл бұрын

Not really because the profit potential would be tiny and you’d have a high chance of assignment. Buying a deep ITM covered call is synthetically the same as shorting a put at the calls strike. Stock at $100. Buying the shares and shorting the 80 call would be the same as not buying the shares and shorting the 80 put.

@mwfdude8260

Жыл бұрын

thanks. Great vids btw, your way of teaching is very clear, not all over the place, and very inviting. Good job Oh, please bring back the pulp fiction banana photo.

In the first example, if strike price at 125 was hit, won't the premium of covered call go up as well leaving us a big loss? 1.41 was premium when SP was 121, now stock price is 125+, premium will definitely be much higher. But I don't see you including that in your equation. Am I getting it wrong?

@projectfinance

6 ай бұрын

Right. If you short the 125 call for 1.41 and the stock goes up quickly, you’ll have losses on the short call position but more profits on the stock position (the CC p/l as a whole goes up). At a certain point, the short call will lose $100 for every $1 stock increase, completely offsetting the stock gains, which is why the CC risk graph flatlines above the calls strike at expiration.

I understand there’s risk of the 100 shares losing value. But independently of the shares owned, can the contract be valued less than worthless? I’m not understanding fully the max loss potential

@projectfinance

Жыл бұрын

No, an option can only be worth zero. So if you short a call for $250 and it goes to zero you make $250 which will offset the losses on your shares.

@HandsomeSquidward1995

Жыл бұрын

@@projectfinance understood, thanks for the reply!!

Hardest part with CC right now is finding buyers 😁

What type of account minimum do you need to optimize the options course?

@TakingTheRedPill69

Жыл бұрын

You need enough to purchase at least 100 shares of the stock in question, and I would stay aware from leveraging margin when doing so! Remember the key to covered calls is to focus on those stocks with a long term growth pattern otherwise you can be stuck in a position too low for any decent premium. Caveat Emptor!

I didn't understand anything, how is everyone else getting it but me 😢

this only works when it's in bull market.

@projectfinance

Жыл бұрын

True since it’s a bullish strategy. However in a bear market covered calls outperform stock. And in a super bull market stock outperforms CCs. So the covered call is a moderate bull strategy.

I see you have taken away the " Bitcoin" in the background . I presume , you will no longer be discussing this disaster, based on your previous videos , and your " All In Bitcoin"

@projectfinance

Жыл бұрын

The bitcoin sign is for bitcoin videos. The finance sign is for other videos. My stance on bitcoin hasn’t changed.

@MrRoupy

6 ай бұрын

Lol ya in profit now!

@slyfox1851

25 күн бұрын

@theinvestorstrategist Thank you for showing myself and the world your inability to spot emerging markets before we wasted any time on your videos😂

Kindve misleading how you keep saying "shorted" a covered call. As you're not short selling anything.

@projectfinance

7 ай бұрын

Selling a call to open is referred to as “shorting a call”

I can't wrap my head around all of this. What kind of perverted mind could've come up with all these twisted, confusing concepts originally?

@projectfinance

Жыл бұрын

It takes lots of time learning about and thinking about options to really grasp the concepts. I do my best to explain simply but it still takes time. Be patient and please ask questions if you have them!

@steven-ky2ps

Жыл бұрын

@@projectfinance I'm not knocking your teaching sir. You do a great job. I'm just wading into this stuff, and I realize it will probably take a while for the "light bulb" to come on. LOL God bless you!

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