InvestingWithBrandon

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

🔴If you sell cash secured puts, you are making a MASSIVE mistake & nobody has told you.
You sold that put because you're BULLISH, right?
So why is $100k of your money sitting in cash, benched, not participating in the bull market you just bet on?
That cash earns you nothing while it "secures" the trade. Meanwhile the market runs without it.
I sell the exact same put. Same strike, same premium, same everything.
The difference? Mine is secured by my $VOO + $Q + Great single companies. Those shares compound the entire time they back portfolio secured put.
Same trade. Same premium. My collateral

A cash secured put seller & I made the exact same trade this year.
Same company. Same strike. Same premium. Same result... expired worthless, we both kept every dollar.
His collateral: $100k of cash. Sat in his account for 12 months. Earned basically nothing.
My collateral: $100k of $Q. Sat in my account for 12 months. Rode the market up ~27% while securing the trade.
Same trade. Same win.
He made the premium.
I made the premium + ~$27,000 he'll never see.
Multiply that gap by every trade, every year, for a decade... & that's the entire difference between his account & mine.
Portfolio secured

People underestimate how much $1 can grow
$1 invested at 11% annual returns turns into:
- $8.94 in 20 years
- $238 in 50 years
(brainless SP500 returns here)
BUT WHAT IF THERE WAS A WAY FOR YOU TO GET 20% PER YEAR...
$1 invested at 20% annual returns turns into:
- $53 in 20 years
- $20,283 in 50 years
(my CAGR in last 10 years is 24% FYI)
Now think about this:
Every dollar you spend on things you don’t need isn’t just a dollar lost today...
IT'S THOUSANDS/MILLIONS LOST IN THE FUTURE