RETIRE EARLY Running The Wheel Strategy Options On Palantir (PLTR) - $15,000/mo Tutorial

Summary

In this video, Ryan demonstrates how you can retire early by running the wheel strategy options on Palantir (PLTR), aiming for a $15,000 monthly income. With a starting investment of $190,000 and targeting a 7% monthly return, Ryan elaborates on leveraging the wheel option strategy, his experience turning an investment portfolio of $743,000 into a future $10 million, and the potential growth of Palantir. He explains the fundamentals of Palantir, an AI software company, and guides through the wheel strategy's intricate aspects, including selling cash secured puts and covered calls. His mastery aims at financial freedom without constant monitoring, emphasizing this strategy's effectiveness especially in a fluctuating market. The video is a combination of technical insights, personal anecdotes, and strategic advice for novice and seasoned investors alike.

Highlights

• Learn how to achieve financial freedom with just $190,000 by generating $15,000 monthly through strategic options trading on Palantir. 🚀
• Understand the power of compound interest when aiming for a 7% monthly return in options trading. 🔄
• Get acquainted with Palantir's technology and fundamentals to bolster your investment strategy. 🛡️
• Explore why the wheel strategy is lucrative in both maintaining income flows and handling market volatility. 📉📈
• Discover how selling cash secured puts and covered calls can generate stable monthly income. 💼

Key Takeaways

• Unleash your financial potential and retire early by mastering the wheel strategy on stocks like Palantir. 💡
• Start with just $190,000 and aim for $15,000 monthly income—compound interest is your best friend! 💰
• Palantir’s AI software is not only changing companies but also fortifying your investment strategies. 🤖
• Knowing the fundamentals of your stock, like PE ratios and revenue streams, is vital! 📈
• Whether markets are crashing or soaring, a strategic approach like the wheel strategy can weather any financial storm. 🌩️

Overview

Ryan is all about turning financial dreams into reality through meticulous option trading strategies on Palantir. With a small investment of $190,000, he aims for an inspiring monthly income of $15,000. Driven by a determinate pursuit of financial independence, he reveals how to leverage the wheel strategy effectively. His experience speaks volumes as he plans to scale his portfolio from $743,000 to a staggering $10 million.

Palantir is at the heart of this strategy, with its cutting-edge AI software providing robust opportunities for securing consistent returns. Ryan delves into the company’s essentials, explaining its technological prowess and blooming commercial ventures, ensuring investors are fully informed.

Deftly navigating the complexities of options trading, Ryan shares his insights about selling cash secured puts and covered calls. This strategy not only minimizes risk in volatile markets but also optimizes returns, paving a comfortable path toward early retirement. Ryan’s guidance is as much about numbers as it is about financial empowerment and planning smartly for the future.

Chapters

• 00:00 - 00:30: Retire Early with $190,000 and The Wheel Strategy The chapter introduces the concept of retiring early with a relatively modest amount of capital, specifically $190,000, by utilizing the wheel option strategy, which can generate $15,000 a month. The speaker shares their personal success story, having achieved financial freedom in their early 30s using this strategy. They highlight the growth of their portfolio, currently valued at $743,000, with ambitions to increase it to $10 million over a period of 7 to 10 years. The chapter hints at detailed guidance on how to achieve similar financial goals using the wheel option strategy.
• 00:30 - 01:00: Introduction and Subscribe Appeal The introduction chapter includes an appeal for viewers to subscribe to the channel and hit the thumbs up button if they find the video valuable. The speaker briefly mentions resources available for those interested in trading options, including a link for making six figures, free trade ideas on Instagram, and a free newsletter. The chapter sets the stage for diving into the strategy for generating $15,000 a month from $190,000.
• 01:00 - 01:30: Using the Compound Interest Calculator The chapter titled 'Using the Compound Interest Calculator' discusses utilizing a compound interest calculator to demonstrate the effectiveness of a wheel option strategy. The transcript begins with the user preparing to input details into the calculator: an initial investment of $190,000 and a 7% monthly interest rate. The specific stock that can help achieve these returns is mentioned, and the compound frequency is set to monthly, indicating that the investments would be traded each month.
• 01:30 - 02:00: Monthly Profit and Compound Interest The chapter discusses the strategy of reinvesting a monthly 7% profit into an account to harness the power of compound interest. The speaker provides an illustrative example of how the account balance grows over several months. Starting with $13,300 in the first month, it increases to $14,000 in the second month, and by the third month, it reaches approximately $15,000, demonstrating the potential financial growth from compounding profits.
• 02:00 - 02:30: Introducing Palantir for the Wheel Strategy In this chapter titled 'Introducing Palantir for the Wheel Strategy', the discussion revolves around the potential financial gains from using a specific stock strategy. The speaker highlights the ability to either take out profits monthly or reinvest them to enhance compounding benefits. They emphasize the effectiveness of compound interest, particularly on a monthly basis, suggesting it could lead to significant monthly income increases by the year's end. The chapter sets the stage for introducing a particular stock (Palantir) that has proven successful in generating substantial profits.
• 02:30 - 03:30: Palantir's AI and Software Capabilities The chapter provides an overview of Palantir, an AI software company. It highlights the company's impressive financial performance, with returns reaching up to 12% per month. It explains that Palantir’s software solutions cater to both businesses and the US government, including the military, emphasizing their significant role in various sectors.
• 03:30 - 05:30: Palantir's Market Position and Fundamentals This chapter explores Palantir's market positioning and the fundamentals driving its business model. It discusses how Palantir's software, particularly Gotham, plays a crucial role in defense decision-making by enabling military personnel to track and neutralize threats using AI insights. The chapter emphasizes the practical applications of Palantir's AI in enhancing military strategies and operations based on the analysis of enemy activities and risks.
• 05:30 - 08:00: Comparing Palantir and AMD for Wheel Strategy The chapter discusses a comparison between Palantir and AMD for a wheel strategy. The focus is on Palantir's collaboration with Scooteria Ferrari, specifically how their AI assists Charles Leclerc by analyzing his driving simulation. The AI helps identify areas of improvement in braking and acceleration to enhance his speed on the track. The speaker expresses a favorable view of Palantir as a company based on this application.
• 08:00 - 10:00: Basics of the Wheel Strategy The chapter introduces the basics of the Wheel Strategy, discussing its unique aspects and the advantages of its software. Once implemented by companies, businesses, military, or government, the software becomes integral due to its focus on cost savings, employee engagement, and inventory management improvements.
• 10:00 - 15:00: Cash Secured Puts Explained The chapter titled 'Cash Secured Puts Explained' discusses the importance of evaluating a company's financial health before investing. It emphasizes the significance of the Price Earnings (PE) ratio in determining whether a company is profitable. An example ratio of 468 is cited, indicating that investors are paying 468 times what the company earns, which is considered high. This high PE ratio is often associated with high-growth companies where future earnings are projected to increase significantly.
• 15:00 - 21:00: Covered Calls and Income Generation The chapter discusses the fundamentals of evaluating a company's potential in the market, using the example of a company that could potentially become a trillion-dollar company. Currently, its market cap stands at 207 billion. The discussion includes an analysis of factors like the PE ratio, earnings sources, cash on hand, and net margins. In the last quarter, the company's revenue was 827 million, with net margins at 9.5%, noted to be slightly lower than in the previous quarter.
• 21:00 - 23:00: Executing the Wheel Strategy on Palantir Palantir, known for its strong government sector ties, is expanding into commercial markets with new clients like Walgreens, Wendy's, Heineken, and NASDAQ. This shift is expected to eventually become a significant revenue source, complementing their 19% profit margins.
• 23:00 - 24:00: Conclusion and Additional Resources The chapter discusses the financial growth potential of a company in the commercial sector, projecting revenue increases from $1.3 billion to $30 billion over the next three to seven years. The company's strong financial position is highlighted, with $2 billion in cash and equivalents and $5.9 billion in short-term assets, illustrating its ability to cover debts multiple times over.

RETIRE EARLY Running The Wheel Strategy Options On Palantir (PLTR) - $15,000/mo Tutorial Transcription

• 00:00 - 00:30 i'm going to show you exactly how to retire early off just $190,000 generating $15,000 a month with the wheel option strategy in fact the wheel option strategy has allowed me to become financially free in my early 30s if you take a look at just one of my portfolios here this portfolio is at 743,000 and I plan on turning this into 10 million in the next 7 to 10 years so if you want to see that happen go ahead
• 00:30 - 01:00 and make sure to hit that subscribe button down below and if you enjoy this video or get value out of it I would appreciate you hitting that thumbs up button as well now before we jump into it if you do want to make six figures trading options there is a link down below in the description and also I do give away free trade ideas on my Instagram and my free newsletter which are both down below but we're going to go ahead and get into the exact strategy how are you going to be generating $15,000 a month off 190 grand with the
• 01:00 - 01:30 wheel option strategy well the first thing I want to do is go to this compound interest calculator to kind of show you how this works okay so we're going to plug in the initial investment $190,000 we're going to go to a 7% monthly interest rate and I'm going to show you a specific stock that will allow you to achieve these returns and the compound frequency we're going to go to monthly because you're going to be trading this money every single month so
• 01:30 - 02:00 when you make your monthly 7% profit you're going to put that back into the account right and compound it as long as you you know whatever money you need to take out obviously you can subtract from that but I'm just going to plug this in as you can see in one year okay first month is going to be 13,300 uh generated from this strategy second month is going to be 14,000 by the third month you'll be generating about $15,000 from that point you could then
• 02:00 - 02:30 go ahead and take out the profits every single month or if you decide to leave some of those profits back in and continue to multiply right that could turn into 16,000 a month 17,000 a month and by the end of the year up to 26,000 a month considering that compound interest really gains momentum especially on a monthly compounding basis okay so we're going to go ahead and jump into the exact stock that has allowed me to generate seven eight
• 02:30 - 03:00 sometimes even 12% returns per month and that is Palunteer so Palunteer we're just going to jump into the stock the fundamentals give you a quick rundown so that you actually know what you're getting into with Palunteer and what the company does uh for other companies and the US government okay so Palanteer is an AI software company they utilize their software for the government the US government as well as the military okay
• 03:00 - 03:30 so what I like to do is just go to their YouTube channel you can click on their most popular videos and they have quick breakdowns of exactly how their software works this one was my favorite palanteer Gotham for defense decision-making so it shows you exactly how this AI can track down certain enemies bad guys certain threats and risks right for the military and they can kind of you know make decisions based off of the AI giving them that feedback okay um if you scroll
• 03:30 - 04:00 down they have many other demos as well but my one of my favorites is actually their um Palunteer for Scooteria Ferrari so they pair the AI to Charles Lcler's you know simulation him driving a car on the simulator and exactly where he can improve as far as um braking acceleration on the track and how he can go faster based off of the data that the AI is pulling from his driving ability so I really like Palunteer as a company
• 04:00 - 04:30 they are one of a kind really with their software and it's a very sticky product once a company a business or military or government implements the software it's very hard for them not to continue to use it because a lot of what their their software does is cost savings employee engagement right areas they can improve um inventory management that kind of stuff so Palunteer's technology is quite amazing now as far as the fundamentals of the company we like to look at PE
• 04:30 - 05:00 ratio just as a basis of okay does this company actually earn money do they have positive earnings and if we look at their price earnings ratio it's at 468 so people are paying 468 times what the company actually earns but I do like to see that they do have positive earnings now this is a very high PE ratio because the company is a high growth company right people are projecting that this
• 05:00 - 05:30 company will be potentially a a trillion dollar company right now the market cap is 207 billion so because the PE ratio is a little bit higher what I do like to look at the company fundamentals is see okay where are their earnings coming from how much cash on hand do they come have and what are their net margins like so their revenue last quarter was 827 million net margins were 9.5% a little bit lower than the previous quarter
• 05:30 - 06:00 which was 19% margins which is pretty good for uh you know a software company like this a lot of their business does come from government but they are expanding their commercial sector they just landed a few new clients such as Walgreens Wendy's Heineken um Asenture and a few companies like that NASDAQ right so they are expanding their commercial sector and that's kind of where I believe they will generate a majority of their revenue right now
• 06:00 - 06:30 commercial sector is bringing in $1.3 billion i do believe that they will be bringing in 10 20 maybe even $30 billion from the commercial sector in the next obviously over the long term three to seven years so great company and if you look at their cash on hand they literally have $2 billion of cash and equivalents they can cover their debts about 10 times over and um short-term assets 5.9 billion so that's why I love
• 06:30 - 07:00 the company they can weather a storm not worried about it especially right now as I'm filming this video we are going through a massive crash in the stock market and Palanteer is actually weathering the storm quite well one of the strongest stocks in the stock market so I like their financials financials look good the last thing I look at is the options premium making sure we're making enough money from this company to actually generate our targeted goal of 7% per month so let's go ahead and look
• 07:00 - 07:30 at the chart right that's the very first thing when doing the wheel option strategy is you want to trade a company that has a nice upward trending chart over the past couple years preferably so if you go past in the past couple years right if we go back to 2024 to now this stock has gone nothing but up a very beautiful upward trending chart of course it's gone up quite a lot back here had a nice crash pullback right during this stock market crash but it's
• 07:30 - 08:00 actually fairing quite well now so um again if we go back to even 2023 this stock has just been trending upward so that's what you want to see right versus a stock such as um we can look at AMD advanced micro devices this is a stock that yes they make great products great you know they make chips um they're in the semiconductor space high growth but if you look at their chart over the past year right it's been kind of trending
• 08:00 - 08:30 downwards and it's been very hard to trade so this is an example of a stock that I personally wouldn't trade the wheel strategy on if you want to be a long-term investor and and buy this stock at a discount that's fine that's totally fine but we're trying to make 7% a month and this type of company is going to be a lot harder to do because the tra the trend is going downwards and the wheel strategy is a bullish uh strategy okay so again Palunteer looking good as far as chart
• 08:30 - 09:00 fundamentals if we go to you know the three criteria great chart valuations are pretty decent pe ratio is a little high but it is a growth company amazon Google uh Facebook they were all at a PE ratio of a,000 back in 2013 2014 when everyone thought you know these are these companies are overvalued now they're at PE ratios of like 20 to 50 um cash on hand is good that's great and then the premiums on the options which we're going to look at in just a moment
• 09:00 - 09:30 are also extremely high especially right now that the stock has taken quite a pullback okay so how what is the wheel strategy and how are we going to do if you're not familiar with the wheel strategy it's basically selling cash secured puts so we're selling options to someone right someone is buying these put options from us as think of it like stock insurance right maybe they bought the stock for a h 100red bucks and they buy a put option of 70 from us because
• 09:30 - 10:00 they believe that if the stock does go down to $70 they want to be able to just get out of their stock and not lose any more money right and we're happy if the stock goes down to 70 to buy that stock from them right also they have to pay us a premium for that put option so if the stock doesn't go to 70 then we don't have to buy the shares and also we get paid a premium and we can do that every single month that goes by right so
• 10:00 - 10:30 that's what I do i sell options to people who are very fearful these options are overpriced people are overpaying for these options and I collect my monthly income every month think of it like car insurance when's the last time you used your car insurance right probably it's been a while or maybe you've never used it at all if you never been in an accident that is the example of a cash secured put it's basically stock insurance right people pay for it they're usually never going to use it and worst case scenario
• 10:30 - 11:00 for us being the uh underwriter or insurer we have to just purchase the shares at a discount worst case scenario so I love the strategy it generates me tons of income every month and this is really a easy hands-off strategy to where we're not day trading we're not stuck in front of the computer all the time we are just collecting income we could manage this once or twice a month and continue to do this every single month so let's talk about the Palunteer wheel strategy to make $15,000 a month
• 11:00 - 11:30 in safe income and exactly how I do it okay so we're going to start off with cash secured puts again like I said we're going to maybe the stock is trading at $100 we're going to sell this $70 put option right and as long as the stock doesn't go down below 70 we don't have to buy the shares and we get to collect the premium now if the stock does go below 70 we have to buy the shares so you have to have the cash to
• 11:30 - 12:00 buy a 100 shares at $70 which is $7,000 right so we have to have the cash to cover also we get paid that premium no matter what so we still get to get paid the premium but now we own the shares and then what we do afterwards is we collect income by selling covered calls against our shares which we'll get into in just a moment so let's go ahead and dive into it how do we sell a put option how do we make premium upfront how do we collect
• 12:00 - 12:30 that cash upfront right now in our Thinkorswim trading platform okay so we're going to go into it uh we're going to sell a 25 to 35 delta cashsecured put depending on our bullishness and I'll explain what that means basically a 25 delta means that it has a 25% chance of the stock actually coming down to that price okay so 75% chance that you know this option is going to expire worthless and we just keep the premium and don't
• 12:30 - 13:00 have to buy the shares but there's a small chance that we might have to buy the shares so depending on how much risk you want to take you can go a higher delta which you get you would get paid more or you could go at 25 delta which is pretty low get paid a little less but then potentially won't have to get assigned the shares okay we're going to go 30 days to expiration for monthly income enter on red days preferably and if you collect 80% of that premium in the first 10 days you can close out for a profit
• 13:00 - 13:30 and open a new trade if you'd like to okay sometimes that happens there's been times where I sold a cash secured put let's just say for instance stock's trading at 100 i sell the cash secured put at $70 strike and the stock goes to 110 within the next two or three days now I'm collected 80% of the premium right and I'm able to just kind of close out the trade get my money and sell a
• 13:30 - 14:00 new put a little bit higher up maybe at the 80 strike or the 85 strike okay so let's go ahead and log into the platform and we're going to go ahead and do that i'll show you my my position right now i do currently have five cash secured puts at the 76 strike on Palunteer it's currently trading at 88 so it's very far away from where my puts are right and in 27 days I will collect the full premium of
• 14:00 - 14:30 $2,121 okay so pretty good premiums there and I also have 900 shares on Palunteer as well that I'm doing the wheel strategy on and I'm now collecting income via covered calls and I'll explain how that works in just a moment so we're going to go into the options chain we're going to go out let's just go out 27 days because there is no 30-day option here and what we're going to do is we are going to sell anywhere from the 25 delta all the way up to the
• 14:30 - 15:00 35 delta so 25 delta is going to be the 76 strike that is currently the ones that I have now let me show you how this looks so basically this is like the safest trade okay 75 delta or the 25 delta is at 75 bucks so the stock has to go all the way down here right to this red line it has to go all the way down here and close below that by expiration in 27 days for
• 15:00 - 15:30 me to have to get assigned the stock to buy a 100 shares at $75 right if it stays above this line I collect my premium and do it all over again the next month okay so this is very far away now if we went closer right let's just say we went to that 35 del 34 delta that's the 82 strike so you'd get paid more money as you can see on the 76 strike we'd get paid $3.30 or times 100
• 15:30 - 16:00 because there's 100 shares 330 bucks versus if we went closer to this 34 delta we'd collect 415 bucks okay but we'd also be closer to the stock so we'd have to sell the 82 strike which would move our risk up to here so if the stock comes below here by expiration we'll have to buy it at 82 bucks even if the stock goes down to 75 okay so you know
• 16:00 - 16:30 the closer you get to the stock the more risk you're taking but the more premium you're going to get paid so keep that in mind now what we like to do okay is go somewhere in between there so we can always go to let's just say the 33 delta and let's calculate the math on that so let's just say we sold the 81 strike 33 delta which has a 33% chance of being in the money or right by expiration so getting assigned the shares very small chance still I mean that's still pretty
• 16:30 - 17:00 good probability there but either way we collect our premium so we're going to collect 575 bucks divided by 81 which is the strike price that's going to yield a 7.09% return okay 7.09% which is pretty crazy for every $100,000 right that's about $7,000 a month in income so that would basically achieve our target within two months
• 17:00 - 17:30 with compounding interest okay so that is very very good in one month 7% on 190k right that's almost pretty much almost 15,000 but after one month of profit if we reinvest we're going to get closer to that 15,000 per month okay so a very very good strategy and that would be a pretty safe return there i I love this stock and you know getting assigned at $81 is pretty good because if you did get assigned down there right
• 17:30 - 18:00 you have to look at where the stock is relative to its all-time highs that would be you know um if you got assigned at 81 that would still be a 35% discount on the stock okay so this is a perfect time to start running the wheel strategy on Palunteer because it's not at all-time highs okay so you have a long ways for this stock to just keep going up right and you to benefit from that
• 18:00 - 18:30 running the wheel strategy so that is the cash secured put now let's go ahead and talk about the covered call okay let's just say the stock fell below 81 maybe it went to 78 you got to sign the shares at 81 so you had to buy 100 shares that costed you 8,100 bucks right still got the stock at a discount now what do you do how do you make money now that you have the shares well now what you're going to do is sell a covered call at or above your cost basis which
• 18:30 - 19:00 is $81 so we're going to sell the 30 delta covered call okay we're going to go 20 to 30 days out to expiration for monthly income enter on a green day that's going to allow you to get further away from the stock and wait until expiration to let either let the shares get called away or enter a new covered call position so what happens is let's just say the stock's trading here right it's trading at um or we got assigned at $81 the stock is currently trading I
• 19:00 - 19:30 don't know $88 right we're going to sell the maybe we're going to sell the 95 strike okay we're going to collect 500 bucks let's just say 500 bucks right if the stock goes to 95 right we're going to have to sell our shares that we got assigned at 81 and we're going to have to sell them at $95 so we make a profit there on the shares and we also make a profit from the premium that we collected from that
• 19:30 - 20:00 covered call because when we sell a covered call the person buying it is saying the stock is going to go up past that price and we say no the stock is not going to go past that price and if it does we'll sell our shares at that price right so it's a pretty good um trade-off there so let's just pretend we got assigned at $88 okay let's just pretend just for purpose um for the example sake so we got assigned at 88 bucks okay stocks trading at 88 bucks
• 20:00 - 20:30 trading at our cost basis what I'm going to do is I'm going to go up to the 30 delta which is I mean pretty far up okay so that's going to be the 28 delta is 103 so let's just do the 32 delta which is 102 so we're going to sell a covered call against our shares at 88 bucks okay at the 102 strike we're going to collect $269 okay and let's do the math on that so 269 divided by 88 that's about a 3%
• 20:30 - 21:00 return so not as much as the cash secured put okay so that's only going to generate us about 3,000 bucks for every 100K we have right that's not going to hit our $15,000 a month goal so how are we going to hit it well when the stock goes up if it goes past your 102 strike you're going to have to sell at 102 so now you're have 102 minus 88 which is your cost basis you have $14 of appreciation as well so
• 21:00 - 21:30 let's divide that by 88 that's about a 15% return so that alone is going to double your return so not only are you going to make the 15,000 off 100K but because you have 190K you're going to make about 30,000 right double the returns in monthly income from selling a covered call and the shares getting called away so that's what I love about this strategy is you
• 21:30 - 22:00 actually make more money on the covered call side because you're making double income share appreciation shares getting called away and the premium for the covered calls okay so that's 15% plus the 3% in premium so that's about 18% right that you're making on the covered call side um and that's pretty doable because let's just the stock the stock is trading here at 88 right 102 is about right here where the blue line is so that's not that far away we were there
• 22:00 - 22:30 not too long ago so it's very possible for the stock to basically shoot past this in 30 days and get your shares called away all right now you can always if you don't think the stock's going up that high you can always sell a closer to your cost basis covered call and collect more income like let's just say you have the shares of 88 you don't believe it's going to go past 93 you could sell the 93 strike to collect more premium to guarantee your income so we
• 22:30 - 23:00 can calculate um you know the return on that so at the 93 strike covered call we're going to collect 575 bucks right divided by 88 that's about a 6 12% return plus okay plus the shares get called away so 93 minus 88 all right divided by 88 that's about a 5% return plus the 6% so you're making 11% on your money there which is going to supersede
• 23:00 - 23:30 that $15,000 a month income even just selling a closer covered call to your stock price so I really liked that as well that's also an alternative if you wanted to play it safe guarantee that income you just go a little bit closer to where your share price where your shares are trading at $88 so that's exactly how to do the wheel strategy to make 15,000 maybe even 20,000 a month off pounds here especially right now that the options are so expensive so I
• 23:30 - 24:00 hope you enjoyed this video again if you enjoyed it please give a thumbs up i do have training to my mentorship down below the link down below and I'll link another video right here which is exactly how to retire off three specific stocks that are my favorite so check that one out and I'll see you in the next one take care