Passive Income: Selling Put Options. STOP Buying Stocks!

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I will share with you step-by-step on how to sell put options like Warren Buffet. This has been my secret passive income source that generates consistently thousands of dollars per month.

Part 1: Laying the groundwork
The selling put strategy is usually deemed to be risky. But If you combine it with buying quality, recession-proof stocks with a history of dividend increases. This strategy increases the return and lower risk compared to buying stocks outright.

Part 2: The Lingos
You do not buy options with this strategy. You are going to be selling put options. In this case, You will make money whether the stocks increase, stay put or decrease in price.

STRIKE PRICE : The strike price is the predetermined price that you can buy or sell the underlying stocks for.
EXPIRATION DATE: You need to exercise your option before or on this date, or you can let it expire when you are selling options and just keep the premium.
Here comes the juicy part:
The premium AKA Time Value: If you are selling a put option, then you are on the other side of the table. You are selling time value to speculators, and you will receive the premium as income.

Part 3: Walk you through my most recent trade that generated a 123% annualized Return.
Since I am selling put options, I am selling the time value to the speculators on the other side and receiving the premium as income. Each day that passes while the stock price is above my strike price, there is less and less probability that I need to buy 200 shares of the underlying stocks.

If you want to learn more about this selling put options strategy, join my private fb group to view my past trading positions and bounce ideas with like-minded investors. Click on the link in the description.

Part 4: How to Make Money by Selling Put Options
Find good quality dividend growth stocks that I want to own for the long-term.
I will decide on the strike price that I would be comfortable buying those stocks for.
I will check the Volatility Index (VIX). VIX measures the level of fear, or stress in the market.
Capital Requirements: Make sure you have enough money to buy 100 shares of the stocks. Don’t use any margin

Thanks to all my passive income sources. If I really want to, I can retire today at the age of 29. The more important question is – why am I able to retire so young while most people work into their 60s? How can you also achieve early financial freedom? I’ve thought about this question and came up with the reason. The reason is because of “financial literacy”.
Thanks for watching and see you in a couple days!

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‣‣ Trading for a Living: Psychology, Trading Tactics, Money Management:
‣‣ The New Trading for a Living:
‣‣ Hedge Fund Market Wizards: How Winning Traders Win:

My content is to be used for informational purposes only. Do your own analysis before making any investment based on your own personal circumstances.

Morning Coffee by AlekSound
#sellingputs #sellingoptions #optiontrading#passiveincome#passiveincomeideas#stockinvesting


Cody Yeh says:

Would you sell put options or buy stocks outright ?

Josh McDaniel says:

I’m up 2k since mid may. The wheel works. Love theta gang strategies. I just gotta get over that magical 25k so I can open and close all day. Sometimes I make 20 bucks in just a few minutes. Good vid.

Lemic Melo says:

Hey I really appreciate this video. But i have a question why if i want to buy or sell an option the other way the premium is higher, for example if i buy a call the lower price of the stock premium is higher than the price higher strike price, the same with puts, the higher the strike price the higher the premium. Hope you can reply this

English Lessons on Skype says:

Hi Cody, great video. I just dont understand one thing: on June 15 (just two days after you sold the call) KR was already trading above 31.5. Why didn't you close the position earlier? Thanks

Wat Pho says:

when selling a put , when do you pick a strike that’s more than the price the stock is trading at ?

Invest with Blev says:

Hey Cody, good content, I subbed! I have been selling Covered Calls and thinking about selling Puts for stocks I want to own…. this is helpful!

K. I. says:

Hi Cody, Great video! Which broker do you use for options? Which one do you recommend for Canadians who are just starting out? Thank you!

Awakened Soul says:

If I hear "smash the like button" again on one of these stock videos I'm going to blow my FUCKING brains out

brandon korczykowski says:

Great explanation

Paris Chang says:

…OMG i've been trying to learn about options trading the past few days but this video has helped me gain so much clarity! Thank you Cody! 😭😭

KingFratetrainBeats says:

What do you think is the best stock to sell premium if you have 3k?

Gabe Damiano says:

Hey Cody, can you give us some suggestions of some good dividend growth stocks that are good candidates for selling covered calls on?

HaoJie日記 says:

謝謝分享 感覺是很實用的日常!

Jaylan Arturo says:

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Bruce Ray says:

Time decay is your friend when selling puts especially weekly puts

Investing For The Common Man says:

Selling Cash secured puts is a great strategy, keep up the goodwork!

WaiWai—歪歪 自媒體創業 says:


Yang Hailong says:

You can also buy a put at even lower strike price, this way you will fully protected

Gabe Damiano says:

So basically you can buy more stock at a cheaper price worst case scenario

Will Kimmey says:

Why are you so against margin? Especially for cash secured puts, margin allows you to collect more premium/week and worst case you pick up 100 shares at a low price but then you ride it up and sell calls on.

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