InvestingWithBrandon

Retail investor: If we get another 2022 I'm going to cash. That year broke me.
Me: Look at that chart. Down over 35%. Now tell me what you did.
Retail investor: Held as long as I could, sold near the bottom, got back in way higher.
Me: So the market took a temporary 35% dip & your reaction made it permanent... You sold when it went on sale...
Retail investor: I know. It still eats at me.
Me: Here's my 2022. Same chart. I sold 1+ year portfolio secured puts the whole way down while premiums were the fattest they'd been in years. Collected the cash flow and reinvested in back in to elite compani

Retail investor: I take profits every time I'm up 25%. Lock it in, never go broke taking gains.
Me: Look at that 5 year chart. How many "25% moves" are on it?
Retail investor: A few... but they kept going after.
Me: Right. So every time you locked in 25%, the thing kept running & you were out. Then you paid taxes on the gain, so you need your next pick to work just to catch back up to taxes paid.
Retail investor: I mean I have to sell sometime.
Me: Do you? Here's what the wealthy actually do. They don't sell their best shares. Ever. They get their cash a different way.
Retail investor: Which i

Someone paid me $64,499 to agree to buy their $META shares at $550... 2 years from now.
Say that out loud. It sounds fake.
They handed me $64k, instantly, for a PROMISE
A promise to buy a company I already love, at a price I'd be thrilled to pay
If $META never drops there? I keep the $64k for nothing.
If it does? I buy a great company at a discount... & STILL keep the $64k.
& my base portfolio secured the whole trade, so no cash drag like CSP
This is the power of the portfolio secured put with ratios in check.

Someone paid me $20,946 to agree to buy their NVDA shares at $180... 2 years from now
Say that out loud. It sounds fake
They handed me $20,946, instantly, for a PROMISE
A promise to buy a company I already love, at a price I'd be thrilled to pay
If $NVDA never drops there? I keep the $20,946 for nothing
If it does? I buy a great company at a discount...& STILL keep the $20,946
& my base portfolio secured the whole trade, so no cash drag like CSP
This is the power of the portfolio secured put

The first 25k is the hardest
but... the first $100k is is a little easier than the first 25k
but... the first $1M is a little easier than the first 100k
but... the first $2M is a little easier than the first 1m
One you get one level the second comes faster
Trust me!

Retail investor: S&P just hit a record. I'm waiting for a pullback before I put anything in.
Me: How long you been waiting?
Retail investor: Since like April honestly.
Me: & what did the SP500 $VOO do since then?
Retail investor: ...up. I know.
Me: So you got a dip then when the world was "melting" with the Iran situation & you did nothing about it... I suspect you won't buy the next dip when it comes because they never feel good...
Retail investor: YEA... When the market falls I always panic and want to buy in lower & lower but never do then it rebounds without me
Me: You gotta understand tha

Retail investor: Everything's expensive right now. There's nothing to buy.
Me: The index is near highs, sure. Did you look inside it?
Retail investor: What do you mean inside it?
Me: Chips/banks/semis/memory/retail/energy... There's a full panic happening inside a market sitting near records.
Retail investor: Huh. I only ever look at the index level.
Me: That's the mistake. "The market" isn't one thing. There's always a sector getting wrecked while everyone stares at the headline number.
Retail investor: So that's where you look.
Me: YES... There is almost always opportunity somewhere. I ask

Retail investor: I run the wheel. It's the complete system... premium coming in from both sides.
Me: Look at this 10 year chart of $Q & run your wheel over it in your head.
Retail investor: Ok...
Me: Phase one. You sell a cash secured put. Your money sits frozen for months next to the Nasdaq doing 15% ish a year.
Retail investor: Fine, but then I get assigned & own shares.
Me: Usually after a little drop from a crappy valuation... So still assigned at a bad price. Then the wheel says sell covered calls on it. So the recovery starts... & your shares get called away at the bottom of the bounce.

Retail investor: I sell cash secured puts. Keep about $150k in cash to secure them. It's the safe way.
Me: Look at that 10 year chart. The index has averaged roughly 15% a year over that stretch.
Retail investor: Ok...
Me: Your $150k has been sitting in cash next to that chart. What'd it earn?
Retail investor: ...basically nothing. But it HAS to be there. That's how it's secured.
Me: It doesn't though. My puts are secured by my $VOO & $Q. Same trades. Same premiums. My collateral rode that entire chart while it backed every promise I made selling puts.
Retail investor: Wait, the shares can be

Retail investor: I trade weeklies on the Nasdaq $Q. Just need to read the short term move.
Me: Pull up the 5 day chart. What's the story there?
Retail investor: ...it's just noise. Up Monday, dumped Tuesday, bounced Wednesday.
Me: Right. Now pull up the 5 year. (screenshot below)
Retail investor: Oh. Up & to the right. Obviously.
Me: Same index. Two completely different games. One is unpredictable garbage. The other is companies earning more money every year & the share price following that.
Retail investor: So the week is random & the years aren't.
Me: Go buy a business in the real world and