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hello and welcome to the trading with
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Ashley show I'm so excited to bring this
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video to you and I strategically am
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dropping it tonight so that you have
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plenty of time over the weekend to study
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this video so that you have everything
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you need to actually go and sell puts
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come Monday morning it is such a
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wonderful way to generate income now I
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spend all day every day studying in the
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market and looking for trade setups and
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I share those with my community members
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today was especially exciting because we
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actually had a full working session
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where we brainstormed on all of our
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different ways that we plan to make
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money in the coming weeks and we came up
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with the most incredible list if you
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want access to that list and if you want
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to be a part of this community you do
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have to click the link below book a very
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brief call we can have you set up to
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trade with us as early as next week
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there's so many money opportunities in
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the market right now with the volatility
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as high as it is it is the best time to
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sell puts now what I stress in my
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community because it is very important
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to all of us most of us either have
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retire to trade or our goal or their
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goal is to retire to trade and so we
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have to be very careful with everyone's
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money we don't want to take too many
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risk but we do want some incredible
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companies at great prices and that's
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where selling puts fits the bill
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perfectly I am very grateful to all of
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you my viewers but I am rebuilding and
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rebranding and this is a gift to you to
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help you make sure you have everything
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you need to start generating income so I
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could use a huge favor though in
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exchange for this gift that I'm giving
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you if you could please subscribe so
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that you don't miss any videos and then
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will you take this video and just send
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it to one person that's all I ask if you
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will forward this video to one person I
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think that will help increase my reach
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because the more subscribers I have the
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more I'm going to offer I am trying to
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get to a level where I can offer a free
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workshop for all of you that are
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interested if you want to make sure
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you're notified of that sign up for my
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email list below now let's just talk for
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a minute about why selling put is so
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lucra
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well why would anyone even be interested
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in a PUD so just like you and I have
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insurance on our homes a lot of
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individuals especially in these volatile
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times they want insurance for their
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portfolios so let's say they're heavily
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invested in a stock like Tesla and they
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have nursed Tesla up from when it was
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maybe at 150 all the way up to where we
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are now so they might want to ensure
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that if Tesla starts to go down and it
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goes down too far that at least they'll
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get some profit out of it that's why
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they may purchase a put they want it
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guaranteed that someone will take Tesla
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off their hands at an agreed upon price
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so if they bought it let's say for $150
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and it sits today at around 200 maybe
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they're comfortable giving up a little
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bit and selling it for
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175 well incomes you the put seller
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maybe you don't have Tesla or maybe you
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don't have enough of Tesla and you know
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that a good entry price on a quality
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company would be
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175 because you are of the belief that
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Tesla will be a lot higher than 175 a
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year from now if that fits the bill for
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you then what you would do is sell the
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put option to the buyer and selling put
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options is so lucrative because you will
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win that trade 80% of the time yes 80%
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of the time if you buy a put option you
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only win that trade about 20% of the
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time so why would anyone buy it at all
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like I said they're in a different
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situation they want to secure their
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portfolio and just like you buy
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insurance for your home let's hope you
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don't have a fire or a flood of anything
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of that nature but you'll pay money in
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case that does happen because you want
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some protection and so in this scenario
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you are the insurance company and we all
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know insurance companies make great
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great money so we want to be on the
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receiving end of that trade let's talk
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about how much money you have to have to
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sell be put well since you are
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guaranteeing somebody that you will take
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the shares off of their hands then you
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will need enough to purchase 100 shares
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of the stock at the strike price that
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you agree to so in this scenario if you
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agree to sell a
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$175 Tesla put you will need
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$17,500 to sell that put then those
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floods would be held in your broker
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account in case by your expiration date
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Tesla gets down to 175 or below so where
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does the premium come from well that
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comes from the option buyer you were
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guaranteeing their portfolio for that
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particular stock and let's face it
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you're taking your money out of
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circulation to guarantee their portfolio
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as a result you will be compensated for
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for that now when the market is as
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jittery as it is and volatility is as
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high as it is you're going to be
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compensated more heavily for that so
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with the markets pull back when the vix
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is high and when everyone's super
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nervous about the portfolios that is the
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best time to sell put options let's talk
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about how much money you can expect if
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you're going to be selling put because
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if you're trying to plan for retirement
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you want to fully understand how much
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money you'll need to run a strategy like
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this if you are selling puts in the
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right way and I teach all of my students
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how to do this safely if you were doing
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that then you can expect to make about
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30% a year in premiums now that's a
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combination of premiums on the puts and
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on the calls I'll do another video on
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how to properly sell calls but for now
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let's stick with puts so if you can make
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about 30% a year in premium do you
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realize how lucrative that is let's
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compare that to let's say the S&P 500
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the S&P 500 will offer Traders about a
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10 to 12% annual return well that's okay
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but 30% is going to allow me to do a lot
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more than just 10 or 12% after all
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inflation accounts for 2 to 5% so you
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want to make sure that you're at least
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above the S&P 500 when you're doing any
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trading strategy what about what stocks
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to sell puts on because that's really
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one of the most important decisions
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you'll make in your trading journey is
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what stock do I begin to sell a put on
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well there's a lot of things to look for
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but the very first thing I want to share
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with you it must be a stock that you
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want to own one thing I have found with
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Traders is that they really don't want
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to own the stock and they're just
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chasing premium well then if it gets
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close to their strike price they bail
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and if they bail they lose money but
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after you have checked the box of I
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really want to own this stock because I
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believe this stock will be higher in the
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future than it is now then you have
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checked the very important first box of
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selling a now your next question might
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be when is the right time to sell a put
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and what stripe price do I select well
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there's a lot of different ways to get
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at that but I am going to show you in
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this video what to look for so that you
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can make sure you are set up for the
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right trades AP look at the technical
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analysis on a stock like Tesla you want
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to make sure that you were selecting a
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strike price that if you put the shares
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then you will see the price rise and
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you'll be able to take advantage of that
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rise you don't want to sell a put on
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Tesla when it's at the height of its
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price Journey so we'll go through all of
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that detail next the place you see right
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here represent a
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4.2% return in a week so it took 5600
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,900 in capital and It produced
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$2,415 in premium so when I say that you
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can realistically hit about 30% annually
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that is very doable because just this
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example alone if you were able to
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replicate this every week or anything
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close to it you're looking at a
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220% annual return now setups like these
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don't present themselves every day but
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when they do I strike and I alert my
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Discord members so if they're interested
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in taking these plays they can do so as
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well but this is how this is done you
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are basically on each of these plays I
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am setting aside the cash and I am
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agreeing to purchase these stocks at the
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strike price that I have selected if by
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the expiration date they're at my price
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that I've selected or lower and as you
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can see these are all quality companies
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that have a very bright future so if you
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are going to do the whe strategy if you
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do it this way when you select companies
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that you want to own you won't behave
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irrationally like I mentioned earlier
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and try to get out of the trade you'll
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welcome the trade with open arms and say
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come home come to my portfolio let's
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first go take a look at the Tesla play
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that's a popular stock and owning it in
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my opinion under $200 is a gift let's go
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look at it and I will show you exactly
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why I select at 185 and how I was able
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to Garner such incredible premium of
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$2.13 as you can see right now at end of
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the day this was only worth $131 but I
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was able to get 213 and I'm going to
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show you how this is looking at Yahoo
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finance and I use this to Garner a lot
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of information on a stock and one of the
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first things I do when I pull it up I
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want to see are we having a green day or
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a red day and at the time that I
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executed this trade we were actually
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having a red day so it got that box
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checked for me to be able to sell puts
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and the reason we check this is we will
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get more premium on a red day basically
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when someone's nervous about their
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stocks they're willing to pay more and
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they get more nervous when a stock is
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going down that's why we wait for red
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days to maximize our premium one of the
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first things I look at is right here
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earnings date I want to go in with eyes
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wide open if I am going to trade around
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earnings I want to know because that's
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going to increase my volatility but also
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increase my risk so that is a big part
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of my decision but it looks like we're
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good earnings aren't until October 18th
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and this is going to be a weekly trade
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next I go to my chart and it looks a
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little bit like this this is called a
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Ballinger band and it's giving me a
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wealth of information but you need to
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make sure that you're looking at the
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right time frame on your charts so when
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I am selling a weekly put I want the
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benefit of looking at at least a month's
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worth of data the further out you go on
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your time frames the safe for these
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trades are but you don't want to be too
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safe because then you're going to cut in
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to the potential premium that you can
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make so I'm looking at the one month
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chart and I am looking at this data
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right here the Ballinger band is a
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predictive technical analysis tool it
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shows you where your stock will more
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than likely stay between the lines like
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when you were a kid and you were
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learning how to drive a car maybe as a
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teenager and your parents said just keep
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it between the lads a lot of times these
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stocks prefer to stay within their
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Ballinger band every now and then
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they'll come out of the band but then
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they typically Retreat back under the
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cover of the band so this can be a very
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strong tool that helps you make the best
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decisions when you're looking at strike
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prices so you saw that I sold the 185
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put well notice right down here this is
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18371 so if I happen to be put the
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shares right down here about 185 that's
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a great trade because I will be able to
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then take advantage of riding this stock
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all the way back up to the top of this
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band or I may decide to sell it once
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it's the middle of the band just
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depending on what kind of news is out
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about the stock the other thing that I
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looked at was right here at the RSI
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anytime this is under 50 we're
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considered in a bearish Zone and a
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bearish zone is a really good time to
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sell puts if this is above 50 you can
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still sell puts but you definitely want
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to wait for a red day and if we're above
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50 often times instead of the bottom of
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the band right here I like to use the
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middle of the band as a potential zone
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or something in between the middle and
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the bottom that's if your RSI is over 50
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but we're under 50 so when we're under
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50 I like to use the bottom of the band
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to give me my first clue on where I want
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to go shopping for a potential strike
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price you can go to any option chain how
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however the things that I like to look
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at are all listed right here we're
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looking at the bid and ask that's
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critical because that helps determine
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the price you're looking at the Delta
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very important metric I will explain
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you're looking at the volatility and
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then of course volume and open interest
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because that tells you how many people
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are interested in this particular price
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point for a stock once you get to your
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chain you start at wherever the stock is
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now I mentioned
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185 so I'm going to immediately go to
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185 to take a look at all of the
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information there once we get to our
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strike price here it is at 185 was the
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one we were interested in we want to
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start looking at some other information
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namely right here the Delta the Delta is
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going to tell you your chance of it
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hitting this strip price by your
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expiration date and the way you
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interpret this is you see right here
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it's .15 so that would be about a 15%
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chance that it would hit 185
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by your expiration date in this case
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we're looking at
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816 for that I am going to be
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compensated a131 for the trade well I
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know you saw earlier that I got a lot
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more than that and I'm going to show you
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how I accomplished that and actually I
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did this with all my trades today and it
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worked out beautifully because I started
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trading within about the first hour hour
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and a half of Market open the other
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thing that caught my eye was right here
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the volume and open interest ideally you
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want to have a lot of open interest and
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volume on the strike price you're
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selecting because that's going to help
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you get a better feel on the stock plus
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I also like to line up behind where some
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of these larger amounts are if you look
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down this chain we have 20,000 in volume
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at 195 21,000 in volume at 190 and then
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10,000 in volume at 185 well these are a
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lot of orders this do has to get through
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before it gets down here to mine at 185
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so there's a margin of safety when you
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line yourself up behind very large
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amounts of volume and open interest on
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the Chain okay now here is where I'm
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going to explain to you and show you how
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I am able to try to get the best
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possible price on my stocks I know this
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looks kind of like a light bright to
00:15:53
those of you that had light brights when
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you were little but this is what I do so
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in the morning if you look right here on
00:16:00
this bar this is in trading view this
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will typically stretch within the first
00:16:05
hour hour and a half and these end
00:16:08
points will usually be defined 195 to
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200 is where this stock stretched today
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so after I have watched the market about
00:16:17
the first 45 minutes or an hour I like
00:16:19
to see where our end points are then I
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sit patiently and wait you can set
00:16:25
yourself an alert and once it's back
00:16:28
down here at the bottom part that's when
00:16:31
I go to sell a put because I know that
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the closer this is to the bottom of this
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range the better premium I'm going to
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get and if you're doing this in the
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morning you are going to be dealing with
00:16:45
a lot of orders that are coming through
00:16:47
so I like to sit patiently and wait till
00:16:50
about an hour an hour and a half because
00:16:53
if you do that then you get through all
00:16:55
the noise of the orders that have been
00:16:57
placed through the night and the
00:16:59
institutions start doing all of their
00:17:01
trading about an hour in so if you wait
00:17:03
through all of that you're going to get
00:17:04
the best possible entry on your stock
00:17:07
when I went to make this trade I
00:17:09
selected the 185 strike and here's what
00:17:12
I love about Merl they show me the days
00:17:15
range 124 all the way up to
00:17:18
245 so what I like to do is when I am
00:17:21
filling out my order I do a limit order
00:17:25
and then I select a price that's close
00:17:28
to the top the range so today I put in
00:17:31
231 and it did not feel right away but I
00:17:33
made it good for the day and eventually
00:17:36
I got the notification that it filled
00:17:38
because the stock will oscillate up and
00:17:40
down all day and sometimes I've noticed
00:17:42
that if you put a limit order in and
00:17:43
just sit sometimes it won't fill all day
00:17:47
and at the very end of the day it'll get
00:17:49
filled if the stock is still close in
00:17:51
this range because the market makers are
00:17:52
wanting to fill these orders that's how
00:17:54
they make their money I hope you found
00:17:56
this helpful again it's my gift to you I
00:17:58
would appreciate a like and a share
00:18:01
share this video with one person and
00:18:02
then I will make a follow-up video about
00:18:05
how to sell calls and then you'll have
00:18:07
everything you need for the wheel
00:18:08
strategy you can watch that video here
