InvestingWithBrandon

Here’s the math on why selling puts the way I do doesn’t blow up accounts
(The portfolio secured put, not cash secured)
Say you have a $1M account. You sell puts that obligate you to buy $100K of stock. That’s 10% assignment value
Now the market crashes 50%
Your base portfolio drops to $500K. Your put obligations are still $100K.
Could you still take assignment? Easily. Sell $100K of shares, & you’re buying a great company you already wanted at a price you already agreed to.
Don't want assignment? FINE. Roll the contract to buy more time.
That’s why I care about assignment value, not margin re

EPS moves stocks in the long term.
Not the results of an election.
Stop focusing on noise🥊

Here’s what happened in ONE day YESTERDAY in the market:
Oil fell 7.6% on reports of Iran diplomacy
Amazon went up about 4%
Lumentum fell 15%. Marvell fell 9%
Oracle fell 6% on a $20 billion capital raise
The S&P was up 1% in the morning & red by the afternoon
The VIX jumped 8%
Now imagine holding weekly options through all of that. You’d need to be right about the direction, the size AND the timing... in a market whipping around on headlines
This is the environment where short dated options destroy retail accounts
Have you ever wondered why Warren Buffett doesn't play games with predicting th

Valuations matter.
Notice lots of great companies falling recently?
It’s not because the company is broke.
It’s because the price was too expensive.
Don’t over complicate it 🥊
You need a great company at a good price to make a good investment.
BOTH ARE NEEDED.

Retail investor: I just buy and hold index funds. Slow and steady.
Me: Good. Seriously. That's the base. I do the exact same thing with $VOO and $Q
Retail investor: Wait, you hold index funds too?
Me: Of course. The only difference is I don't let them just sit there. I use them as collateral and sell puts against them for another 15% ish on top.
Retail investor: So you're not replacing index investing… you're stacking on it?
Me: Exactly. You're doing step one perfectly. You just stopped before step two.
Retail investor: What if he market crashes with he portfolio secured put?
Me: Ratios are al

Retail investor: I checked my portfolio like 40 times this week. I can’t stop
Me: What were you hoping to see?
Retail investor: idk... green?
Me: Did checking it change anything?
Retail investor: no. It just made me feel worse
Me: What do you own?
Retail investor: some tech stocks & a few weekly calls
Me: That’s why. When everything you own needs to work THIS week, of course you check it 40 times
Retail investor: how often do you check?
Me: I look at the market every day because I look for opportunities. But I don’t stress, because nothing I own needs to work this week. My portfolio secured pu

Since 1950 there have been 19 midterm elections
The S&P 500 was higher 12 months later after ALL 19 of them
Eisenhower to Biden. Wars, recessions, inflation, rate hikes... 19 for 19
& the midterms are Tuesday
Now let me be honest. 19 for 19 doesn’t mean 20 for 20. This year has its own risks. There’s talk of strikes on Iran right after the election & oil is still over $100
So I’m not saying “the market can’t go down.” It definitely can. The next few weeks could be rough
But markets hate uncertainty more than bad news. After Tuesday we’ll know who won. Soon after, we’ll probably know what happe

Warren Buffett’s average return is 19.9% a year
Not 300%. About 20%
But he did it for about 60 years. That’s what made him one of the richest people on earth
Meanwhile the guy who made 300% on calls last year is usually down 50% the next time the market drops 10%
That is the post...
Build a 2 sided portfolio.
The "big one" will eventually come.

The next 42 days might be the most uncertain stretch of the year
Midterms on Tuesday. Talk of strikes on Iran after the election. AI spending fears. A Fed that might hike in December
But here’s what I keep coming back to... in 42 days, most of that will be KNOWN
We’ll know who won. We’ll likely know if there’s a deal with Iran or more fighting. We’ll know what the Fed did
Markets hate not knowing more than they hate bad news. Once it’s known, it gets priced in & the market moves on
Since 1970, the S&P has averaged about 14% in the 6 months after midterms vs about 6% in other years
I’m expectin