InvestingWithBrandon

More accounts blow up from position sizing more than bad stock picks.
(Nobody talks about this)
You can be right about the company & still blow up the account.
If you size the put too large & get assigned a bunch of shares you do not have the money for, you may be in trouble...
Keep ratios in check at all times.
Not just when markets are calm.
Only sell puts on companies you actually want to own at that strike price & have the capital to buy them.
If you would not buy the stock there, do not sell the put there.
Good structure survives bad markets.
Bad structure does not survive anything...

Most retail investors do options completely backwards...
When the market is falling & stocks are getting cheaper & safer they rush to buy puts.
That bids up put premiums.
Makes them expensive.
They are buying protection at the exact moment it costs the most.
(brilliant strategy right?)
The smart move is the opposite.
Sell puts when fear is high & IV is elevated.
Buy them when everyone is greedy & premium is cheap.
Simple when you see it.
Impossible to unsee once you do...

One number predicts where a stock goes long term.
(Most people completely ignore it)
EPS up & to the right means the stock almost always follows.
Short term price action is just noise sitting on top of that trend.
This is why I sell puts on great companies with strong earnings growth & get in at a good valuation level to start.
Do not let short term volatility shake you out of a great long term position.

The system that I use to beat the market in plain English.
(That is it)
Step 1. Build your base in VOO & Q. That is your foundation & your collateral.
Step 2. Sell 1+ year portfolio secured puts on high conviction companies near intrinsic value only.
Step 3. Take every dollar of premium & put it into LEAPS & shares. Never let it sit as cash.
Reinvest everything & let compounding do the work.
Keep ratios in check so you can not only survive deep 50%+ crashes, but you capitalize in them too.
No day trading. No covered calls. No spreads. No cash drag. No stress.
Just structure & time.

Bull market I win.
Bear market I win.
That is the whole point of building a real system.
Bull market means the base appreciates & Options put some gravy on top.
.
Bear market means discounted shares & elevated IV making put premiums even bigger.
Flat market means premium income hits every time I sell puts.
The system does not need the market to do any specific thing on a day to day basis.
That is what a real system looks like.
Always positioned to win.

If you are truly ultra bullish on a company, this is how to capitalize:
1. Sell a 1 year portfolio secured put on your highest conviction name.
2. Take part of that premium & buy shares right now.
3. Take the rest & buy a LEAP call on the same company.
You are now triple leveraged long with zero extra cash out of pocket.
Keep ratios in check & you will NEVER get wiped put in market volatility.
Most people do a cash secured put & miss the entire move on the company they are supposedly bullish on.
That is not a strategy...

I make about $29k a month with options.
NO Day trading
NO Swing trading
NO Covered calls
NO Cash secured puts
NO BS
INSTEAD, I DO THIS:
Build base portfolio
Sell portfolio secured puts (not cash secured)
Buy LEAPS with the premium from sold puts
BUY shares with the premium from sold puts
Keep ratios in check
I can explain it to a 13 year old & I will likely outperform 95% of people that read this.
Simple wins.

Nobody talks about the real cost of cash secured puts.
You sell a put & lock $10,000 in cash as collateral.
The stock you are supposedly bullish on runs 40%
.
You collected $300 in premium & missed $4,000 in upside.
(Every. Single. Time.)
Now do that for 10 years straight.
That gap is not small.
That gap is your entire retirement.
Sell portfolio secured puts & collect the premium without sacrificing the position.

Weekly options look like "guaranteed" income.
(They are not)
The market can move 5% in a single week.
That one move wipes out 6 months of weekly premium you collected.
You are not "building income"
You are selling lottery tickets against yourself & calling it a strategy.
Duration is your edge in options.
The longer the duration the more time & probability work in your favor.
Stop giving that edge away for a few hundred bucks a week.

Poor Man's Covered Call sounds smart.
(It is not)
One hand you are bullish buying the LEAP.
The other hand you are bearish selling the call against it.
You are literally fighting yourself inside one position.
If you are that convicted the stock goes up just buy the LEAP and leave it alone.
Do not cap the upside selling the call.

Most people get destroyed buying calls because they have no actual thesis.
They buy because the stock is going up.
(that is really it!)
Buying calls are really just a "magnifier"
They magnify a stocks move.
If you have no conviction they multiply the loss just as fast.
Only buy LEAPS on companies that are ultra compelling at great valuations.
& fund these leap calls with the put premium so they cost you nothing out of pocket.

Most people watch share price and think that is what moves their options contract.
It is one of six things:
1. Share price.
2. Implied volatility.
3. Market sentiment.
4. Duration.
5. Strike.
6. Contract demand.
The edge is understanding all 6 and using them together.
When the market crashes IV spikes.
That means put premium gets fat.
That is your signal to sell them on great companies with 1+ year durations.

Selling portfolio secured puts is the biggest hack in investing that nobody teaches. (until now)
- Zero cash tied up.
- You use your existing base portfolio as collateral.
- You stay fully invested in the market & collect premium & the same time.
- Then you take that premium & buy more shares & LEAP calls.
- Keep ratios in check & you'll be fine in any crash.
This is how I have beating the market for the last 10+ years. It's VERY simple, but boring.
But hey, I am here to make money.

Covered calls are the most popular TRAP in retail investing.
You own the shares. You are bullish.
Then you sell someone else the right to take your upside the second the stock runs.
You collect $300 in premium.
You miss $4,000 in upside.
Do that every month for 10 years & wonder why your account never grows...
Stop capping your own upside.
Own the shares & let them run.

As I always say, be prepared to win in upside and downside.
Keep ratios in check and do longer duration options.
Volatility is not risk
Volatility = Opportinity to capitalize when Mr Market gets nervous.
Buy great companies at good prices and only use 1+ year options to magnify ultra high confidence plays.
I sleep well at night.
You should too.

People underestimate what real compounding looks like over time.
A dollar at 11% annual returns becomes $8.94 in 20 years.
That same dollar at 20% annual returns becomes $53 in 20 years.
Keep going to 50 years and the gap becomes obscene.
Now imagine doing that with hundreds of thousands of dollars.
Adding options income on top of that every year.
Reinvesting all of it.
The number at the end is not something most people let themselves actually believe is possible.
It is.