Ranking Option Strategies Best to Cramer-Level...

Summary

Matt Giannino from Market Moves breaks down various option strategies, evaluating their effectiveness and profitability potential. He discusses covered calls, cash-secured puts, credit spreads, debit spreads, poor man's covered calls, zero-day to expiration (DTE) options, and iron condors. The assessment ranges from those worthy of 'Lobster Money'—indicating high profitability potential—to those at the 'Cramer Level' which are less effective. Matt shares insights from his decade-long trading experience, offering advice on what to prioritize based on market conditions, investment risk, and personal investment goals.

Highlights

• Covered Calls provide dual income but cap upside, better with high IV stocks. 🤑📊
• Cash-Secured Puts praised as low-risk, high-reward, ideal for consistent gains. 🏆📈
• Credit Spreads suitable for beginners but sacrifice big wins due to high monitoring. 🧸🔍
• Debit Spreads labeled as Cramer-Level due to limited benefits over simpler strategies. ⚖️❌
• Poor Man’s Covered Calls leverage more time for higher gains, elevating investment strategy. 🎩⌛
• Zero DTE options: quick cash, extreme risk, not for the faint-hearted. ⚔️🔮
• Iron Condors offer safer spread plays but require delicate management. 🧠📝

Key Takeaways

• Matt Giannino ranks option strategies from 'Lobster Money' to 'Cramer Level', illustrating what works best. 🦞📈
• Covered Calls are effective with high implied volatility stocks, offering a double income from premiums and stock appreciation. 🔥💰
• Cash-Secured Puts (CSPs) are branded as the 'GOAT' for consistent passive income and risk management. 🐐📉
• Credit spreads offer efficiency for small accounts but require babysitting to manage risk-reward balance. 👶💭
• Poor man's covered calls leverage long-dated options and covered calls for high returns, earning a Lobster Money rating. 🤑🦞
• Zero-Day to Expiration (DTE) options present high risk but potential for quick profits with a solid system. 💸⏱️
• Iron condors demand double the management due to needing market neutrality, better for spread enthusiasts. 🔄🌀

Overview

In this insightful session, Matt Giannino from Market Moves walks us through a comprehensive ranking of options strategies, shedding light on which are worth pursuing and which to avoid. With a decade of trading expertise under his belt, Matt evaluates strategies such as covered calls, cash-secured puts, and different types of spreads, weighing their pros, cons, and potential to generate 'Lobster Money'—a term coined for lucrative earnings.

Matt categorizes these strategies based on factors like implied volatility and market conditions, providing nuanced perspectives on maintaining a balanced portfolio. He makes a compelling case for cash-secured puts, deeming them the greatest of all time (GOAT) for their blend of security and profitability potential. On the flip side, Matt caution against overly complex or risky strategies without proper systems in place.

The journey through option strategies expands further into covering intricate strategies like iron condors and zero-day expirations, which require high expertise. Highlighting the importance of recognizing market environments, Matt ensures that viewers get a properly rounded education on navigating the volatile world of options trading, arming them with the tools to align their financial goals with the right strategy.

Chapters

• 00:00 - 00:30: Introduction to Option Strategies This chapter introduces top option strategies, emphasizing those that maximize profits and eliminate inefficiencies. The author ranks strategies from highly profitable ('lobster money level') to less desirable ones ('Kramer level'). The chapter signals a deep dive into specific strategies, starting with covered calls, and highlights the author's decade-long trading experience and observations from numerous entries.
• 00:30 - 08:00: Covered Calls Overview The chapter provides a quick overview of covered calls, a popular investment strategy. To write a covered call, an investor must own 100 shares of the stock they are writing the call on. The speaker emphasizes the importance of understanding the benefits and drawbacks of this strategy to save time, avoid struggles, and prevent financial losses.
• 08:00 - 14:30: Cash-Secured Puts Overview This chapter discusses the concept of cash-secured puts, focusing on the requirement of owning a significant capital for investment. Using the example of purchasing the QQQ stock, it explains the need for 100 shares to execute a covered call strategy. The benefit of such a strategy is described as a 'double whammy,' offering dual income opportunities: income from the covered calls and potential appreciation from holding the stock.
• 14:30 - 20:00: Credit Spreads Overview The chapter discusses a practical example of using credit spreads with stocks, specifically with TSL. The speaker explains buying TSL stock at a low point, holding it for two days, and then using weekly expirations to generate a profit. By selling options at a strike price of $10, the speaker was able to make $4,000 in a short period.
• 20:00 - 24:30: Debit Spreads Overview The chapter provides an overview of debit spreads, focusing on a specific trading scenario. The speaker discusses their purchase of an asset at 760 and its subsequent increase by 22%. The chapter includes explanations on calculating opportunities in trading strategies, ranking them from ‘Lobster money’ to ‘Kramer money’. Additionally, the speaker mentions covering their position at the 10-dollar level, emphasizing the profitability of covered calls, which they claim offer a 100% chance of making money.
• 24:30 - 30:30: Poor Man's Covered Calls Overview This chapter provides an overview of using covered calls as an investment strategy. It explains that when you write a covered call option, you are guaranteed to earn the income from the premium. However, if the underlying stock's price increases to a certain level, such as $10 in the given example, you will have to sell the stock at that price. While some view this as a downside, the chapter posits that this scenario actually presents an advantage for investors.
• 30:30 - 37:00: Zero Days to Expiration (0DTE) Trading The chapter discusses the concept and strategy of Zero Days to Expiration (0DTE) trading. It explains the advantages of performing covered calls, particularly the potential for stock appreciation and income from covered call writing. The objective is to capture stock price gains when the stock is 'in the money,' thereby achieving a double benefit upon exit by leveraging stock appreciation and receiving income from covered calls. This strategy essentially enhances the overall return beyond just the stock price movement.
• 37:00 - 43:00: Selling and Long Iron Condors In the chapter titled 'Selling and Long Iron Condors,' the discussion focuses on the strategy of selling covered calls and highlights the potential returns from this approach. The speaker mentions a scenario of buying at $7 and selling covered calls that provide an income of $27 per share, resulting in a 4% return and a potential 10% opportunity. The concept of 'double whammy' is presented, where repeated selling of covered calls can result in continuous income if the options keep going out of the money, thus effectively lowering the investment cost over time.
• 43:00 - 44:00: Closing Remarks and Recommendations The chapter 'Closing Remarks and Recommendations' concludes the discussion on managing cost basis through covered calls strategy. The speaker explains how selling covered calls at different levels can reduce the cost basis of TSL, which is a leveraged form of Tesla stock. For instance, selling calls for $27 reduces the cost basis from $7.27 to $7, and further strategies can bring it down to $6.80. The chapter emphasizes understanding the math behind these transactions to effectively manage investments.

Ranking Option Strategies Best to Cramer-Level... Transcription

• 00:00 - 00:30 we're going over to the top option strategies to help you stop wasting your time and to focus your attention on the ones that can make you the most money so I'm ranking covered calls csps all the way to long and short iron condors and putting them into the lobster money level all the way down to the Kramer level which you should probably avoid and first off we're just going to jump right into it go into covered calls and I will say I've been trading for almost 10 years most of these strategies have seen a th000 plus entries so I know what
• 00:30 - 01:00 I'm doing I know the pluses and minuses of doing this stuff so hopefully you can save time you can save the struggle of figuring this out today instead of tomorrow and wasting your money so covered calls they are definitely up there for the top strategy I want to do a quick overview of what they are and if you basically have a covered call it means you have to have 100 shares of the stock so for the Triple Q's if you're writing a covered call you're going to
• 01:00 - 01:30 have to have 47 grand if you bought it let's say today at you know this this price if you bought the triple Q's like years ago at $300 you need less Capital like 30,000 so it's just reliant on having a 100 shares pretty simple pretty easy but that's the bare minimum to do a covered call the pro is you get this double Wham me I call it this double income opportunity of income from the covered calls and appreciation from the long
• 01:30 - 02:00 from the long stock for example I have the TSL stock right now I bought it like 4 days ago I let it run two days and then I covered it and I brought in $4,000 using the weekly expirations and what happened was the the strike price I used for the weeklys was at 10 bucks and when I basically bought TSL at the dirt bottom this week
• 02:00 - 02:30 I bought it at seven so I want to show you the math behind the double whammy opportunity and then I'm going to rank this strategy to show you where it falls from Lobster money to Kramer money but again I bought it down here 760 and we already ran 22% since I bought it around this candle or maybe even this one I covered it at the 10 Buck level 10 bucks is right here and this allows me to make money from the covered calls 100% chance of
• 02:30 - 03:00 doing that when you write a covered call you're always going to make that income when you write any option csps covered calls you're 100% Going to collect the income but what happens is if TSL was to run to $10 at that Friday that I wrote the options I would have lost the stock at the same time and people treat this as a bad thing but this is your advantage
• 03:00 - 03:30 doing the covered calls because if I was to you know at this point have it hit $10 my stock wouldn't be just up 20% it would move an additional 26 so that difference of where you're at now and where the out ofth money covered call is is appreciation in the stock and so when you lose the stock you get the appreciation and the covered call income so it's a double whammy exit so you're not just getting this 6% last move that
• 03:30 - 04:00 I would have maybe gotten if it hit 10 on Friday but you would also got that covered call income which at the time was $27 a share so if I bought it at 7 Bucks it's about a 4% return so you're getting like this baked in 10% opportunity because you're getting the double whammy and the beauty of this is if you keep selling covered calls and it keeps going going out of the money you keep lowering
• 04:00 - 04:30 your cost basis so this $27 of covered calls lowers my cost basis let's say I was at 727 my cost basis for TSL would be seven bucks now I do it again for the next week I'll even show you the math behind this TSL is the The Leverage form of Tesla by the way if I write the 1070 calls I'm going to get another 22 bucks so that's going to lower my cost basis let's say from 7 to 680 or
• 04:30 - 05:00 678 more importantly because I have this 1070 strike higher I get the bonus appreciation from 920 to 1070 which is like a 15 14% move from here so you're getting uh just a massive paycheck if it hits so the biggest flaw I see with Traders is they're trying to make money just from covered calls and they never care about what happens to the
• 05:00 - 05:30 stock and even trading it you want to use those extreme moments where the stock pushes to exit the covered call so the cons of the covered call basically you cap your upside and this really hurts if you're using the wrong stocks so TSL you can see we're making $23 with a let's say for this strike I mean 56 % chance of profit we make 23
• 05:30 - 06:00 bucks and the difference from 920 to here is again like 15% but we look at the implied volatility being 136% that's massive that means you know I can write those covered calls much further away and I get a good premium but if you go ahead and try to write covered calls in apple you're a fool I'm sorry if you've been doing this you're a fool I mean cuz you're you're basically capping your upside side much smaller
• 06:00 - 06:30 for the return you would be getting with the same covered call with TSL so again remember we're getting about 3 to 4% weekly if you did monthlies on Apple you'd barely get 3 4% so if we're doing the same strikes let's say 56% chance of profit this is a 1% 1% in 30 days if we did the like a the weeklys like the example earlier it's
• 06:30 - 07:00 just it's just pennies so the problem is if we have a good week in the market and apple goes to this short strike you're limiting your profit at 220 so that's a five like a 4 and a half% move from here so the difference is with low IV you collect less credit you limit your upside earlier and if you had higher IV
• 07:00 - 07:30 you would just probably make three or four times the amount of money on both the appreciation and the stock yeah covered call income so the higher the IV the more this makes sense the lower the IV the less I would use this so the only other downside of the covered calls before I jump into the next strategy and we're going to rate this here in a second is covered calls in a bad Market don't help you if if Apple was to tank 10%
• 07:30 - 08:00 in a 30-day covered call you're making a 1% return so it doesn't protect your downside but it limits your upside it's like this basically just cutting you down in both ways it doesn't help you in a bull market it doesn't help you in a bare Market covered calls are the worst strategy out there if you don't use them properly so I can go over strategies how to use them one day but for the most part we're going to put this in the category which
• 08:00 - 08:30 is it's not bad the only reason why it's in the B category is because if you use it on high IV plays you could be adding an extra two five 10% a month you know passive income and if if if you do this correctly it's worth it it's worth it in my opinion so let's go on to the next strategy which is Cash secure puts baby this is the goat I mean you can guess where this goes I've been doing my channel for like seven years cash secur
• 08:30 - 09:00 puts I got a hammer home are the only thing you need to focus on if you're not profitable it's a win-win because you have passive income and the only downside is you pick up the stock every single option strategy on the internet you're losing money if you lose and you're wrong credit spreads you lose debit spreads lose Poor Man's coverage I mean you're losing everything sometimes like your whole trade Capital goes to
• 09:00 - 09:30 zero so csps are the like the only strategy next to covered calls that don't result in you losing money like all your money if you're wrong so that is the goat because if you're sucking in the markets and you're sucking with csps you really can't mess it up so the beauty behind csps is it's the safer alternative to cover cost it's going to
• 09:30 - 10:00 blow your mind what I'm going to show you here in a second the only downside with this is that you don't have the same upside of stock so for example TSL here I bought last week at the the bare minimum lows and we Rose 20% there's not a CSP in the world that's going to make you 20% it might might be close but it's not going to get you there I'm going to show you the the secret to csps here that I think allow you stock returns but CSP protection this
• 10:00 - 10:30 one hack with the CSP is going to blow your mind what I think is the best strategy we'll use TSL is going a little bit further out like 40 That's 47 days and going a little bit in the money this gets you downside protection so you could see here even though you're in the money you would still get to pick up the stock at a 16% discount I mean you could be going at like the 12 strike or the 13 strike
• 10:30 - 11:00 and your break even is still 892 the reason why this is important to understand is because selling longer dated csps in the money mimics the stock return so you're collecting 40% return here and if the market was to Rally like it did recently let's say we go to 11 bucks you're going to get pretty much the same return as holding TSL stock so if you do this type
• 11:00 - 11:30 of CSP you don't really miss out as much is what I'm saying here like you're not missing out on the gains from a stock versus CSP doing this is where you get really close to a stock return with a CSP and it only works with high IV if you were to do this with apple if you did let's say June options on Apple in the money you make two grand
• 11:30 - 12:00 that's about an 8% return but Apple could move 8% you know this week so with low IV you're just not getting it as much as possible um I mean you could crank this thing up to maybe 240 and you're still getting like 12% but TSL was like almost 40% return if that thing starts moving in your favor so that's a high-end strategy I've learned over like the last two years and honed in on it's a huge huge bonus I've taught the coaching students um but the basically
• 12:00 - 12:30 the downside challenge of any covered call any CSP is the bad market so if the market was to crash you would have to own TSL or or Apple at a very high price relative to the market and then you can't write covered calls as easily um that's a huge uh unfortunate downside of this I'll give you one example in the coaching program we we sold 1470 csps on Tesla and they were far out
• 12:30 - 13:00 so like 30 days and then the market just you know cranked lower so there's a chance we're still fine by the time expiration comes but if we're anywhere like in the 10 or 11s it's much harder to write covered calls and make that profit back or make that loss back you know and not limit your upside because if you're doing covered calls at like 11 12 13 you may not break even and it might actually
• 13:00 - 13:30 bust through those covered calls and that's where you actually end up with a loss on the wheel so the wheel breaks down if you get smashed in a bad market so just for reference 70% of the trades I put on last year and my big Port was csps and I did a lot of the ones I'm showing you today with TSL with some more aggressive like in the money ones and this allowed me to grow my account with from 140 to 500 so if you think it's too boring if the returns aren't
• 13:30 - 14:00 sexy enough I was averaging 20% a month it was a really bullish Market really easy Market but still like it's so passive like you don't have to look at your computer you don't have to worry about the position you don't have to manage like a loser as much you don't have to manage the winner as much like it's by far the goat and that's why it's going into Lobster Lobster money category it's a lobster move and if you can do CSP like I'm telling you game
• 14:00 - 14:30 over I mean your family's going to thank you 10 years from now so csps done correctly could do something like this in a good Market bad Market you got to be careful but it's the goat because it beats covered calls smashes covered calls and you still have that downside protection because there is always a buffer before you lose money and you hit the break even so that break even is always typically lower than the stock
• 14:30 - 15:00 price even within the money cash secured puts like even at the two 65 Mark you know we're 40 10 cents lower than the current price like it's small but with higher IV it becomes larger and larger next up everybody credit spreads and this is a strategy I thought was going to be you know something I would do for the rest of my life I did this for a whole year inside the coaching program we had an 83% win rate 17 losers 86
• 15:00 - 15:30 winners but the issue was big problems so let me go through what a credit spread is real quick and if you go to option stack click these things it'll show you bull putut spreads bare call spreads that'll help you see visually like what that means but the whole idea with the credit spread is like you're going to sell a put out of the money let's say it's 200 for apple and then you're going to buy one a little bit lower so it's like a cash secured put
• 15:30 - 16:00 but you just need like a th000 Bucks versus 20 20K like if you're going to do a CSP on Apple you need 20K and you're making a percentage if you do a credit spread on Apple you need 1,000 bucks and you're making 30% return so it's Capital efficient you have more returns you have lower costs so for small accounts this is the route to go there's a lot of wrong big things that just are glaring
• 16:00 - 16:30 terrible about this that I want to show you even after having a great win rate for so long why do I hate this strategy we basically have to babysit it because credit spreads they might make money in a day or two and then you're up you take profit you got to take profit on these things you never hold till expiration but for example like if if the market was to pop on Apple this credit spread can make a 50% % return if
• 16:30 - 17:00 we move to 229 tomorrow and what happens is if we have let's say 100 days till expiration and you've already made 50% in a day or two there's like now 95 days left where the trade can go against you so when you make money you got to take that profit so it's almost like a daily monitoring thing and the shorter term you are the more you have to be on point with taking profit cuz if if you don't basically just one
• 17:00 - 17:30 bad week like we saw one bad month just can destroy credit spreads directionally and when you're losing you're losing way more than what you're what you're making so the other big issue you know it's impressive to have an 80% win rate strategy regardless but those 17 losers let's say every winner made 50 bucks the losers lost like 300 I'm not even kidding so it had terrible risk rewards
• 17:30 - 18:00 because let's say this this trade here our Max this isn't even a good risk reward um let's look at like this one your credit's 200 your max loss is eight so that's like a 1 to four what we do is we take profit at 50% return so you make a 100 bucks so your risk to reward is like one to eight it's not it's not one to four it's typically double so if you're doing a a 1 to two let's say like
• 18:00 - 18:30 you're doing a little bit closer here to the money you're risking 160 to make 340 that's a one to two it's really one to four because you're taking profit early and you're managing those winners so you always get wiped out on a credit spread system because the losers just hurt way more because you can't let these things go to expiration and collect all the profit that's just not you know it's not very easy easy and the people that do that
• 18:30 - 19:00 trust me they're getting wiped out too especially you know if they're going out of the money so the only downside again about this is like it's cheap it's good for small accounts but like your risk reward is lopsided you're always losing more than you can make and you never have that like breakout opportunity where you can hit a 500% trade you can hit a th000 per Center so you can never beat that risk reward imbalance because it's always capped from the beginning
• 19:00 - 19:30 where the loss is always going to be bigger not to mention multiple legs is multiple commissions of costs and getting filled is a nightmare so if you're trying to get filled on an Apple bull put spread you're probably going to get filled because there are lots of contracts being traded per day there's a lot of open interest but if you were to let's say use carvana carvana right now has five volumes so if you want to enter five credit spreads like you're you're doubling the daily
• 19:30 - 20:00 volume at that point and the bid ask is going to be wider and when you have to enter two contracts at the same time with bad IV it's just that much harder to get filled so getting filled horrific so selling credit spreads I'm not going to put in the Kramer level it's probably going to get there um if you tried it out and you realized it but it's good for one reason people with small
• 20:00 - 20:30 accounts people new to the market suck I'm sorry but you guys need to learn you need to learn how the markets work how the entry and exits work so it's a great beginner strategy that doesn't blow up your account very easily it's not as easy to blow up your account as like a zero DTE so I want to put it as a c category because it's worth learning with that and then graduating up after to the next strategy but it's not go down to Kramer so we're
• 20:30 - 21:00 going to leave that alone next up is debit spreads debit spreads are the opposite of a credit spread so instead of buying the one further away let's go to the debit spread C category we would be you can see here you're buying the one closer or usually usually do these out of money I think um yeah sorry the one Higher is you're
• 21:00 - 21:30 buying and the one lower you're selling so this is like the benefit of long options so let's go to spy this will make more sense here like if you were to buy this spread with spy what this does is it lowers your entry so if you were to buy like a put in the markets you're going to have to pay a th000 bucks but if you buy a debit spread um you could go as low as like 550 and and 6
• 21:30 - 22:00 560 you're going to pay 340 so it lowers your entry on like long options so if you have a small account this is a major benefit it's just cheaper to kind of use any option chain like you don't have to pay a th000 bucks for options you could pay three you could pay two and you still have that like explosive upside it's not as explosive as long options obviously the most you could make and if I drag this out is 180% no matter where the market
• 22:00 - 22:30 crashes to you're always making Max 180 but this is the only strategy where you make like a lot more than the downside compared to kind of what we're saying with option selling it's typically always going to burn more if you're wrong but whenever you're being the buyer the upside potential is a lot higher always for you even with the debit spread so biggest Pro is it's for small accounts less time Decay because if if you're
• 22:30 - 23:00 buying an option and you're selling one you know that Theta is the Decay per day is really the difference so instead of losing like the Theta on this option here is you could see 21 bucks a day that burns right you know if you're holding that option it burns but if you're if you're selling this option you're actually getting you're actually getting that Theta per day so this is where you almost negating Theta where
• 23:00 - 23:30 you're you're making $21 a day and you're losing it so it's netting like zero and if you go here you can see the Theta is uh -33 which doesn't seem right because of those numbers but I think you get the picture it's just less time Decay um the cons are you don't have massive upside it's not 1,000% it might be 100 might be two might be three but it's not like you
• 23:30 - 24:00 know 500 to 1,000% which is unrealistic to shoot for all the time and lastly like the previous example multiple contracts multiple commissions multiple things to get filled on bad option chains it's going to be a huge struggle and in my whole life of trading you'll be surprised where this goes in my whole life trading debit spreads I probably did like five and the reason why just there's no point it's like the biggest waste of time so
• 24:00 - 24:30 it's a Kramer level trade there's no reason to it like no I I I don't think there's any benefit to a deit spread other than it's cheap but I'm going to show you a better strategy that's cheap so here we are poor man's covered calls which is like 30% of my YouTube content why do I like Poor Man's covered calls it's because you're buying a leap option and when you have a leap you have
• 24:30 - 25:00 300 days till expiration or more so like let's go here long call this is what I bought recently on the on the YouTube channel let's say it's like a Sofi long call for March and I forgot where I bought them but you have as you can see here a year till expiration and this stock could go anywhere you know you could be down 90% And and then it could come back up
• 25:00 - 25:30 and it could be up 100% like you could see your option go too close to zero and then survive to make you money because the we don't know what's going to happen in the week or month but if if we know that the stock market in general goes up over time we know that you know if we just buy at a good moment you know a good discount that's typically gonna make us money you know and a in in a any Market
• 25:30 - 26:00 if you're buying any discount the covid discount the 2022 discount the most recent discount I've been buying with you guys publicly like if you just get in the habit of buying discounts with leaps it's going to be hard to ever lose the only factors that would make it you know make it so you lost is you chose a bad company so it's better to just choose the index fund when it dips versus like choosing a so like Sofi might get sued Sofi might get
• 26:00 - 26:30 shut down in America like you can't control one company as easily as you know the success of a basket of companies so the issue with leaps is one company can make or break your profits but if you bet on the index funds and you have plenty of time that eliminates like this entry and exit struggle because every Trader we've ever interviewed for our coaching program has
• 26:30 - 27:00 said I don't know where to enter and exit and we get it like if you do know how to you wouldn't be on this interview coaching call you wouldn't be watching my YouTube videos you'd be retired out in Europe sipping wine on the beach but entry and exit is not anyone's strong suit so how do we eliminate that struggle that issue is we got to just buy leaps you know put more time on the option to give us more time to be right and the major bonus putting this into a whole another
• 27:00 - 27:30 strategy is we can now have it to where we can sell calls against long calls or sell puts against long puts this short you know Short Selling aspect is where we can make passive income pretty much per week per month and if you were let's say following our triple Q trade where we tried to time the bottom in the markets that triple Q trade allowed us to bring in about
• 27:30 - 28:00 $485 in 4 days of option selling so the beauty of like even the index fund is you can sell options every single day and create daily income so if I was in Sofi I could only sell let's say weekly you know weekly income's nice if I was to sell let's let's say even like 30 days out I can make a 5% return um on I forget how much the leap was we bought
• 28:00 - 28:30 but I can make $60 in in in 30 days just passively still just like the covered call approach from earlier I have upside potential but I also have passive income so this allows us to lower our cost basis allows us to also have an income opportunity and the major Pro of the leap is with the poor man's covered call is you're getting a higher return per week per month so for Sofi if you were
• 28:30 - 29:00 to buy a 100 shares it's going to cost you $1,200 if you buy a March leap it's going to cost you 300 so whether you're at $300 or ,200 you still have the ability to write that $60 covered call I showed you and why why is this beneficial is because you're getting at this point like a 20% return you're getting
• 29:00 - 29:30 here can't do the math as easily like 3% 4% so 3% verse 20 I mean what what do you think is going to help you reach your goals faster this year probably leaps with Bor man covered calls so th this is going to allow you to really s survive and succeed with leverage you know getting bigger returns getting bigger option selling paychecks
• 29:30 - 30:00 but the only con is like it's just reliant on the market so if you were to buy any leap before the recent correction you're going to get cracked you know the market just cranked down 15% all leaps get destroyed you have to be more patient now for the upside so if you buy at the wrong time like that's a huge huge risk the other thing is I I see with people doing is like they buy a leap and then they have to stare at it for like hours a day
• 30:00 - 30:30 because you have so much time on it you should almost not look at it for weeks you know that should be almost like an investment that you plant the seeds and you watch grow in the future if it doesn't grow it doesn't grow but if it does grow you're going to make three 4 500% which basically pays for a lot of the losers so this poor man's covered call strategy is the goat it's up there with csps and it's basically the thesis
• 30:30 - 31:00 of the coaching program on what we're trying to teach the students if you use those two strategies you're getting safety and massive upside opportunity so that is lops the money and it's probably one of the top strategies you can focus on and as you can see here like we we're cranking daily income in the coaching program currently just off of of the triple Q call we bought
• 31:00 - 31:30 so yeah this this is a huge skill if you can time the those entries next up is OT zero T DTE this is probably the most attractive and the riskiest thing it pairs on a weird balance of just blowing up your account to both sides you know you could be making two three 500% in an hour you could be blowing up your account to zero in 30 minutes sometimes even five so otes are zero day options
• 31:30 - 32:00 options expiring that day and on the option chain again you know triple Q's spy they have options every single day so you can wake up every single day and do this strategy that is a huge Pro waking up and being able to make daily income is a benefit of zero DTE if you have a system though without a system it's daily
• 32:00 - 32:30 gambling and how long can you survive as someone daily gambling I'll give you three days but if you have a system this is where you could be an option seller you could do every strategy I told you about you could do credit spreads you could do debit spreads you could just buy calls buy puts you could do any of those things and just make good money because it's allowing that daily opportunity allows you to grow faster
• 32:30 - 33:00 allows you to capitalize on the markets more and more and more and with the buying aspect if you go long you could be making 500% in a good Market in a good day it's also lower Capital so if you're buying leaps it's sometimes let's say for Sofi that the leap was 300 bucks but the the weeklys on Sofi are are 47 I mean even for triple Q's like triple Q leaps
• 33:00 - 33:30 are are five grand triple q0 dtes are like 200 you know 100 bucks so it's good for small accounts as well and I love this opportunity to go back to cash and just not have that worry of waking up the next day and seeing a crash seeing a bad earnings report seeing a bad unemployment report that you couldn't control and tank the market that and you have all those emotions of you know what
• 33:30 - 34:00 just happened so back to cash I mean there's no better feeling honestly in terms of the cons there's a ton of them it has you have to have a system you have to know when to get in and out if you don't it's literally gambling there's no other way to say it you can't even just learn this without a system like if you can't replicate your entry and exit it doesn't make sense to do zero DTS and then the emotional aspect is beyond
• 34:00 - 34:30 tough to manage so an example below is my zero DTE trade a week ago or a couple weeks ago which is the $90,000 trade on Triple q's and then two days later I hit a $330,000 trade two trades and I only took two trades in 2025 so I'm 100% win rate but I know if I wake up and do this every day I'm going to have a blown up account let's just be honest because you
• 34:30 - 35:00 hit one bad day it stings you get over it another one then it becomes this Beast this emotional beast that's in your head and you're going to sleep angry you're waking up angry and the emotions if you can't control them they will destroy you on a zero day trading aspect the zero day options are just so risky not only because you need a system but you need to master yourself I think being able to have the ability to trade
• 35:00 - 35:30 any second of the day and have this ability to make a lot of good money you know is a blessing and it's a curse so unless you can control both these things you're not going to be successful on zero DTE consistently so the other things are the when you're day trading you want the market to basically be tradable there's bad markets for bu buying long options there's great markets for selling short options
• 35:30 - 36:00 there's good markets for a zero DTE iron Condor there's bad markets for that so you have to figure out what Market you're in today and basically either trade that strategy you like or shift to the other or sit out the success of what you're trying to do it's not only based on like your skill and your system but like that has to be setting up today like that has to be an opportunity here and it's not that case
• 36:00 - 36:30 I've gone through months where I have th% of my account in three months and then the market shifts and I can't even do the same strategy like I couldn't even make a a win if I wanted to I've been in those day trading markets where you just you just can't hit anything and then the obviously the downside is you lose all your money so with that being said it's going to go to an a I would put it at Lobster money if if
• 36:30 - 37:00 you didn't have the opportunity to blow yourself up why is this better in covered calls is because you can make substantial income really fast and if you can manage that skill it's going to blow away any money from covered calls now to the last ones selling iron condors and then long iron Condors this strategy I can say I put a lot of time into these 18 trades took me a year to
• 37:00 - 37:30 put on basically one per month and we saw an even higher win rate than credit spreads with the coaching program so 87% we had one break even two losers so this is actually more profitable to where the losers didn't really wipe out all the winners you know maybe let's say nine of the winners or or six or eight of them but not not as many as the credit spreads and I'll show you why you if you go in here and you sell iron
• 37:30 - 38:00 Condors I think it' be here iron Condor you got to sell the put so you sell a put buy a put lower sell a call buy a call higher what this does is it gives you a credit here of 159 and then your max profit is 159 this is interesting because if you were to just do a one-sided spr red you're going to
• 38:00 - 38:30 risk like this one here um 55 maybe I read this wrong 55 bucks to make 55 not sure why this is so let's try to go 30 days out or 12 days out um this would be $200 and you're risking 300 but if we turn this into like an iron condor at that same amount um you could see
• 38:30 - 39:00 that your your credit is 382 your max loss is8 with a credit spread you can never lose money on both ends so like the market can't go to your short strike at 485 and then go to the 475 like you only lose money if you close above the short strike or below the short strike so when the BR broker just see you put on this trade they don't ask for more collateral for doing
• 39:00 - 39:30 two spreads the beauty with the two spreads here is that you only need to put up collateral for only one spread so you're getting twice the profit of spreads but they only ask for one collateral requirement so basically the collateral required is usually the the distance of the short and long call so 500 bucks here but if you're making like the difference between these two is is 200 if you're making 200 bucks and
• 39:30 - 40:00 you're risking five the overall risk is 250 because it's it's like you subtract the The Profit minus the risk but then this side is possibly making 20000 bucks so let's just make the math simple here if you could make 200 from the put credit spread and then 200 from the call Credit spread your your possible profit if if this goes right is 4 bucks but you only can risk one
• 40:00 - 40:30 side you know that the short and long leg difference so we're $5 wide on both of those so the Max on this trade is five so that means you're only risking 5 minus 4 because that's what you're trying to make so it's a it's 100 bucks so the the opportunity is that like it's better than credit spreads because you're making more money risking
• 40:30 - 41:00 the same but the the downside is it's it's double the monitoring and double the like adjusting and managing so with a with a credit spread we said the issue was if it made money you don't want to be holding this trade too long after it made money because then it could go against you in a day or a week but with a condor you know you needed to stay flat so it's tough to pin the market what
• 41:00 - 41:30 happens is like you might roll down to the 470 strike and then this side is losing but this side's very profitable so you would close this side and what happens is you could roll back up later and then you would close this side after it's very rare you just like hold both sides till expiration and then it's worthless you typically have to trade the iron Condor side and leg out so you're going to leg out out of the call side or the put side depending on which
• 41:30 - 42:00 side you swing to so you're managing like two trades you're managing this Market that is like flying up and down sometimes and your goal is to just really get it to sit in the middle but it rarely happens like that so it's just much more management and then same thing is like one trade can wipe out just so many months of profit because if you shoot for like a 1 to six risk to reward you take profit at 50% % return it's more like a 1 to 12 so even though with
• 42:00 - 42:30 the system we had earlier um we hit 18 winners you know one loser might take out 12 winners so I've seen too many iron Condor Traders even on the Zero DTE time frame just wipe it all out so selling iron Condors I'm going to put next to cover calls I probably put it in the middle here I have to be in between because it's not worth the the managing
• 42:30 - 43:00 and covered cure is way more passive way more simple but it's not as bad as credit spreads because you make more you risk less like I said and lastly long iron Condors another trade I probably put on like five in my life it's Kramer level just wasting your time so whenever you're buying and limiting your upside so like you're buying and selling so this long Condors are basically two debit spreads
• 43:00 - 43:30 so it's it's almost like double Cramer level whenever you're buying and selling a trade it's just more headache for for the the opportunity like you're just complicating things more than you need to so I didn't know this video is going to take so long but hopefully this helps you guys understand the best strategies rated from top to bottom that I've used in the last 10 years and hopefully this gives you a head start on where to look where to put your focus on and I'll link a video to wrem me on the poor man's covered call which should help you
• 43:30 - 44:00 greatly in the markets peace