Covered Call Option Strategy Explained For Beginners
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- čas přidán 17. 06. 2020
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Covered Call Option Strategy Explained for Beginners
This is how to use call options to create passive income in the stock market by utilizing covered calls. This is your call options explained video.
If you would like to get started in the stock market, here is our WeBull link for your Free Stocks sign-up bonus: act.webull.com/i/PrOcCBKrVRXN...
We hope you enjoy this video about call options and covered calls.
Please check out our other videos about investing in stocks for beginners and how to invest in stocks. We're making these videos so that you hopefully avoid investing mistakes that beginners are prone to making. We will also be doing stock market news talking about stocks, the stock market, gold, oil, bitcoin, and the economy.
ClearValue Tax and affiliates and related parties do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Legal Disclosure: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!
Options For Beginners - The Complete Guide: czcams.com/video/NW1ziUDjB7w/video.html
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Really bad focus. Please remove cinematic mode
Saw the title and automatically screamed "YOU'RE THE MAN!" I see people doing this and have no idea what they are talking about but I will like to learn.
Same! I see calls puts dates cents they might as well be speaking French.
Just be careful. A lot of people start betting/gambling with these and lose money.
"I'm gonna be speaking to you as is you know nothing about call options or covered calls." That's perfect, because that's literally me. The only thing I know about them is from preliminarily reading the comments is that you can get severely burned by them if you aren't careful.
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
It's not difficult, but you have to learn and handle. Another thing is that if you can't manage your home, maybe you shouldn't invest on your own. If so, you should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
@@sherryie2 true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@flemmingbrooke I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "NICOLE DESIREE SIMON" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
@@sherryie2why would I hire someone that can’t manage their own house
Ive been studying options for awhile. Never really "hoped over that understanding silver line".
You simplified it for me and made everything "click".
THANK YOU BRIAN!
Really well explained. You do a great job of simplifying this, breaking it down, and explaining the pros and cons from both sides. To all of the new investors, keep in mind that for many people this is going to turn into nothing more than betting. Don't make bets with your money. Focus on investing instead of gambling!
Me This week: We’re getting fancy! Watch out Webull, here I come!
Me next week: lost all my money; please provide a stimulus check update, kinda need it, lol
LOL Steve. And thanks for that Coca Cola video, I enjoyed it hahahahaha
🤦🏾♀️😂
THANK YOU SO MUCH!!! The way you break down concepts that use to seem too complicated grasp is AMAZING!!! So glad I found you!!
This is what I do with my stocks. I invest in the actual stock and then sell covered calls on them every week to two weeks. It is great passive income. I use the proceeds to buy more shares and do more coveted calls. I have doubled my money doing this:). It is very safe and a good way to make money!! Very well explained!
Even when its volatile?
How long did it take you to double your money?
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused about the current market volatility, I'm a newbie and I'm open to ideas.
Investing in stocks is a good idea, a good trading system would puts you through many days of success
90% of traders lose money! Be careful, don’t chase your losses and it’s a lot easier in a bull market, wait for inflation to get to 2% - the feel good factor will return. It was easy to double or treble your money after a massive crash like the covid crash. Just as many people lost money in the crash though
On another note regards to Stock Options, you can only trade options in group of 100 shares. Each option is controlling 100 shares of stock, in regards to the video above if a stock cost $100 a share. You would have to have 100 shares of the stock for 1 option trade. So, you would have to have 10k dollars worth of stock and if you received $2 for each share it'll be $200 for 1 option. Which is 2% return for a 10k investment for one month. If you done this every month at the end of 12 months you'll have $2,400 or 24% return if the stock never gets assigned. You would of doubled the S&P for a one year period. Remember investing in the stock market you can make or lose money, always paper trade before using real money. Another Great Video!
Hi, so if you invested your money in a high yield saving say about 26k wouldn’t you be making more in interest a month! Wouldn’t it be about 80 a month and you would risk losing your money wouldn’t that be better?
This is so timely, I've been thinking about covered calls for weeks and just wrote my first on this last Friday!
Now this is what I'm talking about!
Hi Mike! I hope this video is helpful!
You should do a video expanding on this and tying it into the wheel strategy. Specifically, I wanna know WHEN we should be selling covered calls and cash secured puts if we're using the wheel. The strategy is great, timing option assignments is tough right now Thanks, love the channel!
Remember. The ones that got rich during the gold rush were the ones selling the shovels. Great stuff.
Nahh
yeah because even selling a million shovels equates to a ton of gold... logic
What a deep and true statement David.
@@wintagestudios they all got rich?
Out of all the “covered calls 101” videos…this is the best one.
Thanks a lot. I've been trying to figure this out for a while. That explains it very well. Love your channel.
Finally someone who explains everything perfectly thank you 🙏
Very informative video, I first started out trading options buying puts in March 2020 which turned out to be great as the market came down a lot. I was always stuck on the sidelines playing it safe, only buying stocks. It's good to have a portfolio for long term investing, but option trading can make you money right away if you learn how to do it correctly.
I am loving this education. I saw the thumbnail with the whiteboard and thought uh-oh...breakin out the whiteboard now what is Brian gonna teach me tonight??? Just love it all. And loving that I understand what is being taught.
THANK YOU!!! I finally understood this option call business. Love your videos.
I watched this like 8 time back to back to finally get it . I'm grateful thank you
Speaking to me as if I no nothing about call options, which I didnt! Thanks!
Thank you. Love the simplicity of the whiteboard. Very easy to understand!
Options make my heart race! 😲
you can either have a very bad day or have a very good day when playing options 🤑
Naked options is gambling. This is really a boring way to make consistent $$$
In the middle of watching it but needed to comment before I forget. This is an awesome educational video. Low vix, sell calls for premiums 👍
love this! Very informative and so easy to understand! Thank you.
This is hands down the best video I've seen so far. Thank you Brian!
Yep, I get that, pretty clear cut: Of course I will have to replay it over again till it sinks in, but fundamentally I understand. Thx !
Thanks so much! Starting tomorriw I get pen and paper start with the first investment video. Awesome teacher, this is what I have needing.
I've been doing covered calls and loving it.
That's the most simple and intelligible explanation of options I have ever seen
That was the simplest explanation I've seen yet. You're awesome.
Wow. That was incredibly easy to follow. Best explanation I’ve seen. Thank you!
That is the best explanation possible. Bingo! Thank you and safe trades.
Finally someone explains it where I can understand
@ClearValueTax I appreciate this video Brian and would encourage more of the same. Very precise and easy to understand. Thank You. I can not say I know nothing about calls. In 1980-81 I taught classes to an incarcerated society (kind of a captive audience if you know what I mean) on Building Wealth Through Stock Market Investing and covered both Options and Futures. As a group we kept daily records on as many as 80-100 stocks through a typical class of 12 weeks. Since then I have been investing since 1983, however I have never traded Options nor Futures myself which is why I enjoyed the video. I've watched the video twice and it is informative and very easy to follow. But, if I might help with a suggestion, you could point out that trading options are only allowed in round lots. Remember your audience is just starting and even if they have the $500 portfolio they only have 1 share 2 companies. And, they might not even know what a round lot is! Just a suggestion, take it as you will. When's the next video for this series? You covered the intention of it but if I'm on Robinhood or TD how would I go about it? And, how did you come up with the $2? I subscribed to your newsletter but haven't heard anything yet. Guess I'll just sit here and wait.
Thank you so much! I finally understood!
Thank you for helping to me Learn... much appreciated
Thanks Brian from CVT ,I'm out of work because my unsafe work environment told me to come back or I lose my job and I chose the latter. I need things like this to help me through these rocky times.
Thank you Brian.
He has to be the best stock talk person to explaining things about investing love this guy
Love this video been following for a while you should make more videos with content like this broke it all down on the whiteboard and showed different scenarios GREAT CONTENT hope to see more like this.
Man you are a beast. I understood 100% of everything you explained. Wow. Thank you!
I really appreciate this! I'm finally understanding!
Please remember me. When I get my inheritance, your going to be my first call and I'm going to listen with both ears. Your a good human being and I'm confident your the guy for me.
Thanks. That was new info for me.
This is awesome!!!
Thank youuuu!
Brian showing the masses the door to the most dangerous casino in the world!
What could go wrong? 🙈
STONKS only go up!
Hahaha, I was just thinking the very same thing!
@Dennis Durkop that statement ..... doesn't seem right.... hahaha
@Dennis Durkop so I should be a gay bear then?!
Covered calls aren't that risky, I think like 90% expire worthless
Excellent description, I understand it entirely now, thank you so much
Thanks. I've had a hard time understanding covered calls. Not any more!
Dude you made this so easy to understand! Thank you!
Thank you for the lesson. I really appreciate it
You have truly helped me out so much ! Thank you so much! May God bless you !
Great tutorial! Thanks ClearValue Tax for always looking out for us! Really appreciate your channel!!
Lol you really explained this to me like I was a 4th grader and I understood everything you said thanks for the incredible information 🔥👌🏽
This was helpful, the only video I've seen that I actually understand. 👌
Cheers to this guy for the amazing explanation!
This is a great informative video and thank you Brian. This channel since I have discovered it has become one of my favorite CZcams channels.
Excellent ,simplistic explanation. That clarified a often misunderstood strategy.
That was great! Thank you I learned so much.
Clear, thank you.
Thank you for breaking this information into very understandable language. I have conversed with several retirees who use covered call ETFs to supplement their social security benefits and also have an annuity for life time payments. When they discuss covered calls I get very confused. Great educational video for us uneducated people.
Professor Brian, thanks!
Making something is better than nothing.
Thanks for the wisdom.
Amazing job. Thanks for simplifying. Extremely informative for us.
great explanation as always! Thanks so much!!
Your videos are so informative thank you Brian!!
I've been, with no success been able to explain to my friends about the rewards of selling puts. Please make that video if you haven't already
This guy is great , learning so much
Thanks for the info Brian; I didn't even know this was a thing!
outstanding. best explanation of call options I've seen.
Thanks for your knowledge you absolutely RULE.
Thank you Peter!
This is a great video explaining covered calls to beginners. You go slowly enough that viewers can absorb this complicated strategy. I'm going to have two of my friends watch it.
Great content. Much appreciated
i like the emotion expressed in the video, like the sighs before a bad situation
Thanks! Great info. Been checking out a lot of your videos recently. Very helpful. 😀👍
Thank you for simple explanation.
Helps a lot brother! Thank you!
You’re a legend my friend.
Thanks, I get it now.
Thank you!
really simple and informative, thanx!
Thanks Sir!
Thanks Brian!
Thank you Bryan!
I love you clear value tax!!
So far this is my favorite instructional video for trading options. Thank you for being so clear and taking your time.
You made it real easy to finally understand. Thanks so much.
Glad it helped! Thank you M Beezy for all your support!
That was a great explanation of both sides of the transaction.
thank you for doing this, very clear for beginners
Thanks!
This is great. Thank you.
Always very informative Brian, thanks for educating us! Looking forward to the next video
The best optinos video i have seen 🎉🎉
Thank you for explaining it in plain English.
Great explanation here. Thank you
Thank you
Thank you! 😊
Thank you for your videos.