Summary
Highlights
The host, Zeke, introduces the concept of selling options (cash-secured puts and covered calls) as a method to generate passive income. He reveals that he made $1472 in one month using this strategy, highlighting that selling options is generally safer than buying them, especially for those not highly experienced in trading. He also mentions a previous video that explains the mechanics of these strategies in detail.
Before diving into his earnings, Zeke promotes Weeble and MooMoo, offering free stock incentives for signing up and making a deposit. He then illustrates the covered call strategy using AMD as an example. With an average cost of $73.09 for AMD shares, he explains how selling a $76 call option for a premium of $65 guarantees a profit if the stock stays below $76, or allows him to sell shares at a profit while still keeping the premium if it goes above.
Zeke details the transition from selling covered calls to selling puts. If his AMD shares are called away at $76, he would then sell a cash-secured put at a lower strike price (e.g., $75) to potentially buy back the shares at a lower price while collecting another premium, thus creating a continuous cycle of passive income.
He begins to share his actual earnings from November. On Netflix, he made four trades, including selling calls and puts. He collected premiums of $28, $73, $245, and $515, even being forced to sell shares at $285, which he considered profitable. In total, he made $861 from Netflix in November.
Zeke then presents his earnings from other stocks. He made $62 from two covered calls on Coinbase, and $39 from one covered call on Nvidia. For Apple, he performed four trades, collecting $44, $62, $196, and $208, totaling $510 for the month. He notes he usually trades Google and Tesla but didn't find good setups last month.
Combining the earnings from these four stocks (Netflix, Coinbase, Nvidia, and Apple), Zeke proudly announces a total of $1472 in premiums for the month. He emphasizes that this strategy, though more than his usual, allows for greater income when holding 100 shares of a stock compared to just buying multiple different stocks. He compares it favorably to dividends, stating he made in one month what would require a $100,000 portfolio to generate in dividends over a year.
He explains how selling options has helped balance his portfolio during a challenging year where the market pulled back, mitigating losses and keeping his portfolio trading sideways. He also encourages viewers to join his Patreon and Discord community for more in-depth learning, trade alerts, and to connect with other traders.
Zeke ends by asking viewers to share in the comments which companies they use for covered calls and cash-secured puts, as premiums vary significantly between companies. He encourages them to subscribe, hit the notification bell, and like the video to support the channel.