InvestingWithBrandon

🟢The BIGGEST hack with portfolio secured puts:
Your collateral works two jobs at the same time.
Cash secured put seller: $100k of cash sits dead securing the trade. Earns nothing. For a year.
Portfolio secured put seller (me): that same $100k sits in $VOO & $Q, compounding ~11% on average, WHILE it secures the identical trade.
Same contract. Same premium. Same "risk profile" with ratios in check.
One version parks your money. The other version pays you twice on it.
That's how 11% quietly becomes 25%.
The portfolio secured put wins again.

Retail investor: I'm 52 with $600k saved. Feels too late to learn this stuff.
Me: You've got the hardest part already done. Most people your age don't have the base.
Retail investor: But I only have like 13 years before retirement.
Me: & the plan they gave you is to sell 4% of your shares a year & pray it lasts, right?
Retail investor: ...that's exactly the plan.
Me: So every year you eat part of the growth machine. Now imagine instead your $600k stays whole/keeps growing with the market, keeps compounding, & throws off premium income on top.
Retail investor: Without selling anything?
Me: Not

The wealthy do one thing differently & almost nobody copies it.
They never sell their best assets.
Retail sells winners to "lock in gains," pays the tax, & starts over hunting the next pick.
The wealthy hold forever & extract cash a different way... borrowing against the assets, or getting paid on them.
That's exactly what selling portfolio secured puts is. Cash flow off a base you never touch.
My $VOO & $Q have never been sold. Not in 2018, not in COVID, not in 2022.
They compound, they secure my portfolio secured puts, & the premium buys MORE of them.
Selling your winners "just because" is h

Retail investor: Options are gambling. I stick to real investing like Buffett.
Me: You know Buffett sells portfolio secured put options, right?
Retail investor: No he doesn't.
Me: He's collected billions in premium agreeing to buy companies he already wanted at prices he already liked. It's public.
Retail investor: Wait, seriously?
Me: His whole empire runs on insurance float. Collect premiums today, maybe pay claims later, invest the difference in between. Selling puts is the exact same machine.
Retail investor: So why does everyone call options gambling?
Me: Because the version retail runs I

When the market "CRASHES"
Everyone says "Buy the dip"
But do you know what it feels like to actually buy during a "meltdown" as an average retail investor?
- Your portfolio is red.
- The news says the world is ending.
- You second guess everything.
- You end up panic selling... at the exact wrong time.
Happens every cycle.
Smart investors will:
- Buy shares while they are on sale.
- Buy calls when nobody wants them. (cheaper)
- Sell puts when the herd is paying top dollar for them. (selling for max premium)
I always say the emotional aspect of investing is what crushes most retail investors...

🔴If you held a gun to my head and said "Brandon, beat the market in the next 10 years or you are dead"
I would say, no problem.
There is a 99% chance I will.
This is exactly how.
First off, "the market" is the SP500.
We will say I have a $1m account to start.
The first thing I would do to beat the market is to simply buy the market.
So I would buy $1m of $VOO (sp500 ETF)
Second, just buying the market via $VOO will actually underperform a tad because of the expense ratio... no prob
So here is the spot that matters to beat it.
In that 10 year period, I would be patient, sitting, & waiting for

Retail investor: VIX is spiking so I'm not touching anything until it calms back down.
Me: You know what the VIX actually measures, right?
Retail investor: ...market danger?
Me: Fear. It measures what people are PAYING for options. High VIX means option premiums are expensive.
Retail investor: Right, so... dangerous time.
Me: Dangerous for BUYERS. I'm a seller in times like this. A high VIX means I get paid MORE for the exact same put I am selling. It's literally a rate hike on my premiums.
Retail investor: Wait... so the fear index is helping you?
Me: Every spike. Fear inflates what people pa

Let's put real numbers on this.
$100k sitting in $VOO & $Q. That base alone averages roughly 11% a year. Call it $11,000.
Now sell portfolio secured puts against that same $100k. Great companies below intrinsic value, strikes 10% under, a year out.
Call it another 10-15% in premium. Say $12,000.
Same $100k. Two returns. Never on margin. Ratios always in check.
That's $23,000 on money most people would've made $11,000 on.
Now run it for 20 years & watch what that gap does.
11% turns $100k into ~$800k.
25% turns $100k into ~$8.6 MILLION.
Same starting money. Same 20 years. The only variable is w

Retail investor: I run poor man's covered calls. Buy a LEAP, sell weeklies against it. Cheaper than owning shares.
Me: So you bought a long call because you're bullish... then sold weekly calls against it capping that bullishness?
Retail investor: The weeklies pay for the LEAP over time.
Me: Until the stock actually rips. Then your weekly gets blown out & you're scrambling while the thing you were RIGHT about runs without you.
Retail investor: I can roll the weekly...
Me: For how long? You're managing a position every 5 days on a bet nobody can predict, to fund a bet you already made correctly

Here's something that'll blow your mind about long duration options.
I sold a 2 year put. Collected a huge premium up front.
4 months later, the market ran, the contract collapsed in value, & I closed it at 75% profit.
75% of the money... in 17% of the time of the contract.
Everyone thinks long duration means locked up for years. It doesn't.
It means a FAT premium up front to reinvest when the company is compelling & the option to close it whenever it makes sense.
Compare that to a weekly seller. 52 tiny paychecks, selling puts when it's not compelling... forcing trades.
I made one decision. M