lnvacting Wtih Bradnon
69 posts

lnvacting Wtih Bradnon
@imsofakingkool
Self Made Multi Millionaire • Former Stock Broker • I Teach How Stocks & Options Really Work • Click The Link Below To Start Right Now👇
San Diego,Texas Katılım Temmuz 2010
41 Takip Edilen41 Takipçiler

Let's put real numbers on this.
Say you've got $100k sitting in $VOO and $QQQ.
That base alone does its ~10% a year. Roughly $10k.
Now you use that SAME base as collateral to sell puts on quality companies when they're cheap.
Conservatively another ~10%. Call it $10k.
Same $100k. Now around $20k is working for you instead of $10k.
You didn't add a single new dollar.
You didn't go on margin.
You kept your ratios in check to be fine in any DEEP market crash
You just stopped letting your collateral do one job when it could easily do two.
Compound that gap for 30 years and it's the difference between comfortable and never thinking about money again.
This is the power of the portfolio secured put & 1+ year options.
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Walk into a casino.
Win $1,000... feels good. Lose $1,000... feels TERRIBLE.
Same amount... But the pain of losing hits way harder than the joy of winning. That's human nature.
Now here's what that quirk does to options pricing:
People are terrified of the DOWNSIDE.
So they'll overpay for puts...
Especially when the market is volatile.
Selling them those puts portfolio secured with 1+ year durations is how you capitalize on this human flaw.
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Retail investor: I tried options once. Lost 80% on a call in two weeks. Never again.
Me: What was the trade?
Retail investor: A 3 week call on an earnings play. Seemed like easy money.
Me: So you took the hardest trade in the entire options market... short duration, binary event, inflated premium... & concluded ALL options are bad?
Retail investor: ...I mean, that's what everyone around me was buying.
Me: exactly... you didn't fail at options. You succeeded at proving the gambling version doesn't work. Which I could've told you.
Retail investor: So there's a version that isn't that?
Me: The opposite in every way. SELL instead of buy. A year out instead of 3 weeks. Great companies instead of earnings lotto. Paid up front instead of paying for "hope"
Don't judge all of options by the gambling version most lose at...
You didn't fail at options. You failed at gambling. Good.
Sell portfolio secured puts... the version where time & odds are in your favor.
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I sold puts on Meta.
Collected $46,000 instantly.
My cash balance? $232.
Cash secured put on the same trade would have required $280,000 sitting in cash doing nothing.
Instead I used my base portfolio as collateral.
Took that $46k & bought Meta LEAP calls.
Took the rest & bought VOO, QQQ & META shares.
Zero margin interest.
Zero cash drag.
Full upside intact.
Ratios in check to be fine in any downturn.
It is exactly like a HELOC on your house.
Except you pay nothing in interest.
That gap = $280k working vs $280k sleeping
This is a MAJOR difference.

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