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How I've Been Collecting Income For 30+ Years (Selling Put Options)

The Smart Option Seller

8,359 views

👉 Grab our FREE Put-Selling e-book - https://bit.ly/4fezMqw

Learn how to sell put options on quality stocks.

In this video, I'll show you how I use this options strategy to generate income while waiting to buy stocks I already want to own.

🔗 Helpful resources:
✅ FREE options trading e-book: https://bit.ly/4fezMqw
✅ Flagship Put-Option Selling Newsletter: https://bit.ly/3Ec4UmV
✅ Flagship Put-Option Credit Spread Newsletter: https://bit.ly/3sqsslq
✅ One-On-One Coaching: https://bit.ly/3Yp5De5
✅ Probability Calculator: https://bit.ly/3qMd95P
✅ Ride The Coattails Of Warren Buffett (A Best-Seller!): https://bit.ly/3L0cMtY
✅ 5-Part Video Series: https://bit.ly/3uDGhOt

Great books:
(Affiliate links are used when appropriate and I may earn a commission!)
Get Rich With Options (My Book!) - https://amzn.to/3IWs1F4 (Amazon)
7 Chart Patterns That Consistently Make Money - https://amzn.to/3WKa2rb (Amazon)
Charting Made Easy - https://amzn.to/45Jr2Se (Amazon)
Options As A Strategic Investment - https://amzn.to/3XuiY45 (Amazon)
Option Volatility & Pricing - https://amzn.to/44YOn1H (Amazon)
Gone Fishin' Portfolio - https://amzn.to/4igXfFD (Amazon)

Brokers:
Interactive Brokers - https://bit.ly/3HlbSaM
Tradier - https://bit.ly/3RxAnKL

Option Scanners:
Option Samurai - https://bit.ly/3M7SIYu
Option Alpha - https://bit.ly/4cDb1Q9
ORATS - https://bit.ly/4elOQ22

Great websites:
Finviz - https://bit.ly/3N4umyM
Market Chameleon - https://bit.ly/3JsBLqM
Barchart - https://bit.ly/3NI18Gh
Option Strat - https://bit.ly/46038l7
Trading View Charting - https://bit.ly/3s1aXsk

Full list of other helpful links - https://bit.ly/3EeoUWo

Twitter: Twitter: smartoptseller
Facebook: Facebook: smartoptionseller

DISCLAIMER: This video is for educational purposes only and should not be construed as financial advice or a recommendation to buy or sell any security or investment. Consult with a professional financial advisor before making any investment decisions.

DISCLOSURE: Some of the links in this description lead to products & services I regularly use and think you might find helpful. Wherever possible, I use referral links, which means if you click one of the links in this video or description and make a purchase, I may receive a small commission or other compensation.

As I'm part of the Amazon Associate program, I earn from qualifying purchases.

20 Comments

@karinmottola9227 2 months ago

Selling a PUT is the best way to enter into a potential stock purchase. Collect the premium while you wait for the stock to drop to your entry price. You can also keep rolling the PUT and head to the bank. Excellent video, again!

@muhohomtbz1944 2 months ago

Thanks Lee.

@LeeLowell Creator 2 months ago (edited)

If you found this video helpful, give it a thumbs up and subscribe to the channel. Don't forget to grab our free e-book: https://bit.ly/4fezMqw

@jerryhnkns 2 months ago

Enjoy your videos

@WallaceFernandes-Trader 2 months ago

Hi Lee, hope you're doing well. My name is Wallace, and I'm writing from Brazil. I've been studying the options market for quite some time now. I first heard about you through a professional options trader, Jimmy Carvalho, who mentioned your book, *Get Rich with Options*. I didn't even realize you were Lee Lowell. I'm happy to know that you're still teaching about the best market in the world—options. Regarding the video, the explanation was excellent; I prefer buying puts because I don't have enough capital to sell puts and collect premiums—though that would be great. I'm going to keep studying options through your videos and hope to learn more and more. May God richly bless your life. 🤗

@markschellhammer4663 2 months ago

Do you have a video on how to set up finviz to find these stocks or etfs?

@joycexiaohehuang5399 2 months ago

Thanks Lee, sold put for META the same way, made good premium 😊💰

@DuckUSD2012 2 months ago

It works, CSP is part of my komplex strategy since 2012. 🙂

@ktran991 2 months ago

I have luck to thank for coming into possession of my NVDA stocks. I sold CSP (a sizable number of contracts) back in 2022 prior to the run up. I got assigned the shares at 200, the stock took a dive down to 120 before reversed course, then came the split. And the rest is history.

Also my CSP’s money earns more than 3% in my Fidelity account. I figured with my CSPs, I earns around 10%, 7% from premium and 3% from interest.

My criteria for CSP are: only do it for stocks I want to own, select the strike price with delta around -0.2, and farther out expiration date. As long as I earn around 10% a year as calculated above I am satisfied.

@Heliotropic350 2 months ago

what charting software are you using? looks cool!

@USBrazilian 1 month ago

How about sell put leap (365) KO with delta 12?

@Heliotropic350 2 months ago

It's risky but I like to use the margin BP that my core holdings give me to sell puts. So if I sell a put on say TSLA @ $350 like in your example it just subtracts $35,000 in BP ... here is the big risk though, if the market goes down and TSLA goes down my BP will drop and I may get margin called and forced to take custody of 100 shares of TSLA.

The thing is I only use a little margin to juice my returns and I try to do uncorrelated stocks. I also only do stocks I'd be willing to sell out of my ETFs for too. I just don't like the thought of my cash collecting a tiny bit of interest in say 45 - 60 days while it degrades to inflation and loses to opportunity cost.

@toddetrader 2 months ago

I'm new to option because the Greeks intimidated me when 1st learning to be consistent. Now I'm comfortable with what experience and consistency I now poses. So, I'm back to options to possibly incorporate into my account growth investing strategy. My question is.... if I buy a put wanting to acquire the stock at $50, but today it's $55. So if I buy a put for $50, collect the premium, but the stock goes to $60.... what happens to me? Do I continue to wait out the contract expiation? or do I close at a fixed loss?

@steveburke2656 2 months ago

Lee have you seen the option premiums on Micron? I looked at the last expiration 20 delta and it’s currently paying 322 per share. The strike is 800. That’s a 40% return. Pretty compelling. I have a bunch of open contracts on NVDA but I’m thinking about adding MU.

@DividendGrowthInvesting 2 months ago

Hey Lee! I really enjoy your videos. Speaking of TSLA.. have you seen the option premiums on SPCX? Mouth watering if I say so myself... How do you go about selling puts on new stocks without technical analysis? Do you just use analyst price targets or just simply 20% below the current price?

@NicksPicks43 3 weeks ago

Only works if you have a large account.

@TheDailyDobs6188 2 months ago

2 weeks later tesla 305 a share

@UCxmklssd3yrR6TqbzQdVMew 2 months ago

Selling put options, which people buy to hedge their stocks, is not a good idea. The market can reverse quickly, and any stock can plunge 10% or more, leaving you holding the bag