okay let's talk about how you guys can
sell put options gonna make this super
simple for you guys and before it get
started make sure you pick a company
that's stable your round you can see
here Microsoft is a super stable stock
you know it's like nice consistent
growth don't pick anything super crazy
like a pharmaceutical stock don't pick
Tesla because it goes up and down a lot
I'll be telling guys a reason why you
shouldn't pick super crazy stocks and
why should probably stick to normal
stuff like AMD Microsoft Starbucks Apple
SP why the super stable company so let's
go to training Microsoft options right
here and you're selling a put and this
is a data game strategy and you will
make some nice consistent monthly income
if you do the right way so instead of
buying a call you're not the buyer
you're the seller so make sure you click
sell and then put it's that easy
choose your expiration date I suggest
you guys would probably pick an
expiration date that's the closest so
you could actually maximize money every
single month keep in mind there oh
there's only four expression dates every
single month for most companies so
Microsoft currently is 184 dollars
you're gonna pick a strike price which
is right here that you think Microsoft
price will not dip below on expiration
date which currently is May 22nd 4:00
p.m. so I'm guessing Microsoft is a
pretty strong stock I'm pretty sure
Microsoft would not dip below one
hundred and eighty dollars so let's
click this one
let's click continue let's click one and
you will receive a minimum credit of a
hundred dollars in this hundred dollars
when you get it filled it goes
immediately to your Robinhood buying
power you could use this hundred dollars
right away to buy more shares or
withdraw it to your bank account and
pretty much buy whatever you want
but there's a catch to it so if you
click review order clearly see you need
eighteen thousand dollars locked in as
collateral why is that
well options contracts are buy a hundred
shares so you can see this strike price
is a hundred and eighty dollars multiply
that by a hundred dollars you've got
eighteen thousand dollars so you have to
have eighteen thousand dollars
locked in as collateral to receive this
one hundred dollars minimum credit so
here's how it goes on expression date
4:00 p.m. May 22nd if Microsoft dips
below you know a hundred and eighty-two
dollars it's like a
$81 that means you want because your
strike price was $180 and Microsoft only
dipped to 181 dollars congratulations
your collateral is released back to you
and you still get to keep her $100 admin
and credit so you're currently $100
richer but you may be wondering what
happens if the share price dips below
$180 let's say it dips over to a hundred
and seventy five dollars this means
you're forced to buy a hundred shares of
Microsoft at the price of $180 the one
you picked even though the current
market price on expiration date is a
hundred and seventy five dollars so
that's about a five dollar loss per
share keep in mind you still get to keep
your minimum credit of $100 because they
give that to you already but you lost
and you're forced to buy a hundred
shares and this is when the collateral
comes in the collateral disappears and
eventually you get a hundred shares of
Microsoft and this is why I stress to a
lot of people make sure you pick a
company that has stable growth because
if that happens to you you could always
just wait it out and eventually stocks
I'm Microsoft will eventually reach
all-time highs and then you'll be okay
and you still make money and you have a
hundred shares of a very good company
but if you pick really crazy stocks like
pharmaceutical stocks like s R and E
like if you screw up stocks like these
could never recover that's why I don't
recommend selling puts for oil selling
puts for pharmaceutical stocks because
if you screw up these stocks you guys
clearly see the five-year line it never
recovers to the all-time highs so that's
about it it's simple as that selling put
options is an amazing way to generate
monthly income I've seen people that
have like a hundred thousand dollars
they make like four thousand five four
thousand dollars every single month by
selling put options and they do it very
consistently and even even if they lose
they get a hundred shares of a
phenomenal company and eventually those
companies reach all-time highs they sell
the shares and they rinse and repeat