People on the internet talk about "passive income" all the time. "It's not a get rich quick scheme," they say. But they then talk about how you can make a lot of money quickly without doing a lot of work. That's what a get rich quick scheme is.
Billboard marketing, dropshipping, and MLMs can indeed make you passive income, but they involve work and are not passive. They also involve a decent degree of risk.
In reality, there are a couple way to get passive income. Dividends ...
2020-08-08 18:14:05 +0000 UTC
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Everyone starts somewhere. I began trading penny stocks in 2009 with money I made washing dishes. Unfortunately, I traded like shit and lost most of my money, because that's what happens when you trade penny stocks in 2009 instead of buying bitcoin.
Over the years since then, I have frequently considered what I would do if I started over again at 18 with $1,000 from a summer job and birthday money. There are a few appropriate approaches depending on how much risk the trader is willing t...
2020-08-02 06:44:27 +0000 UTC
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I had an interesting conversation with a Lancer named Alex on my way into work. He wanted to wheel Novavax (NVAX), which is another one of those junior varsity pharmaceutical companies competing with the big boys to be the first to complete a COVID-19 vaccine.
The appeal of NVAX is real when it comes to yield. The stock trades for about $140, so a trader with $14,000 in capital can sell ATM cash-secured puts (csp) for a weekly premium. And given the hype around the race for a COVID-19 v...
2020-08-01 09:30:19 +0000 UTC
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Long-term Equity AnticiPation Securities, or LEAPS, are the antithesis of most options plays. People generally think of options as short-term plays. LEAPS, however, offer a long-term options solution. LEAPS are call options that do not expire for many months, usually more than a year. Often, certain stocks offer LEAPS that don't expire for 2+ years. These call contracts are very versatile and offer many advantages.
This post will explore LEAPS and describe some of their...
2020-07-21 15:30:03 +0000 UTC
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Tesla's stock price has rocketed up to about $1,400 as of July 6, 2020. This huge rise makes the company's market cap about $254 billion. For a company that produced 367,000 vehicles in 2019 and ended the year with a loss of $862 million, it's stock is not doing so bad.
Like it or not, Tesla is now the world's most valuable car company, having delivered 90,000 vehicles in Q2 2020. It's got Toyota beat by almost $50 billion, even though Toyota delivered 10.75 million cars in 2...
2020-07-07 13:00:03 +0000 UTC
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REITs: Real Estate Investment Trusts. You will often hear that there is real money to be made in real estate. You're likely to know someone who wants to flip houses or become a landlord, or you may be tempted to become a landlord (or slumlord) yourself. It is a wise way to build dependable income. However, few of us have the time, capital, or risk tolerance to actually get our hands directly on rental properties. Those that do stand to gain a lot, but it requires time and energy with a hefty ...
2020-07-06 13:00:04 +0000 UTC
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I need your help in determining what Patreon content you want to see. Vote below and I'll know where to prioritize my attention.
2020-07-05 01:46:27 +0000 UTC
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Life Update
Hey, team. It has been too long since my last post. I apologize for that. My day job has us going back into the office (where I am right now), which means less time for videos, Patreon, and working together on Discord. Unfortunately, that does not look like my work schedule will change soon. Nevertheless, I remain fully committed to making this community stronger and I will get better at time management to make that happen.
In this post, I would ...
2020-07-05 01:41:14 +0000 UTC
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There exists an entire world a cryptocurrencies that most of us will never explore without some guidance getting started. That is a shame, because a properly postured crypto wallet can continue receiving cryptocurrencies without doing much work at all. This opportunity comes in the form of cryptocurrency airdrops.
Over the next several days while I am stuck in a bunker at my day job, I'll be investigating cryptocurrency airdrops with the goal of determining how to estab...
2020-06-04 18:21:31 +0000 UTC
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I will make a YouTube video on TopClassActions soon because I want to introduce this website now that there are some good class actions on its roster. TopClassActions aggregates open class action settlements from which you can claim checks from any settlement for which you are entitled. Right now, there are 3 open settlements that will benefit a large proportion of people.
tl;dr: Use topclassactions.com to find and claim class action settlements. There are 3 good ones open right now...
2020-05-24 01:40:16 +0000 UTC
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The Wheel is still the strategy I get asked about most frequently. I continue to encourage people to sell Cash-Covered (aka Cash-Secured) Puts to enter the wheel, and then switch to Covered Calls after assignment. In an earlier post, I described how to use Jade Lizards as a replacement to Cash-Covered Puts in order to increase the premium collected. In this post, I'll discuss how to use Twisted Sisters to replace Covered Calls.
tl;dr Twisted Sisters combine a covered ca...
2020-05-14 18:16:38 +0000 UTC
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This strategy is known by several names as noted in the title. It is most commonly known as the Poor Man's Covered Call (PMCC), which is a type of calendar spread. This strategy presents an opportunity to sell covered calls when you cannot or do not want to own 100 shares of the underlying. This carries the additional risk of gamma kicking your ass, which we will address below. Used correctly, however, the PMCC offers a fantastic opportunity to turn even modest amounts of capital into a strea...
2020-04-29 14:24:32 +0000 UTC
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The wheel is the strategy about which I receive the most questions, by far. The general pattern of the wheel is as follows:
1) Sell cash-covered (aka cash-secured) puts to collect premium until assigned.
2) Sell covered calls to collect premium until assigned.
3) Re-consolidate cash and return to selling cash-covered puts.
It is a simple strategy that most any broker will let you ...
2020-04-20 13:57:13 +0000 UTC
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In all the Theta Gang strategies videos I have shared so far, the #1 strategy inquiry I receive is this: how can I start running the wheel, and what platform should I use to do it?
tl;dr: The wheel is a strategy I fully endorse and believe everyone with a share portfolio should use the it. WeBull is better than Robinhood for wheeling, but until WeBull allows spreads, it is NOT universally better than Robinhood. The only consequential advantage of Robinhood ...
2020-03-24 13:52:06 +0000 UTC
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tl;dr: Using a tracker will help you identify your basis, winning strategies, and weaknesses. This is important if you trade covered options against your shares, especially if you wheel. You can pull my tracker from the first few months of 2019 and a clean tracker template from this post’s attachments.
Edit: DMoney (Patreon Henchman) created a new tracker that can also be found in the attachments to this post. According to DMoney: &...
2020-03-18 18:00:03 +0000 UTC
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tl;dr: Things that make or save you money after you own them are called “assets.” Things that cost you money while you own them are called “liabilities.” The middle class tends to accumulate liabilities while the wealthy focus on accumulating assets. The ideal configuration is to have asset income that covers one’s liabilities and expenses. The focus of the middle class should shift toward accumulation of assets through the Pay-Yourself-First model to break into the...
2020-03-13 18:40:01 +0000 UTC
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tl;dr: use ledgerx.com to trade options on crypto. Traders can bet on big moves for very little, while holders can sell covered options. Each contract represents 1/100th of a bitcoin.
Is there value in crypto?
I think cryptocurrencies, by and large, are stupid. I have found one use for them: sending money to people outside the US without having to pay Western Union or a bank to wire it. Beyond that, cryptocurrencies haven't done anything for me finance...
2020-03-07 03:19:47 +0000 UTC
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If you are an investor, you probably already know quite a bit about dividends. In case you don't, we're going to explore the concept of dividend investing, discuss some key terms, and demonstrate how to create your own dividends. Because let's face the facts: getting 2%/year in dividend is not going to make you rich despite what you might read on the internet. Further, the arbitrage techniques you were thinking about (e.g. buying and selling on ex-dividend date) don't w...
2020-02-25 22:42:57 +0000 UTC
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This post is an example of the content I intend to provide tier-1 (Henchman - $2) patrons
New members of Theta Gang appear to attracted to The Wheel as a strategy. The Wheel is a strategy in which a trader sells cash-secured puts until he gets assigned shares, and then switches to selling covered calls to continue pulling premium. This is a relatively low-risk trading strategy that I utilize heavily. However, there is assignment risk (the risk that your short call...
2020-01-31 17:04:23 +0000 UTC
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This post is an example of the content I intend to provide to tier-2 (OG - $10) patrons.
The Robinhood $3k Challenge is fun. I get to slowly develop a portfolio while demonstrating different options trading strategies. However, the way I handle my "real" portfolio with Merrill Edge is not quite the same as how I handle the $3K Challenge. I am generally more conservative in my real account and tend to trade options with more time until expiration. This p...
2020-01-30 03:52:05 +0000 UTC
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