Passive Income using Stock Options

Show how options are contracts granting the right to buy an asset at a predetermined price within a 12-month period, illustrated by a booking fee that rises with price changes.

Explore how trading stock options on global exchanges like CBOE enables diversification, access, and innovation, with etfs and derivatives shaping the American and international markets.

Understand call options to buy stock and put options to sell, along with european and american styles, expiration, strike price, contract size, and time decay.

Delve into options basics: in the money, at the money, out of the money, intrinsic vs extrinsic value, long vs short stock, and the delta, gamma, vega, theta, rho greeks.

Explore in the money and out of the money options by tracking stock price versus strike price, with AMD and BABA examples showing how moves change option value.

Explore how option styles shape trading across assets, from american-style stocks and etfs like AAPL, SPY, and MSFT to european-style indices, futures, and the IX volatility.

Analyze contract sizes across assets, from stock options at 100 shares to crude oil futures at 1,000 barrels and natural gas at 10,000 mcf, plus currency contracts like euro.

Learn options in action for passive income: buy and sell calls and puts, use premiums, and mix strategies for complex plays while guarding against short stock risk.

Learn to trade stock options with Interactive Brokers using paper trading, place calls and puts, identify ITM/OTM, set strike and expiration, and build multi-position strategies.

Compare liquidity by bid-ask spread and volume across BMY, BAC, and QQQM to show liquid versus illiquid stocks, and learn how to buy with a limit order on interactive broker.

Demonstrates building a risk–reward graph for stock options with optionstrat, showing profit and loss visuals, hedging with a put, and setting quantity and expiration with live data delayed 15 minutes.

Purchase a call option for 100 shares at 150 strike with a 1990 premium, expiring July 21, 2022; analyze ITM vs OTM, time decay, and exercising under an American option.

Calculate buy call profit with the formula (future price - current price) × delta × 100, compare it to direct stock purchases, and note time decay risks.

Assess the risk and reward of buying a call with a 150 strike and a $19.90 premium. Break-even is 168; profits are unlimited as the stock rises, with time decay.

Expand profits by buying a call: expiration three months or more, ideally a year; choose a high-delta in-the-money option on liquid assets with small bid-ask spreads when volatility is low.

Sell a call to deliver 100 shares at a 200 strike if the price goes in the money, earning a 5.8 premium, with a covered position to avoid unlimited losses.

Sell call options to generate passive income by collecting premiums when the stock stays out of the money until expiration. Profits occur if ITM at expiration; losses if prices rise.

Sell out-of-the-money calls to generate passive income from stock options, using 7–14 to 45 day expirations, delta below 0.25, strike above resistance, with high vega and liquidity.

Learn how buying put options creates a right to short 100 shares at a strike price, with time decay, expiration, and potential gains when prices fall.

Understand the risk and reward of buying a put option on QQQ, with a 200 strike and 15 premium, including capped loss and profit targets when prices fall.

buy put options with minimum three-month expiry, target delta around 0.7 in the money, and choose highly liquid assets to reduce time decay and protect holdings.

Sell put creates the obligation to buy 100 shares at a $150 strike if the stock ends in the money at expiration, with a $5.80 premium and $15,000 escrow.

Explains selling a put's risk-reward: 580 premium at 165; if it ends above, you keep it; if it drops to 140, you net 420 after buying at 150.

Prefer expiry windows from one to two weeks up to 45 days, selling out-of-the-money puts with delta under 0.25 and seeking high liquidity and strike levels below support.

Sell put options to collect premiums, but guard against margin calls, choose stocks with strong fundamentals, define your goal, and consider buying puts with a lower strike price for insurance.

Explore the jackpot hedging strategy that protects assets and aims for profits from dividend stocks across rising, falling, or crashing markets, with upfront premiums and no initial outlay.

Protect your 100-share dividend portfolio from declines after dividends by selling at-the-money calls and buying at-the-money puts to create a net credit, with expirations of three months or more.

Learn a stock options strategy that targets 100% profit around the strike price, earning dividends and option premium, with protection until expiration and potential early execution for a jackpot.

execute a hedged stock position with a put option and a sold call to protect against declines, collect dividends and premium, and sell at the strike price at expiration.

Explore a scenario in stock options where a rising stock backs a short call while a covered put yields profits from dips, delivering a free-ride win regardless of movement.

Buy 100 shares at $15 before the ex-dividend date; hedge with a three-month call to collect a premium, then use a put if needed to lock in profit.

Understand a real-time stock options strategy targeting profits when stocks near the at-the-money strike, using calls and puts for hedging and dividend stock considerations to lock in gains.

Put hedging uses at-the-money puts on a stock like AT&T (17.26) to cap losses while keeping upside, but costs resemble buying calls with a 18.60 break-even and limited jackpot.

Participants learn to set up jackpot hedging strategies using stock options on BMY, activate the strategy builder, choose by bid-ask, and configure call and put positions with profit targets.

Explore the front foot ratio spread, a versatile stock options strategy that delivers discounts on stock purchases through put premiums and range-focused profits.

Open a ratio spread by buying one put and selling two cell puts with lower strikes, ensuring a significant gap and premium, as shown in the Tesla example.

Explain the four expiration scenarios of a front ratio sprint, detailing risks and rewards across zones a to d, including otm and itm puts and break-even points.

Compare cell puts with front put ratio spread to show entrypoint strategies; cell puts favor bullish or neutral moves, front put ratio spread supports neutral to bearish bets with discounts.

Discover the wheel strategy for cash flow and passive income by flipping stocks, earning dividends even when stocks aren't paying dividends, versatile across bullish, flat, or bearish markets.

Master the wheel strategy by acquiring 100 shares and selling puts and calls. Track the adjusted price, not the initial price, and use premiums and assignments to refine decisions.

Track the true cost basis of stock option trades by journaling base price, adjustments from selling calls and puts, and collected premiums, including potential assignment outcomes, with an Excel-based method.

Illustration shows a stock sliding from 34 to 30 after sell calls, with a current price of 26. It explains how strike price affects premium in the wheel strategy.

The wheel option strategy earns premiums by selling covered calls on stocks you own, offering a discount and lowering cost basis, but caps gains and risks assignment.

Master entry points by combining fundamental and technical analysis to gauge valuation amid macro factors. Adjust options strategies: buy or sell calls or puts based on market volatility and trends.

Steer clear of options during earnings announcements, monetary policy, or political events. Use hedging with ETFs, diversify portfolios, and set stop loss and take profit to maintain discipline.

Evaluate good businesses by growing sales, revenue, and cash flow, high barriers to entry, switching costs, network effects, conservative debt, and strong cash position. Adopt Buffett’s principle: buy on fear.

Explore stock valuation with discounted cash flow to decide buys or sells, and learn how ETFs offer diversification while targeting high-quality stocks and defensive ETFs.

Use GuruFocus's dcf tool to estimate fair value for stocks, adjust growth and terminal rates, and see how data drives valuation and margin of safety.

Learn to use Finviz to screen stocks by market cap, earnings growth, and industry, apply custom filters, and review charts and performance metrics for free.

Analyze why selling puts on weak stocks like NIO risks losses and no profit, while sticking with winning stocks like AMD and using put strategies or front back ratio spread.

Dividend stocks provide steady income and a track record of performance, with reinvested dividends fueling growth, but may lag in growth and face yield traps, taxes, and defensive qualities.

Invest in a single etf, a stock-like instrument traded on an exchange that tracks a sector or index, reducing company-specific risk and costs.

Track price trends with regression lines and moving averages. Identify chart patterns and use indicators to enter or exit stock options long or short, considering volume and support and resistance.

Master using Trading View and luxalgo indicators to identify support and resistance, time entry points, and read trend signals with overlays like TMI overlay and signal overlay.

Learn to navigate trading view to track earnings and dividend dates, access profitability reports, and apply a dividend-date hedging strategy for informed stock analysis.

Learn to backtest strategies with TradingView replay and Lux Algo signals, using built-in support and resistance to spot buy and sell points.