So, most people think the hardest part

in investing is reaching your first

$100,000 or even a million dollar. And

let me tell you from firsthand

experience, it's not. The real hardest

part is the first $50,000. And once you

cross that line, everything starts to

change. I'm in my mid-30s and my

investing portfolio just crossed $4

million. The single biggest unlock of my

financial life was not the moment that I

hit my first $100,000. It was actually

the moment my portfolio crossed $50,000.

That's when I really started to feel the

gravity of it and actually start to see

the fruits of my labor. This is when

your money actually starts to work for

you. So today, I'm going to show you the

exact checklist I'd be running if I had

to start over from zero all over again.

How I would build a portfolio from

absolutely scratch in just five phases.

I'm going to keep it really simple. It's

a real sequential checklist that you can

watch, pause the video, complete each

step, and then come back for more if you

need. And I just want to give you a

quick disclaimer. This is not financial

advice and YouTube, please don't take

this video down. This is simply what I'm

personally doing and what I did to get

where I am to today. If you handed me a

$50,000 check and told me to put it to

work in options, the single biggest

chunk of that money, a full half of it

would not go anywhere near the exciting

trades, the ones that look really fast

and really sexy, the ones that most

trading YouTubers are pushing. I would

strategically allocate the first half to

something a lot more consistent. So, the

way that you split your money matters a

lot more than any single trade that you

will ever place. And by the end of this

video, you'll see exactly how to

properly split your money. And if you

got far less than $50,000 or more than

that, you can also easily adjust based

off the strategies that I give you,

which will be easy to adjust to your

current portfolio. And I'm not just

guessing here. After many years on Wall

Street at Goldman Sachs, I got to learn

directly from some of the serious hedge

fund managers, including guys that ran

millions of dollars for NBA players. And

that institutional way of thinking about

money is exactly what I'm going to hand

to you today. So, let's get into the

first phase, which is treating options

like a portfolio, not like a pile of

lottery tickets. So, with that being

said, here's the mistake that I see most

of the time coming, especially from

beginners. And I made a version of this

myself many years ago when I first

started about 10 years ago now. Most

people treat options just like lottery

tickets. One big bet, one big move on

one stock and if it hits, you're a

genius. And if it misses, well, you end

up just saying, "Hey, option trading

doesn't work." You end up giving it away

and giving up on it. Well, either way,

you're not really learning in that case

scenario. You're not really improving or

optimizing. I would say you're kind of

not even investing. That's really more

so gambling. that is more so a scratch

off for a ticker symbol. And the thing

that finally made things different for

me after years of experience on Wall

Street that I mentioned after making

mistakes was looking at option trading

not like a home run because nobody up at

that level is really trying to do

options like a home run style like in

baseball. Instead, they think in

allocation, they think in risk. They

ask, "What job does each dollar do? How

do I send out a green soldier and get

more green soldiers back to my own

portfolio?" and how much of the whole

book am I willing to put behind one of

my ideas? And that framing is the entire

process that I want you to follow as

well. So instead of one lottery ticket,

we build a portfolio where every piece

has a job. So let me give you the split

up front. And don't worry if the names

mean nothing to you yet because I'm

going to define each and every single

strategy. So the first one is 50% goes

into the wheel strategy. 20% goes into

leap options. 15% goes into selling

puts. 10% into spreads and 5% this is

the smallest sliver goes into something

called the poor man's covered call. So

let's start with the biggest piece and

then go from there. The first one this

is the 50% core. I'll call it the core

strategy which is running the wheel

strategy on a big blue chip company.

Something that is more stable something

like an Nvidia, Walmart, Amazon, Google.

Okay. And also, if I had $50,000, I

would run the wheel on something a

little bit smaller in terms of market

cap that has higher implied volatility

that can bring in a bit juicier

premiums. An example of that would be

something like SoFi. So, out of $50,000,

the very biggest move that I am making

in the biggest one is putting 50% of my

capital, a full $25,000 to a strategy

called the wheel. So, half the account

into the most boring thing on the whole

list. And it gets the biggest slice for

a simple reason. It's the highest

probability, most repeatable strategy

that I run and the one that doesn't need

the market to shoot straight up to have

a good result. So, let me build it from

the ground up because everything else

today sits on top of this. An option

premium is just the cash a seller

receives upfront for taking on the

obligation. You promise to do something

later and the cash for making that

promise shows up in your account today.

That's it. Now, that is the strategy.

The first step of the strategy is a cash

secured put, which means that you agree

to buying 100 shares of a stock at the

price that you choose called the strike

price. And I set aside the full cash is

actually needed to run the strategy

because a cash secured put means that

you have the cash available to actually

buy the shares if you get assigned. And

we'll talk a lot more about assignment

with this strategy and the other ones in

this video. So, think of it as a limit

order that actually pays you to wait for

your price. So if you want a stock

cheaper than it's trading at in the

market right now, while you wait you can

collect a premium. A premium comes in

the form of a promise. So this happens

when you promise to buy the stock if it

falls below a strike price and you get

paid premium whenever you sell the

option. Next, delta. Delta is roughly

how many cents an option moves for every

dollar that the stock moves. But here's

the bonus. It doubles as a rough gauge

of the odds as well. So a 30 delta put

is loosely a 30% chance of the stock

landing at the strike price. And then

let's talk about assignment. That's just

when you actually get put the shares. If

the stock drops to your strike price,

then you have to own one of your shares

at expiration and that is called

assignment. If it's below your strike

price, someone is going to exercise and

you have to buy the shares. And once you

own them, well, you just move over into

the second step of the wheel strategy,

which is selling a covered call, which

is really just like renting out your

stock that you already own and actually

collecting a rent on it. You give

someone the right to buy your shares

that are higher up in price. And a

premium comes in the form of that

promise that you are giving. So you are

saying that if the stock goes up, I will

actually give you my shares and someone

else who is buying that call option is

betting on the stock going up. Okay? But

in the wheel strategy, whenever you sell

the covered call, you want to sell it

above your average cost basis. Because

if you sell it above your average cost

basis and you lose your shares above,

well, you made a gain and you actually

appreciated in the amount of value that

you have gotten from the wheel strategy

since you have sold the stock higher

than when you have bought it. So, put it

all together and you have the wheel

strategy. A wheel that keeps turning

over and over again, pretty much like a

bicycle. a premium, then maybe some

shares, then premium again, and the

wheel goes all over again. You collect

premium whenever you sell the put

option. If you get assigned, you start

collecting premium by selling more

covered call options. And then if you

get assigned, well, you're out of the

wheel strategy and you have capital to

do it again. Let's run this live on

Walmart right now. Say Walmart is

trading for around $115 per share. It's

a mega cap stock close to $900 billion

in market cap. Very defensive and also

pretty low volatility sitting near the

middle of its 52- week range of between

94 to $135 per share. If I sell the 110

put roughly 30 to 45 days out around a

30 delta, here's what happens. Because

I'm promising to buy 100 shares at $110,

I set aside $11,000 as collateral. That

cash just sits there. It's locked up and

it's backing the trade. And because

Walmart has low volatility, the premium

is kind of thin. Call it about $150 for

the contract. And I'm saying this as an

illustration, not a promise. If the

stock stays up, the promise expires and

the collateral frees up. If it drops and

I'm assigned, now I own 100 shares at

$110 per share on a company that I am

genuinely fine owning. And I turn around

and I sell covered calls at or above

$115 per share. And that is how the

wheel turns. That's why Walmart is

actually the biggest position in my

whole portfolio. Has low volatility,

which means that it has skinnier

premiums, sure, but for a trade-off that

has a little bit skinnier premiums and

not that much volatility is a trade-off

of consistency. Let me show you what I

mean. I'm going to show you my current

position on Walmart, and we're going to

go over the wheel strategy that I'm

actually running in my current portfolio

right now. All right, guys. Let's take a

look at Walmart right now. I have a

really massive position on Walmart, and

I've been running the wheel strategy for

a very long time, over a year now on

Walmart. And the wheel strategy has

contributed very heavily to my gains on

Walmart. I'm currently at $411,000 on

Walmart. And I'm currently in the

covered call portion of the wheel

strategy. So, I've actually sold puts a

long time ago and actually show you. We

can go to my history. I want to be very

transparent with you in this video in

every video obviously as much as

possible. Now, we're going to interpret

some of my history here. We're going to

see here that I had a 115 expire

worthless, a 105 could expire worthless.

There's just a whole lot of history

here, but the most important part is

that I've been selling puts for a very

long time and has been going very well.

We can keep going down here. 110 short

call roll. So, I'm doing a lot of

rolling, which we'll discuss later on in

this course. Lots of rolling and lots of

selling puts. Just tons of sell puts.

And I'm still continuing to go down

here, but tons of sell puts. But let's

start off from kind of scratch here and

understand how I was so successful on

Walmart and how you can pretty much do

something very similar. Now, in terms of

allocating a 50k portfolio, Walmart or

something similar would be my core

position because selling one put option

is like 10k that makes up 20% of the

entire portfolio. And having 20% of your

portfolio in the wheel strategy, I

think, is pretty attractive just because

the wheel is one of the more consistent

and stable strategies versus the other

higher growth and higher risk strategies

that we're going to be discussing. So,

I'm in the cover call portion where I'm

doing the 110 call. But if I were to

start off a new position today on

Walmart, I would simply do an option.

Let's say September 18. Go to sell put.

Walmart's at 109.5 per share. I would

simply go for an out-of-the money

option. Something around a 30 delta. So,

the 105 here, let's see, has a 32 delta.

Great. So, a 32 delta here gives us

again a 32% chance of us getting, you

know, expiring in the money, which means

that Walmart will be 105 or lower. And

this is a good delta. I like 32 because

if it's too low, basically you're not

going to get paid enough money. And if

it's too high, your chance of assignment

is really huge and you're going to get

assigned far too often. And not that

assignment is bad, but you're going to

get assigned all the time without even

getting the chance to collect multiple

premiums along the way. So, I think the

best way to do it is to collect multiple

premiums along the way. That's what I've

been doing for over 10 years is I just

been selling puts. If I don't get

assigned, pretty happy about that. And

then when I do eventually get assigned,

great. my average cost is way lower

because if I've collected premium three

or four times along the way, then my

average cost is going to be a lot lower.

Here you can see that the bid is 273.

Let's just call this $2.75, right? Which

is basically the middle point. So 275.

If I do this four times and then I get

assigned. So for example, 275 + 275 is

550 and then times 2 again it's $11. So

if it takes me four times to get

assigned, I can sell this four times.

Well, that would roughly be the odds not

too far from 32 delta. Pretty close,

right? So, $11 would essentially be

factored into my average cost. So, let's

say that I did this three or four times

and then I get assigned at 105. I'm

getting assigned at 105, but I've

collect $11 along the way. So, my true

average cost is going to be $94 per

share. So, yeah, I would just hit sell

here and I would sell a put option on

Walmart. And essentially once I'm

assigned on 105 the strike price then I

would go into the next stage which is

what the current stage that I'm in right

now. So I have the 110 covered call and

I did it for January 15. For me I want

more passive income. That's one of my

goals is I do shorter term trading in my

Discord community. So I tell the members

here are some of the trades that I'm

doing and I do smaller account trades

and I'm looking to generate income and

collect premium on a weekly basis but

then I'm also doing some monthly trades

and then quarterly trades and even

longer trades than that. I'm mixing

things up because some of the members

that come into my community, they have a

smaller portfolio and they want to do

things quicker. And then other people

are medium portfolios and they're okay

selling options and kind of waiting

longer. Maybe they're busy professionals

and they don't want to manage their

portfolio. Then I have people that don't

want to manage their portfolio at all.

They just want to generate enough

premium that pays them enough monthly to

be in retirement and they don't want to

manage dayto-day or even week to week. I

think it's fine either way. The whole

point of the wheel strategy isn't even

expirations. expirations is not the most

important factor. The most important

factor is picking the the strike price

correctly is getting in on the stock for

the price that you want to own the stock

at. So technical analysis can be

extremely helpful, which we'll cover, of

course. And yeah, just having that

long-term mindset, super important

because of course, as I'm making this

video course for you today, market's

going through a lot of volatility.

People are feeling a lot of pain. And

the wheel strategy is actually great for

that because you always have to compare

yourself relatively, right? [snorts] So

when the market is down, your goal is

just to beat the market and be

relatively better off than everyone

else. It's going to be impossible if the

market's down 5% for you to be up money

on your portfolio because there's

correlation and everyone is correlated

together. Assets are correlated

together. Stock market and real estate

market are correlated together. But the

wheel strategy really provides a lot of

safety that I'm personally looking for

because you get cushion on the downside.

So whenever you sell a put option, you

don't get assigned right away unless

you're super unlucky. But in the law of

large numbers or over many trades,

there's no way you're going to get

assigned all the time. If you sell a 30

delta, by definition, you're roughly

going to get assigned three out of 10

times. So again, you get to collect

premium many times along the way. And

then, yeah, once you're in, my average

cost is $71. And I open this trade up a

while ago in Discord. All the ideas that

I have, I open them up right away in

Discord. That's my first kind of plan of

action is to share with those inner

circle members. And then sometimes I

make YouTube videos and you guys get to

see my positions here as well. I'm very

transparent about my portfolio, but the

timing is just different. So, you might

see some of the positions I already have

that are already up hundreds of

thousands of dollars like Walmart. But

in this case, I still think Walmart is a

good example of a trade that someone

even today could place just because I'm

up 52%. Doesn't mean that it's

necessarily too late. That's why I'm

doing this example. I have a 110 covered

call and I'm very kind of close to that

110 level right now. I'm currently down

$2,500. It's pretty negligible. You can

see the value of this option is $99,000.

Meaning that essentially if nothing, let

me actually simulate the return if

possible. Let me click here into the

110. And I can go to simulate my return.

This is going to be super insightful. So

check this out. Right now I'm down

money, but because Walmart is trading

for $1,951

and this covered call is 110. It's an

out- of the money option. It's not in

the money, but it's very close, but

still not in the money. It's an OTM or

out of the money option. And here, if

Walmart goes sideways, if it stays

between the range of, I don't know, like

$100 and like $19.99,

basically, it's going to continue to

gain money here. It's actually a pretty

crazy amount. Obviously, I get I have a

bigger portfolio, but you can just apply

this to a smaller portfolio as well. If

you're allocating 50K or 100K, it's

going to look a little different, but

this is just like motivation for you to

build your portfolio and compound your

portfolio. ideally have me by your side

helping you along the journey because

the journey just requires time,

dedication, and consistency. It's pretty

much like everything else in life, like

going to the gym, your diet or whatever

or health. It's very important to stay

consistent and consistency is always is

like honestly more important than even

being like perfect at everything that

you do. But I just want this to serve as

motivation because me literally doing

nothing, if I do nothing, absolutely

nothing until January with this Walmart

position, it'll gain $96,000 and that'll

all be time decay value that I'm making

from an option where I'm actually doing

zero work. I could literally put my

phone down, go volunteer, go save

animals, go, I don't know, go to

different countries and help people that

are in need. Do absolutely nothing in

terms of my portfolio and January if

it's under 110, I'm going to be up

$96,000 as long as this option stays out

of the money. Now, you can see what

would happen if the stock went down. It

wouldn't be a great situation because

I'd be losing money on the position for

my Walmart shares, but my covered call

would still be up the same amount of

money just because I sold it for

$100,000. So, my max profit is roughly

$100,000. Now, if Walmart ends up rising

per share, you can see here how I'm

going to start to see some negative

numbers here and I'll be down. But, a

lot of people and a lot of beginners

especially, they get upset when they're

down. But it's not really an issue in

the wheel strategy because if you like

think about it, whenever you sell a put

option, you're happy to own the stock

and then whenever you sell a covered

call in the second portion of the wheel

strategy, you are essentially saying,

"I'm okay getting out." So it's your

exit strategy. So if that is the case,

which is the way that I teach my

students to do it, then if the call is

in the money, then yes, if you were to

buy it back at this moment of time, it

is going to be a negative. You're going

to have to pay money, but it's also

offset by the amount that the stock is

up. Right? So the example that I'm

showing you right here is if Walmart

went up a bunch, then this covered call

itself would be a negative simulated

return of $33,000. But that would be

more than offset by the stock actually

gaining value. I would gain

[clears throat] far more than that.

Probably even I'd be up over $60,000 and

this option would be down $33,000. So

technically, I can still close the trade

and I would make $60,000 in the stock,

for example, and then I would pay

$33,000 for the covered call to close it

if I wanted to close it early, which is

okay. Sometimes I do close options

early, but typically I don't really

close options early because I already

have an exit plan in place. I just let

the option expire in the money. So here,

all this like negative return that you

see doesn't really matter. I recently

had a woman that I was coaching. She is

in the medical field and she really

wanted to grow her portfolio and we did

a bunch of covered calls and this was

some time ago. I think this was like 2 3

months ago before we've currently

experienced some of the volatility of

stocks pulling back and she was really

in the money and she was pretty upset

actually at me. It was actually a little

bit difficult of a situation to work

through. I have empathy and I've been

coaching for a very long time. So I

don't take things personally. It's just

really a matter of education and helping

someone throughout their journey and

sometimes feeling negative emotions is

fine. She was upset and she was upset at

me. She's like, "And you put me in these

positions now. I'm losing money." And

we'll just call her Mary, for example.

Her name's not Mary, but we'll just use

Mary. I was like, "Mary." You know, it's

really not the way you think it is. So,

you're down on the covered calls, but

how much are you up on the stock? So, I

wanted her to understand the full

picture because it's like a a debit and

a credit. Like, in accounting terms, if

you have a big purchase, like if someone

bought a airplane, you can't just look

at one side of the story, right? So, you

look at someone buying an airplane,

you're like, "Dude, you wasted 30

million." This is a crazy example. I get

it, but you spent $30 million. Are you

crazy? But then you see the other side.

He sold a company for $120 million,

right? Some big rich CEO, whatever. In

context, a big purchase could make sense

given his credit that he's made, right?

So, I wanted Mary to understand that

story as well. Hey, yeah, you're down

12,000. She was upset. I'm down. I'm

losing 12,000 and I paid you for

coaching. I'm losing double the amount

that I paid for coaching or whatever.

And I was like, how much are you up on

the stock? She's like, well, I'm up

22,000. I'm like, okay, how much were

you up before you did the covered call?

She's like, I wasn't up. It was just it

was a new position. I'm like, well, you

got to take the difference there, right?

So, you have to understand that what's

the net benefit to you? She's like, so

my account value is up, but why is the

covered call down? It took a little bit

explaining and everyone has a different

kind of path to understand this stuff.

Even me myself, I study finance and it

still took me some time to understand

option trading. And when we had a deeper

conversation and she was like, "Okay, so

I'm actually up 10K." I'm like, "Right."

She's like, "Got it. Within the last 3

weeks, coaching with you has actually

benefited me 10K." And I was like,

"Yes." She's like, "Well, if I didn't

sell the covered call, I'd be up more."

I'm like, "True, that is true. In this

3-we period, you are correct on that.

You are correct that during this 3 week

period, had you not sold the covered

call, you'd be up." Yes. But look at the

times that we're in like right now,

there's so much volatility. She's a

successful, happy student now. It's been

3 months and she's doing well. She was

contacting me a lot at first because in

my coaching, you're able to contact me

as much as you want. I'm a one-on-one

coach. You can message me, you can text

me, you can voicemail me, you can send

me pictures. I'm on my phone. I enjoy

messaging other people back, my

students. I'm trying to help. So, she

was messaging me all the time and now

she's not messaging me because she now

understands on a fundamental basis and

she's doing well despite even the

volatility now. And I'll tell you this

funny thing is now that the times are

harder, I'm pretty sure the covered

calls are treating her extremely well

and she's actually very happy because

now the covered calls are not in the

money. So anyways, if your cover call

the moral of the story is if your cover

call goes into the money in a short

amount of time, it is what it is. You

made a net benefit and that's all that

really matters. Now 11 grand of

collateral per trade is allowed. So, if

your account is small, here's a scaled

down version, which is SoFi. SoFi is a

fintech company, which trades around $18

per share. It's more volatile than

Walmart, which is completely fine. The

range is actually between $15 and $33,

which is a much wider range. Now, what I

want to do to begin the wheel strategy

on SoFi is I'm going to sell a $17 put,

and that ties up about $1,700 worth of

collateral. So, instead of $11,000, now

I can tie up a fraction of that by

picking a stock that has a cheaper

dollar amount per share. And that is the

same exact mechanics. Smaller footprint

with a premium maybe around $40. Again,

as an illustration, but I'm about to

show you a real example. Let's finish

this off. The volatility on SoFi means

there's a fatter premium relative to

price, but it cuts both ways. It's

pretty much like a double-edged sword.

And here's the honest risk. The wheels

real danger is running it on a stock

that you don't actually want to own

because if it drops hard, well, you

don't just get to walk away. You're

holding shares that fell and you might

be catching a falling knife. Now, the

good news is I do like SoFi a lot and I

don't think I would be in that case.

Even if SoFi were to fall again, I would

be happy to own the stock. So, that's

exactly why I'm using it as an example

because I currently have it in my own

portfolio. So, here's my confession

before I show you an example on SoFi.

The biggest mistake I ever made was

selling puts on names purely because the

premium looked like a, you know, a juicy

steak. Not because I wanted the company,

but because I chased the premium, really

ignoring the business. Guys, don't do

that. only run the wheel on stocks that

should be happy owning at the strike

price. That is the entire safety net.

Okay, now let's go over into the example

on SoFi and then I'm going to go over

the next strategy that I would use with

a $50,000 account. That's going to be

20% allocation and that strategy is

going to be leaps. Let's wrap up with

SoFi and then let's jump into LEAPS. All

right guys, let's go into my portfolio.

You can see it's sitting at a very

beautiful number here and this is

contributed to the strategy that I'm

going to show you right now. So, let's

go into Walmart. Walmart is a stock that

I currently have in my own portfolio.

All right, guys. As you can see, Walmart

is currently trading for $117 per share.

Now, Walmart is actually one of the

biggest positions that I have in my

portfolio. As you can see, I have a

massive position, which I'm up actually

63% on personally. Now, I'm actually

running a wheel strategy on Walmart, and

it's actually in the money right now,

and I'll discuss what that is a little

bit later when I discuss SoFi. But here,

I have been selling puts on Walmart

pretty much a long time ago. And

whenever I get into Walmart, I just sell

covered calls. And although I'm down to

my covered call right here, this is a

perfect example to show you because it's

not always like sunshine and rainbows

whenever you run the wheel strategy. In

fact, the wheel strategy is very simple,

but often times when people are

successful with the wheel strategy, they

may get into the money. So, right now

I'm in the money on Walmart and I can

adjust and change this. I don't need to

yet because this option expires in a

long amount of time. And the best

practices that I use within my own

community is I usually do the weekly

wheel strategy. So on a weekly basis,

I'm running the wheel strategy just to

get a lot of reps under the belt at

first for beginners and then we

transition from weekly more into the

monthly because I prefer making monthly

income and that's my personal goal. I

think that's a lot more easy to manage.

But then, you know, as you grow your

portfolio on some of the bigger

positions I have, I just make a little

bit more passive. Okay? But going back

to a $50,000 portfolio, um I would still

do something on Walmart. So for example,

if I go to trade trade options, I'm

going to show you what I would do. Okay?

So, if I had $50,000 right now, I would

go for something like August 21st. Okay.

The reason why I would do August 21st is

because right now it's probably like

around July 20 or 21st. So, this is

about a 30-day option. A 30-day option,

I think, is that sweet spot where you

don't have to manage the position too

closely. But, at the same time, with the

wheel strategy, it's pretty nice because

whenever you sell a put option, you

don't really have to do too much. Again,

if you're happy to own the stock, well,

you sell the put option, you kind of

just hang back, hang tight. Don't don't

do too much. So, I would do August 21st.

If you're watching this in the future,

just basically go out 30 days. That's

kind of my best rule of practice. So,

August 21st here, you'll see that if I

go down to this 110 put option here,

you'll see that the delta is 0.29, which

is actually pretty nice for me. A delta

of around 30 is my sweet spot. So, if

you go too low in the delta, then you're

not going to collect that much premium.

And if you go too high in the delta,

will your chances of assignment go up,

which is okay, but I just found there to

be a better balance whenever you get

assigned three out of 10 times. for

example, and you collect premium along

the way and then you get assigned. I

think that's a much better way to run

the wheel strategy versus doing a higher

delta, say 50 delta, and then half the

time you get assigned. So here you can

see the bid is 209 and the ask is 215.

That's actually a really tight bid ass

spread. That's really good because the

tighter the bid ass spread, the more

liquidity this option has. So if it has

good liquidity, that means that you can

get in and out without having to, you

know, lose too much money in slippage

cost. Okay? So the wider the bid out

spread, the more money you lose and the

more money, you know, really Robin Hood

makes on you. So the tighter it is, the

better. The IV here is 30. And as I will

go over an example on SoFi next, you'll

see that the IV for SoFi is going to be

higher. I don't know what it is yet, but

it's going to be a lot higher. And you

will see that the premium is going to be

more attractive. So here, for example,

the premium is actually not that

attractive. I'm going to admit it

because all the other strategies I'm

going to cover in this video is going to

be way more attractive, multiple times

more attractive than this. But again, if

you know, if I had $50,000 and I wanted

to use half of my portfolio into

something more safe, well, a portion of

that would go into the safest of safe,

which, you know, I I think would be a

top blue chip stock. Okay? A company

that has a mega cap company that doesn't

have too much volatility. So, Walmart

would be an example of that. That would

sell a 110 here. And just note, I'm

going to do the math on screen. You

know, the premium here is $2 and the

capital that I have to put up is

$11,000. So, not the most attractive.

Okay? However, I'll tell you in the

second step of the wheel strategy,

although this selling put is not that

attractive as a percentage of return.

You can see on my screen, you know, it's

like 1 and a.5% or so, right? But on the

flip side, if you do get assigned at

110, right, which you will eventually,

that's the risk of selling a put option,

you have the danger of assignment, which

I don't think is too bad if you want to

own the stock. Let's say that you get

assigned at, you know, currently

Walmart's at 117. So, let's say that we

currently got assigned at 117, which is

not a strike price, but don't worry

about that. This is an example. I mean,

we could say 115. Sure. Anyways, 115 or

117. I want to show you how much better

it is on the second step of the wheel

strategy on the covered call side. So,

let's say that we have at 117 and we end

up selling a call option. Okay? If we

sell this call option, we basically get

$2.35, which is not that much more

attractive than the selling put portion

of the wheel strategy. However, one

thing to note here is that in the wheel

strategy, if you have the stock, it's at

117. You don't get rid of it at 117.

Actually, because you sell a 120 strike

price, you get assigned at 120. So, you

actually let go of your shares at a

higher price than the current price of

the stock. So, that's pretty nice

because if you factor that in, then it's

$2.35 plus the $3 of upside, which gets

you $5.35.

And as a percentage of the capital being

tied up, which here we're going to call

the capital tied up as $11,700,

$700 more than selling puts, but the

actual attractiveness of the premium

over the capital being held is a lot

more than the selling puts portion.

Okay? So, there's a cost benefit here.

And the good news is you don't have to

choose one or the other. Actually, later

on in this video, I'm going to show you

a portion of this strategy all by

itself. But here with the wheel

strategy, just note that different

sections of the wheel strategy will be

more attractive. Whereas selling puts is

a little bit lower risk because you're

selling a put that's out of the money.

If the stock doesn't fall, well, you're

good. You just walk away, right? But

with the covered call portion of things,

yes, you have the shares, you have

upside potential or capital appreciation

potential, but now you're holding

shares. You don't have margin or cushion

to really save you if the stock falls

down a little bit. Right? If I sell a

put at 110 and Walmart falls $5, $6,

well, still out of money. In fact, it

even puts me in a better situation to

sell a put option, you know, the next

put option because now it's closer to

110. So, now it's going to be worth more

because the delta will increase. The

risk of assignment at 110 will be a lot

higher. So, it's going to make a big

difference whether you sell a put option

in terms of risk and reward versus

covered call portion of the wheel

strategy, which is also going to be very

different as I just explained. All

right, guys. Now, I want to show an

example on SoFi. So, SoFi here is

trading for just under $17 per share.

And if I were to start the wheel

strategy today, you can see here I have

shares of SoFi, which I am actually

slightly down on, and I have a covered

call, which is going, you know, very

well. In contrast to Walmart, where I'm

in the money on Walmart here, I'm

actually out of the money. So, the wheel

strategy is going according to plan.

However, you'll see here I had a massive

gain on Walmart and I don't have a

massive gain here on SoFi, but I'm

winning on the covered call portion of

things. This is where a lot of beginners

can make a mistake and say, "Hey, my

covered call is losing money. This

strategy is bad or I'm not making any

money." Well, that's actually farthest

from the truth. Whenever your covered

call goes into the money as part of the

will strategy, that's actually the

perfect case scenario. That's actually

perfect because you get out of the trade

for higher than your average cost.

Great. So, if I was scaling a $50,000

portfolio, I would want to be turning

the wheel in and out as much as I could.

Right here in SoFi, despite being up on

the covered call, I'm actually down on

the stock. So little bit different of a

situation, but anyways, I can cover a

lot more of these details. I do live

trading in my Discord community every

Monday and Wednesday. I go over

different stocks. I go over technical

analysis and I go over how to manage

each and every single trade. Let's stick

to the basics and more beginner stuff

here. And let's talk about SoFi and how

I would do the wheel strategy. So let's

go to trade trade options. I'm going to

open this up from scratch if I were to

do so again today. August 21st is still

going to be the same expiration I can go

for. However, I'll say we can also go

shorter term. So, let's actually go for

something, you know, a lot shorter term,

which is 2 weeks out. That's going to be

half the time of 30 days, about 2 weeks.

We're going to go for August 7th. So, if

I were to sell a put option, I'm going

to go for something that is going to be

right around here. 16 put option.

Perfect. The delta is 029. Just like for

Walmart, right? Ended up selecting the

same exact delta. Great. That's

perfectly fine. Now, check this out. It

is way different. It is a totally

different ballgame than Walmart. First

of all, you can see the bid ask is even

better. It's even tighter. The IV is 72.

Okay, on Walmart it was 30. The IV on

SoFi right now 72. So, it's more than

double in terms of implied volatility.

And that is exactly why when you sell

the put option, if you take $61 on the

screen right now, $61 divided by the

capital that I'm locking up here, which

is technically not even $1,600 because

you have to also account for the

premium, right? So, if I take $61

divided by, okay, I'm not going to

divide it by 1,600. I'm going to divide

it by 1,600 minus the premium because

the premium that you collect actually

lowers your uh collateral requirement.

So, $1,600US 60 is going to be $1,540.

So, $61 divided by $1,540

is this return on screen that you can

see. That is the premium divided by the

capital. Okay, that is a lot more

attractive than Walmart as you can tell

right off the bat, right? And the reason

why it's a lot more attractive is

because of implied volatility. So, the

lesson learned here is that you want to

mix in higher volatility, higher

dangerous stocks that you know could

potentially come crashing down with more

safe, more stable stocks as well.

Whenever you're running the first

strategy in your portfolio, I would mix

this up actually. Maybe it's 50/50. Or

if you have more of a growth mindset,

you can even go a little bit heavier

using the more volatile stocks as a

portion of that 50% of capital within

the $50,000 portfolio that you are

trying to scale. Okay, so that's the 50%

core of your portfolio, your foundation.

Now, let's take it one step up the risk

ladder into the next bucket, which is

the 20%. $10,000 going into LEAP

options. This is the first slice that's

really a bet on being right about

direction. And this one's a little

different because the wheel pays me

whether I'm right about the direction or

not. This is where I want the stock to

go up and I want to pay a fraction to

ride it. This is LEAPS. And a LEAPS is

just a longdated option. It is typically

a call option, usually one year out or

more until it expires. And here I'm

going to be buying a deep in the money

leap call option which I'm going to show

you which is going to actually replace

stock. And because we're working with a

$50,000 portfolio, we want to be as

efficient as possible with growth. And a

leap option allows for an investor to be

more growthminded without having to put

up as much capital as they would to buy

100 shares. So meaning that it behaves a

lot like owning a 100 shares of stock,

but it ties up way less cash. Think of

it as renting an upside of a stock for a

fraction of the price. That's all it

really is when you talk about a leap

option. So, let me show you what that

looks like with Nvidia. And I'm going to

be using Nvidia because it's an AI

leader roughly $5 trillion market cap

trading for around $210 per share as I'm

making this video. To buy a 100 shares

outright, that's going to be putting up

some serious cash about $21,000.

Of course, that would be way too much as

a portion of our $50,000 portfolio. So,

if I want to make real money, instead of

putting up $21,000, I'm going to put up

a fraction of that by buying a call

option. All right, let's get into the

next bucket of the strategy that I would

be using to grow a $50,000 account. And

this would be a 15% tactical sleeve. And

this would only be selling put options

on Palunteer. So, we already talked

about selling put options in the wheel

strategy, but this specifically, I mean,

I'm only going to be selling put options

as a strategy to get into the stock. So

quick clawback. A cash secured put means

that I set aside the cash to buy the

shares and I collect a premium for

agreeing to buy them at a lower price.

So we covered that in the core strategy.

But here's how this is different. Here

is basically the same mechanic but

different intent. This is not riskier

than a leap option, but I'm allocating

only 15% to purely just selling put

options because you'll see why in a

second. I want you to understand this

bucket from the lens of implied

volatility or IV. It's the market's

estimate of how much a stock can move.

And think of it basically similar to a

market's weather forecast for how wild

the stock might swing. The fatter the

premium is for an option seller. So in a

low volatility market, there's thin

premium. In a stormy market, there is

fat premium. It's as simple as that. So

when I sell a put option, here's the

honest framing that I'm taking. I am

being the insurance company. I collect

the premium upfront and I take on the

risk. the risk is that I may have to buy

those shares if the stock drops. That's

the trade. Now, I'm paying for taking on

that obligation. So, let's show you an

example using Palencer. Palance is a

high volatility AI and government

software name has high beta. Now, what

beta means is essentially if the stock

market is one beta, so if the S&P 500

goes up 2%, a high beta stock, let's say

it has a beta of two, is going to move

twice as much as a stock market would.

So if the stock market moves up 2% a two

beta stock is going to move up by 4%. If

the beta is three which would be very

very risky stock then if the S&P went up

3% this stock move up 3% but three times

more so 9%. So let's jump into Palance

here and see how I'm only going to sell

put options as an entry strategy for

this stock specifically. But you can

also use this as an entry strategy into

other more volatile AI names as well.

All righty guys, let's go into

Palunteer. counter is at $122 per share

and in the past month is actually up

14%. Now, this next strategy that I love

in a 50k allocated portfolio, like

absolutely love, is like selling puts.

And selling puts is really useful

because a stock that you want to own

anyways, you want to sell puts on,

right? And pounders, you know, it's not

a lot, but it's up, right? You you might

be feeling some FOMO. Pounder went from

like 107 when I was covering on this

channel, and I told my Discord

community, guys, this is a generational

steal. It made any of the students

coaching fees look like a drop in the

bucket compared to what I caught here.

And if you miss that opportunity, now

Palanteer is at 122. I still think

there's long-term growth in place. I

still think Palanteer is like a $150

plus stock and they're going to be

reporting earnings pretty soon, which is

going to be interesting. There's going

to be some volatility. But let's say

like going into earnings, this is going

to be interesting because into earnings,

let's say you don't want to buy for $122

per share, and you kind of want to get

closer to that 110. That's obviously a

better value than buying something at

122 just based off of simple math. So

you would go to trade options and you

would just use selling puts as a

standalone strategy going into earnings,

right? So earnings is in 7 days. So

that's going to be in August 21st. But

you don't even have to go right next to

earnings. You can also give it some more

time because often what happens is

during earnings the stock can overreact

but then recover. Earnings just a very

volatile period and actually whenever

you capture in earnings, IV is going to

be higher which is technically a really

good thing because higher implied

volatility means that there's higher

option premium. You can actually already

see that in my portfolio. You can

already see a negative one position

here, which means that I have sold a put

option for September 18. So, I already

have this current position open. So, I'm

just going to show you this position as

if I was to open it from scratch again.

I already have this open, but I'm going

to go into this 120 put option here. And

pounder 120 put for September 18 has a

higher delta of 40. Okay. And the reason

why I'm kind of mixing it up here is

this is going to be a little bit

different. It's going to be a little bit

of an adjustment to a regular sell push

strategy. So, whenever you're looking to

sell puts, again, 30 delta is what I

usually go for, but a higher delta like

40 delta is going to have a higher

chance of assignment. However, if you

really want the stock and your

preference is to be in the stock and it

has earnings, you can see the IV is 61,

which is elevated IV, then this could be

very attractive because you were

accepting that there's higher risk to

get into the stock to begin with, but

you want that and you can be more

aggressive with your opening or your

entry price essentially. So, the higher

delta is a good thing if you want to be

more aggressive about your entry

strategy. Okay, IV is 61 and then this

is almost $10, right? If you think about

it, September 18 is a month and a week

away or so from when I'm making this

video and basic it's under 2 months.

It's a good amount under two months. The

premium that I'm making here is almost

10 bucks. And the collateral that I

would have to put up would be about

1,100 would be about 110, right? It's

120, but I'm going to subtract 10 from

it because again, the premium that you

make essentially lowers your average

cost, right? So, if I'm at 120 is my

strike, but I'm collecting 10, then my

true break even or my average cost is

110. Okay? So, if I'm making 10 and

that's capital that I'm putting up is

110, then I'm just going to ballpark

that this is roughly 9% in terms of a

yield that I am getting for this trade.

I find that incredibly attractive. I

find that just gorgeous in terms of what

I'm looking to do. I'm not sure that's

just that's amazing, right? You have to

think about risk and return and some of

the best investors in the world, Warren

Buffett, are just averaging whatever the

S&P averages and most hedge funds don't

even beat the S&P 500. So, you got to

look at this and say, "Wow, this is

really something that looks very

attractive." So, Palance here, I like it

as a specific sell put only strategy

because in the wheel when you ever you

do a covered call, you're giving up

upside, right? you're capping your

ceiling. But for Palance here, whenever

I do get into this stock, I like to hold

shares. I don't really always like to

sell covered calls. There's no need to

sell covered calls on your entire stock

portfolio. In fact, the first thing that

I do whenever someone signs up for my

coaching and I have my first initial

one-on-one review session, I look at the

portfolio and I determine, is this

portfolio suitable for this investor's

goals? I'm always looking for how much

covered calls are being sold in the

portfolio and how many shares are

uncovered because depending on the

investor's risk profile, right? My

student might want to be exceptionally

high on growth. Then covered calls

wouldn't make all the sense in the world

to have their entire portfolio in. They

would want to be more aggressive such as

this type of example on Palunteer where

if they get into Palunteer, I would tell

them to not sell covered calls and to

let the shares ride and to profit off

the shares and let it ride essentially.

All right. Now that we went over this

example, I also want you to understand

how is this different from the wheel.

Well, the wheel, I'm committing to

spinning the wheel. I sell put options.

If I get assigned, then I sell call

options. And if I get a sign, I start

all over again. Here, I'm tactical. I

want a good entry on a name that I like

and I want a fat premium. And I'm not

going to be rotating out of the stock.

Once I collect a fat premium, I'm going

to be riding the stock. And ideally,

this is a stock with high momentum. So

with the wheel strategy, the sky is not

the limit because I have a ceiling at

whatever strike price that I sell at.

Here though, whenever I get assigned and

I have the put option assigned to me.

Now I have the shares of the stock. I'm

looking for a move. I'm looking for a

momentum swing. Therefore, I'm not going

to be selling covered calls because I'm

not only purely trying to generate

income if I had a $50,000 portfolio. My

goal would be a combination of

strategies that are mixed in. I would

have a mixed solution. And the risk is

no, this is a real risk. High H high V

is high for a reason. So these names can

gap down very hard. A fat premium is a

compensation for real risk. It is not a

free launch. So only sell puts at a

strike where I would generally be okay

owning the shares. All right, let's get

into the next strategy which is a 10%

guard rail. This is a defined risk

spread on Nebius. I'm going to be using

Nebius as an example. Nebius has fallen

down a lot. It's been a very risky stock

and this is why I'm going to

specifically show you how I'm thinking

about it and how I'm going to use a

spread. Now, first of all, if you're

wondering what is a spread, well, a

spread is a smaller, spicier slice near

the top of the ladder in terms of risk.

It can be a lot higher risk, but of

course, higher risk comes with higher

return. This is what I would use

basically 10% of my $50,000 portfolio.

So, here's why this would be my favorite

strategy amongst all the strategies

within a 50k portfolio. It's because a

credit spread, for example, has a

defined risk. So instead of setting

aside full collateral, I sell one

option. At the same time, I buy a

cheaper option further down as a backs

stop. So with this strategy, I would be

opening up two legs to basically create

this order. I would collect the credit

for one that I sell and then I would pay

a little bit for the one that I buy and

then basically my net position would

still be a credit because the option

that I would sell would be worth more

than the option that I would buy. the

distance between those two strikes, that

is a spread's width, and that is also

the risk that you take whenever you buy

a spread. So, because I own the further

out option, my maximum loss is known. It

is a cap number. The width of the spread

minus the credit that I took in. I'm

going to show you in just a moment. And

that's it. That is my worst case

scenario. If the stock falls below the

bottom of the spread, okay? If it falls

below the option that I purchase, that

is my maximum loss. So, think of it

basically as putting on a guard rail on

both sides of the trade. The stock can't

hurt me past the guardrail, but also I

can't make any more money than the width

of the spread. So, here's where it earns

its favorite spot for me in a $50,000

portfolio. Let's go over Nebius. Nebius

is the wildest name in the whole book.

Stock has a lot of potential, but it

also has a lot of volatility. It's a

small midcap AI cloud company trading

around $200 per share, and recently it

has fallen well below that. It's been

trading in the 190 range. So, I want to

look at this stock with you. I'm going

to show you how I would open up a put

credit spread and the position size and

how I would actually manage this trade

with risk management as well. All right,

I want to go into a small account

strategy. This is a higher growth,

higher risk small account strategy. I'm

going to be using Nebius. And over the

last month, Nebius has had a lot of

volatility. Yet, you can kind of see

here that at 172 level, it has had a

pretty strong bounce. So, we'll call

that the support level. We're going to

go trade options and I'm going to show

you a put credit spread. A put credit

spread is somewhat similar to a sell put

because it starts off very similar to a

sell put, but then you cap your maximum

capital that you have to put up by

essentially buying another put option

that's lower. I'll show you step by step

how that looks like. So, let's go to

September 18. And because Nebius has the

most insane buy volatility ever, if I go

to 170, which is our support in this

case, the IV is 149. So this is more

than double the risk of Palanteer and

Palunteer is already a riskier stock. So

you can see here 30 delta but I would

adjust this a little bit just because

our support level or our mini support

level is at 170 for Nebius. A put credit

spread is a higher risk very small

account strategy and it's a high growth

strategy. So [clears throat] because

that is the case I don't even need such

a high delta. I would dial the delta

well lower. Okay. So right here you can

see the 0.24. I don't even need that to

be honest. I can keep going down here

and I can go to 140 20 delta. Okay,

that's a lot better. Now, the bid and as

spread unfortunately is really bad for

Nebius right off the bat. It's not the

best. But hey, this is an example and of

course I'm doing this pre-market, so

when the market opens up, this bid ass

spread might be better, but the whole

kind of knowledge here is more

important. The bid ask here is just bad.

It's terrible. It's $310 off, which is

just not good. That's not what I want to

see. But let's see. So if I do 140 for

example, I sell this and then I buy

right. If I go lower, un unfortunately

the bid ass spread here is so bad that

it's even showing it's showing that this

total trade loses no matter what. So

this is going to be a little bit harder

to do. Let me show you a different Let

me go up a little bit because that might

just be a bad bid ass spread because

it's not liquid. There's not enough

volume. We might have to change the

example, but we'll see here. This is

better. It's a 50 credit, but it's still

not that attractive. So, okay, let me

show you something else then. Not on

Meta because there's just an example

right there. I like Nebius, but Bitass

spread sucks. Let me show you something

on Meta. Let's go to Meta here. And Meta

has come down under $600 per share. So,

a put credit spread is basically a

moderately bullish strategy. And again,

it's a small account trade. So, let me

go to Meta and let me try on Meta here.

So, let me go for September 18. Okay,

I'm going to go again for sell put. I'm

going to scroll down a good amount. 550

here. Delta is under 30 which is good

but we can go even lower if we want. So

let's go let's go to 540 for example. So

if I sell the 540 then I go to buy and I

buy the 535 that's a more that's a much

more attractive premium here. Okay. Now

this is what a put for spread looks

like. You can see that my maximum profit

on this trade example is $95 and my

maximum loss is 405. So technically,

right off the bat, the risk-reward ratio

might seem off because you're only

making 95, but your potential loss is

$45.

So that's a not attractive risk for

return off the bat. But this is just

really not, you know, what's

interesting? This is actually not really

risk and return. This is really like

return over loss potential. The risk

[snorts] here is we can't even determine

it from looking at this. How do we

determine risk? We would actually have

to just understand delta again. So let

me go back here in delta. We have a 25

delta. So there's a 75% chance that this

does not happen. There's a 25% risk that

this does happen. Okay. So one out of

four times. Okay. So again, if we get

back to this trade, one out of four

times we will be in the money. So

technically that means that one out of

four times on the max loss is like $100

versus what we're making 95. So this

would actually seem like a wash. And

honestly in theory a lot of option

trading is a wash. If there's a clear

return and very little risk, then

everyone would take it, right? So here,

this is a very balanced trade. Whatever

you're able to really make is also very

similar to what you're able to lose on a

chance of profit basis. So you might be

thinking to yourself, why would I make

this trade? And option trading is option

trading even work. If that's true, if

it's all trades are balanced and the

risk is already factored in, what's the

benefit to me? That's where technical

analysis is important in finding support

level. Because although this is true on

a chance of profit basis or a delta

basis, at the end of the day, delta is

not everything. And if you find support

on a technical basis where Meta is

already at $594 and it's below $600 and

you find support at 580, which I believe

that MET is already cheap, then I

wouldn't necessarily only use Delta as

my decision-making factor. I would just

say, hey, 540 is like over $50 below the

current stock level. And from that

perspective, it seems extremely low

chance or low probability that it will

be below 540, right? Unless the market

continues to crash. So there's like

multiple ways to look at it. And this is

also something more that I teach. I

teach a lot more about risk and return.

I teach a lot more about position sizing

in my program. And overall, my goal is

to help each individual investor because

each individual investor is going to be

very different. So it's very important

that you understand your own risk

profile and how much to put into a

specific trade. Whenever I look at put

credit spreads, if I'm going to make

like a wide statement right now, then I

would definitely dial down the risk on

put credit spreads because this is very

attractive. It's it's essentially $100

that I'm max profiting and then my max

loss is around $400. So essentially, I

am personally looking for a 25% max

profit here on on the money that I would

be risking on this trade example, right?

So, of course, very attractive, but you

have to ask, it's attractive for a

reason because if a poker spread goes

below the bottom leg, okay, so if it

goes below 535, I'm going to lose all

$400. Now, that being said, I typically

do manage my trade and if it hits the

higher leg at 540, I will cut for a loss

because my goal is never to lose the

full amount, right? I don't ever want to

lose the full $45. So my goal would be

to cut this in the case that it goes

into the top leg. If it's the bottom

leg, very bad situation at expiration.

If you are at the bottom leg and there's

still some time until expiration, it's

going to be salvageable to some extent,

right? It's going to depend how much.

Not sure if I don't think there's any

simulated return. No, we don't have the

charge for credit spreads here, but

it'll be salvageable to an extent. And

the more time there is, the more value

the option will [snorts] still have. So,

you'll still be able to close this

position for potentially maybe a loss of

$300 or maybe $250 depending on when you

close it. For me, if it hits anywhere

near the top leg and there's still a

month to go, I'm basically going to be

getting out of the trade. But yeah, put

credit spreads typically make up 5% of a

much bigger portfolio and then a smaller

portfolio could kind of get away with a

little bit higher than 5%. All right,

hope that you enjoyed that strategy.

Let's get into our next strategy. This

is going to be the wild card. 5% wild

card, a poor man's covered call. That

brings us to the very last and smallest

sliver, which is 5%, about $2,500.

This is more of an advanced strategy.

It's a little bit more management. And

the poor man's covered call is very

similar to a regular covered call, but

it's a PMCC. We're going to refer it as

PMCC strategy. Poor man's covered call.

And here's the idea. It is basically a

normal covered call from the core

strategy that we discussed, meaning that

you would have to own 100 shares. But

here we're going to have a slight

adaptation. So instead of having to have

100 shares, instead I'm going to be

using a deep in the money LEAP option as

a standin for shares. And I sell a

shorted call option against that. So

it's a covered call without paying full

price for the shares. The LEAP plays the

role as a 100 shares would play instead.

And before I jump into my example, I

want you to know that I just recently

started a poor man's covered call

challenge. It's going to be a one-year

challenge and it's currently open for

the next two weeks. In this challenge,

I'm going to be making weekly trades

with poor man's covered calls. I'm also

going to be doing lots of education

around poor man's covered calls. The

reason why I'm doing this challenge is

because I recently just had a challenge

from January to July. I had 89 members

in that challenge. And on the screen

right now, you can see the trades that

I've taken in that challenge. I took

these trades right here. And that's how

much I'm up right now on the LEAPS

challenge so far up until July,

including all of the volatility. I

really need to take profit here on this

AMD LEAP call option that I was up about

30,000, now up $25,000 as part of the

challenge. Now, I plan to do something

very similar with the poor man's covered

call challenge. If you want more

information, the link in my description

will show you the type of challenge that

I'm going to run as well as all the

details. All right, now let's talk about

how all of this fits together. So, we've

got all five buckets on the table. Now,

I want to zoom out because the biggest

mistake that I see isn't picking up a

bad trade. It's actually building the

whole book wrong. And this comes down to

one idea, which is position sizing. But

now, we need to talk about the position

sizing within those percentages. Because

even though I said I would use half my

portfolio for the wheel strategy, it

doesn't mean that I would use half my

portfolio on one specific wheel trade. I

would be breaking it up into different

trades. And here's the part that most

people get backwards. They size by share

price. They think, well, you know,

Walmart is a $115 per share. Nebius is

almost $200 per share. So, well, Nebius

is bigger. I should, you know, maybe put

more into Nebius. Maybe you're not

thinking like that, but you would be

surprised, right? So, I want to bring it

back a step and help you understand the

type of position sizing that I would

take because you want to use these

strategies very differently. So, to make

this video quick and efficient, you can

pause it right here. You can see on the

screen how I would break up a $50,000

portfolio. And by the way, if you want

to download this image into an Excel

spreadsheet, I have that Excel

spreadsheet for you in the description.

Now, here's the honest part. Every

single person has a different risk

profile and different capital that

they're working with. I did my best to

give you guys a simple guide, but I hope

the Excel spreadsheet will give you even

more guidance on how to manage your own

personal situation. If you appreciate

this video, leave a subscribe. Thanks so

much for watching. And if you want to

learn more about the poor man's cover

called Shaji, you can watch this video

right