3 Reasons Why You’d Lose Money Trading The Wheel Strategy

3 Reasons Why You’d Lose Money Trading The Wheel Strategy
To get the transcript and MP3, go to: https://www.rockwelltrading.com/coffee-with-markus/3-reasons-why-you-would-lose-money-with-the-wheel-options-strategy/

This morning I woke up and my account was down $25,000 ($18K at the time of this video). This is on a margin account with $500K in buying power.

3 Mistakes:
1) Panicking and closing your positions at a loss.
2) Not having a plan.
3) Not having a tool that helps you make the right decisions. (PowerX Optimizer)

Solutions:
1) Don't Panic.
2) Don't close your positions.
3) Evaluate what's happening.
4) Follow your plan/strategy.
5) Have the right tool to make the best decisions

5 Positions in my account:
- AMD: if it stays above 83.50, I will make money = $576 in premium for the week
- DBX - Needs to stay above 21.50 I'll make $611 in premium.
- GDX (In Trouble): Last week I got assigned 2,100 shares at $48. I sold the 49 calls (21 contracts X $75) for $1,575 in premium.
- RIDE (In Trouble): If stays above 21.50, I'll collect the premium. It is unlikely it will probably get assigned 4,700 shares at $21.50. I sold 21.50 put s (47) and collected $1,974.
- AAPL (In Trouble): Got assigned 800 shares at $133.

Collected a total of $4,736 this week.

I am excited to get assigned. If you are not ok with getting assigned, you violated the number one rule of "The Wheel Club:"
"Don't Sell Puts On Stocks You Don't Want To Own"

After assignment, I will sell Calls and collect premium.

I will get assigned 4700 shares of RIDE at 21.50.

I will sell calls on Monday for about 0.43 and collect 2,021 in premium. (this is if RIDE opens on Monday around this price).

GDXJ: Got assigned at 47, and was assigned 2,100 shares. If GDXJ stays about where it is on Monday and can sell calls at 0.60, I'll collect $1,260 in premium.

With AAPL if I sell the 133 strike, I will get 0.13 making $134.

Recommended Links & Videos:
Trading with Margin: https://www.youtube.com/watch?v=UHy84SOGl4Y&feature=emb_logo
Options Trading 101: https://bit.ly/2V7Nf9T
The Options Wheel Strategy: https://youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
The PowerX Strategy Playlist: https://youtube.com/playlist?list=PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB

#Options #SellingOptionsForIncome #StockMarket
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📈 Watch My Daily Trading Routine Here (that takes me less than 15 min/day): https://bit.ly/2ICZkgX
📕 Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://tinyurl.com/bvxjjz7k
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://bit.ly/3uw3RaG
🌍 Outside of the U.S.? Check out Interactive Brokers' amazing platform: http://rockwelltrading.com/ibkr
☕️ Start your morning just like Markus, with the MorningBrew Newsletter: https://bit.ly/32Xs6Uu
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.

Видео 3 Reasons Why You’d Lose Money Trading The Wheel Strategy канала Markus Heitkoetter