Hey guys, I got a new one for you today,

which is about selling leap options.

Something that you might have not even

seen for ever, really. Leap options are

good for purchasing, but they're also

really good for selling. Selling leap

options could be a very passive income

stream. So, this video we're going to

talk about the five things that I've

learned about selling leap options. And

this is really brutal because a lot of

people don't understand that whenever

you sell options, they can expire in the

money, you have a whole lot of

assignment risk. You have tons of things

to manage, but with a leap option, it's

really not brutal at all. So, here are

the five things. The fourth one is the

most important one that you have to

understand because that has to do with

volatility. So, four of these things are

useful and one of them is where

honestly, like literally all the money

is made within this strategy, okay? So,

the first thing is that most people are

only buying leap options. You know, I've

talked about leap options a lot on this

YouTube channel, but this is something

really different. That's because I want

to help you guys get educated on how you

can create a longer-term passive income

versus, you know, trying to get in and

out of stocks and having to deal with a

lot of short-term volatility and a lot

of management. Well, this is something

that I'm going to be installing in my

one-on-one coaching and also on my

Monday calls for 3 to 5 minutes, I'm

also going to start to place trades

selling leap options. So, a lot of the

members that join me, they want more

high growth and I still do that in my

one-on-one coaching and in my Discord

community, I'm talking about high growth

strategies. But now I'm also going to be

including the recent strategy I talked

about on this YouTube channel, which is

the wheel 2.0 strategy, which is my last

YouTube video. And then this video, I'm

also going to start to implement selling

leap options. Okay, I think this will

just make investors a lot more

versatile. So, here's kind of like what

this actually looks like and what I'll

be doing. So, most people buy them,

well, you can also sell them, okay?

That's the simple, most straightforward

story to what investors can start doing

to collect upfront income. When you sell

a leap option, it's just selling a put

option, very, very similar, okay? So,

I'll show you what selling a put option

looks like. I'm going to be using Micron

Technology, by the way, in this video.

That's why we saw here it says leaps and

it says Micron, okay? I'm going to show

you Micron. I'm going to show you an

interesting chart. So, leverage is not

free whenever you sell options. There's

obviously risk involved, so I want to

get that out of the way and I'm not a

financial advisor, but leverage is not

free, okay? So, any option is going to

provide or be utilizing some form of

leverage and in this case, when we sell

leap option, you will see how this

strategy is a lot more capital

efficient, okay? That's the key term,

capital efficiency, because you're going

to be putting up a little bit less

capital than it would take to buy 100

shares and because you sell this way out

into the future, you have more capital

efficiency and time. Those are your two

kind of main variables to to pay

attention to. Now, not every stock is

worth selling leap options on, honestly.

Like, if you look at Micron Technology,

I'll show you why I'm comfortable with

it despite me never really mentioning

Micron Technology on this YouTube

channel. On this YouTube channel, I've

basically talked about uh Palantir, I've

talked about Nvidia all the time and

Robinhood and SoFi and Apple and Google

and Amazon and some other stocks that

have all really done very, very well. I

haven't really missed. I've only missed

um on Hims a while ago. Now, Hims has

recovered, so I made a mistake there.

Just Just admitting here's, you know, my

hand up. I admit not perfect, but yeah,

I've done really well. So, the most

important thing that you can take away

from my stock selection is that you

don't want to use leaps on trash

companies. You don't want to be chasing,

you know, where the money's at all the

time because, well, that can get you

into trouble and you don't need to be

fancy to be consistent. A lot of my

students are consistent. My Discord

community has some of the best results

in all of the coaching in options

because I know a lot of people join

other programs and then they come back

to me and they say, "Hey, well, this

YouTuber, he's not even doing the

coaching himself." Like, it's other

people in the Discord. So, I'm like,

"Yeah, that's what happens with the big

channels." So, I'm proud to say that I'm

the one delivering all my coaching. So,

I like to drive results within my

community. And whenever you see, you

know, what's worth doing and what's not

worth doing, all the hype stuff on

YouTube, often times, it seems good, it

seems exciting, but I've done very well

with boring stocks like Walmart. So, you

know, we'll talk about Micron Technology

because that's more exciting for you

guys here on the YouTube, but personally

and privately, what I'm doing that's not

on YouTube, is doing boring stocks. And

that's where I think a lot of the alpha

can be generated. This boring stuff,

okay? But, of course, YouTube, you got

to be interesting and fun. So, here

we're going to talk about interesting

and fun Micron. So, anyways, number

four, we'll get back to. Let's just

start off and continue here and I'll

make this video as sufficient as

possible. Just want you to understand

the full kind of scale of this strategy.

So, most people only buy them and you

can just sell them, okay? So, a LEAP is

just an option which is a long way out,

okay? So, a normal option here is, you

know, 30 days, 2 weeks, 3 weeks. A LEAP

option, it can go up over a year, okay?

I typically go for 1 year, but this can

go up well over a year. So, you can see

here 520 days. And more time is why the

premium is worth collecting, okay? You

take a stance today that 1 year from

now, the option that you sell won't go

into the money. I'll show you what that

looks like in just a moment, but here

we're going to look into the VanEck

Semiconductor ETF. You can see here how

it's had a bit of a pullback here in in

August. So, there's a huge run up,

April, May, June. A lot of people were

very excited about semiconductors,

right? Micron is one of them, SanDisk,

etc., right? So, these stocks led on the

way up and then they fall behind a bit

with some of the recent volatility. You

can see here the huge run up, then the

drop, and now we have consolidation

going into September 2026. I think this

is very interesting because there's

consolidation, yet there's still a lot

of implied volatility. So, we'll talk

about why implied volatility is the most

important factor when you're doing a a

LEAP strategy that I'm, you know,

basically teaching you here. So, it

rarely leads twice, right? So, you're

not really going to see a more massive

run in semiconductors, in my opinion,

when a group hands off, it usually goes

sideways for a long time. So, you can

see here a lot of the momentum is cooled

off, and now I I think we're going to go

sideways. So, when a group leads, then

falls behind, it's it's probably not

going to really lead again. I don't see

any convincing factors for me that we're

going to get so much enthusiasm in the

market again. I think the market has

already been very enthusiastic on these

stocks, and

although Micron Technology has a low PE

ratio and the valuation looks very

attractive, I do think that a lot of the

enthusiasm is over, but it doesn't mean

that selling leap strategy can't work.

It can do extremely well, and when you

see the the strike that I select in my

example, you will be like, "Wow." So,

here's kind of the example, and this

price might change a little bit because

it took me several days to make this

presentation. Took me some good time.

But, if you go out to January 2028,

which is a lot of time, I get it. Not a

lot of us want to sit on our hands, and

if you're more of an active trader, I'm

probably not the guy for you. There's a

lot of gambling and active traders out

there, and that's fine if that's your

style. My style is something more along

the lines of passive income, helping

folks retire, working with students that

do have a, you know, sizable portfolio.

Maybe it's 50,000, 100,000 dollars plus,

and those are the students that do get

the best results because they have more

capital to work with, and they are able

to diversify a lot easier. And the

benefits of my coaching for them is

very, very clear because, obviously,

making one mistake in a 100K portfolio

could cost thousands and thousands of

dollars. So, you know, it's it makes a

lot of sense. So, if you look at

something longer term, like January

2028, the further out that you go, the

more the market will pay you to wait,

which is actually pretty nice because

you're getting paid to wait. I mean,

there's not many opportunities in life

that pay you to, you know, spend time

doing nothing, right? So, here's Micron.

If you sell a put option, you can see

here sell put, and if you go out

significantly far, you know, June 2027,

302 days out, okay? That gives you a lot

of time, and this option is going to

have more premium than 121 days, okay?

Now, if we look even further, and now

look at you know, going further out. So,

here we can see that 121 days, 302 days,

okay? But, if we go even further out,

and we go way, way down, you know, 938

is the price, give or take, maybe it's

eight 880 by the time this video is

uploaded. All my teachings here are

something that you can learn and and

build a strong foundation as a beginner,

and then if you want to get to the next

level and really, you know, grow and

scale, then that's what I'm here for as

an option trading coach, the original

coach here for 6 years, and I'll I'm I'm

proud to be the first one or one of the

first ones here, and I've coached over

2,000 people at this point. I'm I'm very

excited about that. My goal is 10,000.

I'm I'm pretty far from my goal, so I

got a lot more time here hopefully on

YouTube, but um most people they um

they're buying options, but here's a

great way to just sell. You just go

super long term. You can see just how

great the implied volatility is. Very

high implied volatility. 70 is high

implied volatility, okay? That is not

low. Low is 30, okay? Micron has high.

So, check this out. 500 strike price.

That is so far away from the current

price. That's almost half off. That's

like literally we're almost at half off

territory. Pretty insane. Very insane,

to be honest. To be clear, this is

almost half off of where the stock is

trading at. And when you take into

account the premium, it basically is,

right? Cuz we have a $500 strike price

here, but here the bid and ask, you

know, 60, let's just call it 60 and

change, okay? So, when you actually

factor in the amount that you get paid

here in premium, the the premium is

$6,000. Okay, it's $60 per contract or

$6,000. Okay, so that actually creates a

break-even price that is far below 500.

The break-even price is far below 500.

So, instead of being 500, okay, this is

going to be 500 minus 60, which is 440.

And 440 is is less than half of the

stock price at the moment. So, less than

half, that's a 50% discount. I mean, how

insane is this? When I start talking

about this strategy on my live calls and

we start placing trades, this is going

to create so much efficiency for all my

investors. So, I really encourage you,

if that's something that you want, I'd

love to have you part of the community.

But either way, I hope that you take a

lot of lessons from this video because

the the discount that I'm going to get

here is pretty insane. Micron

Technology, it's not even a stock that

I've really talked about too much on

this channel. It's not a stock that I

love, but very clearly you can see how

you don't have an expert or to follow

lots of news outlets or YouTube videos

or even do a lot of research. Being

straight up, I'm not being ignorant

here. If this is half off, I can't

imagine the market being double

overpriced. Okay, I do like Micron and

at $500 per share, great. Amazing. I

don't have to second-guess, hey, the PE

ratio is low, but maybe this stock has

some tough times ahead or maybe things

are priced in. I don't need to do any of

that. I don't need to sit here wasting

countless hours watching a dozen videos.

Not that I would do that anyways. What

I'm saying, in your shoes, if you're a

beginner, like, well, what's the value

here? Well, it's very hard to come up to

a value unless you create a valuation

model, which is something that I also do

myself. Takes hours and hours and weeks

of time. If you get half off, you don't

really have to be a genius. You see what

I'm trying to do here? I'm trying to

make this as easy as a system as

possible. Now, if you go way, way below

the price, you are getting a massive

advantage, right? You can see here the

bid is 60, the ask is 65. That's great.

That's not a tight bid-ask spread, by

the way. Traditionally, what I teach is

the bid ask spread should be very, very

close together. The tighter, the better,

cuz that means that you're losing less

money. But here, you're getting a

long-term option, and yes, you are

losing some money on the bid ask spread,

but at the end of the day, this looks

extremely, extremely attractive. So,

yeah, when we go to sell, obviously just

one contract, because this is this is a

capital-intensive strategy. Again, there

are risks to this strategy, which is

it's capital-intensive. If the stock

crashes, well, you can get assigned.

Let's see what this strategy is. We can

talk about that later, but yeah, just

one put, sell to open. That's the whole

trade. That's That's my current idea,

and I'm going to be doing similar. I'm

going to have three more trades that I'm

going to be placing next week in my

community, but this is one of them.

Okay, this is one of them that I'm going

to be telling everyone about. You can

see the delta is very low, 0.11. A low

delta means there's 11% chance, or 11

out of 100 times, that this option would

get assigned. Okay? You can see here how

there's a max loss of 43K. Although that

max loss is very deceiving, it's very,

very deceiving. I would be cautious to

even look at it as a a true figure, and

I'll tell you why. The max loss would

happen if the stock were to be at $0. If

it were to go all the way down to zero,

well, then yes, you know, you would have

that max loss. But I use max loss very,

um, sparingly as kind of like a grain of

salt, because really, I like to

substitute the max loss as, um, capital.

The capital that I need to have. So,

yeah, very capital-intensive, and you

could obviously do this strategy on

other stocks. You can do this on very

cheap stocks. Be Be my guest, right? So,

here's what, um, here's what I kind of

just showed and what I just did. Just

one contract, one strike price, one

date, which is very, very long-term,

January 2028, 500 strike price. So, here

we have the range of possibilities. 938

is today's price. We have multiple

different prices that the stock could

end up at. Strike price of 500. Okay, we

get $6,000 of profit, and our break-even

is 439.

Now, you can land anywhere here, and And

it ends here, it'll expire worthless.

All right, so what you saw there was

super super fast, but let's go step by

step here. Let me just show you what it

looks like. So, we saw the current price

today is, you know, 938, okay? So, this

is the range of possibilities, right?

You can see here, it can end up anywhere

here, right? I mean, the stock could go

up to 1,000, 1,100, it could go down and

crash down to 400. I mean, it could go

less than that, but this is kind of the

range of possibilities here, okay? Now,

it has to fall a long way to reach the

break even, and actually has a long way

to just reach the strike price. So, if

it falls 47%, it'll reach the strike of

$500, okay? But, even more interesting

is we have a $60, you know, per

contract, and I just took the bid price.

It's actually going to be higher than

6,000, but we're just going to use the

bid, which is $6,000 and $6,065

to be exact. All right, so that is the

amount that we would collect in premium,

and that is paid up front to us. So,

that actually makes a break even price

of, you know, the $500, and then we go

all the way down to $439,

right? So, that is now our new break

even. So, that is the cost if you get

put the stock, okay? If it's at 500

below, you will get put the stock in

2028, which is long long long way, but

your break even is 439. So, again,

that's that's pretty much half of the

real cost of where Micron is trading at.

And then, if it falls anywhere here,

anywhere above the strike price, you

won't get assigned, and you're in the

green zone, actually, anywhere above the

break even, okay? So, now you understand

that full short clip that we we went

over, okay? That's how it works.

Everything up here, in that green line

zone, is it expires worthless, okay? It

expires completely worthless, and then

in between this green dot and red dot,

it will start to Basically, the $6,000

that you made, it'll start to be

somewhere in between. So, if it's in in

the halfway mark, well, then you're

you're going to only make $3,000, right?

You're only going to make 3K. And if you

get to your break even, you make

nothing, pretty much. You don't make

anything, and you will get assigned,

okay? And then anything below here,

you're actually running at a negative,

okay? You're running at a negative

anywhere below the break even of 439.35,

okay?

So, um that's kind of like how this

whole strategy works. Now, let's go into

more details on the strategy and how to

manage the strategy. So, leverage is not

free. Don't use more than you can cover

on this strategy, okay? If you can tie

up, you know, less than half the

capital, which is what I just showed

you, amazing. Same stock, same shares if

assigned, far less money down. I I like

that, right? I mean, you know, whenever

you buy things, if you can put less

money down up front, great. Capital

efficiency, I love that. So, if you were

to just buy the shares, it's going to

cost you $90,000.

And by the way, if you have a smaller

portfolio, you just pick his cheaper

stock. You can cross off a couple zeros

here, couple of decimal points, and go

for something that's $9,000 in in total

capital, for example, cuz this is very

very expensive. But, you know, at least

this is a cheaper way of doing

you know, getting into Micron than

buying 100 shares. You can clearly see

that. If you buy 100 shares, 90 grand.

If you sell a put option, your actual

capital is 43 grand, you know, you know,

the break even times 100. That's because

it's not 500. It's not the $500 strike.

It's because you collect 6,000, so it's

$6,000

lower on your break even, okay? So, it

ties up less than half capital. Now,

that's exactly where people get really

greedy. They think, "Okay, I'm tying up

less than half of the capital, so, you

know, I have $49,000 left. Let me, you

know, go do more risky strategies." No,

no, no. Don't You know, I can only say

so much on YouTube without getting in,

you know, too much specifics that would

throw people off or be too complicated

or be completely, you know, potentially

dangerous to the YouTube algorithm,

things I can't mention.

Man, I just see so many people getting

too greedy. Okay, let me just put it

that way. Don't be too greedy. I mean

this is easier said than done, but if

this is something you take seriously

again, I'd love to help you. I can

definitely show you one-on-one all the

mistakes that can happen with a number

of strategies, not just the strategy

that I'm showing you today. All right,

let's go on to number three. Not every

stock is worth selling. Okay, we talked

about this in terms of chasing

volatility, but also on the other end of

the spectrum, there's a lot of safe

stocks that just they're not worth it.

They're they're not worth it. Okay, so

the same expiration you can go out very

far in terms of, you know, date. I like

to use Coca-Cola as a lot of my examples

cuz it is notoriously very, very low

volatility. You can see here just very

tiny premium, right? I mean, you go so

far out, $72 strike price and the

premium is just a couple bucks. So it's

very, very low. It barely pays you

anything. So same money tied up for the

same year and a half, very, very

different pay, right? So stock that

moves a lot, you got those dollar signs,

guys. You got the bicep over tricep, you

know,

juicy, you know, steak, whatever. It's

just beautiful. When you got that

volatility going on, that's where the

gains are. That's where the real gains

are. So that's what the premium that you

collected feels nice. Feels nice. You

got that money in your account, go get

some nice spicy tikka masala, travel

somewhere beautiful, whatever, right?

Take care of your family. But um when

you look at a low volatility stock, I

mean there's like

uh it's like a few drops of water there.

Not that attractive. So the premium is

way too low. Same money's tied up, but

just not worth doing, okay? So these are

kind of the two. Feel free to find the

middle point again. I can only say do so

much in this short YouTube video, but if

you want implementing, I can find the

middle ground for you as well if that's

something that you feel that you need

because some of this stuff can get you

into trouble. Yeah, it can be too

attractive. Yeah, there's a lot of too

attractive things. And then this stuff

doesn't make any sense doing at all. So

the fourth one is volatility. This is

this is the the secret sauce, okay? I'm

not going to keep this. I'm just going

to show you how it is. Volatility is the

most important factor because a

long-term leap option, there is a lot

going on with it. So,

the biggest value is really time, okay?

Cuz it's a long-term leap option, time

is the biggest value. You can see I

highlighted here on the screen Vega. So,

Vega here is 2.1. That's the most

important figure because Vega is

volatility, okay? The higher this

number, the more the option is impacted

by small changes in volatility. You got

to think about it. If something is a

little bit more volatile today, it's

likely going to be a little bit more

volatile for the foreseeable future. And

this option is so long-term that that

little bit today can mean a very, very

big difference over that time period,

right? Think about it as buying coffee

every day. If you buy $5 worth of coffee

every day, over a year, it's going to be

in the couple thousand dollar range,

right? It's going to be over $1,500. So,

you can see how something small today

can be a lot in over a year. And the

same thing is true for volatility. A

little change of volatility today could

end up changing the valuation of the

leap option completely in the year and a

half, right? You can see here in a

30-day period on Micron,

yeah, the the Vega is a lot smaller.

It's 0.79. So, when there's a little

change of volatility, yeah, there's a

change in the option price, okay? Here,

there's two contracts. I'm going to

paint this really interesting picture

for you and then we'll watch a short

video and I'll also explain it to you.

So, two contracts, same stock, one

expires in a week and one expires in a

year, okay? Now, we can see the long one

moves about three times as much. Here's

what it looks like. Two options, one is

80 cents, one is $2.11. Three times

different. If implied volatility falls

by 10 points, you get a really massive

rise in terms of the money that you have

made. Let me explain to you why you're

actually making money when volatility

falls. So, what we saw in that short

clip is there's a three times

difference, okay? As you see on my

screen. But when implied volatility

falls, that's actually where you make a

lot of your money. Because, if implied

volatility falls and the stock becomes

less volatile, there's less that can

happen. And because you already sold the

major money up front, if less can

happen, that's a good thing for you.

Okay? So, you can see here how if

implied volatility falls, this is kind

of a complicated factor. You might be a

little confused, which is normal.

Because, if you're new, or even if

you're experienced, this is a very

complicated topic. Okay? I'm just going

to brush the surface of how this works.

If implied volatility falls, the option

in this strategy would gain value. Okay?

Don't worry about it. going to kill your

results. Um everything else that I

covered should, you know, if you if you

understood that, then you're fine. This

is a little bit more advanced. Okay?

But, so here's a picture that you want

to see. Okay? If you want to see a stock

that has gone up, come down, little bit

of consolidation, this is a good time to

uh get into a strategy like this. And

volatility comes back is really, really

normal. So, every time a stock comes up

in terms of volatility, it does

typically drop off and it kind of mean

reverse back to what is uh standard and

typical. So, you want to be selling leap

options in this more elevated area.

Okay? So, let's go into number five and

number four I can go into much more

detail, but it's it is more complicated.

Okay? So, number five, let's move on to

something that's very simple, which is

think like a business owner. Literally,

look at Micron stock. Okay? Is this a

real company? You might end up owning

it. Okay? You might end up owning it.

So, is this a real company? Ask

yourself, is this a real company? Do you

want to own it? And do any other stock.

I'm not sponsored by anyone. You can

choose a different stock, right? I'm

just using this as an example. So, you

want to look at the revenue that the

company's making, whatever company that

you pick. You want to make sure that

revenue and profit quarter after quarter

is looking very good. Obviously, for

Micron, it has absolutely exploded from,

you know, 11 billion, 13 billion, 23

billion. And this company has just

skyrocketed. You can see net income also

in a very clear trajectory and path.

Very, very important what I do when I

look at companies that I want to sell

options on or or leaps. Must be a good

business. All right? So, take your time,

go over uh the numbers, go over number

four if possible. And if you don't

understand that, reach out to me.

Ideally, schedule a call. It's free to

learn about my program. It's free to see

if it's a good fit for you. Number four

is very important. It is a little bit

more technical, so you may need help

with that. Otherwise, implement the

strategy in portfolio and comment on the

video. Let me know how it goes for you.

Subscribe to the channel. Thank you so

much for watching and I'll see you in

the next one.