all right guys we're going to jump into this one I was just laughing because I was trying to flex the arms a little bit but uh I won't show off too hard let's instead show off with Wow we got some Thunder happening here let's uh instead show off with how much money we can make well money muscle same thing right all right so anyways let's talk about you know some put options and how to sell leap put options all right so we're going to talk about selling leap puts so what the heck is a leap put and why would you want to sell a leap put anyways so here is what a leap put option is all right a leap put option is BAS basically selling a put option that's far in terms of date because a leap basically is a long-term option so a leap put is a long-term put now when would you want to sell a long-term put well let's go over some examples so first of all we're going to look at paler paler is one of my favorite stocks I like Apple I like a lot of different stocks but let's just take a look at pal here this is a very cheap leap put to sell and by the way this is the Lazy Man's way of creating income if you're lazy like me and you want to retire and have consistent income well leaps leaps sleap leaps these are like the best things to do because once you open up a leap you don't do anything else for the next 6 months this might be a little bit too boring for many but it's also going to be a really good tool that you can have in your portfolio maybe you don't do your whole portfolio and leaps but let me tell you you could you could do your entire portfolio just selling puts all right so here's what a leap put option would look like you'd go to sell put option right on paler and then you will go to something very far into the future so you can go to let's say say January 17 2025 yep 2025 this would be an expression day of 239 days out and you can basically sell something like the $20 put now How likely is it that pound here goes below 20 in the next 239 days not that likely because most stocks go up over the long term so look check this out the Delta here is34 however I will say one thing options the Delta is very accurate in the short term but in the long term they are not that accurate because the truth is that pent here and all stocks in the long term go up and the Delta here is saying 34 but in all reality you can make a lot of money because again longterm stocks go up and if you sell out of the money options that is going to work so here if you sell a $20 put it is going for $256 all right that's pretty high this return right here is well over 10% okay in 239 it's not the biggest return but let me tell you it's a very safe return all right because the worst thing that can happen is you can get assigned on pal here now look you don't have to use paler you can also use this on other Blue Chip companies all right I don't know if paler actually falls into the Blue Chip territory a blue chip stock will be something like apple so let's take a look at Apple all right this one of my favorite stocks that I have a pretty large position actually we have 7,000 shares of Apple $1.3 million in Apple stock quite a lot um but look you can do a leap put option so go to trade Apple options you go to sell put and then again I'm going to pick the same expiration dat so I'm going to pick an expiration date of let's go for January 17 2025 so right now if I sell the $80 put you can see here how the return is 3% it's not necessarily the best strategy to use but it is the safest strategy to collect income here's my suggestion if you want to use this strategy Elite put I would actually recommend doing it on margin let's briefly talk about margin so I'm going to close my computer down because this is going to be a very very important conversation that we're going to have about margin like seriously margin trading is super misunderstood and a lot of people think that it's really risky fact of the matter is margin trading is actually not that risky if you do it properly and I guess today's video is a little bit different because selling put leaps is something that I've actually never covered on this channel there's a lot of different strategies by the way that I don't cover the reason I don't is because I only cover things I believe in I only discuss things that I believe in and uh some strategies are just a little bit too risky maybe I'll cover them on the channel but I just don't think they're the best use put leaps to be honest prove me wrong I hope you provve me wrong but they're just a little bit too boring they're too boring because you sell an option and then you just wait 6 to 12 months and for most people you're probably clicking off the video because you're like I don't want to waste 6 to 12 months but listen it's actually a really good strategy especially if you use it on margin so how do you use margin okay well there's different brokerage accounts for example Robin Hood will typically let you use like 50% of your portfolio margin so let's say that you have you know $100,000 Robin Hood will allow you to use 50% of that so5 you know $50,000 I was going to say $500,000 cuz I'm working with a seven figure portfolio you don't have to work with any specific amount by the way you can sell Elite puts on even a really really cheap stock it can be a ,000 so you don't have to have a big portfolio to do this you can reap the benefits of slow large account strategies even with a small account portfolio you don't have to just sell leap puts you can also sell leap put credit spreads if you watch my channel if you're subscribed you've seen me talk about put credit spreads phenomenal strategy you can also use the same put credit spread strategy to do leap put credit spreads by the way a leap option is like a year out option it's like a year out to experation but for me a leap is just anything longterm and nowadays like people kind of have like a twisted reality of what longterm is I consider longterm anywhere over 6 months so 8 months is a leap maybe it's not a leap by definition but who cares about definitions we're just trying to make money here right we're all trying to just make consistent safe passive income or grow our wealth grow our portfolios get away from our 925s and eventually retire that's what I talk about in this channel I've been able to retire which is a really phenomenal feeling financially but still are the things I want to accomplish in life so when it comes to how to you use margin well Robin Hood will let you use 50% of your money as margin right so again 50,000 on 100,000 but other brokerages I had TDM trade they switched me over to Schwab which uh I don't really like switching brokerages but my second portfolio now is in Schwab and I don't know exactly how they work yet but I'm assuming it's the same as CDM Mar trade and they actually gave me a lot of margin so I have $2 million in my other portfolio and um I was selling a lot of put options I was specifically selling leap put options on Google I sold leap put options on Tesla by the way I sold leap put options on Tesla at 150 and uh Tesla actually shortly went under 150 and I I don't want to say I panicked I didn't panic I didn't make any moves but in the I was kind of thinking to myself ah this kind of sucks but it pulled back up so anyways leap puts can be even in the worst case scenario like Tesla fell a lot I sold Tesla at the peak uh I sold this leap put option like last year at the peak this year it touched into the money I didn't close the position now it's out of the money again so even Tesla had really bad performance and I still ended up profitable with leap put now look because the return is kind of low you don't necessarily want to tie up your Capital right by the way we all have different goals some people have a expectation or a requirement that they make 50% a year some people are chasing 75% per year other clients are just mine just want through % per month okay 36% per year is phenomenal it just depends right but when it comes to selling leap puts the return can be really low so you don't want to sell a leap put with all your Capital instead what you want to do is you want to use some margin listen margin can be really risky if you don't do it correctly so if you sell a leap put stick to something like spy I've talked about spy a lot on this channel recently specifically because I think spy is honestly the best like what I learned in college was like spy the index is really hard to beat and honestly most people are not beating spy they're not beating the index I've beat the index many many years in a row this year I am basically I think about even with spy so it's not easy even though I have a lot of experience I've been doing this for a very long time it's still not easy to beat the market because the market has a basket of everything and you have to really pick your stocks correctly to beat the market it's not easy if it was easy to beat the market everyone would do it and we'd all be rich and the fact of the matter is very few people are actually very rich all right that's because you need to have the right strategy you need to have the right mindset and honestly this stuff takes a lot of time that's why I just plain and simple I don't really work with get-rich quick people people that want to become rich overnight you know typically low IQ people just being honest most smart people understand the more that you learn the more you realize like wow there's so much more to learn and that's the case with me with option trading like yeah I'm one of the best at trading I'm one of the best at educating but I still have more room to run like I still have more to learn about trading I have more you know room to learn about you know giving proper coaching and teaching people how to get faster results many of my students are making $10,000 a month within 3 to 6 months but I want to make it faster I want to make money faster too it's pretty difficult to be the best but what I look for when I look at selling puts is always keep improving always keep improving in all areas of your life but always keep improving in your stock selection so improve on the stocks that you pick also when you're selling a leap put you want to sell a leap put that's like pretty low delt to be honest because because if you sell a lower Delta it's just better the chances of getting assigned are lower so like as we were looking at the example the Delta was Point like 3 four right so that's pretty good when I go for leap puts I can go a little bit higher on the Delta because typically when I sell a put option it's like 30 Delta 25 Delta when I'm selling a leap put I can go even 35 Delta the reason is because I'm just more confident that over a longer period of time it's unlikely that a blue chip stock will fall down so this is actually something that I wish my parents would do I also made a little bit of a mistake with my parents I told my parents to buy Tesla stock they made some money but then they ended up losing money now they're like kind of afraid to invest and the fact of the matter is you still always want to be selling options selling puts I never got them into options they're just intimidated but listen simple advice not from a financial adviser just from a multi-millionaire guy in the internet okay sell puts often every time you get paid or paycheck or commission check or whatever however you make your money put it into the market by selling put options whether it's shorter term puts which are very very viable I've talked about selling put options on this channel many times 30-day puts are amazing 60-day puts 90-day puts but also mix in some selling puts on margin on a lower Delta try this very very low Delta use margin now a typical question I do get is how do you use margin versus your actual Capital well the thing is you first have to use up your Capital before you can use margin logically you can't dip into margin without using your Capital first okay so for your main capital I recommend that you do covered calls follow the strategies that I talk about in the Channel have your money invested once your money is fully invested let's say you have 100K for example let's just say you have $100,000 worth of Apple stock now I would sell an spy leap put 6 to 12 months out very low Delta collect income set it and forget it that's literally as easy as it is yes it only makes three 4 5% per year but listen if you're making 3 4 5% a year not your money not paying interest then amazing right it's like buying a house okay for uh $500,000 okay and then you get paid $4,000 a month in rent okay but then all of a sudden like someone comes up to you and they're like well I'm going to live in your backyard we're going to make a little like little area for me and it's going to be I'm going to pay you an extra ,000 a month so now you can make an extra ,000 a month and let's just say the guy's like I'm going to build the house myself don't worry about it um just going to build myself a shed crazy example I get it but thing is there is some risk I mean there's some risk the guy could be crazy but let's say he just gives you up front money he's like here's $122,000 $1,000 a month I'm going to be here for 12 months here's $122,000 I'm just going to build myself a little shed I'm not going to bother nobody and let's just say it's in accordance with all the rules and regulations of whatever state country you're in that would be free money right that's free money so the same thing is with this leap put strategy on margin it's free money so this is something that I always talk about with my private clients I'm talking to them especially if they're higher net worth especially if they have $500,000 then implementing this strategy by the way when I sell options like leap puts typically with my higher net worth clients I don't sell leap puts as much I sell like 30 60 or 90 deuts not that lead puts are like bad it's just that we typically go for single stocks and we're typically a little bit more aggressive but if you have a 500K portfolio and you can make an extra half a percent not a lot per month but it's half a percent half a percent on 500,000 is $2,500 out of thin air so if you have a 500K account $2,500 per month is an extra $30,000 per year you can now see why it's obvious that you know some of my private clients they just love working with me because we get extra money from thin air without even trying so it's really easy money if you think about it if you would like to become a private client I am doing a special offer just for this video I've never really done this before I don't personally like selling my time just because I don't need the money but you know I have some time right now I would love to work more with you guys so if you specifically have a bit higher net worth and it's over $100,000 you want to learn how to use margin properly safely and you want to scale up your portfolio I'm going to take personally five calls for the next couple of weeks you can book that directly with me if you want to become one of my private clients