Скачать или смотреть COLTECH INVESTMENTS FIRST VIDEO SHORTER VERSION PART 2

We are here to talk about beating Wall Street. Paper profit is nothing until you sell your stock. You can beat Wall Street by taking a long-term view of 5 to 10 years out.
One of the richest men in the world has proven that. According to information I obtained on the internet, Warren Buffett is without a doubt the greatest investor in the world. He has made 20% on his money since 1960 his approach is 10-20 even 30 to 50 years out.

I am going to talk about options on stocks and ETF's. We learned a long time ago about writing options or selling options, both terms are correct. Most investors are intimidated by Options because they feel that they are too complicated and pose too much risk.
What is an option? A promissory note to do something in the future at a specific time and price it gives you the right but not the obligation. That is why a premium is paid and the goal here is to make 20% or more on our money compounded yearly.

Writing options gives you cash up front, and it really doesn't matter which direction the underlying stock goes, we set our exit price and forget about it. If you write a put option that means you have the cash available to purchase the stock, by writing a put option you say that you want it for a certain price and are willing to pay that price no matter how low the stock goes. This is no different than buying stock outright in the open market. The difference is that you want a specific price.

Example if you wanted XYZ company stock and it is currently trading now for $20 a share you could buy it at the market price. Or you can write a put option to buy it at $17.00 a share a month from now. So if you wrote a put option it would look like this April 17th XYZ $17.00 a share. The amount of premium may vary but let's say for example it was a dollar. One option equal 100 shares so if you wrote that option you would collect $100 cash and the option expires in one month. The person that has purchased the put option is doing one or two things, either protecting their portfolio from a downward move in the market or speculating on the price on the stock to move down significantly in one month's time.

So you receive $100 cash to wait and see if XYZ moves down to your price if it goes down to $16 the option buyer would exercise the option and you would purchase the stock for $17.00 a share now remember you got a dollar up front so that makes your buy price $16.00 a share.
Now let's look at if you bought that stock outright in the open market. You would have paid $20 a share and currently you would have a paper loss of $4.00 a share. Because you waited and wrote an option to purchase the stock you are currently even and now you have the stock that you wanted at a lower price. What if the stock went the other way and went up then if the stock was still up past $17.00 a share on April 17th then the option expires worthless and your money is freed (your collateral to purchase the shares is freed up) so you can write another put option and you keep the $100 premium. WIN WIN!!!
Writing options has been around for a long time and the big brokerage houses and banks are the ones writing the options AKA selling options, the average person (retail investor) is the one buying them we are the suckers.

The options market is incredibly large and has experienced significant growth. According to the Chicago board of trade In 2022, U.S. options volume reached 10.32 billion contracts and that included options on stocks, non-equity instruments, and futures. The market is also growing due to increased retail investor participation.

The retail investor is you and I the average individual, and most of us buy options. How would you like to be a part of something that has daily sales of $32 million dollars? As a retail investor and purchaser of options you are at a disadvantage. Time is against you when you purchase/buy an option on a stock or ETF the price must move in a certain direction in a certain amount of time for you to profit. Your biggest disadvantage is time, it eats away at the value of the option. Owning an option, in and of itself, does not impart ownership of that stock nor does it entitle the holder to any dividend payments.
How would you like to change that to your advantage? You are probably asking yourself how you do that? Sell options on your portfolio That way the time decay is on your side. There are two terms that are used in selling options, one is sell the other is writing both are correct and are used interchangeably. You may hear myself use both terms. When you sell options the premium money goes directly into your account.

This information is for educational purposes only and not trade recommendations. This video shows only what we have done and are currently doing in the stock market. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.