InvestingWithBrandon

Retail investor: I sold weekly puts on this hot AI stock because the premium was HUGE. Now I’m getting assigned
Me: What does the company earn?
Retail investor: ...it’s not profitable yet
Me: So what’s it worth?
Retail investor: idk...
Me: That’s the problem. You didn’t sell a put on a business. You sold a put on a premium
Retail investor: but the premium was like 4% a week
Me: The premium was huge because the risk was huge. The market was literally telling you
Retail investor: so what do I do now
Me: Ask yourself if you’d buy it today with cash. If the answer’s no, you now own something you n

🟢How to fix your portfolio for 2027:
NO Day trading
NO Swing trading
NO Covered calls
NO Cash secured puts
NO BS
INSTEAD, I DO THIS:
- Build base portfolio (SP500, Nasdaq, Elite companies)
- Sell portfolio secured puts (not cash secured)
- BUY shares with the premium from sold puts
- Buy LEAP calls with the premium from sold puts
(all options durations are 1+ year long)
(much safer, easier, profitable, & reproducible)
Keep ratios in check to be fine in DEEP crashes.
Simple wins.

If I could send one message to myself at 20, it's this:
Stop.
Stop day trading. 99% lose. You are not the 1%.
Stop selling covered calls on companies you are bullish on.
You're capping the upside which is the sole reason you bought the shares.
Stop parking cash to secure puts. Your base portfolio shares can do that job while they compound. Cash secured is the "underperforming" version.
Portfolio secured with ratios in check is better.
Stop buying weeklies.
Nobody knows what happens by Friday.
Not even the CEO.
Most people underperform the SP500.
Be careful listening to the "experts"
Stop looki

I had a post about portfolio secured puts blow up recently, and there are a bazillion questions about how this actually works.
So let’s make this crystal clear.
Someone has $1,000,000 invested in the S&P 500.
They sell puts with a total assignment value of $500,000.
They have ZERO cash sitting in the account. Just shares.
Now imagine the S&P 500 gets absolutely smoked and falls 50%.
Their $1,000,000 portfolio is now worth roughly $500,000.
How much are they potentially on the hook to buy through their puts?
$500,000.
So where does the cash come from?
They sell shares from the existing portfoli

Unpopular but obvious opinion…
In order to allocate to any single company, it MUST be much more compelling vs the SP500.
If it’s not, your taking on single stock risk and not being compensated for it.
The hurdle right now:
SP500 forward PE = 18.8
YoY EPS growth = 30%
2027 FY expected EPS growth = 16%
Diversification = 500 ish companies
If the single company you have your eyes on is not orders of magnitude more compelling than that… your taking on risk and not being compensated for it.
$VOO

HOW I’D INVEST $100,000 AFTER LAST WEEK’S AI SELLOFF:
(works at almost any size)
$35k $VOO
$35k $Q
$20k great companies growing earnings that got cheaper last week
$10k leap calls
That’s the base. It never gets sold
Then how bullish overall I am decides what I do next:
Bullish = keep buying shares
Really bullish = sell 1+ year portfolio secured puts
Max bullish = buy some 1+ year call options
No margin, no covered calls, no cash secured puts, no weekly options & no gambling.