{"id":49722,"date":"2020-03-10T14:23:31","date_gmt":"2020-03-10T18:23:31","guid":{"rendered":"https:\/\/www.smbtraining.com\/blog\/?p=49722"},"modified":"2020-03-10T14:23:31","modified_gmt":"2020-03-10T18:23:31","slug":"market-massacres-make-great-options-opportunities","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/market-massacres-make-great-options-opportunities","title":{"rendered":"Market Massacres Make Great Options Opportunities"},"content":{"rendered":"

In this video we take a look at another way of profiting from a market sell off, using a combination of cash secured puts and covered calls to earn cash from options premium selling in an easy to understand process.<\/p>\n

If you missed part 1 you can watch it here<\/a><\/p>\nView Video Transcript<\/strong><\/span>

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the coronavirus has shaken up the<\/div>\n<\/div>\n<\/div>\n
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financial markets in a way that it’s<\/div>\n<\/div>\n<\/div>\n
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rarely seen over the past several weeks<\/div>\n<\/div>\n<\/div>\n
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mainly because of the uncertainty over<\/div>\n<\/div>\n<\/div>\n
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how bad this epidemic could get and more<\/div>\n<\/div>\n<\/div>\n
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importantly to the markets how much its<\/div>\n<\/div>\n<\/div>\n
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ramifications will create economic<\/div>\n<\/div>\n<\/div>\n
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damage to the world economy it’s exactly<\/div>\n<\/div>\n<\/div>\n
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this kind of uncertainty that causes the<\/div>\n<\/div>\n<\/div>\n
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options market to experience huge spikes<\/div>\n<\/div>\n<\/div>\n
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and implied volatility which is the main<\/div>\n<\/div>\n<\/div>\n
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factor that drives the pricing of<\/div>\n<\/div>\n<\/div>\n
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options<\/div>\n<\/div>\n<\/div>\n
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I’m the head trader of SMB capitals<\/div>\n<\/div>\n<\/div>\n
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options trading desk and right here at<\/div>\n<\/div>\n<\/div>\n
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SMB’s trading floor in Manhattan I have<\/div>\n<\/div>\n<\/div>\n
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the privilege of working with<\/div>\n<\/div>\n<\/div>\n
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spectacularly successful options traders<\/div>\n<\/div>\n<\/div>\n
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that know how to exploit market panics<\/div>\n<\/div>\n<\/div>\n
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just like we’re experiencing right now<\/div>\n<\/div>\n<\/div>\n
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in our last video we talked about just<\/div>\n<\/div>\n<\/div>\n
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such an opportunity namely selling puts<\/div>\n<\/div>\n<\/div>\n
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when the market has experienced a huge<\/div>\n<\/div>\n<\/div>\n
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spike in volatility in this video we’re<\/div>\n<\/div>\n<\/div>\n
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gonna take that discussion one step<\/div>\n<\/div>\n<\/div>\n
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further and look at what would have<\/div>\n<\/div>\n<\/div>\n
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happened if the market had sold off so<\/div>\n<\/div>\n<\/div>\n
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hard that the short puts that we sold<\/div>\n<\/div>\n<\/div>\n
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went into the money and we were assigned<\/div>\n<\/div>\n<\/div>\n
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the shares that those short puts<\/div>\n<\/div>\n<\/div>\n
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represented if you’d like to learn how<\/div>\n<\/div>\n<\/div>\n
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to make even more money from your<\/div>\n<\/div>\n<\/div>\n
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options trades when that exact situation<\/div>\n<\/div>\n<\/div>\n
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unfolds and stick around because I think<\/div>\n<\/div>\n<\/div>\n
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you’re gonna find this very interesting<\/div>\n<\/div>\n<\/div>\n
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[Music]<\/div>\n<\/div>\n<\/div>\n
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hi I’m Seth Freuburg and I’m the head<\/div>\n<\/div>\n<\/div>\n
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trader of SMB capitals options trading<\/div>\n<\/div>\n<\/div>\n
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desk SMB capital is a proprietary<\/div>\n<\/div>\n<\/div>\n
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trading firm located in midtown<\/div>\n<\/div>\n<\/div>\n
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Manhattan and we provide capital for<\/div>\n<\/div>\n<\/div>\n
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options and equity traders from all over<\/div>\n<\/div>\n<\/div>\n
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the world trading both remotely and in<\/div>\n<\/div>\n<\/div>\n
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our offices here in New York City now<\/div>\n<\/div>\n<\/div>\n
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I’d like to suggest that you click on<\/div>\n<\/div>\n<\/div>\n
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our subscribe button right now so that<\/div>\n<\/div>\n<\/div>\n
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you don’t miss any of our free trading<\/div>\n<\/div>\n<\/div>\n
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videos that we produce for traders and<\/div>\n<\/div>\n<\/div>\n
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investors all over the world they’re<\/div>\n<\/div>\n<\/div>\n
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really very valuable okay so if you’re<\/div>\n<\/div>\n<\/div>\n
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even remotely watching the financial<\/div>\n<\/div>\n<\/div>\n
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markets I don’t have to tell you that<\/div>\n<\/div>\n<\/div>\n
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the market has gone into a somewhat<\/div>\n<\/div>\n<\/div>\n
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unprecedented period of volatility based<\/div>\n<\/div>\n<\/div>\n
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on concerns about the coronavirus and<\/div>\n<\/div>\n<\/div>\n
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its economic implications over the past<\/div>\n<\/div>\n<\/div>\n
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few weeks the market has experienced<\/div>\n<\/div>\n<\/div>\n
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some of the largest point moves in the<\/div>\n<\/div>\n<\/div>\n
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major indexes in the history of the<\/div>\n<\/div>\n<\/div>\n
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stock market and in our last video we<\/div>\n<\/div>\n<\/div>\n
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discussed selling spy puts in that kind<\/div>\n<\/div>\n<\/div>\n
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of environment and how quickly those<\/div>\n<\/div>\n<\/div>\n
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trades can work out in a very profitable<\/div>\n<\/div>\n<\/div>\n
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way today<\/div>\n<\/div>\n<\/div>\n
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we’re gonna look at that trade from a<\/div>\n<\/div>\n<\/div>\n
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different perspective and that has to do<\/div>\n<\/div>\n<\/div>\n
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with the case which certainly will<\/div>\n<\/div>\n<\/div>\n
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happen now and then where you sell puts<\/div>\n<\/div>\n<\/div>\n
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when the markets going down looking for<\/div>\n<\/div>\n<\/div>\n
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a fast profitable trade and instead the<\/div>\n<\/div>\n<\/div>\n
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market sells off past the puts that you<\/div>\n<\/div>\n<\/div>\n
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sold and you actually get assigned the<\/div>\n<\/div>\n<\/div>\n
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shares of stock to which the puts<\/div>\n<\/div>\n<\/div>\n
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pertain so before we go any further<\/div>\n<\/div>\n<\/div>\n
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let’s make sure that everyone listening<\/div>\n<\/div>\n<\/div>\n
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has a full grasp of the way stock<\/div>\n<\/div>\n<\/div>\n
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options work if you already know how<\/div>\n<\/div>\n<\/div>\n
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options work or you watch the last video<\/div>\n<\/div>\n<\/div>\n
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this is gonna be super quick so hang in<\/div>\n<\/div>\n<\/div>\n
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there<\/div>\n<\/div>\n<\/div>\n
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so what’s known as a call option on a<\/div>\n<\/div>\n<\/div>\n
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stock entitles the buyer of that option<\/div>\n<\/div>\n<\/div>\n
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to purchase 100 shares of that stock at<\/div>\n<\/div>\n<\/div>\n
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a certain price called the strike price<\/div>\n<\/div>\n<\/div>\n
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of that option regardless of what price<\/div>\n<\/div>\n<\/div>\n
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the stock is trading at what’s called a<\/div>\n<\/div>\n<\/div>\n
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put option on the other hand entitles<\/div>\n<\/div>\n<\/div>\n
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the buyer of that put to sell 100 shares<\/div>\n<\/div>\n<\/div>\n
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of his stock he owns at the strike price<\/div>\n<\/div>\n<\/div>\n
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of that put again regardless of what<\/div>\n<\/div>\n<\/div>\n
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price the stock is trading the buyer of<\/div>\n<\/div>\n<\/div>\n
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the option pays what’s called a premium<\/div>\n<\/div>\n<\/div>\n
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to the seller of the option because the<\/div>\n<\/div>\n<\/div>\n
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seller of the option is taking the risk<\/div>\n<\/div>\n<\/div>\n
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that the stock will go past the strike<\/div>\n<\/div>\n<\/div>\n
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price of the option in which case the<\/div>\n<\/div>\n<\/div>\n
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buyer can exercise his option and the<\/div>\n<\/div>\n<\/div>\n
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seller could lose money on the<\/div>\n<\/div>\n<\/div>\n
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transaction but if this<\/div>\n<\/div>\n<\/div>\n
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stock on the expiration day of the<\/div>\n<\/div>\n<\/div>\n
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option is not beyond the strike price of<\/div>\n<\/div>\n<\/div>\n
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the option then the seller just pockets<\/div>\n<\/div>\n<\/div>\n
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the premium that he was given by the<\/div>\n<\/div>\n<\/div>\n
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buyer he walks away completely free of<\/div>\n<\/div>\n<\/div>\n
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any obligations the options in other<\/div>\n<\/div>\n<\/div>\n
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words expire worthless because it was<\/div>\n<\/div>\n<\/div>\n
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never triggered so what we’ll be talking<\/div>\n<\/div>\n<\/div>\n
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about in this video is where we are<\/div>\n<\/div>\n<\/div>\n
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selling put options below the market and<\/div>\n<\/div>\n<\/div>\n
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collecting a premium for doing so if the<\/div>\n<\/div>\n<\/div>\n
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market does close below the strike price<\/div>\n<\/div>\n<\/div>\n
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of the put options we sell we’ll be<\/div>\n<\/div>\n<\/div>\n
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obligated to buy the shares at the<\/div>\n<\/div>\n<\/div>\n
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strike price of our option even if the<\/div>\n<\/div>\n<\/div>\n
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stock price has dropped well below the<\/div>\n<\/div>\n<\/div>\n
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price that will be obligated to pay for<\/div>\n<\/div>\n<\/div>\n
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them so like we discussed in our last<\/div>\n<\/div>\n<\/div>\n
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video the market was crashing downward<\/div>\n<\/div>\n<\/div>\n
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the morning of February 28th and at<\/div>\n<\/div>\n<\/div>\n
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around 10 a.m. we sold three puts on the<\/div>\n<\/div>\n<\/div>\n
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Spy’s that were due to expire that day<\/div>\n<\/div>\n<\/div>\n
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and those puts were very far out of the<\/div>\n<\/div>\n<\/div>\n
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money at 277 by the end of the day the<\/div>\n<\/div>\n<\/div>\n
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market had bounced and those puts<\/div>\n<\/div>\n<\/div>\n
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expired worthless but what if the market<\/div>\n<\/div>\n<\/div>\n
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had continued to sell-off and the spy<\/div>\n<\/div>\n<\/div>\n
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closed below those puts that we solved<\/div>\n<\/div>\n<\/div>\n
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well in that case we would have been<\/div>\n<\/div>\n<\/div>\n
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obligated to buy those shares at the<\/div>\n<\/div>\n<\/div>\n
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strike price of our put option at 277 so<\/div>\n<\/div>\n<\/div>\n
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what we’ll be doing in today’s lesson is<\/div>\n<\/div>\n<\/div>\n
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taking a look at how many options<\/div>\n<\/div>\n<\/div>\n
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traders would handle that situation once<\/div>\n<\/div>\n<\/div>\n
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they own the shares that were assigned<\/div>\n<\/div>\n<\/div>\n
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to them so to do this we’re gonna be<\/div>\n<\/div>\n<\/div>\n
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looking at another case in the past and<\/div>\n<\/div>\n<\/div>\n
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so let’s go back to December 21st 2018<\/div>\n<\/div>\n<\/div>\n
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and as we can see the market was selling<\/div>\n<\/div>\n<\/div>\n
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off that month down 16 percent in fact<\/div>\n<\/div>\n<\/div>\n
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from its all-time highs at that time and<\/div>\n<\/div>\n<\/div>\n
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so you decided that the market was cheap<\/div>\n<\/div>\n<\/div>\n
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enough and that you’d sell three of the<\/div>\n<\/div>\n<\/div>\n
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245 puts for a dollar 21 each so to be<\/div>\n<\/div>\n<\/div>\n
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clear on that calculation if you sell<\/div>\n<\/div>\n<\/div>\n
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three puts for a dollar 21 each each put<\/div>\n<\/div>\n<\/div>\n
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represents 100 shares of stock so as you<\/div>\n<\/div>\n<\/div>\n
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can see from the calculation you’d have<\/div>\n<\/div>\n<\/div>\n
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received 363 dollars for that so now<\/div>\n<\/div>\n<\/div>\n
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let’s think about the position that the<\/div>\n<\/div>\n<\/div>\n
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traders in if by the end of the day the<\/div>\n<\/div>\n<\/div>\n
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spy closes above 245 then he’ll simply<\/div>\n<\/div>\n<\/div>\n
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pocket that 363 dollars and have made a<\/div>\n<\/div>\n<\/div>\n
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successful trade on the other hand if<\/div>\n<\/div>\n<\/div>\n
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the market closes below 245 then he’ll<\/div>\n<\/div>\n<\/div>\n
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be assigned those shares and be required<\/div>\n<\/div>\n<\/div>\n
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to buy them at two<\/div>\n<\/div>\n<\/div>\n
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45 now before we get into how this trade<\/div>\n<\/div>\n<\/div>\n
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turned out in the unique way that this<\/div>\n<\/div>\n<\/div>\n
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trader was able to use options to turn a<\/div>\n<\/div>\n<\/div>\n
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very nice profit I wanted to let you<\/div>\n<\/div>\n<\/div>\n
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know that there are sound viable<\/div>\n<\/div>\n<\/div>\n
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long-term techniques for trading options<\/div>\n<\/div>\n<\/div>\n
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for income that go way beyond this<\/div>\n<\/div>\n<\/div>\n
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strategy that we’ll be discussing in a<\/div>\n<\/div>\n<\/div>\n
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minute and in fact we are currently<\/div>\n<\/div>\n<\/div>\n
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running a to our free intensive workshop<\/div>\n<\/div>\n<\/div>\n
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at the moment where we’ll be teaching<\/div>\n<\/div>\n<\/div>\n
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you three of those strategies that real<\/div>\n<\/div>\n<\/div>\n
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professional options traders use<\/div>\n<\/div>\n<\/div>\n
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including a really simple but incredibly<\/div>\n<\/div>\n<\/div>\n
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effective strategy that some of the<\/div>\n<\/div>\n<\/div>\n
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greatest investors in the world like<\/div>\n<\/div>\n<\/div>\n
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Warren Buffett use all the time plus an<\/div>\n<\/div>\n<\/div>\n
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options strategy that has a statistical<\/div>\n<\/div>\n<\/div>\n
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80 percent probability of profit month<\/div>\n<\/div>\n<\/div>\n
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in and month out plus an option strategy<\/div>\n<\/div>\n<\/div>\n
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that you can employ with the stock that<\/div>\n<\/div>\n<\/div>\n
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you like where you’ll make your target<\/div>\n<\/div>\n<\/div>\n
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profit whether the stock goes up goes<\/div>\n<\/div>\n<\/div>\n
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nowhere or even goes down a small<\/div>\n<\/div>\n<\/div>\n
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percentage so if those strategies would<\/div>\n<\/div>\n<\/div>\n
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be of interest to you then you should<\/div>\n<\/div>\n<\/div>\n
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check out the free options class that<\/div>\n<\/div>\n<\/div>\n
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we’re currently running just go ahead<\/div>\n<\/div>\n<\/div>\n
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and click the link that should be<\/div>\n<\/div>\n<\/div>\n
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appearing now at the top right corner of<\/div>\n<\/div>\n<\/div>\n
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your screen that will open the free<\/div>\n<\/div>\n<\/div>\n
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registration page in a new window so<\/div>\n<\/div>\n<\/div>\n
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don’t worry you won’t lose this video or<\/div>\n<\/div>\n<\/div>\n
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you can just head on over to options<\/div>\n<\/div>\n<\/div>\n
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class com to register for this free<\/div>\n<\/div>\n<\/div>\n
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intensive workshop it’s a rare<\/div>\n<\/div>\n<\/div>\n
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opportunity for retail traders and<\/div>\n<\/div>\n<\/div>\n
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investors to learn directly from Wall<\/div>\n<\/div>\n<\/div>\n
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Street traders but that’s exactly what<\/div>\n<\/div>\n<\/div>\n
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you’ll be getting through this free<\/div>\n<\/div>\n<\/div>\n
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online workshop so click the link to<\/div>\n<\/div>\n<\/div>\n
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sign up now and don’t miss it okay so<\/div>\n<\/div>\n<\/div>\n
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now at this point the trader had sold<\/div>\n<\/div>\n<\/div>\n
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his three puts and collected 363 dollars<\/div>\n<\/div>\n<\/div>\n
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and so if we move to the end of the day<\/div>\n<\/div>\n<\/div>\n
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you’ll see that the spy closed at 240<\/div>\n<\/div>\n<\/div>\n
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and so the owner of the put would have<\/div>\n<\/div>\n<\/div>\n
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exercised his right to sell you his spy<\/div>\n<\/div>\n<\/div>\n
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shares at 2:45 because he’d make about 5<\/div>\n<\/div>\n<\/div>\n
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dollars per share from that transaction<\/div>\n<\/div>\n<\/div>\n
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because his shares were valued at 240<\/div>\n<\/div>\n<\/div>\n
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but you were required to buy them at<\/div>\n<\/div>\n<\/div>\n
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2:45 so at this point you’re now long<\/div>\n<\/div>\n<\/div>\n
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300 shares of stock now if you really<\/div>\n<\/div>\n<\/div>\n
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have a conviction that the stock will<\/div>\n<\/div>\n<\/div>\n
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bounce then you’re happy that you’ve<\/div>\n<\/div>\n<\/div>\n
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been assigned these shares and if you<\/div>\n<\/div>\n<\/div>\n
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are right then you collected 363 dollars<\/div>\n<\/div>\n<\/div>\n
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plus you now own a stock that you’re<\/div>\n<\/div>\n<\/div>\n
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very bullish on at a great price at that<\/div>\n<\/div>\n<\/div>\n
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point you could simply hold those shares<\/div>\n<\/div>\n<\/div>\n
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and that would have turned out pretty<\/div>\n<\/div>\n<\/div>\n
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well as a matter of fact when you<\/div>\n<\/div>\n<\/div>\n
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consider that the spy traded up as high<\/div>\n<\/div>\n<\/div>\n
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as 339 at which point you would have<\/div>\n<\/div>\n<\/div>\n
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been up over $29,000 on the trade at its<\/div>\n<\/div>\n<\/div>\n
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highs on the other hand if you didn’t<\/div>\n<\/div>\n<\/div>\n
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want to type or capital on the spy trade<\/div>\n<\/div>\n<\/div>\n
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for whatever reason you had another<\/div>\n<\/div>\n<\/div>\n
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alternative you could have chosen and<\/div>\n<\/div>\n<\/div>\n
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that was to instead exit the spy Channel<\/div>\n<\/div>\n<\/div>\n
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as the covered call technique so let me<\/div>\n<\/div>\n<\/div>\n
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show you how that could have played out<\/div>\n<\/div>\n<\/div>\n
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so on the day after you were assigned<\/div>\n<\/div>\n<\/div>\n
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the shares you could have sold three<\/div>\n<\/div>\n<\/div>\n
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calls at 2:45 at the same price you had<\/div>\n<\/div>\n<\/div>\n
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to pay to buy those shares now this is<\/div>\n<\/div>\n<\/div>\n
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done intentionally because if you think<\/div>\n<\/div>\n<\/div>\n
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about it if the owner of the call<\/div>\n<\/div>\n<\/div>\n
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decides to exercise that call right that<\/div>\n<\/div>\n<\/div>\n
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he has bought he’ll have to pay you 245<\/div>\n<\/div>\n<\/div>\n
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for those shares well that’s exactly<\/div>\n<\/div>\n<\/div>\n
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what you paid for them so that’s a wash<\/div>\n<\/div>\n<\/div>\n
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so the only thing that would be left is<\/div>\n<\/div>\n<\/div>\n
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the premium that you received for<\/div>\n<\/div>\n<\/div>\n
\n
\n
selling the calls so let’s take a look<\/div>\n<\/div>\n<\/div>\n
\n
\n
at the cash flow that we receive from<\/div>\n<\/div>\n<\/div>\n
\n
\n
this exercise to make it clear as we<\/div>\n<\/div>\n<\/div>\n
\n
\n
discussed before we received 363 dollars<\/div>\n<\/div>\n<\/div>\n
\n
\n
already from selling the original three<\/div>\n<\/div>\n<\/div>\n
\n
\n
puts that caused us to be assigned the<\/div>\n<\/div>\n<\/div>\n
\n
\n
shares to spy in the first place but<\/div>\n<\/div>\n<\/div>\n
\n
\n
remember now we are also receiving cash<\/div>\n<\/div>\n<\/div>\n
\n
\n
flow from selling those covered calls in<\/div>\n<\/div>\n<\/div>\n
\n
\n
the amount of 525 dollars for a total of<\/div>\n<\/div>\n<\/div>\n
\n
\n
eight hundred eighty eight dollars so<\/div>\n<\/div>\n<\/div>\n
\n
\n
now keep that cash flow in mind because<\/div>\n<\/div>\n<\/div>\n
\n
\n
four days later on the expiration of<\/div>\n<\/div>\n<\/div>\n
\n
\n
those calls you’ll see that the spy had<\/div>\n<\/div>\n<\/div>\n
\n
\n
rallied to 247 and so the owner of that<\/div>\n<\/div>\n<\/div>\n
\n
\n
call is obviously going to exercise his<\/div>\n<\/div>\n<\/div>\n
\n
\n
call and those shares will be sold to<\/div>\n<\/div>\n<\/div>\n
\n
\n
the call owner at 2:45 at the very same<\/div>\n<\/div>\n<\/div>\n
\n
\n
price you were required to buy them from<\/div>\n<\/div>\n<\/div>\n
\n
\n
the guy you sold the puts do earlier in<\/div>\n<\/div>\n<\/div>\n
\n
\n
the trade when you were assigned those<\/div>\n<\/div>\n<\/div>\n
\n
\n
300 shares of spy at that price of 245 a<\/div>\n<\/div>\n<\/div>\n
\n
\n
share when the shares were trading for<\/div>\n<\/div>\n<\/div>\n
\n
\n
much less in the open market and so<\/div>\n<\/div>\n<\/div>\n
\n
\n
naturally when you set the location of<\/div>\n<\/div>\n<\/div>\n
\n
\n
your covered call you did that<\/div>\n<\/div>\n<\/div>\n
\n
\n
intentionally at the price that you paid<\/div>\n<\/div>\n<\/div>\n
\n
\n
for them so that you would not suffer a<\/div>\n<\/div>\n<\/div>\n
\n
\n
loss on the shares if your shares were<\/div>\n<\/div>\n<\/div>\n
\n
\n
called away so then what’s left well<\/div>\n<\/div>\n<\/div>\n
\n
\n
your shares are gone but the $888 you<\/div>\n<\/div>\n<\/div>\n
\n
\n
collected by selling the puts and the<\/div>\n<\/div>\n<\/div>\n
\n
\n
calls<\/div>\n<\/div>\n<\/div>\n
\n
\n
those are yours to keep so now before<\/div>\n<\/div>\n<\/div>\n
\n
\n
wrapping up I wanted to reiterate<\/div>\n<\/div>\n<\/div>\n
\n
\n
something very important this entire<\/div>\n<\/div>\n<\/div>\n
\n
\n
campaign started with the notion that<\/div>\n<\/div>\n<\/div>\n
\n
\n
you were very happy to own spy shares at<\/div>\n<\/div>\n<\/div>\n
\n
\n
2:45 because you thought that if spy hit<\/div>\n<\/div>\n<\/div>\n
\n
\n
that level it would certainly bounce so<\/div>\n<\/div>\n<\/div>\n
\n
\n
you didn’t actually care if you just<\/div>\n<\/div>\n<\/div>\n
\n
\n
collected the put premium and weren’t<\/div>\n<\/div>\n<\/div>\n
\n
\n
assigned to shares because you would<\/div>\n<\/div>\n<\/div>\n
\n
\n
then just pocket the put premium<\/div>\n<\/div>\n<\/div>\n
\n
\n
conversely you were also happy to be<\/div>\n<\/div>\n<\/div>\n
\n
\n
assigned the shares because you consider<\/div>\n<\/div>\n<\/div>\n
\n
\n
that to be a great price to own them and<\/div>\n<\/div>\n<\/div>\n
\n
\n
at that point then you’re in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
driver’s seat you have pocketed your put<\/div>\n<\/div>\n<\/div>\n
\n
\n
premium and now you can either hold the<\/div>\n<\/div>\n<\/div>\n
\n
\n
shares and benefit from what you believe<\/div>\n<\/div>\n<\/div>\n
\n
\n
is going to be a bounce which actually<\/div>\n<\/div>\n<\/div>\n
\n
\n
would have worked out really well here<\/div>\n<\/div>\n<\/div>\n
\n
\n
because spy ended up at 393 like we<\/div>\n<\/div>\n<\/div>\n
\n
\n
discussed it earlier or alternatively if<\/div>\n<\/div>\n<\/div>\n
\n
\n
you didn’t want your capital tied up<\/div>\n<\/div>\n<\/div>\n
\n
\n
with the spy shares you could always<\/div>\n<\/div>\n<\/div>\n
\n
\n
exit them through selling a covered call<\/div>\n<\/div>\n<\/div>\n
\n
\n
like we showed you in this example and<\/div>\n<\/div>\n<\/div>\n
\n
\n
pocketed some additional income from the<\/div>\n<\/div>\n<\/div>\n
\n
\n
call premium as we just demonstrated<\/div>\n<\/div>\n<\/div>\n
\n
\n
either way you’re a happy camper and<\/div>\n<\/div>\n<\/div>\n
\n
\n
this is a great example of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
flexibility and creativity afforded to<\/div>\n<\/div>\n<\/div>\n
\n
\n
you by options trading now just to<\/div>\n<\/div>\n<\/div>\n
\n
\n
remind you as I said earlier if you<\/div>\n<\/div>\n<\/div>\n
\n
\n
enjoyed this video and learn something<\/div>\n<\/div>\n<\/div>\n
\n
\n
valuable from it and would like to learn<\/div>\n<\/div>\n<\/div>\n
\n
\n
the details of three real-world option<\/div>\n<\/div>\n<\/div>\n
\n
\n
strategies that professional options<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders use all the time then you should<\/div>\n<\/div>\n<\/div>\n
\n
\n
check out the free options class that<\/div>\n<\/div>\n<\/div>\n
\n
\n
we’re currently running just go ahead<\/div>\n<\/div>\n<\/div>\n
\n
\n
and click the link that should be<\/div>\n<\/div>\n<\/div>\n
\n
\n
appearing now at the top right corner of<\/div>\n<\/div>\n<\/div>\n
\n
\n
your screen that will open the free<\/div>\n<\/div>\n<\/div>\n
\n
\n
registration page in a new window so you<\/div>\n<\/div>\n<\/div>\n
\n
\n
won’t lose this video don’t worry or you<\/div>\n<\/div>\n<\/div>\n
\n
\n
can just go ahead and head over to<\/div>\n<\/div>\n<\/div>\n
\n
\n
options class comm to register for this<\/div>\n<\/div>\n<\/div>\n
\n
\n
free intensive workshop it really is a<\/div>\n<\/div>\n<\/div>\n
\n
\n
rare opportunity for retail traders and<\/div>\n<\/div>\n<\/div>\n
\n
\n
investors to learn directly from Wall<\/div>\n<\/div>\n<\/div>\n
\n
\n
Street traders but that’s exactly what<\/div>\n<\/div>\n<\/div>\n
\n
\n
you’ll be getting through this free<\/div>\n<\/div>\n<\/div>\n
\n
\n
online workshop so click the link to<\/div>\n<\/div>\n<\/div>\n
\n
\n
sign up now and don’t miss it<\/div>\n<\/div>\n<\/div>\n
\n
\n
<\/div><\/div>\n<\/div>\n<\/div>\n

\"\"<\/a><\/p>\n

* no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

In this video we take a look at another way of profiting from a market sell off, using a combination of cash secured puts and covered calls to earn cash from options premium selling in an easy to understand process. 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