When the bottom dropped out of AI stocks last week, one option strategy provided me a $55,000
offset to what would have been a $94,000 loss. It turned what could have been a 12% plunge and a
very bad day into just a 5% hiccup. Hey Bowtie Nation, Joseph Hogue here with the power of
options investing, not just to boost your returns, but also to protect your hard-earned money and
even create income from a stock. Investors are loving options investing with nearly 40 million
contracts traded every day, but they're doing it all wrong, losing over $5 billion a year
We'll start with a quick explanation of options and how they can be used to increase your returns
protect your money, and even create income along with the risks to options investing
I'll then get you started investing in options with three strategies every investor should know
At its most basic, options are just an investment that a stock will go up or down within a certain
time. As opposed to buying a stock where you own that stock forever and can wait for it to go up
options have a limited lifespan where you make money or don't. I want to get to those three
strategies instead of talking through a bunch of lingo because it's the examples later that are
going to help you understand everything here and put options investing in your toolbox Here there are two types of options If you buy a call option you paying an amount now called a premium to be able to buy that stock for a certain price the strike price until that option
expires. If you buy that call option, no matter how high the stock price goes, you've locked in
that price. The other type here is called a put option. If you buy a put option, you're paying
that premium to be able to sell the stock for that strike price until the option expires. It doesn't
matter how far the stock falls, you've locked in that price to sell it so puts can be a powerful
way to protect your downside. You can also sell these options to another investor, collecting that
premium instead of paying it. That's one of the ways to turn options investing into a monthly or
even weekly stream of income. Selling a call option on shares of Nvidia here at a $125 strike
price will net you $5.45 a share or a 4.4% cash yield just over one month. Of course, the most
obvious use of options is that leveraged upside to higher returns. Buying the $125 strike call
option on shares of Nvidia at $5.45 a share, you lock in that price that you pay. If let's say
Nvidia jumps to $145 per share before the option expires, the value of that option is going to jump
as well to at least each and selling it would make you a 266 return But then the most overlooked use of options the one I use it for most often is to protect my portfolio Selling those call options on AMD Symbotic and SMCI transferred
some of that downside risk to another investor and offset tens of thousands of dollars in
potential losses when that deep seek sell-off came. But I don't want you to think that options
are without risk. Even if some strategies can lower your risk, there are still risks to using
these. First is that options expire and you can lose your entire investment. For example
if you buy this February 21st call option on NVIDIA, locking in that $125 per share price
but the stock doesn't make it to that point, then that option expires worthless and you lose what
you paid, that $5.45 premium. I want to get into those three option strategies next, three of my
favorite, but if you want to see all 29 option strategies, don't miss the relaunch of my ultimate
options course. Over three hours of video, I start with the basics, then walk you through 29 option
strategies, when to use each, and how to set it up including a real world example with
shares of Tesla. The course also comes with a one-of-a-kind strategy finder to help you find the right
options strategy and an options calculator to show you exactly what to expect
Right now I'm relaunching the course at a 38% discount. Save off You get all the basics to get you started the strategy finder to make sure you using the best strategy the options calculator to show you exactly how much money you can make walkthroughs on all 29 strategies and a 14 money guarantee that 150 launch discount
is only available with the coupon code in the link i'll leave in the description below
so look for that link or click on the qr code here our first strategy is called the wheel strategy
easily the most popular option strategy for creating constant income and it lets me describe
two separate strategies all in one. In here you start with a stock you wouldn't mind owning or
buying more shares and sell a put option at a strike price below the current price. I'm going
to walk you through a real life example next but this starts off by collecting that money without
doing anything. You don't even need to buy the stock. Let's go back to our Nvidia options for
an example because it's going to make it so much easier to understand. Nvidia is the undisputable
king of AI and you wouldn't mind owning the shares but that 0.03% dividend just isn't rocking
your boat. So instead, you sell the put options for the $120 strike price expiring about a month
in February. Understand, the options contracts always trade in blocks of 100 shares, so you're
not just collecting that $5.10 per share selling those puts to another investor. You're collecting
100 times that, or $510 for every 100 shares. What all this means though, you're collecting that