THE BITCOIN WHEEL STRATEGY

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How’s it going everyone it’s Sam bitcoin’s being institutionalized and with that come changes there’s more flexibility in what you can use these Bitcoin ETFs for one of the big things that a lot of people like to do is to sell options to buy options as

Well and I think it’s kind of crazy how the numbers work out for this I want to explain what I mean and how much money you can actually make whether you’re someone that’s going to buy Bitcoin coin or someone that’s going to sell Bitcoin uh I don’t know if enough people

Understand really what the wheel strategy is and what you can do to make money with these ETFs and right now to be clear the ETFs don’t have options yet but it’s coming here very soon and in the past I made a 40-minute video talking about what happens uh when you

Use the wheel strategy how you can use this as a cheat code to make money and I had done this poll get what’s your main goal when investing do you want to get rich to buy whatever you want like a fancy Lambo or do you want to make

Enough money to live on your portfolio to quit the job that you don’t like to be able to spend more time with friends family kids that kind of stuff and 75% of people said that they just wanted to live on their portfolio like they don’t need Super flashy stuff they just want

To make enough money to do what they really want to do in life which is why I want to talk about Bitcoin options and there are drawbacks to this I’m not even saying that I’m going to do this but this I want to explain what how this

Works and why it is sexy to some people and I’m going to try to keep it brief in this video I went through the last video that I did I’ll put it in the end screen I went through a lot of different scenarios uh and how this all works out

How you can make money how you can lose money in theory and that kind of stuff so if you haven’t already seen that I’ll put it on the end screen but let me explain this again here today if you don’t mind hit subscribe turn on the Bell notification if you want you can

Trade cryptocurrencies down there at Marx and you can make a lot of money from that if you read the market correctly also there is a link down there to the indicator HG algo which can really help you with dollar cost averaging and also trading as well now

If you haven’t already got a a little of an understanding about covered calls and cash secured puts we’ll talk about that a little bit today but basically what options trading is is just selling the right for someone to buy or sell an asset a certain price at a certain time

So like let’s say for example I own 100 shares of Tesla I can tell you right now the price is $192 $192 per share I can tell you that you’re allowed to buy them from me at $210 per share and you will go and pay me money

To have that right now why would you do that the the price isn’t at $210 per share well we’re talking about sometime in the future so next week right I can say you have the right but not the obligation to buy those shares from me and you don’t have to pay anything more

Than $210 so if we get really good CPI data or really good pce or the FED comes out or uh someone says that they’re buying Tesla or Tesla says that they’ve had an explosion of demand or something like that and it goes up to $250 you get the

Right to buy my shares at $210 so that you make that extra money now why would I do that well I can get paid a premium so you will pay me the right to buy the shares at $210 now most of the time you’re not going to actually

Buy those shares I’m not going to have to sell the shares right most of the time I just get paid a premium and I still hold on to my shares so if I was just holding and there’s not much of that happens well I get paid and I still

Own everything that I owned before for a lot of people they think of this as a pretty sexy thing first of all it can help you with uh just hedging your portfolio let’s say something runs up really hard people are getting really greedy let’s say Tesla goes up to $500

In the next month some people would start selling calls because they already would sell anyways but they can get a premium they can get paid uh extra on top of that selling price price so some people like it for that reason some people just want some cash flow on

Noncash producing assets so they’ll start selling covered calls now there are a lot of different things that go into the pricing of these how much you get paid and how much you have to pay we’re not going to go over that today but I do think it’s important to realize

That with these Bitcoin ETFs they are going to have calls they’re going to have puts you’re going to be able to trade options on them which is something that you can kind of do through different platforms right now but you have to be pretty well educated this

Will be much easier you’re going to be able to go into Robin Hood or Weeble or Fidelity and be able to trade these now how does this all work out let’s say you are buying ibit which is the Black Rock ETF and you’re buying and you’re buying

Uh and you get to a full Bitcoin now you need about 1766 shares of ibit to own one Bitcoin through the ETF now if we just say that you want to sell some shares uh we’ll go through how much and a bit but you you want to sell

Covered calls on some shares you sell them in 100 share increments we’re going to say that the volatility which is one of the big factors in how much you can sell these for we’re going to say that’s similar to Tesla stock they’re both pretty volatile right um so I can kind

Of show you the pricing basically how Tesla stock works out right now is you can sell one cover call that’s 30 days out so there’s a time limit it’s about 30 days out one month out and you can sell it for 15% out of the money and you

Get 1% of whatever those assets are worth so let me break that down one call so just 100 shares 30 days out the strike uh is for 30 days out or the opt expires in 30 days it’s 15% on the money so the price of Tesla’s about 192 right now you give

Someone the right to buy your shares at $220 is basically where it’s at and you will get paid 1% so 100 shares times 192 uh because again Tesla Shares are about $192 that’s about $199,200 worth of Tesla that you’re that you need to have you’ll get paid about 1% of that

So you’ll get paid almost $200 to give someone the right to buy that in 30 days now most likely it’s not going to go anywhere you’re going to get paid that $200 and then you’re going to hold on to all your shares so you just got free

Money of course it’s not free because you lose out on some of the upside but you’re 15% out of the money for 30 days like that’s a huge move 15% move to the upside in 30 days and there are different ways that you can hedg it

And sell or buy uh depending on if you want to actually hold on to those shares the Delta is 15.7% so they’re saying basically based on volatility there’s probably about 15.7% chance that price the price of Tesla is going to be above that price at $220 in 30 days so not a

Huge chance so worst case scenario for you let’s just go at it from a monetary perspective now I want to get to the worst case scenario here in a second but I think it is important to realize that you don’t even have to do do this yourself like there are ETFs that sell

These kinds of options for example here there’s something called Tesla TS this sells covered calls on Tesla and you can see the 30-day SEC yield is 5.15% cuz I go through the scenario here with 1% that’s way out of the money like you would have to have a big move but you

Can sell them much closer to the actual price of Tesla and get paid much more so this yield is 5.1 5% as opposed to 1% now with that in mind there are going to be Bitcoin ETFs that do things like this that can give you a large yield you miss

Out on some of the upside you have to pay some large fees but if you kind of want to hold Bitcoin but not have the upside you can hold this and it will give you a nice yield um so that’s something to consider too and these ETFs

As they get more Flows In will influence the price of Bitcoin and the Holdings of Bitcoin as well now I want to talk more about this I want to talk about the downside risk and the upside risk but first I do want to talk about my lovely

Planet now I covered this in a video recently but I think gaming is going to be a huge narrative and one game that I am watching is my lovely Planet this is a partner of the channel I plan on getting some of the tokens but they are

Also coming from Ubisoft lab and it might be saying that wrong uh Ubisoft uh but they are a huge gaming studio and right now they’re doing a token launch actually with my code underneath the video you can get an extra 10% tokens but they only have 20 hours left and

Basically what they’re doing is whatever happens in Game they’re doing in the world so if you build a or if you uh grow a tree they’ll grow a tree in re in the real world and you can see we are backed by the greatest leaders of the

Gaming industry like I said a big vote of confidence coming from one of the big gaming Studios out there they have 20 hours before they start raising the price if you if you do want to check it out there’s a link to it underneath the video of course always do your own due

Diligence and again I did talk about this recently a little bit more in depth so if you want to see that video you can definitely go check it out you know I I think this is more of a time to take risks as well in the market with us

Going into a bull run of course there is risk whenever you invest in anything but I’m going out there and I’m buying some smaller projects so that way I can get that potential upside that comes with buying smaller projects worst case scenario for you let’s say say if you

Are you have these uh this Bitcoin right you start with about 177,000 or 1766 shares it’s worth one Bitcoin which is 51,500 from a purely numbers perspective not emotions but purely numbers the worst case scenario is bitcoin’s price goes down you sell one of these covered calls and bitcoin’s price goes down you

Lose value let’s say bitcoin’s price goes down to 40,000 you’re 51,500 100 is now worth 40,000 because the price of the shares goes down now think about it this way that’s a worst case scenario you you lost about 20% but selling that covered call actually helped you because you made

That in this case it would be about 1% of the portfolio if you hedge the whole thing so you made about $500 by selling a call or selling lots of covered calls on this portfolio so you actually came out ahead selling those covered calls in the worst case

Scenario now mid-case scenario let’s say bitcoin’s price doesn’t do anything for a month you made $500 you make $500 you don’t get these taken away from you and then yeah you you were able to buy some more ibit with that if you want so you come out ahead there in the

Medium scenario best case scenario uh there’s a move of about 14.99% % upside right so bitcoin’s price goes up to what would that be 15% on top of the 51,500 so it goes right up to there you get the premium you get to keep your

Shares cuz it’s just out of the money uh or just in in the money it would be right around the strike price right and then probably another scenario where you actually make a little bit more money but it hurts a little bit more let’s say Bitcoin goes on a massive

Move you get that 15% gain you have to sell off your your shares of ibit though at a fixed price and then you get that $500 as well so it’s kind of a crazy scenario where in the worst case scenario you still make money and in the middle case scenario

You still make money the thing is you’re just capped out on the upside and I’ve I talk about that I sketch it out in this uh in this video here so a lot of people like this now that takes out a lot of The Upside potential for Bitcoin so I probably

Won’t be doing this maybe one day if I have so much Bitcoin and I just want some cash flow maybe I do it but let’s say Bitcoin goes up to $250,000 per Bitcoin what if you own not one Bitcoin but you own four well you’d have a million dollars worth of bitcoin and

Every month you can make $10,000 from it and the again the worst case scenario is it goes down and you make the premium you still make that $10,000 in a month again there’s there’s a science to it until you’ve done this you don’t really want to do it with any large numbers

Like you want to get comfortable with it because there are a lot of emotions that come with this but there’s also another side where you can dollar cost average and you can make money so you give someone the right to sell you their shares at a certain price which is another really

Interesting thing so the other side of this is not selling coverage calls but selling cash secured puts now this is different in that you’re selling someone the right to sell you shares at a certain price so if you’re selling a cash secured put you have money you’re

Willing to buy an asset but you want to buy it at a lower price than what’s at right now most likely so let’s say you’re sitting there you want to buy some ibit right you you want some more Bitcoin ibits price right now is $29.16 but you say I don’t want to pay

That basically what I want to do is I want to buy if it’s a little bit lower maybe 11% lower let’s say 11.5 now what does that work out to well if bitcoin’s price is 51,500 you want to pay 885 you want to pay about $45,600 per

Bitcoin now of course you’re buying ibit so it’s about 11.5% lower than if it falls 11.5% well in that case if that’s me selling that cash secured put I have that money sitting there I will get paid about 1% for that so again if I want to buy a full Bitcoin

I’ll get paid about $500 for someone to sell me the right to buy ibit at a much lower price than it is today that’s kind of crazy some people like that a lot cuz they might want a dollar cost average but they want to get paid some premiums in the

Meantime now the chance of this happening is about the same as this it’s about 15% based on volatility this is based on Tesla again Tesla’s volatility which is very similar to Bitcoins so if you don’t have enough ibit you can tell someone the price you want to buy and

Get paid if it falls there or get paid even if it doesn’t fall there now the there are drawbacks to this let’s say you want to buy more Bitcoin and you’re really convicted and you really want to buy Bitcoin right now well bitcoin’s price could go up and I could never have

The actual underlying Bitcoin I could keep on getting paid these premiums but I lose out on a lot of The Upside same thing here if I sell a covered call I could lose out on some of the upside but if you already have a lot of Bitcoin

Maybe you kind of want Bitcoin but you don’t want it at today’s price so you’re going to buy it if it falls to 45,000 in the future so if you’re already going to buy it at that point in the future of course you give up some of that

Flexibility let’s say some big bad news came out right all a sudden binance explodes black Rock’s been I don’t know doing something funky with their Bitcoin uh if that happens you still have to go buy the shares at that same price so you lose out on some of that flexibility to change your

Mind but if we’re in a bare market right and we keep on falling down lower and lower and you’re saying okay well in this next bare Market I think we’re going to hit exactly 51,000 and and I’m pretty bullish then if we hit that 51,000 like I’m going to

Buy the dip well you could get paid a premium as I said especially when people are scared selling cash secured puts or on down days selling cash secured puts can make you a good amount of money same thing when we have up dayss if we’re moving up very quickly people are

Getting greedy you can sell covered calls for insane premiums so some people do this actually with Bitcoin miners right now Bitcoin miners are already super volatile so you sell and buy options on it you can make a lot of money like way more than what we’re talking about here because there’s

More volatility and I know some people that have made 20x 50x 100x over a couple weeks on options like this so the the interesting thing about this is again it’s not right for everyone but for some people they want to make income from non-income producing equities so

They can do that and that is what’s coming to bitcoin the ability to make cash so there are going to be people that want to hedge positions that are people that are willing to buy now because they can go make money from that volatility they’re underlyingly underlyingly they’re

Underlyingly bullish now un they are bullish but maybe they already have a large position or they want to wait for specific numbers they’re very calculated they can go play the options market now this is only one of the new things that can happen with these Bitcoin ETFs they can also borrow against them

Which opens up a lot of possibilities and again you can do things like this now you can hedge but it’s much more complicated than what it’s going to be in the future and this is going to get approved this these options are going to be available within months so there are

Going to be a lot of people selling these options we’re going to have crazy volatility this is going to put even more volatility on bitcoin but it is an interesting Avenue I mean think about it this way too let’s say you are someone that 10 years from now you have

A large portfolio let’s say you have some ibit in there let’s say you have a couple Bill a couple Bitcoin worth right like two Bitcoin worth three Bitcoin let’s let’s call it five five Bitcoin all in ibit right you have 250k now on bitcoin maybe you bought it at the

Bottom of the bare market then you flipped it over to ibid or something like that 10 years from now what if bitcoin’s at a million dollars you have $5 million worth of ibit maybe you want to take a million and start producing some cash flow again you lose

On the upside but in the future there’s not going to be as much volatility if if you get really good at reading the markets you can probably do this pretty successfully and you take a million dollars and you start making 10K a month and yeah for some people that’s going to

Be really interesting or it’s just a good way to hedge at the top right if I already want to sell at 250k Bitcoin why not get paid a premium a fat premium to sell at that point now the wheel strategy is a welln a well-known strategy in options

Where basically you go and you sell cash secured puts so you want to buy an under you want to buy an asset you sell the right for someone to sell it to you at a certain price so you’re buying the dip on different stocks you get paid a

Premium in the meantime right you have the cash thing in your account you say that you’ll buy those shares for a certain price you get paid to sell that cash secured put and then eventually you’ll actually have to buy those shares right you’ll be you’ll have to um

They’re going to exercise that option right if the underlying stock falls down drastically below the strike price so you’re going to buy those shares and then what you’re going to do is you’re going to go and sell covered calls on it so you now own the shares you’re going

To sell covered calls you’re going to get paid more premiums and then eventually the price of the Stock’s going to go up pretty quickly the option is going to be exercised and then you’re going to sell those shares because you sold the covered call and then you’ll

Have the money again then you’ll go sell a cash secured put and it’s just this wheel strategy it’s every step of the way you get paid a premium now you can still lose underlying assets depending on how you do it but some people really like this CU it is always yield

Producing or if you haven’t already looked into this like I know people that are super into crypto super smart into crypto they’ve been in crypto for 7 years they’ve been in since 2017 and they don’t know how puts in calls work they don’t know how options work you’re

Going to need to learn this this is going to be important right this is going to be a tool that you can use if you want to it’s going to be a tool that a lot of other people use though so you at least have to understand it again I

Do have that longer video talking about it that I’ll put on the end screen the title of it is this can make you so much money and in a down Market selling covered calls can be super powerful now again I probably won’t do this there’s

Just too much upside in Bitcoin but I do want to explain it why it is a big thing that’s happening because it brings more investors into Bitcoin and again these ETFs buy the underlying assets so it is cool let me know your thoughts on this underneath the video again you can check

Out Marx you can check out MLP underneath the video and you can check out the algo as well thank you so much I appreciate it I will see you in the next one bye