The BEST Investment Strategy [Stock Market]

The best investment strategy. Let's say when Tesla  was trading at about $900 and Amazon was trading  

at about $3,500 you thought that those stock  prices were expensive and you didn't want to  

buy tesla 900 or amazon at $3,500 instead what  if there was a way where you can agree to buy  

those positions at a significantly reduced  price and also collect money for waiting  

that's what happens when you sell option  premium what you could have done is you  

could have sold a put option with the strike  price of 600 and you could have collected a  

few hundred dollars a premium or you could  have agreed to buy amazon at three thousand  

and collected about six hundred dollars by  selling a three thousand dollar put option  

David Jaffee with  and in this video we're going to discuss  

the best investment strategy where you are  paid to buy a stock at a reduced price and  

you're also paid for your time the strategy  that I'm talking about is selling put options  

at I prefer to sell put  options on large cap market leading stocks  

at a strike price that are about 10 to 20 below  the current market price the problem with this  

strategy is that a lot of people since they get  accustomed to winning they end up selling way too  

many contracts and they run out of buying power  and then when the market corrects or pulls back  

by 10 or 20 percent they end up being forced to  close out those positions for large losses but as  

long as you're able to protect yourself against a  large volatility expansion event or a large market  

downturn then you can earn around 30 to 45 to 50  percent every single year by selling put options  

and in the worst case scenario if you want to run  a wheel strategy where you sell very far out of  

the money put options you then take assignment of  the position and then you would sell covered calls  

against it and then simply wait for that position  to get called against you that's completely fine  

the wheel strategy is a viable and legitimate way  to earn alpha returns that are going to exceed the  

s p 500 index because for example what you would  do amazon right now is trading at about 3 100  

you can sell a 2 800 put in amazon with  an expiration of two to three weeks out  

then if the market corrects you can take  assignment of amazon at twenty eight hundred then  

you can sell short dated calls against that with a  strike price of around twenty nine hundred or 100  

more than the current market price by doing that  if the position gets called away from you then you  

will not only realize the capital appreciation  of the increase in the underlying stock price  

but you will also realize the benefits of the  collection of premium by selling that call option  

so in my opinion this is the best investment  stock market strategy and if you don't want  

to use margin because yes margin is risky then  you can simply just utilize the wheel strategy  

this is David Jaffee with  you can go to  

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best investment stock market strategy  is and I appreciate your attention.