Trade Stock Options. Money Making Machine. Weekly paychecks

I use two mindsets when looking at my portfolios.  One is renting out my stock weekly, and the second is that this is a store.  I have put money into inventory and when I write cash premiums every week, I'm earning a ROI (return on investment) on that inventory.  I hardly ever sell my inventory, and 99% of the time I only sell when it's in the "green" or profitable.  This store will be your livelyhood.  Pick your stocks wisely, use your cash drawers to do PUTS, and keep your OPTIONS activity that aren't Covered Calls or Cash Secured Puts to a minimum. I do 5% of my portfolios in OPTIONS, 15% in Cash Secured PUTS, and 80% in Covered CALLS.  With this formala, I earn over 25% a year, year in and year out.  Don't get greedy.  25% will double your original investment in 3 years.

This lecture gives you my trading strategy.  I am using this Cash Making Machine to write and sell cash premiums weekly.  I do 80% Covered Calls, 15% Cash Secured Puts, and 5% in Options, i.e., Iron Condors, Diagonal Calendars, Butterflies, etc.  It's a simple execution weekly that you can do part-time anywhere in the world.  Heres' your path to Financial Freedom.  This is work, with overalls on.  It's not get rich quick, but 25% returns will double your money every 3 years.

Stocks are a 50/50 proposition, but you can push the odds in your favor, if you study the companies that you buy.  Know the P/E, the price trends, the management team, the government regulations affecting this company, the dividends, etc.  Know your companies, your going to have them for several years while you write premiums and earn cash weekly.

Time Value is the most important factor to consider when selling premiums. Whether Covered Calls or Cash Secured Puts, if you dont consider the extrinsic value that is "baked into" the price before expiration date, then you'll lose more money than you're prepared to lose.  Know the game.  Make your exit strategies with Time Value and the Time Decay considered.  Always keep Time Value and Time Decay in mind during any exit execution.  Time value management is the key to maximizing profits.  It's a skill that has to be learned.  No two Time Decays act exactly the same, but they all decay.  All contracts have Extrinsic Value until the last minute of the 3:00 pm CST expiration on expiration day.

How many different stocks should you own? The modern school of thought taught in colleges and on financial channels can get quite complex.  Warren Buffett, Charlie Monger and I believe that you should own stocks that you've researched, and you dont need a large number of stocks to get the job done.  There aren't that many great companies out there.  Listen to this clip where Warren and Charlie tell it like it is.  Don't make this too complicated.

A quick video of how I think the stock market works.  Of course it opens at 8:30 am CST and closes at 3:00 pm Monday thru Friday, but do you truly have an understanding of how all of these financial services work?  I have some opinions and some facts to share with you.  You don't have to be an expert on how the game was designed, you just need to know how to play on a "level playing field".  Protect yourself with knowledge.  Concentrate on how the market affect your stock buying decisions long term and your short-term cash premium decisions when making expiration dates and target prices for your Calls and Puts.  You can focus on that.  Some of these thoughts I share are about stock picking and some are on premium writing.

A LEAPS allows you to control a stock and treat it just like you did a covered stock with a full share.  With a LEAPS, you own part of the stock and share the ups and downs with someone else thru this synthetic stock option.  Be careful, because when it goes down, you're responsible for the full downward price drop.  If it goes up, you share in the upward movement based on the Delta that you bought it for.  LEAPS can get confusing, but this Poor Man's Covered Call can be very lucrative, if done right.  Full Stock Covered Calls are the most conservative premium tool, but consider using LEAPS.  I use about 50/50 between the full stock and the LEAPS.

Financial education is the key to success. Learn from mistakes that others have made or make every day with Covered Calls.  Even Covered Calls have decisions to make.  It's not a "put it in the oven" and come back at the end of month.  It's more than that. This is a part-time job, where you make a contract, and monitor it.  It's not hard, but you do have to pay attention to your products. They are in an oven and the temp might need to be turned up or even taken out of the oven early.

Consise video of writing a covered call from stock purchase, writing the cash premium contract, monitoring it, and doing the exit to close the contract.

Concise video showing you all of the steps to write a Cash Secured Put with Insurance, maximizing your invested money for the best Return on Investment.

In this lecture I set up some Diagonal Calendars and Covered Calls, Poor Man's Calls, and Cash Secured Puts.  I explained the thought process of setting them up.  On the Twitter, I rolled the Aug 6th cash premium to August 20th and earned $610 and $467.  My intitial investment was $832.  At mid-point, I can't lose money even if the stock goes to zero.  I don't think Twitter is going away.  I've never owned Twitter stock, but I do options with it.  Follow along with EPEV, the chinese car maker.  I've got a lot of positions on this company.  I made $2300 this week with all of these positions closing out 100% profitable, with an average return over 50%.  Winnebago Puts topped out as Winnebago had a run.  Made the PUT easy to close out early. Got out on August 6th, didn't have to wait till Aug 20th, because the Time Value evaporated and I paid a penny on the dollar to get out early.  99% profit and ROI was 360%. Wish I could forsee price increase like this, it's very profitable. Not a bad week, but normal.

This video shows all of the gyrations that you will go thru when reviewing your portfolio.  I did a synopsis before the opening bell and then we looked at how the orders stood up to the time decay later in the day, after the opening bell.  All of this is done on live screens using my online brokerage firm.  Nothing made up here.  Live examples don't lie.  Results don't lie.

Another video showing you how to review calls and puts using live screens.  Follow along.

This was two years ago.  I could do a whole class on what I did with Tesla. I've always believed in Tesla and I made a lot of money with the stock.  I'm out of it right now because I believe that it's overpriced, but it's still a great company.  Check out how I was doing my reviews two years ago.  Nothing much has changed.

Winners keep score.  Superstars keep score. Be both.  Help your team and be the Superstar.  You will make Return on Investment decisions with every contract that you write.  You'll get to be an expert on risk.  Your strategy and risk tolerance will be your own.  Everyone is different in their own way, but one thing doesn't change.....ROI calculations.  Get good at it and keep your results.  Don't be ashamed to have some bad trades....It's your Badge of Honor. 

I hope this course was inlightening.  Promise me you'll give this stategy 3-6 months for the learning curve.  You'll get good at this if you persist to learn.  Take to this "like a dog takes to a bone".  You can get very good at making money.  Subscribe to my YouTube Channel Trading with Rich and come join the weekly Live Streams on Monday nights at 8PM CST.  Thank you for joing me in these classes.  Rich Dickey