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Episode 160 (Yiddish): The wheel strategy and it's risks

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Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

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Wheel strategy. The wheel details focus of the wheel strategy. The protected wheel strategy. is mega focused of the health consistent income from the options market. is of them detected account information of the course text message an email address link strategy. The step one, the is the step in the wheel strategy. The is the step in the wheel strategy is the Cash secured until you own the stock. The guest guarantee for the option buyer the stock. for $95 strategy. Well, he can't own the stock. So the fundamentals where $95 put option buyer anything $95 for $95. 5005. So this is step one strategy. However, number one number two situation this mind the stock is yes the option for $95 for $959 the options contract is 100 shares so moon 95 is 9,000 $95 owning the stock $1,000 $95. Now very important interest of I don't know as soon as by expiration. Click, click, click. So this is step number one. So number one comfortable. Number two situation. The pros. The benefits see 84557212 212 with an email address. Next step one regular wheel strategy. Step two regular wheel strategy is out of the money. Step two and the $1,000 call. This is a coverell option seller strike price option buyer whatever the price is Maybe 105k. So what's the owns for whatever the strike price a plane Naked them shares the stock price option for the option buyer. So price $95. $95 collected the income from the put yet the income from the calls the premium the credit income that's the end credit appreciation 95 indeed after gave me 500 $500. So this is step two. Step three was the risk is yet. So, $5 justifies the risk. Okay. 95. So, so the point is unlimited the difference as the end of the day. foreign. as a relatively safe strategy. Exactly. An upside at least protection to the course. Step number three from the wheel strategy is you can be the best away. The strike price the cover call $95. The stock is given $95 own manage the stock the stock transfer the option buyer and D is basically a square one rinse and repeat for strike price from the cover call. This is the regular wheel strategy in the risks associated in them. market and generating text message 8455721212 Schedule an a call to Zen today.