Comments by "" (@money2024) on "Generate Consistent Month Income - Robinhood Strategies | The Wheel (Selling Calls u0026 Puts)" video.

  1. You only profit the premium. But say you're selling a put, then the price drops below your strike price, you'd have to buy 100 shares, then you can profit the difference of the share price and the new strike price you choose by selling a call. It's called the wheel method. So say you were selling a call at a strike of $18 with a premium of $1.10. Well if the price didn't drop below $18, you'd just keep the premium of $110 and that's all. But if the price dropped below $18, you'd have to buy 100 shares at $18, no matter how much it drops. Could drop to $14 a share, but you have to buy at $18. But then, since you'd own 100 shares in this situation, you can sell a call (selling 100 shares) and you also collect a premium, but you can also collect a profit from the shares. So maybe you sell the call at a strike of $20 with a premium of $0.62, well then if the price went above $20, you'd have to sell at $20. So in totally, you collect the sold put premium, $110, the difference between the price you paid and sold the stock for $20-18= $2 x 100 = $200, and the premium for selling the call, $64. So total, you'd make $374 in this example
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  2. Anybody know of any cheaper stocks to do the wheel method with? I have a smaller account and don't have much capital to work with. Ford, Plug Power, and AAL are the only three I've really considered, but any suggestions would be great.
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  3. Definitely 👍
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  4. Same. I hear you 👍
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  5.  @Thepetcomedyclub-g4  Did you get approved for options yet?
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  6.  @MOBMJ  Dang man, I hope you can recover all of that. It sucks because options are almost always like stairs on the way up, but an elevator on the way down. Slow growth but then it can drop like a rock.
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