EXCITING: How To Use This Trading Strategy To Generate Weekly Income

The Option Wheel Strategy | Coffee With Markus | Episode 69.5

Intro: 0:00
Options 101 Basics: 2:07
The Options Wheel Strategy: 3:29
Deep Dive Q&A: 15:00
Q: My limit order to buy call options got filled below my limit price. Why wouldn’t the seller(s) sell the contracts to me at the higher price? 16:24
Q: Can we use this strategy in the same margin account we use for PXO if we already have positions? 18:27
Q: Can you Please touch on the Greeks in order to put on this strategy to obtain the probability of success? Also, do you heed to hold the position until expiration? 22:37
Q: Doesn’t' the broker reserve the buying power automatically once you place the trade? 34:46
Q: Do I keep the premium even if I get assigned? 39:25
Q: Around what is the expected weekly income possible on a $100K buying power account using The Wheel, and is this better than Theta King? 40:36
C: The longer out on your expiration, the more premium you make. 46:13

Options 101 Playlist https://www.youtube.com/watch?v=tXpBZGj-FiA

What exactly is the "Options Wheel" strategy?
Essentially the Options Wheel strategy is a way to get paid while you're waiting to buy a stock. This strategy was made famous by Warren Buffet. This is a strategy that is used when you're long-term bullish on a stock.

I'm going to teach an in-depth class THIS evening, July 23rd, 2020, on the Options Wheel Strategy. I will discuss when to use the strategy, and how you can use this very same strategy to average fantastic returns... while waiting to buy your favorite stocks!

The key to this strategy is using to acquire stocks that you want to own in your portfolio. As an example, if you were long-term bullish on Budweiser and wanted to own this stock but the current price was too high. You would use the Options Wheel strategy to sell puts on the stock as you're waiting for it to reach your targeted entry price.

This strategy reduces your overall cost basis for entering the position by generating income in the form of premiums of the puts sold.

This is the true benefit of the Options Wheel Calculator that I've designed. This tool will tell you exactly how many options to sell based on the strike price and the premiums paid in relation to the size of your account.

All you have to do is enter the stock price, the strike price of the option, and the option premium and it will tell you exactly how many options you should purchase. This calculator will tell you the cash or margin requirement you need to take the position, as well as how much premium paid each day. This calculator will also tell you the annualized premium, or what the annualized return on investment for this trade would be over the course of one year.

Using this information, you can see how easy it would be to manage your portfolio and earn money while you're waiting for your stock to reach the target price.

Warren Buffet used this strategy effectively to buy billions of dollars in stock at deep discounts by generating income from the options premium.

If you want to see this same strategy in action, check out my Options Wheel class HERE - https://bit.ly/3eYR4Fw

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Видео EXCITING: How To Use This Trading Strategy To Generate Weekly Income канала Markus Heitkoetter