InvestingWithBrandon

Retail investor: I could never hold through a real crash. I'd fold.
Me: You know $META fell from $382 to $89, right? Late 2021 to November 2022.
Retail investor: I remember. Everyone said the company was finished.
Me: 77% down. "Zuckerberg burned it all on the metaverse." Headlines were brutal. & at $89... would YOU have bought?
Retail investor: Honestly? No shot. It felt like it was going to zero.
Me: That's the thing. It was still printing billions in profit at $89. The fundamental BUSINESS value wasn't down 77%... the share price was. Very different... Price fell way below fair value.
Retai

Just because YOU decided to be a big bad investor does not mean the market cares...
5 to 10% drops happen almost every year
10 to 20% drops happen almost every 3 years
20 to 40% drops happen almost every 8 years
40%+ drops happen almost every 25 years
What is my point?
Despite the volatility, every crash was opportunity to capitalize for the investor that kept ratios in check and knew what they owned and what hey owned it.
Those with emotions and ratios out of whack? SMOKED...
Please understand the market will be volatile going forward.
It's going to happen.
But the prepared investor will se e

Someone paid me $10,203 to agree to buy their $TSM shares at $310... 2 years from now.
Breakeven? $259/share
Say that out loud. It sounds fake
They handed me $10,203, instantly, for a PROMISE
A promise to buy a company I already love, at a price I'd be thrilled to pay
If $TSM never drops there? I keep the $10,203 for nothing.
If it does? I buy a great company at a discount... & STILL keep the $10,203
& 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.

Retail investor: I can't figure this market out. $Q was at $558 not that long ago & now it's pushing $718. Nothing makes sense.
Me: What do you think changed between those two prices?
Retail investor: I mean... something big must have, right? That's a 30% swing.
Me: Has the EPS growth been strong this year?
Retail investor: ...VERY
Me: So the market fell below fair value in April & at the same time EPS growth is VERY strong & you are shocked the market made a big move like this?
Retail investor: Honestly... when we say it that way it all makes sense. There is just so much noise online it's har

If you're reading this & you sell cash secured puts... I need you to do one thing.
Add up every dollar of cash you've had parked as collateral over the last 5 years.
Now pull up the $Q chart for those same 5 years.
That's what your collateral missed.
Not what you lost. What you never got. It doesn't show up on any statement, there's no red number, so nobody ever counts it.
You won your trades. Most puts expired, you kept the premium, high fives.
BUT! your collateral sat next to one of the best 5 year runs in history earning essentially nothing.
I ran the same trades. Same strikes. Same premium

Walk into a bank with $120k.
Buy a CD, collect your 4%.
Then ask to ALSO use that same $120k as a down payment on a rental property...
They'll laugh you out the building.
"You can't have your money in two places at once."
But that's exactly what I do every single month.
My shares ( $VOO / $Q ) sit there compounding ~11% a year.
Those SAME shares secure the puts I sell for another ~15%.
Same money. Two returns. Never on margin. Ratios always in check.
That's how 10% quietly becomes 25%.
And 25% is the difference between $1M and $61M over time.
Portfolio secured puts will change your life.
This i

25% a year turns $1,000,000 into $61,000,000.
11% turns that same million into about $8 million.
Same money. Same years. That gap is $53 million & it comes down to one thing... whether your collateral was allowed to work.
This is the cash secured put vs portfolio secured put.
A base of $VOO & $Q does the 11% on its own on average in the long run. That part's easy & almost nobody argues with it.
The other 14% ish comes from selling puts with my base portfolio securing it, not cash.
Same money. "Two returns." Not collecting margin interest. Ratios always in check to be fine in DEEP crashes.
That

Do this exercise on the chart.
(it might cost you your favorite options strategy)
Pick any point on $NVDA's 5 year chart. Now draw a horizontal line about 5% above it. That's your covered call strike.
Watch how fast the chart blows straight through your line.
That's your shares getting called away. Everything above the line belongs to whoever paid you a couple hundred bucks for the call you sold them.
Now find the red stretches on the same chart. Where was your "protection" there from the CC? The premium covered a sliver. You ate the rest.
That's the covered call on a great company. It caps th