Most investors and traders think that

they need to be making more trades, more

investments, more entries, more exits,

and that can actually be true up until a

point, but there comes a moment where

you have to say, "Am I actually doing

what I can to maximize and make the most

amount of money I can with each

individual position that I'm in?" By

focusing on that, you'll find that

oftentimes it's not that you need to

make more trades or more entries, and if

you feel like you're doing a lot with a

lot of different positions, but you're

not going anywhere, then this might be

exactly what you need to get things onto

the right track. So, it might look

something like this. You have trade, and

this is one of the top things people do

is they trade in order

to trade. And they associate trading

with making more money. And that could

be true to an extent, but what I would

focus on is

swap trade in order to learn. So, if you

do trade, you're going to learn. Some

people trade and trade and trade and

think they just need to get reps, but

they need to learn from every trade. And

then also, swap learn and trade. Okay,

learn

in order

to trade.

And then if you want to take it to one

step further, then remove the L and earn

in order

to trade. Now, what does that mean?

Well, again, you could focus on trading

and trading and trading, but again, you

might not be learning.

And then you could learn from every

trade, but you still are going to

spinning your wheels trying to maximize

many, many, many different trades,

whereas if you can earn just by taking a

trade or not taking a trade, then you

can maximize your profit. So, that's

exactly what we're going to go into. So,

that's scenario one is that you're going

to go through this in your trading.

Scenario two is that you're learning

from every trade, but the best investors

that I know are earning in order to

trade or earning from making or not

making trades. So, how does that look?

So, let's break it down by Joe and let's

break it down by Johnny.

So, with Joe,

okay, let's do two ends for Johnny. With

Joe, you might have uh

that he is entering a position. So, for

example, he buys

uh let's call it Apple stock

at um

let's say

$250.

This is just

an example.

$250 Apple stock, and then Johnny does

something different. You see Johnny

wants to enter.

He wants to enter, but he doesn't just

straight up buy Apple stock. Instead, he

actually sells

puts.

He sells put options

in order to be

assigned

slash

you kind of forced to buy at

$250.

Okay? So, Joe had the entry that he

wanted. Johnny had the entry that he

wanted. Joe enters at $250,

and Joe, if he bought 100 shares, then

he paid 2,000 or he uh paid $25,000,

okay?

So,

this is this is the approach.

$25,000

for 100 shares is what Joe paid.

Now, Johnny, if you wanted to buy 100

shares and make

$25,000, for example,

uh or not make, but just uh spend on

buying the shares.

Because he sold put options, and let's

say that both Joe and Johnny were

watching the price at a certain level.

Let's call it 275.

And they were

basically waiting.

They were waiting

uh for

that 250. Okay.

So, if that's the case, they're both

kind of waiting,

okay,

for

the 250. Then, they're both going to be

waiting and waiting and waiting. One is

a limit order, one is a sell of put

options. Now, the difference is is that

while Joe was waiting, nothing was

happening, and then he bought at 250.

Whereas Johnny, while he was waiting, he

actually collected what is called a

premium

in order to potentially

be forced to buy at 275. So, he might

have collected, let's say,

um

100 shares, so one contract. Let's just

call it

uh in order for an order like this,

let's just say uh $500, okay?

$500 is the premium. So, how does it

work? Well, essentially,

on one hand, you have a limit order

with Joe,

and no premium is collected. And then on

the other hand, you have a sell put

option, and the premium is collected.

So, they both enter and assign 100

shares at 250, but Johnny comes in with

$500 extra

by selling

puts.

So,

limit orders, essentially, you're going

to get executed when it reaches that

price as low as what you're willing to

pay, and you say this is the most I'm

willing to pay and if it reaches that

250

then it will execute for the 100 shares

for example

and then selling puts essentially you're

saying I'm committing to buying

between let's say now

and let's say

one month from now is the expiration

date.

Okay, so that's the going to be the

expiration.

One month expiration.

And in this waiting period

just for committing to buy

at a price I'd be okay buying. I'm going

to collect while waiting in that one

month period. Now here's the thing. You

might not have this level or this

price get hit. So what happens? You wait

and then this

this never executes a put

never executes and you just essentially

keep the premium.

That is not the prettiest but the

premium you get to keep essentially. So

you you keep the the $500 and you never

even have to force an entry. You never

even have to actually buy the shares

and spend the $25,000. So you basically

got $500 in order to wait.

Now what if it drops down?

Well, then you're buying your your it

drops from 275. You're getting assigned

at at

250 and you are spending that let's say

$25,000.

Okay? So $25,000

basically

plus

you're also going to earn

the $500 premium. So, you basically come

out with 25 five. Okay?

So, that's that's what you come out

with. 25 five, cuz you get the premium

as well.

All right. Now, what's amazing about

this,

one person waits and buys shares, and

they get a clear buy order. One person

sells put options to buy at that same

price. They end up getting assigned

shares, and they may pay that amount to

purchase, but they also collected a

premium before making the transaction.

So, they basically came out with more

capital to take on the exact same

position just by structuring their entry

a little bit different. And so, this is

why options are seen as very

complicated, and also why a lot of

people that straight-up buy puts or

straight-up buy calls,

unless they're very far out on

expiration date, a lot of the times

those people end up losing money, or it

can be extremely high risk, because the

people that are selling puts or selling

calls are often making money guaranteed

no matter what. And so, with this moment

here of selling puts, this is how Johnny

can get a better cash premium. Now, what

is that? Well, if it was um

essentially, what that is is you're

making 5%. So, 25,000 * 1% =

uh what is that? 250.

So, you're making an extra 2%.

So, you're getting an extra 2%

just for structuring your trade like

this. Now, this might not be very big of

a deal if you're trading short-term, and

you're doing something that's highly

volatile, and you're working with a

little bit of capital. And that's why I

said, if you're trading and trading and

trading, sometimes that can make sense

to be trading at higher volumes and that

could be ideal if you're looking to

learn the skill and make a lot of trades

to turn profits. But if you wanted to

just secure cash and make money and

income basically guaranteed for taking

the same trades you were already

planning to take, then doing this

strategy will be a

possible solution for you to make more

profit just for entering the same way

you would have. Now,

the price difference is

going to fluctuate slightly. There's

things to learn that you probably want

to learn about like delta and theta, uh

time decay, things like that that, you

know, may be factored in. But generally

speaking, when you're just selling puts

or

and selling calls, which we can talk

about in a second, then you're going to

be in a

um in a position where you're going to

collect cash up front as long as you're

committed to be able to buy shares at

the price. And ideally, it's at a price

that you would be okay paying for the

stock. Like I wouldn't do this selling

put order just to collect premium if I

really didn't feel comfortable buying at

$250. But if I feel comfortable buying

at 250 and I'd say, "I'm actually

waiting for that to happen and I'll

collect the premium to do so,"

then excellent. It's a good entry.

Now, this is good and this is how I've

kind of shifted as I've grown my

capital. And this could be really ideal

for people that are working with a lot

of capital where 2%, you know, on 100K

could be an extra 2K or uh

you know, a

a million-dollar position could be an

extra 20K that you're making

essentially. So, that's why I really

like this approach. Now, that's

essentially for buying Apple.

So, for buying Apple, this is a great

strategy. Now, what happens if you want

to use this approach for

um exits or selling? A lot of people

think, you know, I should just sell my

stock because I'm up or I should sell my

stock because it might be a good exit.

But, there's certain instances where

there might be a company that you

would sell if it was at a certain price,

but you're right now kind of in waiting

mode as a holder. You're holding the

stock and you're in waiting mode. It

might be a sideways movement. It might

be that you are just waiting for an

entry or waiting Sorry, waiting for an

exit. So, there's an exit kind of

pending.

All right? Or maybe there's

something going on with the position

where

it's up high,

but I don't want to sell, but I also

want to make some cash. So,

I want to high and I want to limit the

downside a little bit. Okay? So, this

kind of works in all instances. And the

way to put it, if I had to explain to

you, it'd be like if you were owning a

company, for example, and you knew that

you might want to sell your company.

Let's say you you own a company and you

would sell your company for a million

dollars, but it's going to be a little

bit before you sell it. Maybe it's going

to be a year. And so, while you're

waiting, you might, for example, say,

"Hey, I got this company that's that's

worth a million dollars.

Uh what if I, you know, were to make

this capital work a little bit? I have

this asset that's worth a million

dollars." And then, you take out a

little loan against your your company

for

$10,000 or $100,000, let's call it. And

you put it into uh,

a 3% or with

recent yields of

uh, x.com, they launched I think it's 5%

or 6% per year. And you say, "I'm going

to put it there. So, I'm going to take a

loan out and I'm going to put I'm going

to pay

4% on this loan and I'm going to

uh, and I'm going to put it into a

fund where I'm going to make 6% and I'm

going to make 2% on the value of this

loan

uh,

over the next year.

And I'm I'm so so I'm just going to do

that. I'm going to take out uh, let's

say 500k. I can get a 500k loan and and

I'm going to make um,

$10,000 between now and the end of the

year just by parking capital basically.

So, think of it that way. You already

own the shares. So, when you're selling,

let's say you own, you know, 100 shares

of Apple.

And so, essentially, you're already good

owning it, but maybe down the line you

would consider selling it. So, what do

you do? Well, this is essentially the

same, but you're selling

calls.

Okay? So, you're selling calls. How does

that work? Well,

same way

uh, just a little bit different. So,

this example would be best structured if

uh, you're at $250, let's say a share.

So, you got 25,000, same amount, but you

would look to sell and you would you'd

be interested in selling at a 275.

So, 275. So, then what you might do is

you might sell calls at a 275 strike.

And you're actually going to collect a

premium

with the same exact structure. So, this

structure that we did up here,

essentially, imagine you collect a

premium.

So, you put in the order to sell at 275.

You'd say, "I'm okay if I have to sell

all my 100 shares at 275." That's what

you do when you sell a call at 275.

And you get a premium and they're going

to pay you once again, let's say $500

for committing to potentially getting

your shares called away.

All right, you're selling calls. You're

saying, "My shares at 275 can get called

away. I would let them go at that

price."

And by committing to that, I'm going to

get a $500 premium.

So essentially, here's what happens.

Same deal. You have the current time

frame where you are now kind of waiting

and you enter this trade.

And from now until the time of the

expiration of

the date,

you are going to collect some money just

for waiting. So that's the $500.

Now, what happens if it reaches

expiration over here and you never get

your shares called away at the 275. So

Apple stock doesn't go to 275. It holds

at 250. Maybe it goes to 260. Maybe it

goes down to 245.

But it's just a company you're holding.

Essentially, the shares might have

fluctuated in value. Might even see your

portfolio fluctuate. But it didn't reach

that 275. Well, in that case, this

expiration is reached and there will be

no

uh

call away of the shares. So you

essentially keep your 100 shares at 250

or at the current price that they're at

and you're going to actually still keep

your $500

premium.

So essentially, let's say that at the

end of the time it's fluctuated up to

260 and it's back down to 250 just for

example.

It's at 250 which means your investment

there is still at $25,000.

Okay? And so, at $25,000,

uh you also collected 500.

So, essentially, just for waiting, you

increased your share value

by a whopping 2% over the time between

when you entered and when you expired.

Now, the beauty of that is let's say

that the stock prices went down a little

bit. And rather than being at 25,

they're at

uh they were down to 24

uh 204

240 uh

49 or 200 Yeah, two 245,

let's say.

Oh, it goes down to 245. You get to keep

your premium, and

now your shares are not worth that level

of 2500, they might be 245, but because

you sold

calls

and collected that 500, your investment

might have gone down, but you still

actually are keeping a value of 25K

because you got that uh $500 premium.

Now, this is a a more conservative

approach, but highly effective approach

that you can use in order to maximize

some of your entries and your exits by

utilizing options in a conservative way.

And so, this is exactly how I work with

investors to optimize some of their

strategies, some of their systems. And

if you want more systems like this in

order to make this happen in your

portfolio, and you'd like to learn

structured ways to do this with your

entries and exits, as well as optimizing

for the long term, then I would

encourage you to simply schedule a call

with me in the first link below. See if

I can work with you inside your

portfolio. If I earned you thumbs up,

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think down below, and I'll see you in

the next video. Take care.