My strategy for this insane stock market

hey everyone me kevin here in this video

i'm going to break down my thoughts and

strategies for exactly what i'm doing in

this market because this morning we had

one heck of a crazy day

i woke up and the stock market was

really really red

now ordinarily that would be really

scary people open up their portfolio and

they feel a sinking feeling like they

just made a big mistake

and then they look at the market and

literally like almost everything was

read this morning

the market open was really really rough

everything looked red everything looked

like a disaster and bloody

and i want you to ask yourself what do

you think my reaction was this morning

when i woke up

and i saw the market really really red

well

if you said anything that would resemble

this picture right here you are correct

i was very very happy this morning

because i get

opportunities to do my

favorite thing and that's by the dip now

there are two ways you can buy this

dip and what i'm going to do is i'm

going to give you a brief overview of

this strategy

because going into the weeds of exactly

the technicals as to how this works

are very very complicated and i just

want to give a simple overview here

because i've got a whole course

dedicated to teaching you the weeds

and this isn't about teaching you the

weeds it's about giving you the overview

of my strategy and my belief of the

market

that's the point of this video so if you

want to know what i think is happening

in the market

and how i'm playing it this is the video

for you if you want to understand

exactly the details for how this works

if you have questions on this

you want to be a part of this uh with me

in my private live streams or

in the private stock group now check out

the link down below it's 40

off use the coupon code it does expire

on july 22nd

yeah i extended the expiration of that

but the price will be going up

and it will not get extended again so on

july 22nd

the pricing will go up okay so check

that out link down below you get

lifetime access so

if you said smiley face that's the

correct thing what i like doing

is i like buying the dip now there are

two ways

that you can buy the dip and this is

very important because usually when we

think of buy the dip

we just think of the number one way buy

shares

but there's actually another way that

you can buy the dip and the other way

you can buy the dip

is by doing something known as making a

promise to buy shares so i'm going to

write down your

promise to buy shares

and both of these are ways you can buy

the dip

now the cool thing about making a

promise to buy shares if you're telling

somebody hey i promise to buy some

shares

at some point in the future at a certain

price the cool thing about that

is you deserve to be compensated for

making that promise

you deserve a credit for making that

promise

and what i like to do is i like to say

that

s p stands for selling

a promise or

selling a put

contract now i know i got cut off a

little bit there there we go

now yeah i'm not going to go into the

exact weeds of selling put contracts

about how the theta decay on selling

puts

is benefiting me and hedging my theta

decay on my call options

if you want the weeds on that i'm

posting a new lecture on exactly

all of the trades that i made this

morning to break down which you already

know what my trades are if you're in my

stocks and psychology money group but

i'm going to be posting a lecture

breaking down exactly the weeds of how

this strategy works

and that'll be posted today so right now

i want to give everybody watching on

youtube a broad overview

of why i'm buying the dip with contracts

first things first why would i not just

buy

shares well i'm not buying shares right

now because i personally believe

things are pricey end phase at 181

dollars

is okay but i think it's a little pricey

cciv at 25 is okay

it's a little pricey now look most of my

cciv shares i bought at 17

when uh the announcement the of of uh

lucid's cciv

spac was first announced cci v there we

go

i bought most of them around 17 to 1780

uh in in ccav i did buy a little bit at

30

but i thought that was a little bit

expensive between 30 and 35 i did buy a

little bit i thought that was a little

expensive

i actually think right now based on all

of what we've seen in the market

and how difficult it is for tesla to

ramp their production and they have the

experience to do it

i actually think 25 is a little bit on

the pricey side for cciv

i also think sofi has the potential of

going down to 1450 to 15 and then it's a

good deal

so i think i think it's like 1666 right

now but i think like for example 1750 i

think it's

it's a little pricey for right now and

i'm going to show you why i'm picking

1750.

i think for example peloton or

lemonade or apple or amazon or whatever

i think the shares where they stand

right now are a little bit pricey

and i don't like overpaying for things i

like getting good deals on things

so let me use an example here of sofi

quickly

so i wrote 1750 for sofi even though

right now these shares are selling for

about 1666

why would i do that well that's because

i gave someone a promise that i would

buy

shares of sofi in january 2023

when hopefully so far is a much more

mature company right in 1770

1750 is cheap i am making somebody a

promise to buy those shares in 2023 for

17.50

it's a little bit more than they're

worth right now and in making that

promise i'm actually going to get a fat

credit i'm going to get a credit of

dollars and 45 cents or that's what i

did get so i don't know it depends on

when you look at the market

the cool thing about that is that

actually means i'm willing to

buy sofi shares at ten dollars and five

cents

because i'm getting a big fat credit to

do that so by making this promise i'm

getting a big credit

now there are a few ways this can go if

sofi doubles

and goes to let's say 35 dollars in the

future

okay well then what happened what

happened is i lost

the opportunity to have my money go up

to 35

and i kept seven dollars and 45 cents

okay well that's not bad

got seven dollars and 45 cents but hey

could i had a double

you know i got maybe 40 instead of a

double

that happens there are obviously upsides

and downsides to things

that's cool so far is a really good

opportunity to do with this with in my

opinion right now because i really like

this talk and i wouldn't mind owning it

but i'm going to take some nice credits

for making those promises in this kind

of market

and that's because i believe that so far

is not really likely to double

in fact i don't even know that so far is

going to go to 25

anytime soon i think it's possible that

so far ends up trading

sideways for a bit kind of like a lot of

specs have been

sideways moderately up or moderately

down as long as it goes moderately up

moderately down or stays sideways

i get to keep the 17 the seven dollars

and 45 cents i keep the credit it

expires above 17 and 50 cents i keep the

7.45

that's great worst case scenario

is the stock either doubles which i

don't think is going to happen or the

stock let's say goes down

to zero dollars because if the stock

goes to zero dollars i'm still stuck

paying 17.50

minus 7.45 so basically ten dollars and

five cents for stock that's worth zero

then i get screwed right but if it's

anywhere in between

things look decent things are pretty

decent

anywhere between ten dollars and five

cents and somewhere around

twenty four twenty five dollars this

sold put contract

makes a lot of sense in fact take a look

at what i just did

i took four hundred thirty seven

thousand 000 of money and i

signed this up as collateral which does

not cost me any margin

but it's from my margin it's sort of

reserved it takes away my buying power

it takes up my collateral because if i

have to buy these shares then my margin

starts getting used but it's not right

now so i'm not paying any margin

and i made this deal in response for

getting or making this deal

i got a hundred eighty six thousand two

hundred fifty dollars in cash

folks that works out to a forty two

percent return on my money

instantly if i just hold this contract

through january 2023

that's awesome and then i'll either buy

the shares or i'll just keep the credit

and i won't have to buy the shares

either way i get to keep the credit

so either buy the shares or i don't have

to buy the shares at 17 50 but either

way

i keep the credit and in this kind of

market right now

where i personally believe it's likely

that even though the s

p has kind of done this and

tech has kind of done tech kind of went

like parabolic last year right and then

lately it's kind of been doing a little

bit of that

right even though that's kind of how the

market feels like right now and you can

even put

may in here probably like right there

right even though that's kind of how the

market feels right now

i i think going forward there's a good

chance

that we're going to continue to trade

sideways

and i could make some good money by

selling puts by making these promises

and basically yield farming by taking

credits

and that's what i've been doing in this

market because i think there's a good

chance we could be in a sideways or

slightly down slightly up trading market

for the next year now it's possible that

in between now

and next year we get some kind of

euphoric rally some kind of

short-term bumps like for example

matterport right now is like

1450 or something like that a few days

ago it ran up to 17

so when it ran up to 17 i took advantage

of that and i sold my call options that

i had

and i took profits i took my attendees

so i'm not

unwilling to take profits right now

that's very very important i'm not

unwilling to take profits i will take

profits if there's another euphoric

rally i'll do that as well but in the

meantime i'm taking advantage of selling

puts

and gaining some credits to help offset

the theta decay on my calls

and just because i don't think there are

big buying opportunities yet

now if the market falls enough and we

get enough of a drop to where all of a

sudden square

is selling for 200 or

n phase is selling for under 150 again

or etsy is selling for under

150 again or pins is selling for under

60 again

or lemonade is selling or piton piton oh

my gosh

if piton's under 80 again or lemonade 80

to 100

somewhere in there or lemonade's under

60 again

these are these are times i'll go heavy

i'll just buy the shares but we're

nowhere near those prices right now

so that's why i'm selling puts instead

i'm selling puts because we're nowhere

near these prices

and if we trade sideways or moderately

up from where we are here

i'm taking some sweet attendees and i'll

either get the shares in the future or i

won't but either way i get that big

fat credit and i like that for me that

is a better deal

than trying to bet because you do have

an opportunity costing you options

and trying to bet that the stocks are

going to go to the moon

now it's possible that they go to the

moon and that's why i still have a lot

of call options

like i have options on pins on a piton

on apple on amazon amzn

right i've got options on a lot of these

on task live a lot of options on these

so i'm not getting rid of my very

bullish positions here

i'm just waiting for that euphoric rally

to hit where i can

sell out of these contracts and then

probably after that euphoric rally

whenever that time comes if it even

comes

it just wouldn't surprise me to see the

market trade a little sideways so that's

why i'm taking the strategy that i'm

undertaking right now

now if you're confused as to how does

put selling work

how how do the mechanics of this work

what trades did you make this morning

uh it did you did you close your

positions which which i did i closed a

few positions this morning

uh i i opened some positions this

morning i did quite a few things this

morning

and hey check out the stocks the

psychology of money group

link down below you get lifetime access

and that way you can also interact with

me and you get the details

right after i post this video i'm going

to be filming a detailed lecture

on exactly my strategy for how

to to find these options how to find my

favorites and

and and how to see value in them and why

i do certain things i'm going to be

posting a detailed lecture on that

after i post this video so stay tuned

for that later today

thank you so very much for watching this

video and folks we'll see you all in the

next one

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