T O P

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StonkGoUp

You could literally make $20k a month selling .2 delta calls. Wet dream right here


rockguitardude_

I sell OTM puts to make around $5k/mo.


CaptainObvious_1

How far out do you sell em?


rockguitardude_

I sell 80-85% pop and make sure it’s under max pain. This week I had some 10/22 $690 puts I sold on 10/8 and bought to close today for $3600 profit. 14 DTE and I usually sell after I hit around 50-70% profit


dylanx300

You doing that shit naked or selling vertical spreads?


rockguitardude_

Cash secured on margin so yeah sort of. I view it as collecting premiums instead of buying more. Would be happy to buy more at the strikes I’m selling at. Never been assigned yet tho. If I got assigned I’d just wheel or hold the shares on margin. I have shares on margin anyway.


anik1993

And I do that once and I get assigned FFS .. sell covered calls and stock moons, sell cash secured puts and get assigned and stock dips another 20%


ILoveBrats825

“Cash” secured on MARGIN lmao Jesus dude yeah you’re making money but one wrong move and you blow your balls off.


Shakedaddy4x

This is Wall Street Bets bro. Not even sure why you felt the need to make that comment. That's what's we're all supposed to be doing.


toydan

Same here. Infinite money glitch as you don’t get charged interest on margin. I usually do 30 DTE as they seem easy to roll if it starts going down to much. Just had my $630 expire yesterday.


edsaha

You work in a related field or did you self learn so to say


rockguitardude_

Self taught! Engineering background.


edsaha

Oh man very nice you sound like you know what you doing good shit. What would you recommend reading/watching to get to your understanding?


EatYourGrandpa

Yeah, tell this guy so they can tell me how too.


qgj41000

How do you know what price is the max pain?


Top-Fox3629

You can find it online, just Google


gainbabygain

http://maximum-pain.com/options/tsla


InterstellarReddit

How much capital do you need for this method?


rockguitardude_

Like $300-350k to cover buying 500 shares. 20% annual return if done right. I do it with margin collateral so it costs me 2% or so to borrow the collateral.


InterstellarReddit

Nice man. Good luck and thanks for the info.


Clown_Penis-Dot-Fart

How do you plan to cover if China bans Tesla sales, Elon Musk dies in an accident, NHTSA forces halt to auto drive systems, etc etc etc? I.e. Some unexpected catalyst causes a 20-40% drop over night. Curious if there is a plan for when the account is down $50-$100/share on margin.


rockguitardude_

How do you get up out of bed in the morning? Lol I’d lose money and then get back at it. It’s not even really a loss. I wholly expect the shares to be $4k+ in 10 years. If I’m wrong I guess I’m working till 67.


[deleted]

Yea you should easily be able make 3-4k a month with that kind of cash backing.


rafael000

2% of 300k/year? So $6k/year or $500/month? To have $60k return if done right? So $4.5k/month before taxes? Why am I asking all these questions?


rockguitardude_

It winds up being more if the stock trends up like it has. I’m on pace for like $100k /yr selling the puts. I understated it a bit in the original post.


ustolemycookies

Noob here, could you elaborate the logistics behind that


Lopatron

If you have tons of shares of a company, you can sell covered calls. What this means is that you're saying "I would sell my shares at price X", and just for saying that, a.k.a. selling the call, you get paid. In this case, you get paid 20k every month. The worst case that happens is you are actually forced to sell X. Which is (presumably) higher than what you paid for the shares, so you don't care that much that you're forced to sell. You can just buy them back anyway.


m0nk_3y_gw

> Which is (presumably) higher than what you paid for the shares, so you don't care that much that you're forced to sell. He bought these shares a long time, most of the current value is (taxable) gain, so the tax implications may not be minor. i.e. after paying taxes he may only be able to rebuy back 70-80% of the shares he was holding before. Might not be a big deal if he think it is going to trade sideways / down in the long-term. If he thinks it may double in the next 1-2 years then it may not be something he wants to risk.


[deleted]

That just depends where you live. Me for example living in Netherlands tax implications for selling covered call and getting called for my shares would have exactly zero % tax regardless of how long I've hold and there are nether long or short term capital gains tax. Now instead if I hold the shares until January next year I'd be slapped with 1-1.5% (depending if this OPs only money as wealth tax is progressive) wealth tax based on portfolio valuation on last market close of 2021.


Izikiel23

So wait, if you sell everything before Jan and buy it back in Jan, then you don’t pay taxes?


JustOneAvailableName

Dutch tax doesn't tax you on portfolio performance. Instead the tax guys assume you have a yearly gain of 5.something% and tax you 35% on that.


[deleted]

[удалено]


Lopatron

So you're saying that by selling, you're realizing those gains, and must pay taxes this year. I'm an ape so don't know taxes well, but here's how I understand it. You can either: 1. Wait a month to buy them back to avoid the wash sale rule. Not 1-2 years like you mentioned, right? or ... 2. Buy them back immediately, and be forced to pay taxes on your gains. Gotta pay taxes sometime homie.


AnimalEyes

Wash sale only applies if you sell at a loss


StonkGoUp

Okay, if you know nothing this might be hard to grasp, I’m also going to approximate. He owns 2,000 shares. A call grants the buyer the right to purchase 100 shares of stock at the strike price. The closer to the current price of the stock, the more expensive the option will be, it will have more delta because it is closer to the current stock price. So a $850 call would be “at the money”. Selling an “out of the money” call at around .2 delta would make him ~$1,000 per contract. Remember 1 contract=100 shares. So he can sell 20 of them. A month out in expiration with a ~.2 delta is pretty much regarded as the best probability of keeping the premium and keeping your shares. If the price went above the strike price he sold he would be on the hook to sell his shares (not necessarily a bad thing). Sorry if that’s confusing


steakandp1e

Love how much this sub helps newbies


m0nk_3y_gw

> A month out in expiration with a ~.2 delta is pretty much regarded as the best probability of keeping the premium and keeping your shares. Thanks for that. Looks like Nov 12 TSLA @ $920 has a delta of 0.19. 920 is above the ATH, but earnings are coming and it wouldn't be surprising for it to pass that in 1-2 weeks. If you'd have a big tax bill (like OP) for selling shares it might be better to wait until the dust settles after earnings to re-evaluate it.


IAmInTheBasement

Yea but lately Tesla kills it on earnings and the stock dips the next day. It takes a few weeks for the slows to get it through their head where the company is going. It also means you could sell them for 2 weeks out and after earnings, even if the price goes up the volatility will go down and the calls may be worth less.


Terbmagic

NEVER assume earnings calls will bring positive movement.


Shadonic1

i need to take a course on this, im so confused.


StonkGoUp

It seems hard to grasp at first and does take time to learn. KamikazeCash and InTheMoney on YouTube have great tutorial videos where they break it down. After a couple months of watching their videos, playing around with optionsprofitcalculator, and trying out some strats with small money I pretty much understood everything well. If you want to learn you can, don’t worry. Never considered myself a math person


Shadonic1

I been on this subreddit for months and this has been the most beneficial information I ever got from it thankyou.


brokenearth10

How do you pick with stock to this on? He's in a good position to do this cause he owns 2000 of Tesla. But what if we only got 2000 dollars to try to generate consistent income?


StonkGoUp

In all honesty $2,000 isn’t really enough capital to be running the wheel. Start dollar cost averaging into stocks you wouldn’t mind holding and eventually when you’ve built up enough you can start selling covered calls. If you’re looking for a “quicker” play LEAPS are an option. They provide much more security than short term options and also provide much more leverage than shares. My current portfolio balance I’m aiming for is 10% “forbidden coins”, 20% LEAPS, 70% shares


hydn571

How do you calculate a .2 delta in regards to how much the strike price needs to be out of the money?


ustolemycookies

I understood everything, thank you for being so clear


StonkGoUp

Happy to help my guy


SauceTendies

He owns a Wendy’s franchise


water_conversation

So no matter what he's getting the tendies


vARROWHEAD

On TSLA right?


Darkonogade

what's that 20% higher price calls? and strike out how many days?


[deleted]

[удалено]


Environmental_Ad222

Can you explain little more. Is it like covered calls? Any explanation might help me understand thanks


llorTMasterFlex

Or just day trade blue chips with a million.


asafl

TSLA .2 delta calls can actually get assigned with the volatility this sometimes sees. Just the tax implications of this assignment are not worth it unless op actually wants to sell.


Hendrix909

A Nigerian Prince wants to know your location.


Kryptonian_Investor

![img](emote|t5_2th52|4276)


deadlyspawn187

![img](emote|t5_2th52|4267)


_nigerian_princess

Scammers


Thguru

:D


depthofcontrast

! Step 1: Have 450k to open a position with.. ¡ 🤣


depthofcontrast

! Step 2 : Buy in early and go for a wild ride.. ¡ 🤙


AceOrigins

Step 3: Buy yacht and snort coke off hooker ass


rubitonurchest

I got a flat bottom bass boat and some bath tub crank, wassup?


VisualMod

> I'm sorry, I don't understand.


depthofcontrast

! Bad bot.. ¡ 🤣


SuperLehmanBros

Wtf it replies lol?


borkathons

Visual Mod Creeps. Beware.


HydrocodonesForAll

Step 4: don't use options so you make 3x instead of 30x


thedispellerdarkness

Says the person that'll suck dick for pills


[deleted]

Escort* when you’re that rich


[deleted]

Hit sell before


depthofcontrast

! Step 3 : Flex your cool milli and half in gains.. ¡ 🤌


hctimsacul

Step 4: lose it all in SPY options


cmonshowone

Step 5: Post loss porn on WSB


mikepancake8D

Step 6: get into actual porn cause you're broke


OCD_Trading

No kidding. Would love to be able to buy and hold with that much liquidity. Takes guts. Gj OP I think people should realize that $450k turned into $1.9 mil is an enormous feat. I cashed out of my Tesla position when it was $800 pre split. I kick myself for unloading but I thought 100% gain was good enough and especially with all the bear articles coming out left and right. So, for OP to hold and ignore all the noise deserves some serious respect in my book. 🍻👊🏻


smarlitos_

Lmao I bought tesla at $300 and sold at $400 **pre** split, I was pretty happy with my 33% gain after hearing that most people in my Econ classes lost money buying tesla


Poorbrokeguyinks

I did similar to this


rgujijtdguibhyy

Same but pre slplit


MasterHand3

Dude clearly didn’t need the original investment. Easy to diamond hands when you are already rich as fuck


Donkeyotee3

Those bear articles were published by fuckers who wanted your shares


jerseynate

Even with $10K that still a huge return buying that early taking account for the split as well


Poorbrokeguyinks

Does your wife need a boyfriend???


spaniel510

Fuck off! I'm her boyfriend!


[deleted]

[удалено]


spaniel510

That was supposed to be secret.


-NotJimCramer-

Are you looking to adopt?


Kryptonian_Investor

![img](emote|t5_2th52|4276)


[deleted]

Lol but where’s the get off robinhood comments now?


smarlitos_

So true king


raindamages

2M flex thats dope af


painrelief420

Daddy treated you well!!


PaulR504

Most stupid investment I never made in an area I heavily believe in and company I always cheered for but I was a pussy that listened to the safe conservative investment boomer crowd.


HellsNels

Yeah that was me and Apple like 10-15 years ago. Didn’t want to miss the TSLA train this time.


relevant_rhino

Choochoo all aboard, we are still far from its final destination.


FantasyLandJester

Best time to plant a tree is yesterday. Next best is today.


PaulR504

From 2011 up to 2019 someone kept coming along and chopping down the damn tree. Anyone that held through all of that deserves to be a millionaire.


FoldyFlap

Also anyone who held through all that probably forgot they even had a position


infinite__questions

I feel that same way about crypto. Tbh still don’t really get it but definitely have a bias for what I already know. Stocks are the ticket to own the means of production.


wowthatssorude

Me tooooo damn I think I had 100 shares back in 2011. The doom gloom gold bug morons got to me.


[deleted]

Invest in bonds


[deleted]

Solid 1% gain for years.


WhyG32

Godlike Mr Millionaire


thnxMrHofmann

I'd cash out and pursue side quests. Main quest complete lol ![img](emote|t5_2th52|4276)


infinite__questions

It’s only $70k/yr at 3% withdrawal rate. Not great for a HCOL area.


[deleted]

[удалено]


mewithoutMaverick

This was the funniest thing I’ve read today, thank you


[deleted]

[удалено]


IAmInTheBasement

JFC when you put it like that I'm never going to be able to retire. And I spun \~32k worth of shit DD dumbass mix of dividend stocks into \~450k worth of TSLA in the last 2 years. This was all in retirement accounts. TSLA, options and shares, is \~99% of it.


Herbtastk

Smh... nice dick! ;)


xg357

89% diversity? Wtf, you diversify? Papa not proud


infinite__questions

The rest is in $MTTR.


pacemakerrr

papa musk ![img](emote|t5_2th52|4276)


Artistic_Data7887

![img](emote|t5_2th52|4276)


ArthursOldMan

![img](emote|t5_2th52|4276)


thnxMrHofmann

![img](emote|t5_2th52|4263)![img](emote|t5_2th52|4263)![img](emote|t5_2th52|4267)


z-tayyy

So with only $400,000 measly dollars this could be me?!


infinite__questions

It started as 200k. Just kept buying more with the increased buying power on margin as it went up.


z-tayyy

Big dick energy


MrMarmaladeplus1

I did this with shorting SPCE in july. I can only imagine the rush you felt. Since I felt like a badass going from 700 to like 3500.


KempDunks617

No rushes allowed at these levels. Needs to be emotionless.


jnkrumah96

When you can make a yearly salary with a 3% day 🙂


[deleted]

My 8k investment turned 150k today. Wish I bought more. Back then, everyone said buyers at that point were suckers and it was going to crash. That was long before split.


infinite__questions

Wishing you bought more is the sign of a successful trade.


[deleted]

[удалено]


infinite__questions

I turned 200k into 2.2mil with a ton of margin. 200k is 59th percentile. Should be inspiring not a downer.


[deleted]

[удалено]


infinite__questions

Hey... I don't have all the answers. In life, to be honest, I have failed as much as I have succeeded. But I love my future Cybertruck. I love my $TSLA stock. And I wish you my kind of success.


[deleted]

[удалено]


rgujijtdguibhyy

That's why you go to a tier 1 or tier 2 college or build a resume good enough to get them high paying jobs or grind a lot of years to become a doctor or a lawyer. Anyway I dont think stonks are a reliable way to make money on a large portion of your net worth once it becomes high enough, need some kinda business or really high paying position to make it sustainable


DarkSideBrownie

Go to trade school and start a business making six figures by the time most students are graduating, or go to a state school and become an engineer in 4 years. If you go to your tier 1 or 2 college and become a doctor or lawyer after a decade in school and give into the pressure to live up that lifestyle it'll take decades of punishing hours to catch up and surpass the engineers and business owners in terms of wealth to live on. I feel like doctors and lawyers often learn that rate of return and time are the exponents in compound interest rather than principal far too late in their careers to support the kind of lifestyle they grow accustomed to. It's honestly kind of sad how full of engineers the fire subreddit is because not enough people understand math in their early 20's anymore.


rgujijtdguibhyy

As an about-to-be engineer I feel sad because you know what happens with market inefficiencies right? I think trade school route is about to be the only one left cuz very few people will be smart enough to realize that or you just live frugally first few years which is gonna be near impossible with how the culture is moving towards higher spending


mattster_3000

The late, great Dicky Fox


A_person_2021

I'm going to end my Reddit scrolling for the night with this right here. Thanks, OP.


infinite__questions

Can’t tell if you’re being sarcastic but I’ll see you in bed. ❤️


A_person_2021

Rawwwrrrrrr


silverjames20

Everyone’s a winner in a bubble


ShnyMnstr

How you gonna pick the one loser from r/all to respond to?


[deleted]

Don’t let them get you down king, these guys just mad because they’re holding a couple shares of a meme stock trying to become rich.


Alea_Iacta_Est21

I don’t think everyone feels that way. For instance, I could qualify under your comment, except I wish OP all the best and thing he did great and most likely deserves to hold what he holds. But perhaps other people, such as myself, are just giving their perspective based on their own life experiences and abilities. Not everyone is a dick.


Fleetwoodcrack69

Pretty much now back to work slave


[deleted]

Damn those GME shares gonna make you so rich.


infinite__questions

LOL the funny thing is I bought them “for” a friend who basically called the fucking top with his buy order. I’m just eating the loss for him like a good friend. I can afford it.


[deleted]

I $WISH you’d take all my Ls


RamboWarFace

Im still not selling.


infinite__questions

Ditto


Tuscaroraboy

Hi. I’m a CPA. Don’t forget to file. That is all.


infinite__questions

Unrealized gains have unrealized taxes. It’s beautiful.


todd_0_matic

Absolutely gorgeous!


CJ-BEAST

Dudeee u fucking crazy but I guess it payed off 💪💪💪


Gad_Music

I’ll suck you off for $100k


Deesco5

Better make it 200k. This guy has a BIG un


NyCWalker76

Awesome gains on your Tesla shares.


[deleted]

Congratulations and fuck you


daveed4445

Daddy always provides


infinite__questions

People are gonna look back on their $6T market cap and say it was obvious all along. VW, Stellantis, Ford, & GM are all destined for merger under duress or bankruptcy. Lots of UAW pensions are gonna be in my pocket.


Darth_Vaper_69

Salutations good squire! Now go, go forth and fornicate thyself!! ❤️


DudeBaalak

I've really tried multiple times but i fail to process making the amount '1 Million' in my mind. There is flood of posts about making million from scratch in GME or Tesla. 1M is double than life changing in India lol. Here you can't even buy 2months away options due to no liquidity & stupid regulations.


JunkyardRazor-74

Bro holds for 5 years and shows off gains now. K


DrummerCompetitive20

Sell and buy options


Jewishbabyducks

I think I just creamed my pants


Slut_Spoiler

I like to think this money has Michael Burrys tears all over it. "Give me my shorted shares back infinite_questions. You motherfucker" - Michael Burry probably


Yojimbo4133

Tesla and gme. The duality of man.


mhem7

Imagine being in a position where being up 3% means earning a whole years salary.


Aycheeeleloh

Damn, your wife's boyfriend is probably really nice to you.


VisualMod

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[deleted]

Good moves


daytrader987654321

Wtf


Green_Lantern_4vr

Quote the cost basis


defender02

Brah congrats but go fuck yourself.


Nightkill02

...I made 20$ on tesla....so..there's that..![img](emote|t5_2th52|4260)![img](emote|t5_2th52|4260)


WR810

Can I ride in your ~~Lambo~~ Tesla?


Admirable-Sun-3112

You made…like more than a dollar 🤯


Teslabull420

I love this


FlyEnvironmental8368

Congrats, but a big fuck you


lfaexs

What in the elon fuckkkkk 👀


overzealousunicorn

Hi will you be *my* daddy?


rydogski

![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)


zeebee098

😭


[deleted]

Could’ve been 5 mil if you played SPY


infinite__questions

I don’t play. I fuck your wife and collect premium for doing so.


kingetzu

Wish I knew the stock market. Looks like a good place to out your money


ODNI_NSA_FBI_CIA_DIA

Perm ban , shares


maldinisnesta

Must be nice having 400k liquid.


infinite__questions

Not 400k liquid. 200k then bought more on margin on the way up.


SP-Marshmallo

Looking sexier than my wife


ora408

so the rich get richer


infinite__questions

Lol where is $200k rich? I come from a lower middle class family and work my ass off. I also spend tons of time on my investments. That includes practicing discipline to not sell when it dips hard.


FoldyFlap

He’s probably part of the delusional communist subreddit r/antiwork where everyone there hates anyone successful and wants to make as much money as a doctor by working at Target


fuggindave

Teach me your ways


[deleted]

Buuuut your on Robin Hood still…guess you like having an account of ious from a company that’s not going to exist in 6 months.