Passive Income: Selling Put Options. STOP Buying Stocks!
Cody Yeh Investing Cody Yeh Investing
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 Published On Jun 28, 2020

👉 Find out how you can learn my SET-AND-DONE Hedge Fund Stock Options Strategies to earn a consistent double-digit yearly returns by spending only 5 -10 minutes or less every day ► https://www.codyyehvip.com/start

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

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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đź“šStock Investing Books I recommend (Amazon.ca):
‣‣ Trading for a Living: Psychology, Trading Tactics, Money Management : https://amzn.to/3fHY3UQ
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đź“šStock Investing Books I recommend (Amazon.com):
‣‣ Trading for a Living: Psychology, Trading Tactics, Money Management: https://amzn.to/2TZ25z9
‣‣ The New Trading for a Living: https://amzn.to/3eJ60b7
‣‣ Hedge Fund Market Wizards: How Winning Traders Win: https://amzn.to/36S7Eoi

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

Music:
Morning Coffee by AlekSound
Link: https://filmmusic.io/song/5946-mornin...
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