Welcome to my multiple hours full-free

options trading retirement course for

beginners. Yes, it's a couple hours, but

it's going to be totally worth it

because I noticed there's nothing on

YouTube that's beginnerfriendly and

shows a detailed way to grow and scale a

retirement portfolio with examples of

closing, managing, and opening positions

properly. I want to make sure that this

course right here teaches you

everything, even if you're a complete

beginner, to help you understand how to

make money option trading. Here is a

full list of timestamps for everything

that I'll be covering in this course, as

well as you can find them on the YouTube

play. I could easily charge and have

charged thousands of dollars for this

type of education. And now I'm giving it

away for free. And this full course is

especially designed to take you from a

complete beginner, even if you don't

know about option trading or don't even

know what an option is, to a confident

option trader equipped with the

knowledge to create a stable,

consistent, and pretty much completely

passive income online. This way you can

retire early with options. That's

exactly what I've achieved after many,

many years. And yes, it does take many

years to actually scale up a portfolio

to seven figures. And I'm not going to

sell you the fake dream and tell you

that this is going to happen overnight

or this is possible in just several

weeks. Option trading is risky. Option

trading takes a lot of skill, time,

dedication. But it's absolutely worth it

if you learn the skill and apply this

knowledge properly. It only takes about

one hour per week to actually scale a

passive stable income. In my personal

experience after I have coached

thousands of students, I have 12 years

of experience and I started at 19 years

old with just $2,000. Now, my portfolio

sits at $4 million steady while I

withdraw money every single month that I

make in terms of option of premium that

I sell or growth that I experience

within my portfolio from options. And

this has allowed me to travel around

full-time while taking Zoom calls and

researching stocks any time during the

day that fits my personal schedule. So

my goal is to help you learn this on a

deep level so you can apply this

knowledge and grow your own wealth

without taking on too much risk, without

buying dangerous companies, without

experiencing crazy volatility. My goal

is to make this process as smooth as

possible for you. I don't say this to

brag. I'm saying this to show you that

anyone can do this. So with that being

said, let's jump in and learn how to

actually trade options. So first of all,

what is an option and how is it

different from a stock? We know that

buying a stock equals a small piece of a

business. That is what buying a stock

is. You have a very very tiny fraction

ownership of an entire business. And

what we want to happen is we want that

business value to rise. When you buy one

share of Nvidia, you own a tiny piece of

all of Nvidia. And when you invest $100

into the stock and the value of the

company rises, your value goes to 101,

105, ideally higher, 110, and so on.

That's what you want to happen with the

stock. Now, let's say that you buy an

option contract. An option contract is

very similar to buying stock. Instead of

buying the shares, you buy an option.

And that option gives you the access to

those shares. Think of an option as a

levered tool. Okay? Imagine you have a

lever right here and when I push the

lever down a little bit on the option,

the value of the stock goes up a lot. It

also falls if I push the lever up. Okay,

a stock isn't a lever. It just moves up

and down and goes sideways potentially.

All right, let's recap the basics and

then discuss my retirement framework.

Stocks versus options. Well, stocks move

dollar for dollar with the share price,

while options act like a lever. As I

showed you earlier, a small move in the

stock can create a much larger

percentage move in the money. For a

call, when the stock price is above the

strike price, we will say that it is in

the money because it's above our strike

price when it's higher. An out of the

money option for a call is when the

stock price is below the strike price.

Now, for expiration date, that is the

last day the option is valid.

Expirations range from zero DT, meaning

that option expires that same day,

there's zero days to expiration. That's

what DTE stands for, to even multiple

years. A long-term option can expire 2

years from today. And then we have

exercise, which is the option buyer

chooses to use their right under the

contract terms and they decide to

exercise their right, whether it's a

call option or a put option. Then we

have assignment. when the option seller

is required to fulfill contract details

because the buyer is exercising. Next in

our recap is buyer verse seller. The

buyer pays a premium for the rights and

the seller receives the premium in

exchange for taking on the obligation if

exercised. The option market is not much

different from your standard stock

trading strategy. An option trading

strategy or the option market is only a

little bit different from the stock

strategy in the sense that you're still

trading the same stocks in the same

market. just the option market behaves a

little bit differently based off of the

option that you choose. I'm going to

answer all of your questions right now.

I'm going to go into my Robin Hood

portfolio and throughout this whole

video I'm going to show you real live

examples. By the way, Robin Hood is just

a financial app and platform. You're

welcome to use any trading platform that

you want. I'm just a coach showing you.

If you do want to learn from me

personally, by the way, there's a link

in the description for my Discord

community. Now, let's get into it. All

right, here is my platform. Here's Robin

Hood. I'm going to briefly go over it,

show you some of the things that I'm

doing. And then I'm going to go to an

option chain and show you how an option

chain works and how, you know, call and

put options work. So, basically, here's

my portfolio for the last one week. I'm

pretty flat. Over the last month, I'm

pretty flat. We've been in some very

volatile times. However, so let's scroll

down here and here are some of the

options. I have very many options in my

portfolio. You can see the ticker symbol

right there. A AL, NVDA, CMG, SFI. These

are all the stocks I'm holding. So,

American Airlines, Nvidia, Chipotle,

SoFi, Nebius, Iran, Archer, which is

ACR, Palunteer, Robin Hood, Google,

Amazon, and then other options. And you

can even see it as ITM if it's in the

money or not. You can also see some of

the gains or or losses that I have here

on my positions. Now, here's all the

stocks that I'm holding. You can see all

the different positions that I have. For

example, if I click here into Walmart,

Walmart here shows you the trading

price, shows you the graph, and you can

also see my personal position here. I

actually have $1.2 million in Walmart

stock, and I'm up $436,000.

I told my community since the very first

day that I purchased Walmart that I

thought this stock was overvalued, and I

ended up being right over the past, you

know, year or so on this position. So,

it's done really well despite Walmart

not being a, you know, sexy company or

an AI company. You can do really well

without having to even go for

high-risisk stocks. Now, what I want to

show you is if I click here, trade, and

I go to trade options. Now, you can

essentially see what an option chain

looks like. So, I can pick an expiration

date. So, let's say I go for an

expiration date in 2027. Let's say I go

for June. Now, you'll see I have several

options. I can either go to buy call or

sell call or sell sell call or or sell

puts. I can buy puts. There's only two

options. There's calls and puts. Either

you sell them or you buy them. That's

it. So, option trading isn't too

complicated. I think you're really going

to understand this even if you're a

beginner. And many people think that

option trading is super complicated or

it's super risky. Well, it is super

risky if you do it incorrectly. If you

trade options incorrectly and you're

buying options and you're trying to go

for home runs, then yes, you can end up

losing a lot of money option trading if

you don't do it properly. But if you do

it correctly, you can actually create

income from options by selling them. You

can collect premiums on a monthly basis

or a weekly basis. You can actually

hedge your positions, reducing the

overall risk if you're a stock investor.

If you have stocks, you can actually use

options to reduce your risk. So, there's

a lot of versatile ways to use options

in your portfolio. The way that I'm

going to be teaching you in this video

is more so using options as a retirement

strategy in generating premium income.

All right, now let's get into section

two of our course, the retirement

problem. So, there's a really huge

retirement problem. There is a lot of

people going for the traditional path.

And the traditional path historically is

just honestly having a job, saving

money, working super hard, having a

boss, investing in a 401k or a

retirement account, and waiting multiple

decades, sometimes 40 years. And then

many people have to at that point follow

a broken but very common financial

advice which states that you should take

4% as a safe withdrawal rate. The 4%

rule that I'm referring to came from the

Trinity study back in 1998. Trinity

University tested withdrawal rates from

3% to 12% and they used different stock

and bond allocations, retirement periods

of 15, 20, 25 years and 30 years. And

their results was that 4% had a very

high historical success rate over a

30-year retirement window. Meaning that

if you're withdrawing 4% from your

portfolio, it should last you 30 years.

Well, that's just not that good and it's

just not that attractive to me

personally. That was my mindset when I

was learning options. So unless you have

millions of dollars, well, this isn't

really that realistic. And even if you

do achieve millions of dollars, taking

out 4% per year doesn't really seem like

a whole attractive amount of money to be

withdrawing from your portfolio,

especially today with high inflation,

high cost of living in the job market

that has very high unemployment rates.

And what's even crazier is that many

researchers are now arguing that 4%

might be aggressive. They're saying that

3 to 3.5% may be more conservative

because of today's valuations and lower

expected returns moving forward. So, let

me tell you this. I definitely didn't

want to be waiting 40 years to retire

and live on a small 4% per year

withdrawal rate. You're telling me that

I have to work my tail off, go to work

all the time, save a lot of money, be

very frugal, live below my means, save

for decades just to have a life that

honestly doesn't even compare to the men

in the 1950s or families 1950s. Because

in the 1950s, a oneperson household was

able to support an entire family. A man

was able to own a house, have much more

freedom than today, take care of his

family, and have way more freedom than

today. So, I thought about this and I

was like, "No thanks. I need my

investments to produce a lot for me in

my search for high growth and achieving

retirement help me build my retirement

framework." So, let's talk about the

first pillar, which is cash flow. This

one is super exciting. By the way,

before I jump in, if you're someone

looking to build an option portfolio and

scale it, one-on-one coaching and live

trading is my program that has helped

over 1,000 busy professionals build

monthly income and solidify their

retirement. I don't just have a Discord

where I send trades and technical

analysis. Although I do that as well, I

figure out a custom solution for each

investor and work on helping them

through their financial journey. You can

find more information in my description.

Now, let's keep going with this course.

Section 2.2, Two, cash flow changes

everything. And literally, lots of rich

people can be very cheap and they don't

even have that much freedom to spending

their money. Hard-headed people that

save and save and honestly, they've been

spending decades of their life just

saving money and being extremely frugal,

but their standard of living isn't that

high because they're overly frugal. And

honestly, I don't always blame them

because part of their issue is maybe

they have built a lot of wealth and they

have a lot of net worth, but they don't

have a lot of cash flow. Being frugal is

fine and smart, but if you can live more

comfortably without having to cut your

expenses and count every single dollar,

that is a lot better for me. When I shop

at a grocery store and I don't have to

look at prices, I consider that a form

of freedom. So, what's on sale?

Blueberries or raspberries? Well, I just

think let me get both if I want both.

So, I measure wealth in cash flow, not

in net worth. Monthly cash flow is my

personal goal with option trading. And

that's also what I like to teach because

most people, they don't want to have a

huge net worth. They actually want to

have enough money to not have to work

and to have more freedom in their life

so they can spend time with their family

and they can make more choices in their

everyday life. So, wealth isn't just how

much money you have, it's how much

freedom your money gives you. When your

monthly income exceeds your burn rate or

how much you spend per month, well then

you're finally in the retirement zone

and then you can continue working if you

want to work or you don't have to work

if you don't want to work, right? So,

you can have a whole million dollars in

your portfolio and you can still feel

financially stressed if it doesn't

produce enough income. Or you can be

like one of my students, Denny. So Denny

has a $300,000 portfolio and I've been

working with him for many years now and

he receives about $6,500 in option

premium on a monthly basis and he spends

his entire day with his family. He is in

full retirement. Denny isn't generating

crazy money, but Denny has a comfortable

retirement. It's all about how you make

your money work for you. So, we will

discuss simple option strategies in this

video, but we're also going to build up

to more advanced strategies such as

spreads, buying strategies like bull

call spreads, and leap options as well,

plus technical analysis, as well as

managing your positions properly. When

to take profit, we're about to get into

all that in just a moment. All right,

let's get into the next chapter. Let's

talk about the three core strategies.

Here's an overview of the three core

strategies before we get into the growth

strategies later on in this course. The

three core strategies are cash secured

puts, covered calls, and credit spreads.

So, let's discuss what these three

strategies are and how I use them. A

cash secured put is one of my favorite

strategies because you're getting paid

to buy stocks that you already want to

own. Instead of placing a limit order

and waiting for the stock to come down,

you sell a put option. If the stock

never reaches your price, you simply

keep the premium. If it does reach your

price, then you buy the shares at a

discount while still keeping the premium

that you collected. Think of it similar

to getting paid to wait. That's an

awesome way to buy a stock that you want

to own. Anyways, so when do I use it? I

use cash secured puts whenever there's a

highquality company that I would

genuinely be happy to own more shares of

or I would genuinely be happy to enter

into a position on. This strategy works

best when you already want to own the

stock, the company has strong

fundamentals, or if simply implied

volatility is elevated, and you want to

purchase the stock for lower than it's

trading at in the market right now.

There are three major advantages. I

generate income even if I don't

potentially buy the stock. If I get

aside, my effective purchase price is

lower because of the premium. And third,

I remove emotions because I've already

decided at what price I'm willing to own

the stock. And that third one is really

important because so many investors,

they change their mind once the stock

fluctuates in price. But if you do your

research, you determine you want to buy

that stock at that price, then selling a

put option is very similar to just

setting a stop-loss order. A stop-loss

order is very similar to a limit order.

A limit order is basically when you

enter a limit price and you say, "I'm

only going to buy at that price." Well,

selling a put option is essentially

almost the same thing. You're basically

just setting a limit order, saying, "I'm

only going to buy it at this price." and

you actually get paid for it. This is

why I consider this an overpowered

strategy. Now, once you're selling the

shares, the strategy doesn't really end.

That's where the next strategy comes

into play, which is a covered call. A

covered call is simply selling an option

against your shares that you currently

own. You're allowing someone else the

right to buy your shares at a price that

you choose. In exchange, they pay you

cash upfront. It's like collecting rent

on a property that you already own. I

sell covered calls when I already own

100 shares of a stock. I'm comfortable

selling it at a higher price or if I

expect the stock to move sideways or

rise slowly, a covered call is a good

strategy in a sideways market as well. A

covered call is a moderishly bullish

strategy. So basically, if the market

goes up, you have to sell your shares at

the strike price that you choose. If the

market goes sideways, well, the call

option will expire worthless, and you

can do it all over again. If the stock

market goes down or if that stock goes

down, well, you're just going to be in a

very similar situation as someone

holding a stock, but you actually have

some cushion and some premium that you

collected from the call that you sold.

Covered calls create an income stream

due to the premium that you collect when

selling a call option. Instead of only

making money when the stock rises, I'm

collecting option premium every single

month while continuing to own the

shares. If the stock reaches my strike

price, I simply sell at a profit that I

was already happy taking and getting out

of the stock at the strike price that I

selected. Now, the next strategy is a

really cool one because it's for small

accounts. Do you currently have a small

account? Well, then credit spreads are

amazing. A credit spread is a defined

risk option strategy where you sell one

option and buy another option further

away. The purchased option limits your

maximum loss because your risk is

capped. You need far less capital than

selling options or cash secured puts.

Now, credit spreads are ideal when my

portfolio is smaller and I want a

defined risk. I have a neutral to

moderishly bullish or bearish outlook

depending on which call credit spread or

put credit spread, which we will talk

about later, I'm selecting. And overall,

my goal is just that I want capital

efficiency. Now, there's three reasons

to do spreads. First, I know my maximum

loss before entering the trade. Second,

I can generate income using much less

capital. And third, I can structure

trades for bullish or bearish markets.

Throughout this course, we're going to

learn each of these strategies

individually. Then I'll show you how

they can work together in a diversified

option portfolio with a strong focus on

risk management. And then when I put it

all together, it's honestly going to be

life-changing. So, let's get into the

next section. 3.2. Why isn't everyone

doing this? Well, most people assume

that if selling options can be

effective, everyone would already be

doing it. Well, the reality is there are

several practical reasons why this isn't

a strategy that is widely taught on

YouTube or out there in the world and

not even used that widely either. It's

because traditional education does an

excellent job at teaching math, science,

and history. But very few schools or

universities are actually teaching

practical investing. My belief is

governments don't really want people to

have info, power, or knowledge that

would take them out of the most

important role of being an employee.

That's what the government wants. and

individuals have to take their own

financial education into their own

hands. Now, from the financial advisor

perspective, many financial adviserss

build portfolios around long-term

investing, ETFs, mutual funds, and

retirement accounts because those

approaches fit a wide variety of clients

with different goals and risk

tolerances. It's not like your financial

adviser wants to really work that hard

to get 1% fee, which he's going to get

whether he works hard or not. So, I

actually think there's a misalignment

between the financial adviser, between

universities, between basically everyone

from teaching you how to actually be

self-sufficient, which is one of the

most important things that you can

personally do for yourself. This is why

I always say in my videos, it's better

to be in control of your own financial

future and managing your own money. And

I became a coach after working for

Goldman Sachs and Wall Street because I

didn't really believe the money

management model of taking clients money

and charging ongoing fees as a

percentage of assets was really aligned

with everyday people who are trying to

build wealth. Much of the investment

industry has historically been around

managing assets. Different firms earn

revenue in different ways, such as

advisory fees, fund expenses, or other

management services. Learning to manage

your own portfolio requires time and

education. And that's something that not

everyone is willing to put in. So, if

you're watching this, I want to

congratulate you because you're a real

person who has the right mindset, which

is super important. Whenever I'm working

with one-on-one students and we have an

application call, which is down in the

description, people apply, we have a

call where we show you everything. We're

not only showing you everything, we're

also interviewing you because I don't

want to work with everyone. Someone who

has a bad mindset or basically wants to

double their account overnight and wants

to take dangerous plays, high-risisk

plays, that's not someone that I would

want to work with because they don't

have the right mindset. Which brings me

to my preference for the best retirement

strategies and how I'm teaching this

course. And the mindset that I'm going

into this course is I prefer slow riches

over fast riches. Trading takes

dedication, consistency. The risks are

high when an investor takes the wrong

path. Whether it's the bad stock

selection or simply mistiming strategies

from the core that I'm going to be

teaching you as we continue or the

growth strategies later on. So, I'd

rather get rich slow than trying to get

lucky. All right, let's get into the

next section 4.1. This is going to be

live examples and we're going to first

of all go over buying a call option. A

call option gives you the right but not

the obligation to buy 100 shares of a

stock at a predetermined price before

the option expires. So, let's open up my

portfolio. Here it is. and I'm going to

go search for a ticker symbol and we're

going to be looking at buying a call

option. Something we can look at is some

big movers on the day. So, let's see any

big movers that I like. Well, we're just

going to use Amazon. All right. So, once

we go into the stock, I'm going to go to

trade and then trade options. And now,

all we're going to do is demonstrate how

buying a call option works and the

payoffs on a call option. How the option

actually fluctuates when the stock

fluctuates and what do some of the terms

mean when we look at an option chain.

So, I'm going to go for a call option

that's going to expire on September 18.

Remember, if you're watching this in the

future, no problem. Just take in the

same logic, the thought process, and

apply the methods that you're learning

from this course to your own portfolio

at the current time. If you're watching

in 2027 or 2028 as well. So, okay, buy

call option. Okay, that's the most

important thing. By the way, don't get

this wrong because some people they go

into option trading, then they end up

like doing the wrong button pushing.

Just do it step by step. Take your time.

Okay, so buy call option. Okay. And this

is basically the strike selection that

we have. Okay, so let's say that we're

bullish on Amazon. And Amazon is trading

right now for $247 per share. So with a

call option, we profit from an increase

in the stock while using less capital

than buying 100 shares outright. So if

we had to buy 100 shares, it would

literally cost us like $25,000

essentially, right? Let's just pretend

Amazon's right around 250. It's at 247.

Close enough. So it's going to cost us

like $25,000.

That is expensive, right? But with the

call option, the numbers that you see on

the right hand side is basically just

the premium that you're having to pay to

control the same 100 shares. So way less

capital that you have to put up and you

get the same control. And of course, the

only reason why you're able to put in a

lot less capital is because an option

has an expiration date. So if it doesn't

go in your favor, well, you can be in

store for some trouble. And we're going

to talk about managing. So we're all

good with that. Look, so let's say that

we think that Amazon's going to go a lot

higher. So we can go for an out-of-the-

option. Let's say 270. Okay, I'm going

to click into the 270 and show you. So

the 270 strike price here is expiring on

September 18. You can see that at the

top it says 918. Now on the bottom

you'll see there's Greeks. On the top

you'll see bid and ask and there's mark

and previous close. Let me just go step

by step here. First of all, at the very

top bid ask spread. This is essentially

the bid is where investors are trying to

buy this option. Okay, people want to

buy it for 735. Okay, imagine going into

a, you know, car dealership and you want

to buy a used Toyota Corolla for $7,300,

but the guy selling you the Toyota at

the dealership is like, I want $7,555.

You're like, "Man, I want to pay

$7,300." He's like, "I want $7,500." And

you guys are arguing back and forth and

eventually you agree on what? The middle

price, right? You agree on the center

price. So you go for $7,450

the the mid price, right? Which you can

see is the mark. Okay, it's exactly like

that. The bid is someone trying to buy,

ask is someone trying to sell. If you

want to execute on this trade, you're

going to want to go for the mark price

or the mid price. Okay, so that's where

the mid is coming from or the mark is

coming from. Previous close is not that

important. It just means what the option

closed for yesterday. So today we're

kind of getting a discount because it

previously closed for 850 and today it's

flowing for 7.45. Okay, the chance of

profit here is 21%. This right here is

not a number that I'm using on Robin

Hood. It is not accurate as far as I'm

concerned. The number that I personally

use that actually matters is delta. The

delta here is.32, which actually puts my

chance of profit at 68. I'll tell you

why. 32 delta is telling you the chances

that the option will expire in the money

or the probability that this option will

be in the money or profitable in

general. Okay, so 32.32. Okay, the

inverse of that, so this is 32 success

rate. The inverse of that 68% chance

means that this will not be in the

money. There's a 68% chance that it

won't be in the money. Hey, 32% chance

that it will be in the money. Chance of

profit here, I don't know why it's so

incorrect here. So yeah, 21% is not

correct. What's actually correct is the

delta. Delta is the most important Greek

that we will discuss much more as we

continue this course. Delta is

incredibly useful. And another

definition of delta by the way is if the

stock moves by a dollar and the delta

is.32 well the option is going to move

by 32. Okay. So delta is also measuring

how much the option fluctuates. Very

important. But essentially to make this

super easy this Amazon 270 call that I'm

buying for $7 will have a break even of

$277.

You can see that right there. Break even

277. So above 277 it's all mine. every

single increase above 277 is what I'm

going to be making. Now, that is at

expiration and we don't need to hold

options until expiration. We can sell an

option early if we choose. In fact, we

can buy one and we can sell one after

minutes if we want. Okay? That's not the

best strategy. And we'll talk about how

to manage a leap call option, how to

manage a regular call option, how to

manage every single one of these

strategies. We're going to go into great

detail, but for now, basically, you can

get in, you can get out whenever you

choose, whenever you want. I am

personally typically not holding until

expiration, especially when I am buying

options. And now, the flip side is

correct. When I'm selling options, when

I sell an option, I am typically holding

until expiration. When I sell an option,

pretty much I want it to expire and I

want it to expire worthless. That is

kind of my ideal case. When I'm buying

an option, I want the stock to move in

that direction as fast as possible. and

I will set a profit target. Now, we

discussed buying call options. Buying

call options is a very bullish strategy.

We want the stock to rise and we want

the stock to rise in that upward

direction as fast as possible and as

much as possible and that would increase

the value of our call option. Next is

selling a call option, a covered call. A

covered call involves selling a call

option against shares that you already

own. Exchange you collect option premium

upfront. So, check this out. You can

already see I have a short call option

here, which means that I have sold

covered calls. You can see -15. You

might be looking at my screen, you're

like, well, why does it say5? I actually

have 255 calls that I have sold. So, I

have sold covered calls. I'm going to go

back into my Amazon position right now.

You can see I have 2,800 shares. Um, I'm

up $117,000. I'm doing something really

interesting. Okay, I have 15 contracts

of 255 calls that I've sold or covered

calls. Okay, I can sell more, by the

way. I can sell 28 contracts and I can

have 28 covered calls because I have

2,800 shares. However, I'm doing

something interesting where I'm selling

a partial covered call. So, you can sell

a covered call. You can sell one for

each 100 shares that you own. So, if you

have 100 shares, you can sell one. If

you have 500 shares, you can sell five

covered calls and so on and so forth.

But you don't have to sell covered calls

in your entire shares because a covered

call lets go of the stock if it goes

above your strike price. And I ended up

doing a partial fill. Okay, so I sold 15

contracts on Amazon, my 2,800 shares,

because I'm comfortable letting go of

Amazon and 255. But if it goes much

higher than that, I might not want to

let go of all my shares. I'm just going

to let go of some of my shares. Okay, so

let's go back here into trade trade

options. Let's say that we were going to

sell more covered calls from scratch.

Okay, let's say we have 100 shares of

Amazon. So I just go for an expiration

date. Let's go for September 18 again.

And now I want to go to sell call. Okay,

so if I sell a call, I'm selling the

rights to my stock if it goes above the

strike price. Amazon is at 247 per

share. I am selling my rights at 255. So

that's not a bad situation to be in.

Let's say that I'm happy to get rid of

Amazon for 255. Or even better, let's

just say I start a new position today. I

buy 100 shares at 247. I sell this

covered call at 255. So I'm agreeing

that I'm at 247 in terms of my entry

price. at 255 I want to get out and

still I have a premium that I haven't

mentioned yet. The premium here is what

I collect up front. As soon as I open

the position I collect premium now that

is amazing. Tell me this is not like

almost like too good to be true. It

feels like that, right? Well, the reason

why this is the case is because there

are some investors out there and traders

that are willing to pay money to buy a

call option, which is what we just

talked about. Investors are betting on

something to happen. And what's cool

with the covered call is you basically

need something to not happen. And even

if it happens, you're not really in a

bad situation. If it happens, you get

rid of Amazon at 255. If it doesn't go

to 255, just hold the shares, which

makes you just a regular stockholder.

But now you're a stockholder that's

collecting option premium income. That

is the path that I'm currently taking to

be in retirement. That's how I'm

generating monthly income, and that's

how I'm retired. This is one of my core

strategies. I own lots of stocks. I

built my portfolio over a decade. I've

taken probably like 10,000 plus trades

in my life. And this strategy right here

has contributed significantly to my own

retirement and my own stability because

if I own a stock that I like, but I

don't mind selling it if it goes higher,

I just sell covered calls. And by the

way, we will talk about a management

strategy which will allow me to not even

lose my stock later on when we discuss

rolling in this course. But simply said,

this 255 call, I am collecting premium.

I have the risk to lose these shares if

they go above 255. But maybe I'm

comfortable taking that risk or I can

manage that risk by rolling and

adjusting the strike price by paying

potential money. Maybe I even have to

lose some money for a benefit that might

be much larger than the money that I pay

for the adjustment, which is exactly

what rolling is. I'm giving you some

foreshadowing into the cool process that

we'll discuss later on. But 255 here,

covered call. If it goes to 255, I have

to sell at that price point. And you

will see that the total benefit I'm

actually getting is not only that I'm

getting out of 255, but the premium of

$12 effectively, very important, one

more time, effectively makes my exit

price at $267

per share because I'm adding the $12 in

premium to $255 strike price, which

effectively gets me to $267.

So you can kind of say in other words,

you can buy the stock at 247 and then

you can sell a stock at 267 in the

covered call scenario that we're going

over. So this example is very

interesting. Let's move on into the next

example and let's pick a different stock

here. I'm going to go for SoFi. I want

to pick SoFi here when I show you what

put options are. So the next retirement

strategy that I want to discuss is

selling a put option. Okay, so here is

SoFi. It's been going sideways. It

hasn't been doing too much. I do really

like this company overall and this is

not a stock pickers course or anything

like that but some of the things that I

look for in a good company is high

growth rates good revenue growth good

earnings growth which is EPS which is

the most important thing which will take

their PE ratio lower and overall a

company doesn't have too much debt

that's managing their balance sheet

correctly growing their cash flows and

building their business as simple as

that is doing that and another thing

that I like about it is that it's a

fintech company it's disrupting markets

so they have a disruptive business which

is disrupting think some of the older

banking models. So, you know, very good

innovative company overall, but let's go

to trade trade options here and let's

just go for something short-term. I'm

going to go for August 21st, which is

basically I'm in August essentially

right now as I'm making the video. And I

want to show you what this would look

like. So, a put option gives you the

right but not the obligation to sell 100

shares at their predetermined price

before expiration. Okay, that's buying a

put option. People are betting on it

going down. A buy put option is not

something I'm going to really get into

in this course because buying a put

option is just a risky bet that

something's going to fall. And buying

put options is essentially I believe to

be more so gambling. You're just betting

on a stock to crash or fall and it has

to fall in a short amount of time. So

that's what buying a put is. It's

dangerous. It's risky and you can just

basically lose all the money that you

pay for a put option. On the flip side,

if you sell a put option, it's very

similar to insurance. you're essentially

collecting a premium where you're

selling insurance because again someone

who's buying a put option is either

afraid of a crash or they're speculating

or gambling on the stock coming down. So

by selling a put option you're selling

insurance and you're stepping in and

saying hey if the stock crashes or comes

down I will be buying those shares from

you or I can buy the put option from

you. Right? So here when I sell a put

option I'm essentially saying I will

have to own 100 shares for every single

put contract that I sell. So, if I enter

this 17 put option and I select put

here, okay, I'm essentially saying SoFi,

if you're below 17 on August 21st

expiration, I'll buy you for 17. So, if

the stock is at, you know, 14, I'll have

to buy it. But also, I'll have to buy

it. It's at $16.98.

So, if it's $2 below 17 at expiration,

I'll also be getting assigned. And if

you think about it, that's not a bad

situation to be in because the premium

that we're collecting is a dollar. And

by the way, this dollar, this is how

much it represents. I'll take a dollar,

I'll divide it by 17. And this

percentage that you see on the screen is

represented by how much premium I am

collecting or taking on this risk. So

I'm taking on a risk to buy soy at 17.

By the way, very very important, mind

you, that the stock barely even goes

below 17. You know, its bottom here

where it had a huge runup, had a huge

bounce was at 1695. And we'll talk about

technical analysis later on, but simply

said, whenever you sell a put option, if

you find a support level and you sell a

put option at the support level, I mean,

that's as close as that's as close as

like the, you know, juicy steak from a

nice restaurant for, you know, $2. I

mean, that's a deal, man. You know what

I mean? Like, that's a deal. That's

something I like to see. That's how I

like to enter sell put positions. That's

what I'm interested in. Uh, that's what

I do in my community. I'm trying to find

bargains. I'm looking to collect premium

without taking on too much risk. That's

the whole goal of finance and investing.

It's to manage your risk and reward, to

manage the amount of money that you make

and the volatility that you experience.

And the better that you get at that, the

better it is overall for your long-term

retirement. There's so many option

channels now coming out. I see all these

YouTube channels without credentials

copying content or using AI to make

content and they seem good. They have

flashy titles and thumbnails. Their

information is even good because it's CH

GPT. But they don't get into managing

the risk. They don't get into riskreward

ratios. They recommend some stocks. They

recommend some strategies. But how do

you actually manage that? That's where

the whole difference comes in, right? I

mean, you could teach anyone how to do

well when the market's doing well, but

what about when volatility arises? What

about long-term management? What about

actually planning for the future and

managing your overall portfolio in good

times and bad times and in sideways

times? Okay, so managing is where all

the, you know, real secret sauce is. I'm

not teaching you anything super

revolutionary with these strategies.

These strategies I've taught for six

years on YouTube. I have other free

courses here that I've been coaching on.

But the management that I'm getting into

in this video that I'm not prepared for

at all. I'm just telling you from my

personal experience over, you know,

about 12 years now is what's really

life-changing. It's what really will

make a difference in your life versus

following other people who don't have

the credentials, who don't have the 12

years of experience or regurgitating

information potentially in a really,

really good way. So, I want you to

really understand that managing is

really where the practice is. Okay?

Okay. It's like being a doctor. I work

with many doctors and I love working

with doctors. A doctor who graduates

medical school who now goes into work is

actually still practicing medicine. And

it's a practice because things are

always changing. Okay? So, we are

practicing option trading. I make

mistakes every day, but I'm also still

improving. And although I'm in

retirement, it doesn't mean that I can't

become more efficient, better at my own

investing, and better at teaching

investing. Okay? So, that's what I want

to really come across to you as. So

really that's the type of mindset

information that I want to come across

here. So look 17 sell put if I go into

this option this means that my effective

break even price is going to be slightly

under $16 per share which is amazing.

That means that my effective average

cost is going to be let's say $15.98

showing $156 but if it's $12 it's really

$15.99. So, this is selling a put option

and really there's only a couple of

situations here which is either it

expires out of the money or it expires

in the money and I get assigned on the

stock that I want to own and the premium

is mine regardless. Basically, my

average cost is my strike price minus my

premium. All righty, let's get into the

next section which is why buyers lose.

Here's a study from Stanley Choy and Kin

Kiang Lelay. And I'm going to show you

just a few studies here in this video,

not too many. But what's interesting

here is that on average, they have

determined that three out of every four

options held to expiration expire

worthless. The same research study also

made a statistical analysis of options

in five different markets, the S&P 500,

the NASDAQ index, Euro dollar, Japanese

yen, and live cattle. And the author

concluded that for both puts and calls

traded in each of these markets, options

expired worthless outnumbered those

expiring in the money. Now a totally

different study which is from the

National Bureau of Economic Research

studied a data set which contains

detailed daily open interest in volume

information for each equity option

listed on the Chicago Board of Option

Exchange from 1990 through 2001. The

reason why I found this study so

interesting, I want to show you is

because this study of 1990 to 2001

includes the very risky time period in

stock market history which included the

do bubble. And this economic research

study of options market found that

retail investors held roughly four times

more long call option positions and long

put option positions and less

sophisticated investors dramatically

increased their call buying during the

late 1990s technology bubble. The study

suggests that many investors are

naturally drawn to buying upside

exposure even during periods of elevated

optimism. So essentially the conclusion

is far too many people are buying

options and far too little people are

selling options. And these are just two

research reports. I'm sure if you wanted

to use AI or dig through the you know

internet you can find dozens of research

supporting this same evidence. Now, from

my own practical experience from working

on Wall Street, Goldman Sachs and two

other hedge funds, I've discussed this

many times because in the stock market,

you learn in college and from textbooks

and from even PhDs that the market is

very efficient. There's not that much

ways to actually make money in the

market from, you know, short-term

arbitrage or finding opportunities

that's really reserved for people that

have advantage information or advantage

software access. Everyday retail

investors, it's pretty difficult to

outperform the market. And that's why

I've been doing lots of research

throughout my entire career since I was

19 years old to now, you know, my

mid-30s on how to beat the market, how

do I perform well in the market, how do

I reduce my risk, how do I, you know,

get rid of some of the dangers within

the market and optimize my

risk-to-reward ratio. And a lot of my

research and my experience has pointed

that option selling outperforms option

buying. So my take is this doesn't mean

that option buying is bad. Okay, option

buying has a time and place and in fact

my best growth strategy is a call option

but just done in a specific deep way.

Okay, it's called a deep which is

something that I kind of came up with

but we'll discuss that later on but that

is one of my favorite strategies but I'm

using correct position sizing and I have

the proper risk management process in

place that is really important. So my

takeaway here and what I'm building for

you in this course is that option

selling is preferred for retirement.

Now, the growth strategies to get into

retirement, but buying strategies do

have a time and place. Professional

traders buy options every day for

speculation, for hedging, and for

volatility trades. The point is simply

that buying options require several

things to go right at the same time.

Direction, timing, magnitude of the

move, and implied volatility. Very

important chapter in this course,

implied volatility. So, we will talk

more about these factors later on. But

professionally, I prefer strategies

where time decay is generally working in

my favor. Which is why this course is

focused primarily on cash secured puts,

covered calls, and credit spreads. And

then the growth strategy that we're

going to use is not going to be a

short-term call option. It's going to be

a long-term call option, which is going

to be called a leap. All right, let's

make a quick bonus chapter here. So, why

sellers actually win? We need to discuss

time decay and we need to understand how

time decay works. Here's a chart of time

decay. You will notice that time decay

starts off relatively slow but it

accelerates significantly as expiration

gets closer. This is exactly why option

sellers have an edge because every day

that passes causes the option to lose

value. All else being equal, as the

seller, that time decay is actually

working in our favor, allowing us to

potentially buy back the option for less

than you sold it for and let it expire

worthless. Imagine you own a hotel room

for tonight. At 9:00 a.m., that room

still has plenty of value because

there's an entire day for someone to

book that room. But as the day goes on,

3:00 p.m., 6:00 p.m., 9:00 p.m., the

chances of someone paying full price for

that room gets smaller and smaller. By

midnight, if nobody booked the room, the

opportunity is gone forever. Hotel rooms

are a perishable asset. Every hour that

passes reduces their value. Options work

in a very similar way. As expiration

approaches, there's less time for the

stock to make a significant move, so the

option gradually loses value. As an

option seller, you're collecting a

premium from an asset that naturally

depreciates over time. Now, the next

advantage option sellers have is

probability. Every option has a

probability of finishing either in the

money or out of the money by expiration.

As option sellers, we want to sell

options that have a high probability of

expiring worthless. Why? Because if

options expire out of the money, we keep

100% of the premium. Let's look at an

example. Imagine a stock is trading for

$100. If I sell the $90 put option, the

stock has to fall more than 10% before

expiring for that option to finish in

the money. That's possible, but

statistically it's less likely than the

stock simply staying above $90. The same

idea applies to covered calls. If I own

shares at $100 and sell the 110 call,

the stock has to rise above $110 for

expiration for my shares to be called

away. If it doesn't, I simply keep my

shares and the premium. This is why so

many professional option traders don't

choose strikes randomly. It often used

probability or delta to select strikes

with a high chance of expiring out of

the money. For example, a 20 delta

option has roughly an 80% probability of

expiring worthless. Doesn't mean that

you'll win 80% of the time exactly, but

over hundreds of trades, the

probabilities tend to work in your

favor. Think of it like a casino. A

casino doesn't know whether you'll win

the next hand of blackjack or not. But

it does know that after thousands of

hands, the odds favor the house. In

fact, when I was studying statistics

back in college, my professor made a

funny analogy that when someone comes

into the casino, if they end up making

many, many small bets, the casino loves

that. But if you come in with a $1

million bet your entire retirement, you

bet it, you know, on blackjack, they're

afraid because there's a chance, a

random chance that in the short term,

they may actually lose. This is called

the law of large numbers. And in the

long run, probability ends up winning.

Option selling is very similar. We don't

need every trade to be a winner. We

simply need the probabilities to be on

our side over a large sample size of

trades. Now to get a little bit more

advanced, my third reason and my third

pillar of selling options is implied

volatility. Now implied volatility tends

to be priced higher than realized

volatility. Let me say that one more

time because essentially this one

sentence is actually the foundation for

my option retirement strategies. When I

was working on Wall Street, when I had

different mentors, when I was studying

options as deeply as I could and I was

in my beginning stages, one thing was

true and that was one data point

continued to reoccur and that was that

implied volatility tends to be higher

than realized volatility. Let me explain

what that means. Option buyers are not

only paying for time, they're also

paying for uncertainty. So before

earnings, economic reports or major

market events, option prices often

become expensive because traders expect

large moves. However, in many cases, the

actual move ends up being smaller than

what was actually priced in. When that

happens, option prices fall and sellers

benefit from that decline. This is known

as implied volatility and we'll cover it

in much more detail later on in this

course. When you combine these three

advantages, time decay, probability, and

volatility, you begin to understand why

professional option sellers often

approach the market like insurance

companies. They know they won't win

every trade, but over hundreds of

trades, these small statistical edges

can compound into consistent long-term

results. This is why I believe option

selling is one of the best strategies

for retirement. Retirement isn't about

gambling on the next big winner. It's

about creating consistent cash flow

while preserving your capital. By using

time decay, probability, and disciplined

risk management, you're putting the odds

in your favor over the long run. Let's

dive deeper into putting this knowledge

to work. All right, let's talk about

selling put options. I love selling puts

as a retirement strategy because you're

getting paid to buy stocks that you

already want to own. Think about that

for a second. Imagine you've been

watching Nvidia. Maybe it's trading for

$200 per share. you've told yourself,

"I'd love to own the company if it

dropped to $180 per share." Well, most

investors will simply just place a limit

order and they're going to be waiting

until 180. Or they're just going to say,

"It is what it is. I have no patience. I

don't know if it's going to actually go

down. Therefore, I'm just going to be

buying it for $200 and change right now

where it's trading at." And they're

thinking, "Why would I wait for the

stock?" Because maybe the stock gets

there, maybe it doesn't. Either way

though, while you're waiting, when you

sell a put option, you are actually

getting paid to wait. That's where

selling puts changes absolutely

everything. Instead of waiting for free

and doing nothing or just buying the

stock at the current price, you can

actually get paid while you wait. All

righty, let's go over Nvidia stock as a

real example in my portfolio. It's

currently trading for $211 per share and

I currently have some Nvidia stock. But

let's say that I want to buy Nvidia

stock for, you know, something cheaper

than what it's trading at today. So,

what I'm going to do is go to the option

chain here. I'm going to go for August

21st. And as you can see, sell put.

Okay, what I'm going to do is if I was a

stock investor, I have to buy it for

$211 per share. That's $21,000.

But instead, what I can do is I can just

sell a put option. So, for example, I

can go down $6 lower. I get a $6

advantage and I can sell this 205 put

option and the amount of premium that I

would get is $6, which actually makes my

effective break even price $199.

Wow, this example is so easy and it's a

real live example. And it's really nice

because the premium here is exactly $6.

So, you can really understand here that

the strike price is 205. If Nvidia does

not go to 205, we're good. We are just

getting the $6 premium and we're just

really going to let this option expire.

Now, say if the stock goes below 205, we

will have to purchase Nvidia for 205

unless we roll the option lower, unless

we close the option at expiration. If

it's below 205, we will be getting

assigned and we will be buying 100

shares of Nvidia at 205 and we still get

our $6 premium regardless. So again,

that would make our effective break even

price of 199. So whenever I'm looking to

enter stocks, I am selling put options

pretty much a majority of the time. I'd

rather sell put options than just buy

stocks outright. In fact, I have so many

sell puts in my current portfolio. I'm

going to show you some of the positions

that I have. You can see here I have

American Airlines 14 sell put. I have

some, let's see, let's keep going down

here. I have a lot of covered calls at

the moment. Here I have the Palanteer

12, meaning I'd love to own Palunteer at

120. I have Google. I have a huge

massive position on Google. In fact, I

personally have over $1 million in

Google stock personally and this is a

core position within my Discord

community and a lot of people are

chasing AI hype stocks, but I've done

extremely well with just Google. This

position is showing $27,000 loss, but I

quickly want to show you I use uh put

options and I actually got into Google

stock. You can see here I'm up $91,800.

I'm up 38%. And I got into Google by

selling puts. Okay, so I get into my

positions selling puts. You can see here

I have a,000 shares, $328,000

in this stock. And excuse me, I thought

I had a little bit more. What I do have

more of is Amazon. I guess Amazon. Yeah,

I had $671,000 in Amazon. So Google and

Amazon, these two stocks make up $1

million worth of my portfolio. And same

story with Amazon. I sold puts here to

get in. I'm up $96,000. I gave this

trade live to my Discord community. It's

been some time right now, but all the

members that have been with me for at

least 6 months. Oh man, they're they're

they're feeling the biceps. They're

feeling the triceps. We're making gains.

We're doing real good. Really good. So,

I'm just pumped up to show you what this

simple strategy could really do for an

investor that properly manages their

risk, has the proper setup to getting

into the right stock, which let's get

into right now. Let's talk about stock

selection. So before you ever even think

about selling a put option, it doesn't

matter if you know the right delta, the

right, you know, all the right metrics,

bid ass spread, and everything that I

showed you so far in this course on

tiring. If you choose the wrong stock,

forget about it. You're on the wrong

boat, right? So if you're taking a boat

to the wrong place and your end

destination isn't correct, then it

doesn't matter how big of a boat you

have and how quick your destination is.

If you get to the quick destination, but

it's the wrong destination, it's no

good, right? That's exactly what stock

selection is. So, what company am I

actually willing to own should be the

first question that you ask yourself,

not which put option has the highest

implied volatility, which one has the

juiciest premium, which one is going to

fill my pockets with cash today? Because

what can fill your pockets with cash

today might hurt you tomorrow. I don't

want you to be in that position. That's

something that I very much focus on with

my one-on-one students. We're not always

focused on hitting home runs and getting

to the end destination as fast as

possible. We're focused on management,

on risk management to be specific, so

our downsides are not really, you know,

exaggerated and not creating too much

volatility. And I can't emphasize this

enough because it's probably the biggest

mistake that I see beginners making all

the time. Most investors open their

option chain immediately look at the

highest premium. They say, "Wow, this

stock is paying me 6% for the month."

Great risk. Risk? What? What risk? 6%

count me in. And that looks amazing.

That's dangerous. What they don't

realize that that option is expensive

for a reason. High premiums usually mean

high risk. There is no free lunch

investing. The market isn't handing out

extra money. Money is pretty hard

nowadays and the market does not feel

like being generous. I'll tell you that

much. Okay. The premium is often higher

because the stock is more volatile. The

company may be weaker fundamentally.

Although that might not always be the

case. So for example, when I show you

Palier sell puts, it doesn't mean that

Paler is a bad company because it has

high implied volatility. It just means

that there's potentially more volatility

that can happen over the next say 30

days. So the stock could end up being up

and down more more volatility. So more

volatility isn't always bad, but high

high volatility typically is bad. Okay,

I'll tell you that much because because

some of the most volatile stocks, they

don't just go up in one direction. So at

some point they do come crashing down in

all cases. There is no very volatile

stock that only goes in one direction.

So when you see a lot of volatility, you

want to be very careful. And I'll show

you live examples what that looks like.

But investors that believe there's a

greater chance that shares could decline

significantly will pay a higher premium

or they will basically bid up on implied

volatility. So forget about the option

for a moment. Pretend options don't

exist. Imagine someone walked up to you

today and said, "You must hold on to a

stock for 5 years." Okay, I'm bringing

up something that Warren Buffett, one of

my I I I want to say mentors because I

read so many of his books and I watched

so many of his lectures and he says,

"Tretend the stock market closed for 5

years. Would you still choose this

company?" That is what your stock

selection should look like. Your stock

selection should not look like, you

know, based off of what YouTubers are

saying. There's far too many YouTubers

now on this platform. Some who have gone

through my program and now they're

claiming, "Hey, I'm a professional

trader. Hey, my win rate is 90%. Hey, I

have banking experience." These guys

went through my program and now they're

influencers showing you this stock is

great and that stock is great. They're

using AI and it's very tricky. I want

you to be aware of that and be careful.

I'm not naming names and I'm not saying

everyone is bad. I'm just saying it is

very easy to get misinformed, go for the

wrong stocks, specifically ones that

have a lot of volatility or hype stocks,

and you think you're getting information

from a credible source, but

unfortunately, it's very, very tricky.

So, here's some of the things that you

should look for. You should focus on

companies that have a very strong

competitive advantage. Should also pay

close attention to revenue. Revenue must

be going up. That is the whole lifeblood

of a business. They must also have very

healthy earnings. Meaning that earnings

trend is trending higher. They're

beating earnings. They're at least

matching earnings. If they miss earnings

one time, that is a very, very bad sign.

Also, you need to look at the balance

sheet. Okay? For me, when I look at a

balance sheet, I want to see a lot of

cash and I don't want to see a lot of

debt. Sometimes debt is okay, but it

depends on the situation. And I can't

really make a huge blanket statement

because different stocks in different

sectors, for example, industrial versus

technology versus consumer versus

healthcare, they're going to look

completely different. That's exactly why

I do have a discord community is because

you always want to research a stock

first and you want to get a good

understanding of the stock before you

even run really any option strategies on

it. So I want the business to genuinely

be growing, have strong management and

on the calls that they have every single

quarter where they reveal earnings and

guidance. I pay close attention to

guidance. I don't just look at earnings

because earnings today is already priced

in like that. It's priced in like

immediately almost. The stock market is

very strong and smart. There's a lot of

investors trying to make money. It's the

most competitive game in the world. So

once a company has earnings, they're

basically priced into the stock

immediately on the next day and you're

not going to be trading after hours. And

even after hours, the stock will be

changed anyway. So you don't want to

just look at what's going on today

because that's already priced in. You

want to form a strong opinion for what

is likely to happen over the next 6

months and 12 months. That's the only

way you can get an advantage as a retail

investor. There is no other way that you

can look at very very short-term trends,

day-to-day stuff, watching the news,

listening to YouTubers. None of that is

honestly going to work. You need to get

behind strong businesses. Think about

companies like Nvidia, Amazon, Meta. I

like Palunteer. I like SoFi. Even though

SoFi hasn't delivered super well in my

retirement portfolio, which is I'm in

the same shoes you are. I'm looking to

generate income in my retirement which

I'm in right now and I'm still teaching

because this is what I'm passionate

about. And when I look at a stock even

say that has not done too well they be

SoFi and Paluner is down a little bit.

Hey, heck, even Nvidia's young side

base, that doesn't matter because the

strategies that we had in our core,

which is selling puts, covered calls,

and spreads could do exceptionally well

even if the stock market goes sideways,

even if you know the stocks are not

performing super well as long as they're

not actively crashing by double digits.

Well, many of these strategies could be

managed extremely well. In fact, I see

oftent times in my YouTube comments,

hey, you were wrong. This stock is down.

Down in what period? And are you just

holding stock you bought at the peak?

Were you dollar cost average? Are you

using options to hedge? Are you

protecting your downside with, you know,

hedging? Well, none of that's all out

the window, right? People are just like,

the stock is out. That's very very far

from the truth or the story that

actually ends up happening. It's like,

hey, you ate cake, you're gaining

weight. That's not even close to the

full story. That's so little

information. You ate cake that day, so

you're gaining weight. Maybe you did a

lot of steps. Maybe you went to the gym,

you're in a calorie deficit. Maybe you

only ate cake that day. Even if you ate

cake one day, it's not going to do

anything. if you have a long-term

healthy plan of of your diet. So, you

see what I'm saying? Like, you need

proper information and you also need to

have a long-term plan. Any short-term

swings in a stock, they can definitely

hurt a portfolio, don't get me wrong,

but it's not really about that. It's all

about how you manage long term. So, for

example, Nvidia, Amazon, Meta,

Palanteer, these are businesses that

continue investing heavily into

artificial intelligence, into cloud

computing, into advertising, software,

and infrastructure. They have enormous

addressable markets, and they continue

growing despite already being some of

the largest companies in the world. In

fact, some of the biggest companies in

the world are often still great

investments because they're still

growing in their market leaders. Now,

there's a huge difference between buying

a wonderful business that's temporarily

down versus buying a weak business that

continues to get weaker. So, remember

eventually almost every investor selling

quotes will get assigned and that is

okay. Assignment isn't something to

fear. It's something that you should

expect. That's why your first priority

isn't collecting premium. Your first

priority is building a watch list of

companies that you actually want to own

that you would be excited owning if you

sell a put and it goes into the money

and you get a sign. I always tell my

students this, invest first, trade

second. The option strategy should

improve your entry into a great

investment, not convince you to buy a

batting pest. So once you build the

watch list, patience becomes your

biggest advantage. You don't have to

force trades every single week. Just

have to find the stocks that you like.

Sell puts because when you sell a put

that's out of the money, I go for out of

the money puts all the time. My space is

30 delta. Whenever I sell a 30 delta put

option that's out of the money, that

already gives me a lower price than what

the stock is trading at in today's

market. Just like I showed you on

Nvidia, if Nvidia is at $211 per share

and I sell 205 put, I'm already better

off getting a 205 than 211. Not to

mention the premium that I get paid to

wait. So simply wait until one of those

great companies experienced any

temporary weakness or you think that's

fairly valued, which I cover all the

time in my Discord community. It's a lot

of strategy behind how to find the value

of a company. But some of the simple

metrics that you can see even if you're

not part of my discord is like PE ratio,

price to sales ratio. You can use

technical analysis to find the moving

average. Okay, if you set a moving

average that's 50 days, you'll get a

good sense of where the stock is trading

around. And the market's not dumb. So,

it's most likely pricing the stock

somewhere around fair value. Now,

sometimes the market is completely wrong

and that's why it can be very dangerous

to only look at one single technical

indicator, but you kind of get what I'm

saying, right? So, I become interested

in a company that I find attractive and

I sell a put option at a strike price

below the current price and that is when

I'm interested in getting assigned. By

the way, here's a quick clip on what

assignment risk actually looks like.

Here's exactly how to tell if you're at

risk of being assigned when selling a

put option. So, let me illustrate how

this works with the chart. Let's say

that you're selling a put option 100

days until expiration. The bottom of the

chart will represent days. And the left

hand side of the chart will represent

delta, which is essentially a scale of

how likely you are to get assigned on a

scale of 0 to 100. And we're showing

right now a line of assignment risk. You

see how the assignment risk goes way up

as the days are approaching zero. Your

safe zone is right here. This green area

is from 100 days and beyond. You're

very, very safe. Now, you see here is

your moderate zone. the moderate zone

really starts to happen in the final

month, especially in the final two

weeks. See, if delta is high, there's

still a lot of time left. It doesn't

really matter. Your assignment risk is

still very low. However, if delta is 50

or higher, in that range, it starts to

become moderate, especially in the last

2 weeks. Now, you see here the risk

zone, the risk zone where delta is say

60 to 100, that's where your risk starts

to really go up. So, for example, if you

have an 80 delta option and you have

sold a put and it's 80 delta and there's

only 3 days left, you are definitely in

the risk zone and your chances of

getting assigned might be 50% or more.

Number two, assignment risk matters

because selling a put option means that

you are agreeing to buy 100 shares at

your strike price if you were assigned.

That means that you have to have cash on

hand and if assignment happens, your

cash will be deployed and you will buy

100 shares. Now, early assignment

happens when someone wants to force you

to take shares before expiration. This

can be pretty dangerous if you don't

have the cash available or you're simply

not prepared to take assignment or for

whatever reason you don't want to take

assignment. A higher delta means there's

higher assignment risk. As you saw in

the chart that I showed you, the higher

delta is, the higher chances of

assignment risk. If there's a lot of

time left, then you're okay, right? You

have a lot of time. But as the option

approaches expiration, there's not that

much time left. And a high delta, that's

when your chances of early assignment

increase. Delta is a very important

factor. And a lower delta actually means

that you have a low chance of getting

assigned. Even if it's slightly above

50, even if it's in the money and

there's some time left. So to summarize

the risk zone before we get into number

three on manage the risk is green,

you're safe and that's lots of time left

and or low delta. Yellow is your caution

area. That's when your delta is medium.

Maybe it's over 60, maybe it's 70, and

there's a medium amount of time left.

Say 2 weeks or 3 weeks. It's very rare

for assignment to actually happen in the

yellow zone. I just put as caution

because you're not that far away from

the red zone. Now, the red zone is a

danger zone. That's when you have high

delta. High delta is 75 plus. So 85

delta would be high delta. And that's

when you don't have that much time left.

For example, you have 2 weeks left. You

have an 80 delta. That's when you're

really getting into the red zone. If you

need a reminder of the green zone, the

yellow zone, or the red zone, then feel

free to rewind this video and watch the

chart that I drew and the time and

really understand that chart and go back

to it as needed. All right. Now, let's

talk about choosing the right strike

price. I showed you an example on Nvidia

205, but hey, what's the right strike

price? Why don't I go lower? Why don't I

go higher? Now that you've selected a

company that you generally are happy

owning, the next decision really comes

down to choosing the right strike price.

This is where investing becomes much

more strategic because the strike

determines three very important things.

How much premium you're going to

collect, the probability of getting

assigned, that is through delta, and the

price that you'll be potentially

purchasing the stock at. Most figurators

think the goal is simply collect

premium, get high premium, and maybe

sometimes get assigned, but eh, that's a

little bit backwards. The goal is buying

a great company at a great price while

collecting fair compensation for

waiting. Personally, I like using delta

as a starting point. Without diving too

deeply into the math, delta gives us an

approximation or probability that an

option finishes in the money by

expiration. A 20 delta put roughly

implies about an 80% chance of expiring

worthless. It isn't perfect, but is an

excellent guide. It is based off a

really deep mathematics called the Black

Scholes model, which is pretty useless

for us to go into. It's not that

important, but it's based off of a

really strong mathematical number. So,

delta is honestly the most important

figure, and it's one of the Greeks that

I look at the most. That's why I

generally sell put options somewhere

between a 25 and 30 delta because on a

long-term curve 25 to 30 delta has a

good mix of decent premium income while

also having relatively low risk. Let me

show you what that looks like. All

right, let's jump into the portfolio

again and I'm going to look at Amazon

for now. I'm going to show you several

different options. Let's go for let's go

for August 21st or hey September. This

video will take some time to edit. Just

go for September. So let's go to sell

put option right. So if I go for

something close to the money here like

235 you can see the delta is 0.35. So

actually there seems to be skew that

Amazon is not likely to fall because a

delta here I would think would be higher

since it's so close to the current price

of Amazon yet it's not that high. It's

only 35 delta which means there's only

35% chance of Amazon being at 235 or

lower on September 18 expiration. Okay,

we can kind of see that clearly here.

And one thing I'll point out is the IV

is about 39. Okay, that's not high. It's

not low. So, it's somewhere in between.

And I want you to pay close attention to

the bid and ask here, which is roughly

$10. Okay? So, $10. I'm going to put

this math up on the screen. I just want

you to understand the yield that this

option has at a 35 delta. And then we're

going to show you different deltas. And

then we're also going to compare to

different stocks step by step. Okay? No

worries. So, $10 is the premium and the

capital requirement here is going to be

235. So, here's the math on the screen,

and I'm going to guess that the math is

about 4.5%.

I'm going to just guess based off of

some rough math that I'm going to do

myself. So, 4.5%. Okay, now let's go a

little bit lower. Okay, let's see what

happens when we go a lot lower and the

chance of this option going to the money

is decreased. Okay, so here the delta is

14. Okay, a 14 delta is a lot lower

obviously because only a 14% chance of

Amazon being 210 or lower. And guess

what? Look at the premium. The premium

is $3.20, which is essentially like

onethird of the previous premium. So,

let's put the math up on the screen

again. Okay. What is $3? And your

collateral requirement here is 210. So,

now the yield before was 4.5. I'm going

to guess this is about a 1.4% yield. So,

which one's more? Of course, the one

that had a higher delta, which was

roughly 4.5, is much bigger. I'm going

to draw on the screen right now is much

bigger than this current one which has a

smaller delta which is this yield right

here which is I'm going to guess 1.4%.

So 4.5 is more than 1.4 and it's

significantly more and the reason why

it's more is because of the higher risk

and higher risk means that investors

should get compensated more money. Okay.

And the bid ass spread here is also very

good. Same expiration the IV is about

the same. It's not 39, it's 40, but

3940. It's It's very, very close. Okay.

All right. Let's go into a different

stock because I want you to see a more

high implied volatility stock. I want to

find one of the AI stocks that I have in

my portfolio. NBIS. Okay. Lots of

volatility in this stock. You can see

over one year. It's crazy. This is a

biggest position that Leo called Ashen

Burner has, which is a few videos I made

on him as an investor. But, um, this is

a high quality company. I would say it's

up a lot. It's, you know, core to the AI

story here. And I have some I don't have

much shares, but go to trade options. I

want you to see what selling a put

option looks like on a eyeballs already

stop. Let's go to September 18 here.

When you get a sell put now, let's go

find and you'll notice right away that