0:16 [Music]
0:18 Hello everybody. This is Goldfinger from
0:20 the Goldfinger Minute. Today I have an
0:24 interesting guest. This is Kevin Tucker.
0:26 And I have mentioned Kevin Tucker in the
0:28 past on my lives. Uh but we're gonna
0:30 first uh let him introduce himself, give
0:32 a little bit story behind how he got
0:33 here, why he got here, and then we're
0:35 going to go into interesting subject
0:37 what he does when he's here. Kevin,
0:38 welcome. Well, thank you very much for
0:40 having me, Goldfinger. This studio is
0:42 very nice. Thank you. This this is
0:44 professional, guys. Yeah, we we went all
0:49 out. So, uh, you know, I I worked for a
0:52 company in the US and, uh, the boss
0:55 decided to retire at the end of
0:58 2021. And so, I was out of a job. So, I
1:01 just went ahead and, uh, sold my house,
1:03 sold everything, got in an RV, went
1:05 around the US for a year, and then uh,
1:07 decided to come to the Philippines. And
1:11 I I got here in uh, late December,
1:14 December 19th, 2022. So, you had the
1:16 financial wherewithal to go ahead and
1:20 not have to work at the moment. Yes. So,
1:22 and I'm only 59, so I'm too young to get
1:25 social security. A youngster. And that
1:28 was that was two years ago. Well, 2021
1:30 was the last year I've had a real job.
1:32 Oh, okay. So, that was four years ago.
1:36 Yeah. Yeah. And you're 59 now. Okay. So,
1:38 you were very young. Yeah. Yeah. So,
1:39 that's good to retire young. And I'll
1:42 tell you why real quick. I've met many
1:43 of people that said they wish they had
1:46 retired younger. Now they're too old to
1:49 travel. They have illnesses, you know,
1:51 they have to go in for they might have
1:55 uh uh blood trans transfusions. They
1:57 have to go I forgot the name of it, but
1:58 uh they then they have other problems
2:00 that they have dialysis. Dialysis. Thank
2:04 you. And uh and and unfortunately
2:06 they're they're also get as we get older
2:08 we get afraid to to get outside our
2:10 comfort circle. Sure. So go ahead and
2:12 tell us more about I'm you I don't want
2:15 to interrupt you too much. Um well, you
2:16 know, and that that's the main reason
2:18 why I wanted to do this. I mean, I I
2:20 travel a lot here. I'm gone anywhere
2:23 between one and three weeks every month.
2:26 Okay. You know, I've been to 18 islands
2:28 so far. That's quite a bit. And I've
2:31 been to two three islands.
2:33 Siki, I mean Yeah.
2:37 Siki and I I uh No, I didn't. I went to
2:39 I haven't gone to actually other than
2:40 landing Manila. I never saw any of
2:42 Manila. Okay. I was in the airport and
2:45 then I traveled to Sibu. Actually,
2:46 that's another island. So, that's three.
2:49 And I went to Boho. Okay. So, so I'm up
2:51 to four. Wow. Wow. You didn't even know
2:53 it. And And when you went to Sibu, if
2:55 you didn't take the ferry, you flew on
2:57 to Mckan. So, that would be fun. Yeah.
2:59 Yeah. That's true. That's true. That's a
3:01 separate island. That's true. So, uh,
3:03 which island did you find the most
3:04 interesting that you'd like to go back
3:06 to? you know,
3:10 um, all of them been really cool. Um,
3:15 Mindanao is so big and, uh, it has
3:17 different climates and everything. I
3:18 went all the way around. I flew into
3:20 Dva, went all the way up to Kagan to
3:23 Oro. So, it has elevations. Yes. Yeah.
3:25 You get up there and there's pine trees
3:27 and log cabins. You know, they have a
3:29 pink beach somewhere off the island.
3:31 There's a Yeah. All the coral ground
3:34 down to the sand and the whole beach is
3:36 pink. Wow. And it's only in Mindanao.
3:38 It's the only island has a pink beach. I
3:39 did not know that. Is interesting. I'd
3:41 love to visit that. Unfortunately, I
3:43 don't know if it's in the best of areas.
3:45 Hopefully, it's not down in Zambboango.
3:47 That's that's the that's a rough area.
3:49 Yeah, that's that's where all the uh
3:51 Muslim extremists are. Is that the ISIS
3:54 or is that something else? Um, actually,
3:56 it's funny. They had to change their
3:58 name because their original initials
4:00 were MILF. MILF. Oh, yeah. That's not a
4:02 good one to have, is it? Somebody
4:04 finally explained it to them. So, they
4:06 they'll attract even more foreigners,
4:09 right? So, um but yeah, that's that's
4:12 down there. And uh they sometimes they
4:16 will kidnap for foreigners. Yeah. For
4:18 for bounty for not so much bounty, but
4:21 uh they want money, right? For the
4:23 ransom. Ransom. Thank you. I'm lost for
4:25 words this morning. I haven't had enough
4:28 coffee. Uh, so and but you liked
4:32 Mindanao. Mindanao was was good. Um, I
4:33 mean I've even been to small islands
4:35 like Tablas,
4:38 uh, Ramblan and these are just little
4:40 bitty islands out in the middle of
4:42 nowhere where you've got a 10 kilometer
4:44 beach to yourself. Can you spend the
4:46 night? Yeah, there's resorts. So, it's
4:48 for it's a real vacation off on an
4:51 island all by yourself. Mhm. It's That's
4:52 cool. That was really nice. They have
4:55 food there. Yeah. Um, I stayed at a
4:58 resort owned by a German fellow, so it
5:02 was mostly German cuisine, but that
5:04 would be pretty cool. I I I would like
5:06 to do that, but I'm I'm really a home
5:08 person. I again, I have my new comfort
5:10 circle, which is Dumaguetti.
5:12 Unfortunately, we all create comfort
5:14 circles. So, well, and to get to that
5:16 island, we actually I can't think of the
5:19 name of the island that Elo's on, just
5:22 right next to us, but uh flew into there
5:24 and we had to take a bonka boat for two
5:26 hours to get to Tabla. So, bonka boats,
5:28 the little bitty boats with a bonka
5:31 boat. I never heard of that. So, they
5:33 have a boater, I assume, at least. A
5:36 very loud one. A very loud motor. That's
5:37 That's what you see all the fishermen
5:39 in. Those are bonka boats. Yeah, I could
5:40 hear them from the shore. They're pretty
5:42 loud. Yeah. But in Thailand, they have a
5:44 very interesting motor. They have
5:46 usually use a car engine with a very
5:48 long shaft and a propeller in the water
5:51 that they lift up and out. It's very
5:53 different. Yeah. In Thailand, it's very
5:54 different on the rivers than they are
5:56 here. Of course, they're they're in
5:58 rivers, so it's it's they don't have
6:00 waves, so it's a it's a thin, skinny,
6:04 long boat. Okay. Yeah. So, so your
6:08 favorite island was, you know, it's it's
6:11 really hard to say, but I've I've been
6:13 to all these different places and I've
6:15 never found any place better than here
6:18 for the combination of quality beef. You
6:21 got Brest, you've got Blair's in in
6:24 Valencia, you've got uh the name I can't
6:25 remember the name of the deli underneath
6:27 the Jade Dragon over there in North
6:28 Point. You know, you can get quality
6:32 meat here. The driving isn't too crazy.
6:34 only in downtown Dumagedi but here you
6:36 know Bong and Valencia yeah it's on
6:37 national highway is pretty wide pretty
6:39 easy especially in Bong and down because
6:42 it's double lanes right so and then on
6:44 top of that and a lot of people think
6:47 this is a negative but we have I mean I
6:49 would say other than Angela city and
6:52 Subi Bay only because of military bases
6:54 up there I would say we have more
6:57 foreigners per capita than any other
6:58 place in the Philippines here in
7:03 Dumagedi yes we Um, we got we got
7:05 Australians, Canadians, Americans,
7:07 Germans, everything. Russians, Germans,
7:08 Russians, everything. Yeah, I've seen
7:10 them all. They all come here. I'm
7:12 starting to see a lot of younger crowd
7:13 though. And a younger crowd is starting
7:17 to go to Sikihore now. Uh, yes. Bunch of
7:20 young Europeans. Yeah, that seems to be
7:22 the place to hang out. Usually they do
7:26 that because they have pot and other
7:28 young people, but I don't think they
7:30 have that much pot available in
7:32 Sikihore, but I could be wrong. That's
7:33 life in prison. You get caught over
7:35 here. Is it life in prison? Life in?
7:37 Yeah. They're pretty tough on drugs.
7:39 Yeah. Yeah. So, just go to Thailand if
7:40 you want to do that. Just pop over there
7:42 for a while. In Mexico, they had a very
7:45 a little area where all the all the
7:47 young uh digital nomads would hang out.
7:49 They're all young girls and guys. And
7:50 they'd surf. They had great surfing
7:52 right there and they just took over that
7:55 whole area. Wow. But heavy pot. You you
7:58 you you ride into there, you can't help
8:01 but smell it everywhere, you know. But I
8:02 don't think that's going to happen in
8:04 Sikihore. So I don't know what the total
8:06 attraction is other than young people
8:08 like to be with young people. So yeah,
8:10 there's more Europeans on Sikihore than
8:12 than US. I think there's a lot of bars
8:15 too now. Yeah. Everything in San Juan.
8:17 That's that's all bars. I mean I love
8:20 Sikihore. go. I used to go once a month.
8:22 Really? Yeah. Wow. But then lately I've
8:24 been going to Cipilai on the other end
8:26 of this island. Okay. And uh you know
8:29 here we get sunrises cuz we're facing
8:32 east, but Cippili is facing west and the
8:35 sunsets there are just incredible and uh
8:37 beautiful sunsets. Yeah. I I found a
8:38 resort there that waits on your hand and
8:41 foot. They have a decent steak and and
8:42 everything. Do you remember the name of
8:45 the resort? Yes. It's um Gosh darn it.
8:47 No. Well, you'll you might come with it
8:49 if you do later on. Just It's actually
8:53 in Hanoba on and uh if you pull it up,
8:55 God, if you if you just if if you go to
8:58 Google Maps and pull up uh resorts in
9:01 Hanoba on u it'll it'll come up. It's
9:03 It's like the biggest one. Sounds
9:05 interesting. It sounds like a great
9:08 place to go visit. I can't take a a a
9:11 quiet island for too long. Okay. A week
9:13 is too long on an island that doesn't
9:16 have a whole lot to do. A couple days,
9:18 three days is fine. Now, when you go to
9:21 Sikor, do you take your bike or do you
9:23 uh No, I take the ferry, go over and
9:25 rent a bike. Rent a bike. That's what I
9:26 tell people to do. You know, I've been
9:28 over there so often that I know
9:30 everything to do. So, I'm a fun person
9:32 to go to Sikihore. Okay. Yeah, sounds
9:34 good. So, you know all the places? Yes.
9:36 All the the caves. I've never been
9:37 through the caves. Darn it. I miss the
9:39 caves. You I've been there twice and
9:42 both times I miss the caves. The cave is
9:45 not for older, bigger guys. Like I'm
9:50 6'2. Yeah. There's a the first
9:53 probably 5 mters or so. It's only 3 ft
9:57 tall. Is it lit? No. Is is is the water
9:59 I understand is very clear. The water is
10:02 clear. Um you know you got to you have
10:04 to go in with a guide. Normally two
10:07 guides will go in with you and uh yeah
10:10 you walk right right through the water.
10:11 Oh, you walk through the water. Oh, I
10:14 thought they were on a boat. No, no. In
10:16 Sikihore, you just walk through there.
10:17 You walk through the water. It is. Is it
10:20 cold or warm? It's pretty cold. I bet it
10:23 is. Yeah. So, is it fresh? It is fresh
10:25 water. And they do have fish in there.
10:27 They've got some blind uh I I think they
10:28 were catfish. I don't remember exactly.
10:29 I'm surprised they let you walk through
10:31 it because you would think that you'd be
10:33 in introducing bacteria or things to the
10:36 water. Well, you know, they don't really
10:38 think about some things. How deep is it
10:40 that you're walking through? Um I think
10:42 the the deepest
10:44 waist knee high. Knee high. Kneeh high.
10:46 Oh, so it's not real high. Waist high
10:53 And uh what else do you do here? Uh on
10:56 on Sikihore or? No, no, here in Dubai.
10:58 Uh well, I'm pretty fortunate. I live in
11:00 a nice place. I live right on the beach,
11:03 so I can go swimming anytime I want.
11:07 Um, you know, I just, uh, hang out with
11:09 with some friends in Valencia. That's
11:12 cool. Um, I had a friend come in, uh,
11:14 this last week. We went up to, uh,
11:16 Pulang Bato Falls on the other side of
11:19 Valencia. You know, the the, uh, sulfur
11:20 rocks and everything. Yes. Yes, I've
11:22 been there. So, it's up towards Red
11:25 Rock. Yeah, same road. Same road. Okay.
11:27 Yeah. I used to live up that way. So, I
11:30 know something you do keep you busy.
11:32 go ahead and tell us about your trading. Okay.
11:33 Okay.
11:35 Um I thought you were going to go with
11:38 something else actually, but you can you
11:39 can talk about something else if it is
11:42 on your mind. Wow. No, but um what I do
11:44 again I haven't had a real job since
11:49 2021 and uh I've started uh trading
11:51 stock options. I first started out I'm
11:53 self-taught on everything. I started
11:56 doing this started doing this in 2020
12:00 and uh at first I just bought stocks
12:03 uh looked at at uh day trading that
12:05 wasn't worth it went to swing trading
12:08 then I found out about options and it's
12:10 uh it's very interesting only about 1 or
12:12 2% of the population of the world even
12:14 knows how to do this and it's a shame
12:15 this should be taught in every high
12:18 school I tell you I did it myself but
12:21 we're talking over 25 years ago okay it
12:23 was before the year 200 000 I did it.
12:25 So, well, no, actually, no, that's not
12:29 true. 2005, 2007 I did it. So, uh Did
12:30 you still have to call a broker back
12:32 then to do it or or was it online? No,
12:35 it was online brokers and I had high
12:38 level. I was able to put puts, calls, um
12:40 butterflies. I did all that stuff. I
12:41 actually took classes back then. There
12:44 was nobody that did it and very few
12:46 people did options. And I made a lot of
12:49 money at it actually. I did very well. I
12:51 have I got busy with my gold business.
12:53 So I I had to drop it because it was New
12:55 York. I was in California. So I'm
12:57 getting up at 5 5:30 in the morning and
13:00 doing one job, one hat. And then around
13:02 9 or 10 o'clock, I have to knock off of
13:04 that and do my other hat. Oh yeah. I
13:06 couldn't keep them both up. And the gold
13:08 business gold went up and I had to drop
13:10 something. So I dropped that. But I
13:12 actually started because gold was very
13:14 low. But gold went up so high I I got
13:18 very busy. Now in stock options, you do
13:20 you use all the you have more than one
13:24 screen? Um, no. I mean, I do the the the
13:26 simplest thing possible. What I do is
13:28 called the wheel strategy. Okay? And
13:29 there's tons of videos on this in
13:32 YouTube, guys. You you can pull this up
13:34 and uh it's very easy. And that has two
13:37 strategies involved to that. Okay? The
13:40 first uh so when you get started, you
13:42 don't own any stock. So, you would start
13:44 with selling cash secured puts. That
13:47 means you have money and what you're
13:49 doing is you're making a deal with a
13:52 pessimist for to buy a stock that you
13:55 like. So, I'll put it this way. So, say
13:58 you own a stock that's $10 a share. You
14:00 actually don't own the stock, though.
14:01 I'm going to correct you on that. You
14:04 know, you have the option. Well, I'm
14:05 saying you own the option. I'm I'm
14:07 saying you own the stock. Yeah. I make a
14:09 deal with you. Oh. Oh, and the other
14:11 person owns the stock. Yes. They own the
14:12 stock. I have to put up cash as
14:15 collateral. Okay. in the beginning. So,
14:18 um, what I do is say you bought the
14:20 stock. The stock is $10 a share. Okay? I
14:23 like it at $10 a share. Wouldn't mind
14:25 buying it. You know, always do this guys
14:27 with something you know. Okay? You know,
14:29 a stock you know you like. You wouldn't
14:32 mind buying it at the today's price.
14:34 Well, on Monday, I make a deal with you.
14:37 Say, "Okay, Goldfinger, the stock is $10
14:40 a share. Tell you what, on Friday, I'll
14:43 buy at least a hundred shares for from
14:44 you. That's what an option contract
14:47 consists of. 100 shares is an option.
14:50 And so I say, I'll buy that from you on
14:53 Friday if it drops to $8.
14:56 And believe it or not, Goldfinger will
14:59 pay me to make that deal. He will pay me
15:03 cash for me to buy a stock from him that
15:06 has to drop 20% for me to buy it in one
15:09 week. And in a perfect world, I never
15:11 buy a single share of stock. No, you
15:13 know, the deal expire most of the time.
15:16 If you go down with a far enough delta
15:17 and they've got Greeks and things like
15:19 that, it basically tells you what
15:22 percentage uh the likelihood of you
15:24 getting assigned. I don't remember all
15:26 the different what do they call them?
15:28 The Fibonacci the was it the Greeks? The
15:31 Greeks. They have Fibonacci. They have
15:32 all kinds of stuff. It's been a long
15:34 time. I don't remember all the names.
15:36 Uh, we used to look, now you're doing
15:39 puts. I used to do mostly calls, but we
15:41 looked for the M. Okay. We look for
15:44 three tops. Okay. Okay. And and we watch
15:46 a I watch a stock for a while now. I
15:48 did, and I'm not going to be as good as
15:50 you because I haven't been doing it for
15:51 many years. It's been a long time, but
15:54 as I remember, uh, we did swing trading.
15:56 We didn't do day at all. It was too too
15:59 risky. Yeah. Uh, day. And so I would do
16:01 swing. swing training to me and correct
16:03 me if I'm wrong, it was for me it was
16:05 like more than a week usually three or
16:08 three days up to three days up to like
16:09 two months. Two months. Three months.
16:11 Yeah. And just kind of watch it. But you
16:14 you do have to you put in stops, right,
16:16 to protect yourself. And I was told that
16:19 if I won two, if I made money on two out
16:22 of 10 options, I'd be making money. And
16:24 I did. And usually I'd do better than
16:26 two, but they said at two, your your
16:29 your break even is at two. And anything
16:30 better than two, you'll make money. Does
16:33 that still hold true, would you say? I
16:36 mean, for me, you you were doing way
16:39 more than I was. The things that I do
16:41 are it it's so simple. You're you're
16:42 just got it down to a cookie cutter that
16:45 works. Yeah. What I try and do is uh
16:47 when I'm doing cash secured puts Uhhuh.
16:49 Uh and that means I don't own the stock
16:50 yet. I try and pick a
16:53 delta, go down far enough on the strike
16:55 price. Like I said, normally on a $10
16:57 stock, it'll go down in 50 cent
16:59 increments. Okay. And each increment you
17:02 go down, like he if you own it for 10,
17:04 if I say I'll buy it at 950, then I've
17:07 probably got a 60% maybe higher
17:10 probability of it dropping and me having
17:12 to buy that stock. Everything has highs,
17:15 lows. Well, what I do is I go down and
17:18 pick a delta, a strike price, say $8,
17:21 where I am making anywhere between one
17:23 and a half and 1.8% on my money every
17:26 week. Okay? So, think about that. If if
17:29 you're making 1.8 8% on your money and
17:32 the deal expires harmlessly 80 to 85% of the
17:33 the
17:37 time. 1.8% on your money is over 90%
17:39 annualized. Yes. That's without
17:42 reinvesting. It's 100%. It's easy. Yeah.
17:44 Yeah. 12 times 12. It's quite a bit.
17:48 Yeah. So, uh that's what I do. And if I
17:49 don't if you don't mind me asking, if
17:50 there's anything you don't want to say,
17:53 go ahead. But how much do you invest?
17:55 Well, it it does take money to make
17:58 money. Yes, it does. you know, and and
18:00 uh I do I do have a pretty good amount
18:02 that I play with. Can you give us a
18:05 range or a number what what it takes?
18:07 Well, are we talking
18:11 $50,000, $100,000 or more? Oh, more than
18:14 that. Every week. Every week. More than
18:16 Now, you have a portfolio of a certain
18:19 value. Yes. You I was always told only
18:23 to risk 10% at any one time of my That's
18:25 what I was told. I don't know if that
18:28 holds true. Do you risk more than 10% of
18:31 your total assets? I uh do about 70%
18:33 every week. So you you're in to 70%
18:35 which is and honestly I'm gonna be
18:37 honest. Okay. So just kind of give you
18:39 an idea. It's been a long time since I
18:40 did it. It's hard to remember. It's over
18:44 15 years. But I had a I had about a
18:46 100,000 portfolio. That was the most I
18:48 was willing to put into it. Uh after I
18:50 tried it for a month. And you could try
18:53 it uh when you have a brokerage. You
18:55 could try it with with not real money
18:58 like you could create a fint or fake
18:59 account and start with a hundred
19:01 thousand or even a million if you want
19:02 and you practice that way and that's how
19:04 you I had a practice for about a month
19:06 or two. I don't remember how long. When
19:07 I finally went into it and I saw that I
19:09 was making good money in the first
19:12 couple weeks. I put 75% of my money in.
19:15 Yeah. And the 75% made me and it scared
19:18 me a little bit honestly. the 75% 75,000
19:20 of my 100,000 portfolio when I actually
19:22 put a 100,000 transferred from my bank
19:25 account to the brokerage and I invested
19:27 75 which you're not supposed to do.
19:30 That's what I was told but of course we
19:32 get greedy and we're human. Okay. It
19:35 works. And I made 28,000 in less than a
19:37 month. I think three weeks. Yeah. And I
19:40 was like shocked.
19:42 I've taught 18 people how to do it here
19:47 in Dumagetti. And uh my longest tenure
19:50 protege made 88% on his money last year.
19:52 Good. Gosh. And uh how much are they
19:53 investing? Let's go talk about that.
19:56 Well, all of them started small, you
19:58 know, couple thousand. Just a couple
20:01 thousand dollars. Okay. And uh but then
20:02 after they get their feet wet and they
20:05 see they practice a little bit a few
20:06 times, see if they're winning, losing.
20:08 Right. Do you go over your losses or
20:10 over your wins? And I used to write it
20:12 down. This is I can only tell you what I
20:14 was taught. You write down what why you
20:15 bought why you bought this particular
20:17 stock when you bought it, what the price
20:19 was, what your theory of what it's going
20:21 to do, what you base it on, and then
20:22 when you finally sold it, whether it
20:24 made profit or not, you you just you you
20:26 write down. Do you do any of that? I
20:28 spend 10 minutes a week on this. That's
20:30 all I do. So, you've been doing it for
20:32 how long though? Uh, this will be my
20:33 fifth year. Okay. So, you've been doing
20:35 it. I did it for months. I think I did
20:37 it only for about three months. So,
20:39 that's probably why. I think after a
20:40 while you would probably know if you
20:43 made a mistake or not. Why? Well, the
20:45 good thing is like if when I if I teach
20:47 you, you're going to learn from all my
20:50 mistakes. Like I said, I'm self-taught.
20:53 Uh made mistakes, got greedy. Greed is a
20:56 bad thing with with options. If you
20:57 don't go down far enough on that strike
21:00 price, like I said, in a perfect world,
21:02 I will never buy a single share of
21:04 stock. If you never own a single share
21:06 of stock, if the market crashes or
21:08 something, say Trump puts tariffs on
21:10 something like that, the market crashes,
21:11 which happened recently, so your
21:14 portfolio can just take a beating, you
21:16 know, now you're stuck with stocks,
21:18 uh, where you would do the next
21:20 strategy, you would get a sign, you'd do
21:22 the next strategy, which you mentioned,
21:24 covered calls. Uhhuh. And uh but if it
21:27 drops far enough down to where nobody's
21:29 even interested in making a deal with
21:31 you for the price you paid for it, then
21:33 you can't make a premium. Your portfolio
21:34 is down this much. You got people
21:36 freaking out and selling everything. So
21:38 we're talking about stuff that a lot of
21:39 people won't know what a covered call
21:41 butterfly or any of that stuff is. Well,
21:43 and they won't understand it because you
21:45 could buy and sell the same stock. Yes.
21:47 At different prices. Yeah. You can
21:49 actually do a put and a call at the same
21:51 time. If you own the stock, you can do
21:53 the call. But that's okay. So covered
21:55 calls, that's the second strategy. So
21:57 let's just say on Friday the stock
22:00 dropped to $8. So I got assigned. I had
22:02 to buy a 100 shares of stock for you
22:05 from you. What I do on the following
22:07 Monday is okay, I made a deal with you.
22:09 You were pessimistic. What I do on
22:12 Monday, I make a deal with someone who's
22:14 uh optimistic, an optimist, you know,
22:17 and so what I do is I put the covered
22:20 call up for the same exact price that I
22:22 paid for it. I'll put it up for $8 a share.
22:25 share.
22:28 Now, three things can happen when you do
22:30 this. Um, now the the optimist, he's
22:33 hoping he's going to pay me $8 a share.
22:35 He's hoping it goes to 10. Even if if it
22:36 goes to 10, I still have to sell it to
22:39 him for eight, right? That's the deal we
22:42 made. But by me putting it up for the
22:44 same price that I paid for it, I'm
22:46 getting premiums, which that's the money
22:48 that that I get paid to do the deal,
22:51 anywhere between five and 7% for that
22:54 one week. Okay. Okay. So, I'm happy to
22:56 do that. So, so you end up owning the
22:59 stock. I got a Yeah, I got a sign from
23:02 you. I never did. I never actually owned
23:04 the stock. Really? No, I didn't. I just
23:08 I just did I just did options. I never
23:10 actually purchased or owned the stock.
23:12 Well, you did well if you never got
23:14 assigned and never had to actually buy
23:16 it. I didn't have the money. I didn't
23:17 have the money to I mean, you're dealing
23:20 in I'm sure thousands of shares. So, I'm
23:23 sitting on about 40,000 shares of Yeah.
23:25 I never went that big. I'm I was It made
23:27 me nervous. Okay. I I'm not good. Even
23:29 though I grew up in Las Vegas and I
23:32 gambled uh I didn't gamble to win. I
23:35 gambled for the entertainment purposes
23:36 and it's like h so I lost a couple
23:38 hundred bucks. It's no big deal. I would
23:41 never lose 10 or 20 or 50,000. I've been
23:42 with guys sat next to them and they I've
23:44 seen them drop. They don't seem to worry
23:46 about it, but I I I couldn't do it. I
23:49 couldn't do it. So, uh I couldn't pull
23:52 the trigger, let's say.
23:53 No, you know, I got to see if my air is
23:55 on. It feels warm here. Let me make it a
23:58 little cooler. It's on 27. Yeah, 27. I'm
24:01 going to drop it to 26. There you go.
24:03 So, you know, so what I do the next
24:07 week, put it up for sale. And I'm hoping
24:10 that it I don't care if it goes to 10. I
24:12 just want to get rid of it. I want to go
24:13 back to my
24:15 cash. I don't ever want to own. I'm
24:17 surprised you don't ask more like nine
24:20 for it. Well, you'd make a lot more
24:23 money. I would, but say, "What if it
24:26 drops to seven the next week and it
24:27 keeps going down?" Then they're going to
24:29 ask you for what do they call it when
24:31 they they ask you for additional funds
24:33 to back up your position? Well, that'd
24:35 be a margin call. Margin call. Yeah. But
24:37 but no, I mean that wouldn't that
24:38 wouldn't be the case. It's just because
24:40 you own it because I own the stock.
24:41 Yeah. You don't have to have a margin
24:43 call. You're not on margin. And that's
24:45 only if you borrow money to do it. So I
24:49 had told uh I had told Kevin that I'm
24:50 going to be coming over his house to
24:52 learn. Of course I don't even have a
24:53 brokerage account anymore. So the first
24:54 step, of course, I have to get a
24:56 brokerage account. Yes. Uh you don't
24:58 have to put a lot of money in it. You
25:00 could just start practicing on the fake
25:01 account that let you create a fake
25:03 account with any amount of money you
25:05 want. And you can you have full access
25:08 live as it used to be full live uh
25:10 access to all the stocks and and and the
25:12 options you buy and sell, but you just
25:13 don't make any money. You don't really
25:15 lose any money. You're just practicing.
25:17 That's probably be my first step, you
25:20 know, and I I can show you a $5 stock to
25:22 where most you got to put up is $500
25:25 because it's a 100 shares and start with
25:27 that. All right? You know, that's what
25:29 most of my friends did and they just
25:32 slowly but surely put more in.
25:36 So, have you have anybody that's that uh
25:37 how many people have you taught? Let's
25:38 go back a little bit. You've taught
25:41 worldwide or No, no, here in Dumageddi.
25:44 Uh you'll be 19, I believe. I'll be 19.
25:46 Okay. And of the n Well, now count me.
25:48 Of the 18 that you you you did teach,
25:50 how many are still doing it? Do you
25:53 think all of them? So, if they're still
25:54 doing it, I have to assume they all did
25:58 well. Okay. They enjoyed it. Are they
25:59 doing exactly what you're doing type of
26:01 thing or are they doing it different?
26:02 Some of them are actually doing the same
26:05 stocks that I do, which you know that
26:07 always makes me nervous because I've
26:08 been dealing with these stocks for five
26:10 years. I'm prepared. They're very
26:12 volatile. And that has a big That's the
26:14 advantage. You want a volatile stock.
26:16 Yes. The more volatile it is, the higher
26:17 your premiums are going to be. You know,
26:20 that's that's one of the Greeks that you
26:22 use is volatility. Yes. Uh because you
26:24 want you don't want a stock to stay.
26:26 You're not buying IBM. You're not going
26:28 to buy IBM, Proctor and Gamble, nothing
26:29 like that, you No, you want an upand
26:32 cominging stock. Uh, usually it's
26:34 electronic which are volatile. Back in
26:36 the day it was it was electronic. I
26:37 don't know what it is today, but there's
26:41 always been uh and oranges because of
26:43 Florida weather commodities.
26:45 Commodities. All commodities. So, you'd
26:46 have to look up commodities, but that's
26:50 precious metals as well and and uh pork
26:51 bellies and things like that. It's been
26:55 a long time. I I deal with a lot of uh
26:58 stocks that are tied to Bitcoin. Okay.
27:01 And so, and Bitcoin's been quite active,
27:04 too, lately. Uh, it's it's it got over
27:05 100 grand again. So, it's probably
27:07 around right around 10. I think when I
27:09 got in bed last night, it was 102 103
27:11 somewhere. When I came over here, just
27:14 before I left, and that's about Well, I
27:16 went to Mexico. So, before I went to
27:18 Mexico, I owned some Bitcoin and I sold
27:20 it. I think I owned two or three at
27:23 $2,000 each. I owned the whole coin. Two
27:25 or three,000 each. And then when I went
27:29 to Mexico, I sold it off. 2,000 a
27:32 peach. It's like sad, but that happens
27:34 with a lot of people. Some people lose
27:37 the the the the memory card or whatever
27:39 where they have the ability to collect
27:41 on their Bitcoin. I've seen people
27:44 stories back in the day when, you know,
27:46 people bought Bitcoin for a penny a
27:48 piece and they're they're they're
27:49 trading a hundred Bitcoin for a
27:51 delivered piece. It started off as it
27:53 started off at at five cents as I
27:55 remember. Yeah. And start off five
27:56 cents. And there's people that had them
27:58 and sat on them for 20 years and threw
28:00 the computer in the trash along with the
28:03 hard drive and then and then they start
28:04 digging through the trash. There's a
28:06 story about a guy dug through the trash
28:08 for days and days and days. Could not
28:11 find his computer. Wow. Yeah. That's a
28:14 shame. Yeah.
28:18 He had he had uh he had bought like $50
28:20 worth at five cents.
28:23 That's a lot. Wow.
28:25 Then he'd be a trillionaire. 20. So
28:27 what? That'd be a thousand bitcoins. A
28:31 thousand times a nickel. Five 50 500
28:35 5,000. Uh yeah, that' be it'd be Oh, no.
28:37 Thousand. A thousand coins at 5 cents.
28:39 Yeah. Thousand times a
28:43 100,000. A million. Is that a million?
28:45 Uh or is it 10 million? 10 million. 10
28:48 million. Yeah. He's killing himself.
28:49 There's stories about it. There's
28:51 stories on that, but we're getting off
28:53 the subject. So, how long does it take?
28:55 How many lessons does it take for
28:59 someone to learn the basics of it? Uh,
29:00 not me because I I'll probably pick up
29:02 on it fast. I just don't remember all
29:04 the words, uh, the names of everything.
29:06 But if someone doesn't know anything at
29:07 all about trading
29:11 options, the longest it's taken any of
29:12 my people who lived here, a guy named
29:15 Sam, he was probably for about eight
29:17 weeks. Okay, so this is what I'm doing,
29:19 right? You know, and and if I help you,
29:21 you know, if if I teach you how to do
29:23 this, you can ask me questions anytime.
29:25 You you got my help. He doesn't bother
29:29 you. He doesn't. And how old was Sam?
29:32 Sam's my age, 50s, late 50s. I was
29:34 thinking maybe he's older. As we get
29:36 older, we get a little more cautious.
29:38 You know, we we treasure, you know,
29:40 we're on retirement. We treasure. We're
29:41 not not everybody's a millionaire that
29:44 comes over here. So, uh and here's the
29:47 big question. And how much do you charge
29:49 for the lessons? Absolutely nothing. Is
29:51 that incredible, guys, or what?
29:53 Absolutely nothing. He's been available
29:55 and I met him two years ago and said to
29:57 him, "Oh, yeah. I used to do options.
29:59 I'd like to do that myself." And now
30:00 it's I can't believe it's two years
30:03 later since I've met you. Yeah. Uh uh
30:05 you were at Ground Zero with the the
30:08 cute little at the time 19-year-old
30:13 uh 21. Was she 19 or 20? Oh, she was 21.
30:16 Okay. I I lied. cute little thing. And
30:18 uh uh and I said, "Oh, I'd like to learn
30:20 that." And I and I never even got back
30:22 with you. Two years now. Imagine where
30:24 I'd be today if I'd been doing it for
30:27 the last two years.
30:29 So, you can't You'd have a lot more
30:30 scooters in the driveway, that's for
30:33 sure, right? I wouldn't be needing
30:34 Carolyn does that, but I wouldn't be
30:37 needing scooter rentals, would I? Uh I'd
30:39 be probably talking to people more about
30:41 other than meeting other people, talking
30:44 about what they do. I'd be teaching
30:46 people how to trade, which actually
30:47 there are people on YouTube that do
30:49 teach you trading options. It's all
30:51 available out there. It's lots of
30:53 information available out there. So,
30:55 I'll be coming over. We're going to set
30:56 up a date and I'm going to take some
30:58 lessons. I'm sorry. How long do you
31:01 think it takes? Uh, how many lessons?
31:05 Um, or how long? I mean, how often? If
31:07 we sit down and since you got a good
31:11 idea, I mean, 15 minutes. No, seriously.
31:13 It's been a long time, man. I I remember
31:15 a few things. It might come back to me,
31:18 but it's been a long time and being
31:20 older. I'm going to be 69 in two weeks.
31:22 So, uh uh I'd like to do it again,
31:24 though, because now what are the hours
31:26 here? Because I used to get up at 5:00
31:28 a.m. in in Las Vegas because of New York
31:30 Stock Exchange. Are you exchanging on
31:32 the New York? Uh yeah, and the stock
31:35 market opens at 10:30 p.m. here. That's
31:38 a lot more doable. Yeah. Uh though I
31:39 might be tired. I could take a nap.
31:43 Okay. Well, when I do covered calls, and
31:45 that means when I own the the stock, it
31:46 seems like when the market opens on
31:48 Monday, that's the most optimistic it
31:52 will be at any point. 15 15 30 minute,
31:54 15 minutes. Yeah. First 15 minutes, five
31:56 minutes sometimes. Yeah. But because
31:59 threearters of the or 80% of the country
32:01 is still asleep, the only people are up
32:03 on the east coast and all that, you
32:05 know, because the market opens at 8:30
32:07 or whatever there. And so that's when I
32:09 do my my covered calls. Now, if I'm
32:12 doing cash secured puts, I'll I'll wait
32:15 until about 1:30, 2 in the morning to do
32:17 that because now you've got people in LA
32:20 who are awake. Everybody's digesting the
32:24 news. They wake up. Okay. And so I I
32:26 call it the bad times, but it seems like
32:30 from in the US it was uh 11:30 to 1:30
32:33 central time cuz I was in Houston.
32:36 um the market would start good, then for
32:38 that two-hour period, it'd go down a
32:39 little, and then like the last 20
32:41 minutes, it would go back up or
32:44 whatever. So, I said, I I do my my calls
32:46 early when I own the stock, and then
32:48 when I'm doing the puts, I do them
32:50 later. You know, you want to you want to
32:52 wait and let the price drop. Now, you
32:53 have to explain to people, they don't
32:55 know what a call or a put is, and they
32:56 don't know what a covered call is. So,
32:57 you have to give a little bit of
32:58 explanation of what you're talking
33:01 about. So the the covered call is when
33:04 you own the stock, you know. So, uh
33:05 that's where I'm making the deal with
33:08 the optimist. I'm selling the covered
33:12 call option and uh I'm doing it with an
33:15 optimist. Um my goal is to just get rid
33:18 of the stock. I put it up for the same
33:19 price I paid for it. I get a great
33:21 premium that week. I mean, if I make
33:24 five to 7% on my money, 7% in one week,
33:27 that's 360% annually. Crazy, right? You
33:30 know, in a week. Yeah. Times 50 52
33:33 weeks. So, come on. That's 364. Yeah.
33:36 So, you know, and but like I said, I
33:38 would much rather never own a single
33:41 share of stock, make my little 1.6 to 1.8,
33:42 1.8,
33:44 double my money after I reinvest. Yeah,
33:46 I don't like the idea of owning stock,
33:47 but that's if you have a lot of money,
33:48 you could do that. It does take a lot
33:51 more money to do that, to own the stock.
33:53 And you should always only do stocks
33:55 that you like and that you know. Now,
33:57 you got to explain a put and a call
33:59 because that's just a word. It doesn't
34:01 explain. Well, so the cash secured put
34:05 means I I'm putting up cash and I'm
34:07 making a deal to buy the stock if it
34:09 drops to a level. You're going to make
34:12 money on the drop. Well, I'm going to
34:15 get paid a premium, which like I said,
34:19 so say it's a $10 stock and I go down to
34:21 a delta that paid me 1.8% for that week.
34:23 You have to explain what a delta is. So,
34:25 you're talking terms that are way over
34:27 my audience. It's sorry. Um, you know,
34:29 I'm going down. I'm finding a strike
34:31 price. Say it goes down in 50 cent
34:35 increments. So, each 50 cent increment
34:38 you go down, your chances of getting
34:41 assigned or having to buy the stock are
34:43 uh gets lower. Okay? You know, so I try
34:46 to get down into the an 80 to 85% chance
34:49 where I will never own the stock. Well,
34:51 for each time you go down, the premium,
34:53 the money that I'm getting paid to make
34:55 the deal goes down because the odds are
34:58 are getting less and less that I'm going
35:02 to have to buy the stock. So, if it's a
35:04 an $8, I'm agreeing to to buy it for
35:06 eight and I'm
35:09 making 1.8% on my money. So, that'd be
35:13 we'll say either $9.50 50 cents or $10
35:16 per contract, you know, but still, you
35:18 know, and I'm dealing with large
35:20 numbers. Yeah. A lot a lot of contracts.
35:22 I'm not doing just one. So, a lot of
35:23 these guys, can they start off with a
35:25 th000 or $2,000? I know you said some of
35:28 your uh newbies uh start off with that
35:31 because a lot of the guys don't have a
35:33 hundred,000 to put into a market or even
35:36 a million. Um and I don't recommend it
35:37 anyway because you should start off
35:40 slow. Yes. Absolutely. Yeah. No. Uh, my
35:43 friend Cam who's been doing it, I taught
35:44 him right at the first of the year and
35:47 he came in, he's an Aussie and uh, what'
35:50 he put in? He put in 3,000
35:52 US and then just played with it. He'd
35:56 only do one contract a week. Uhhuh. Then
35:59 he got more comfortable with it and he's
36:02 doing two now. But, uh, you know, I
36:05 talked to him saw him yesterday and he
36:07 started in January. It was it was a
36:09 little after the New Year's, but he's up
36:12 23% year to date this January. Yeah. And
36:14 right now, while the market is a lot of
36:17 people are their portfolios are crushed,
36:20 he's sitting at 23%.
36:22 Yeah. Well, stock market did drop badly,
36:25 especially when with China tariffs, and
36:27 now it's come back quite a bit.
36:29 Obviously, there's a big there's a
36:32 there's a a big chance of gains either
36:34 way, right? Because the market you want
36:36 it's volatile. It's it's volatile.
36:38 That's what you want. So when a market's
36:39 volatile and you pick the right
36:41 direction, you could do very well. I
36:43 think right now is a tremendous buying
36:45 opportunity. A lot of things are down. So,
36:47 So,
36:50 uh, I may not get as aggressive to go
36:53 down to 1.8% on the puts. And you know,
36:54 instead of 10 going all the way to
36:57 eight, I might go to nine because if I
37:00 get assigned right now at nine, I think,
37:02 you know, you can go back every year and
37:06 find out how each month is in the market
37:08 and some months are better than others.
37:11 You know, April's traditionally bad, uh,
37:13 you know, and things will go flat here
37:16 and then it'll pick up again in August,
37:19 go pretty good into, say, mid November.
37:21 Then it'll drop a little bit and then
37:23 you get that little Santa Claus, right?
37:24 Push at the end of the year. Yeah, you
37:26 do always. January, too. January is
37:28 always like the first couple weeks into
37:31 January. January. Yep. So, uh, so you
37:33 spend a total of how much time? And
37:34 we're talking only Monday through
37:37 Friday. Uh, it's not open, the markets
37:39 aren't open on the weekend. So, uh,
37:41 Monday is your biggest day. Uh, your
37:42 most concerned day because it's over the
37:44 weekend. It things get announced over
37:46 the weekend. Yes. Which affect the
37:49 market Monday morning. Well, our Monday
37:51 evening. So, uh how long do you spend
37:54 say uh you said 15 minutes, but do you
37:57 spend more time on Mondays? Um that's
37:58 when I make my trades. Now, there's
38:00 things you have to pay attention there,
38:01 you know, when the Federal Reserve
38:03 meets. Uhhuh. And they meet, I think
38:05 it's nine times out of the year. That's
38:07 another thing that's killing the market
38:10 right now. Jerome Pal, I hate that guy.
38:13 He uh he's not dropping interest rates,
38:15 right? And now hopefully they will.
38:16 Hopefully they'll drop it at least 25
38:19 basis points on their next meeting, but
38:20 you have to pay attention to that. Every
38:23 Friday the jobs numbers come up, you
38:24 know, you got to look at that. And then
38:27 inflation, the job numbers come up after
38:30 the market closes as I remember. Yes.
38:34 Yeah. So it affects not on Monday.
38:35 Yeah. Because they purposely do that.
38:36 They don't want to affect the market on
38:38 Friday, right? But all these things
38:41 affect the markets on Mondays. Mondays
38:44 is your biggest day of concern, I'll
38:46 say. But but really that's all the time
38:50 that I do. Now I'll I log in to see, you
38:52 know, what the price is or something.
38:53 You can have it on your phone, too. I
38:55 forgot to mention that. Right. You could
38:58 have the same uh you could buy and sell.
39:00 You could follow the charts and
39:01 everything on your cell phone as long as
39:03 you have internet service. Yeah. Every
39:06 every brokerage has an app, right? So,
39:08 so yeah, I used to be able to follow it
39:11 throughout the day on my cell phone. And
39:15 now I put in uh when I did options only,
39:18 I put in stops and I did mostly calls,
39:19 not too many puts. How far would you go
39:22 out on your calls?
39:23 Would you go out months and then once
39:25 you hit a certain thing? I usually
39:28 bought for uh two months was give or
39:30 take a few weeks, two months. Longest
39:31 would be three months, shortest would be
39:34 one month. and I picked those dates and
39:38 then I I I' I'd put in a stop uh to get
39:41 me out without too much of a loss. So
39:43 now also you just said something that I
39:46 didn't think about. I sell cash secured
39:49 put contracts. I sell covered call
39:51 contracts. You just said you bought.
39:53 Yes, I bought. So there's two different
39:55 things. I know you sell. I bought. Okay.
39:58 I didn't do the puts. I I got a little
40:01 confused on the puts. It's it's it's not
40:03 in my nature to think negative. It's in
40:05 my nature to always think positive.
40:09 Okay? So, I pretty much dwelled on
40:12 things to go up, not things to drop off.
40:13 Okay? And you have you have to have a
40:15 reverse thinking and I don't I have a
40:17 hard time with that. I don't I I think
40:18 everything is positive. So, I look for
40:20 the positive, but you have to look for
40:23 the negative. Sure. On a put. Okay. And
40:25 and that's there's probably even less
40:27 people that do puts than they do calls
40:30 because of the same problem. Uh but
40:34 again though, like I said, I sell you
40:36 you said you bought. You can do both
40:38 things, right? You can buy a call. Yes.
40:41 I sell calls. Oh, okay. So, see, you're
40:43 doing something that I don't I didn't
40:45 do. So, I'm not I'm going to have to
40:47 learn something new. Yeah. What I'm the
40:49 two things I do are the two easiest
40:53 things to get approved of from a broker.
40:54 And this is
40:57 actually a lot of people are going to
40:59 blow their mind or are just go insane
41:02 with this, but there is no way you can
41:05 lose money selling a covered call unless
41:06 you sell the stock for less than you
41:10 paid for it. There's no way. Okay? If
41:11 you if you get assigned the stock at
41:13 $10, even if you sell it at the same
41:16 price, uh like you had give the example
41:19 of $8, you still get a percentage. I got
41:20 paid that premium. You got to pay paid a
41:22 premiums, which makes money, right? And
41:24 it cost you eight. You sold it for
41:25 eight, but you made got paid a premium
41:27 for doing it, right? Okay. I never did
41:30 that. And I never owned any of my stuff.
41:32 I only owned options. I never I never
41:35 had covered. Okay. So So you just owned
41:37 the contracts. you you and you would
41:39 that's why I said I never owned any
41:42 stock ever. I I only owned the option to
41:44 own the stock. I never followed through
41:47 with the purchase. So it and and it's
41:48 very interesting and there's a lot to
41:50 learn about this because there's a lot
41:54 of ways to do uh trading. Uh you know,
41:56 some people just buy stock. I I never
41:57 would buy stock. Every time I ever
41:59 bought stock in my earlier years, the
42:00 brokers always screwed me over. I'll be
42:02 honest with you. So, you know, well,
42:04 they're they're pushing you to buy stuff
42:06 that they're getting paid a commission
42:08 on. The biggest commission and it's not
42:09 necessarily the best stock and then they
42:11 churn your account multiple times and
42:13 they make a commission every time. Oh,
42:15 yeah. Yeah. Every time I gave money to a
42:16 stock broker, I lost money. That's why a
42:17 lot of people are going to be afraid of
42:19 stocks because they probably did the
42:22 same thing. But you are the broker.
42:23 Yeah. And the difference is you are
42:25 controlling the buy and the sell. You've
42:27 cut out the middleman. You've cut out
42:29 the guy that had the guy that has a
42:31 self-interest for his own pocket. You
42:33 are the one has a self-interest in your
42:35 own pocket and you're dealing with your
42:37 money. I really appreciate that. I'm
42:40 looking forward to it. Now, um is there
42:43 anything we missed? Um anything you
42:45 think of
42:49 on on stock on stock options? Um no,
42:52 like I said, the these two things are
42:54 the the easiest to get approved for. I
42:56 mean, right away, even with no
42:58 experience, any brokerage will give you
43:00 permission to do covered calls. Cuz like
43:02 I said, as long as you're not an idiot
43:04 and sell the stock for less than you
43:06 paid for it, you can't lose money.
43:08 They're only cover they're only the
43:09 brokers. The only reason why they won't
43:11 let you do everything is because they're
43:13 CIA. They don't want to be in trouble
43:16 for you take them to court and say,
43:17 "Well, he allowed me to do this, this,
43:18 and that, but I didn't know what I was
43:19 doing, and it should he should have
43:21 advised me." Of course, that's stupid,
43:24 but in the US, everybody sues for every
43:25 reason. Oh, yeah. So, they really are
43:27 just a CYA situation. And they have
43:30 levels, half a dozen levels of being
43:32 able to do, you know, different types of
43:34 And you can lose everything if you don't
43:36 know what you're doing. Yes, you can.
43:37 You know, and then that's why I only did
43:40 10% of my portfolio until the end when I
43:42 went about 75% because I was doing so
43:45 well. Uh, but it made me really nervous.
43:47 So, we'll see if I have the the guts and
43:48 the gumption to do this. I'm going to
43:51 learn it. start slow. And is there a
43:53 particular stock, anything that you're
43:55 interested? I've been out of it so long.
43:58 Yeah, it I never really cared about the
43:59 stock and I know you said earlier you
44:02 should pick one that you like, but I I
44:05 let the analytics decide which stocks
44:06 were the best. And they would look for
44:08 volatility. They'd look for other
44:11 things. uh you know uh the fi the fiscal
44:15 year uh if there's going to be a new uh
44:19 CEO or things like that uh or weather
44:20 situations they look at those kind of
44:22 things you know something that would
44:23 affect the stock that's another thing
44:25 I'm glad you brought that up that you
44:27 should pay attention to is earnings the
44:28 earnings date
44:30 that happens every quarter and a lot of
44:32 times it's best to just leave that alone
44:34 on that week yeah you know yeah because
44:36 you never know where it's going to go
44:38 and sometimes they'll give earnings to
44:39 their stockholders
44:41 at a detriment to your the value of the
44:44 stock, you know. So, yeah, there's a lot
44:46 to learn. Um, so I'm going to I'm going
44:47 to try to get into it. So, I found it
44:48 very interesting because I'm a numbers
44:50 guy. You have to know math, by the way.
44:52 Oh, yeah. If you're not good at math,
44:54 forget about it. You have to do math.
44:56 And, uh, and I'm I'm a math I'm a
44:59 numbers geek. I play with math, believe
45:00 it or not. I That's why I like
45:02 blackjack. I like counting cards. I
45:04 liked uh you know figuring out what
45:06 everybody had and how many you know how
45:09 many uh number 10 cards would come up uh
45:11 10point cards things like that how many
45:12 aces were left in the deck things like
45:15 that so I used to I like I like math I'm
45:17 really fast with math but you may be
45:18 faster because you've been doing this I
45:21 haven't been doing it in a long time uh
45:23 but I'm looking forward to it now let's
45:26 get on to uh you've been you just to ask
45:27 a question how many years have you been
45:30 trading alto together
45:33 I started in 2020 20 January of 2020.
45:36 Okay. So that really not that many
45:40 years. And and what made you start? Um
45:42 was it January? You said you got
45:44 yourself taught, but what would what
45:46 besided that? Well, what happened is and
45:48 uh some of you guys that are watching
45:50 may remember this, but they had this
45:52 group of guys, young guys called Wall
45:54 Street Bets. They had the little Trump
45:56 logo guy. And what they were doing is
45:59 Okay, so hedge funds. Yes. like what
46:00 Warren Warren Buffett, you know, he's
46:02 got Birkshire on that. Well, what a
46:06 hedge fund will do a lot of times is
46:08 they will start talking bad about a
46:11 company and short it. And what what they
46:15 do is they borrow a bunch of shares of
46:17 stock, like millions of shares of stock.
46:19 Say it's a $10 stock. They borrow
46:22 millions of shares, sell it at $10. Then
46:24 they talk bad about the company. The
46:27 stock drops down to $2 a share. They
46:29 repurchase the borrowed shares, pay it
46:32 back at that, making $8 a share, right?
46:34 That's what hedge funds do and it's a
46:38 terrible thing. Well, these young kids,
46:41 I think it was 2020, uh there were a
46:42 couple things, well, no, it was during
46:44 CO, so it had to be at least after
46:47 March, but GameStop,
46:49 uh AMC movie theaters, a couple of
46:51 others were being
46:54 shorted. And so these kids just came in
46:56 and said, "Screw you hedge funds." They
46:58 started buying the stock, making the
47:00 price just go up. Now all of a sudden,
47:02 the hedge funds are like, "Oh crap."
47:04 Because they got to pay back those
47:05 shares that they borrowed, right? At a
47:08 fair price. And so next thing you know,
47:10 they're these guys are getting GameStop
47:13 over a hundred, $200 a share. And these
47:15 hedge funds, they cost one hedge fund
47:19 over $2.4 billion billion. They had to
47:20 borrow money from another hedge fund. Oh
47:23 my god. But by the time I got into that,
47:25 everybody was doing it. you know, when
47:27 my little Vietnamese hairdresser is
47:29 telling me about it, you know, it's too
47:31 late, you know. So, I didn't make any
47:33 money. Okay. And it's like, okay, well,
47:35 I didn't make any money. Then I went
47:37 like I I did the route that you said,
47:39 you know, I looked at day trading. I
47:41 like numbers and and everything, but I
47:43 was just too much work, too much risk.
47:45 Yeah. Minute trading, day trading,
47:47 forget it. Yeah. And then uh went to
47:50 swing trading and did well in that. And
47:52 the stock market was really good during
47:53 COVID cuz everybody was getting the
47:55 stimulus checks. So, everybody had
47:57 money. They're they're buying stocks
48:00 were going up. It was great. And
48:04 uh while I was looking at it, one of the
48:06 stocks that I owned
48:11 uh somehow like a a a video came up on
48:14 options for YouTube.
48:17 What's this? you know, watched it and
48:18 then found out that I could do a covered
48:21 call on the stock that I owned. Now, the
48:24 one that I had at the time wasn't very
48:26 volatable volatile and I wasn't doing it
48:28 weekly. I was doing it monthly, but I
48:30 was making 4% a month on it. An
48:33 additional 48% on top of whatever the
48:35 the stock did. That's not bad. And then
48:36 I started finding about, you know, the
48:39 volatility pays better. Yes. And that's
48:41 gotten me to where I'm at now, you know,
48:43 and and uh there was a time there where
48:45 I got really greedy. Like I said, I'm
48:48 sitting on about 40,000 shares of some
48:49 stock right now because that's some big
48:51 money. I I didn't go down far enough.
48:53 That's some big money. Yes. You have to
48:55 be I I I don't know if I could do that.
48:57 That's really big money. So that's
49:00 lifetime retirement money. Yes. Okay. So
49:02 So that was greed that caused that. I
49:05 didn't go down far enough on a on a
49:08 price. Uhhuh. you know, I just went down
49:11 from say 10 to 950 and then say I got I
49:14 bought that then the market got slammed
49:16 and goes down to five. So now I'm barely
49:20 making anything. Now I'll still push
49:23 things. Um like I said, some of these
49:26 stocks I couldn't even get a cover I
49:28 couldn't do a covered call contract. No
49:30 one would pay me my cost on that because
49:33 I'm down. Oh, okay. But what I'll do is
49:35 I'll I'll just go up
49:38 enough and I'll go up maybe
49:41 four four rungs up the ladder and I'll
49:42 do a covered call for that. But then
49:44 when I do that, I really have to pay
49:46 attention because if it does take off
49:48 and I have to sell that stock, which
49:50 could happen with the volatile stocks
49:52 that I have, then I take a loss on it.
49:55 Okay? But the good thing is you can
49:57 either close out your contract, which is
49:59 going to cost you money. If it spikes
50:00 like that, that is going to cost you
50:02 more than you got in your premium. I
50:03 assume you probably did that in the
50:05 beginning, four years ago, five years
50:07 ago when you started. Yes. But but since
50:09 then, you've learned not to do that.
50:11 Yes. And that's what I teach everybody
50:14 to do now. Yeah. Purchase it. Sell it
50:17 for what you got into it and make that
50:18 small amount of percentage. The guy was
50:21 just telling you about CAM. He got
50:24 assigned stock on the week of April 7
50:28 when the tariffs got uh imposed. and he
50:31 had to buy the stock at 950 a share. It
50:34 dropped down to uh it got down to like
50:37 710 something like that.
50:39 Now the stock
50:41 price you don't lose money unless you
50:43 sell it. That's right. You know it's
50:46 you're down on paper about losing money
50:47 but it's just you didn't lose it till
50:50 you sold it. Okay. Exactly. So, he just
50:52 held on to it, but he was still, it
50:55 didn't drop far that far to where he was
50:57 still able to make a deal for the 950
50:59 that he paid for it and was still
51:01 getting paid a premium. Well, it's since
51:07 come back and uh as a matter of fact, he
51:10 uh he he had it up this week for 950 and
51:12 I think it it closed at
51:15 9:42. So, again, next next week he'll
51:17 put it up for 950 again and get that
51:20 huge out of it. Yeah. And hopefully sell
51:21 it, go back, but he's going to get a
51:24 great premium, 5 to 7%. Oh, okay. So,
51:26 it's a higher premium. Yeah. Because
51:29 he's right basically right at cost right
51:31 now. So, so that's going to pay a lot.
51:32 All right. I'm going to tell you what,
51:34 we're going to have you come back uh and
51:37 I'm going to report how I did. It'll
51:40 probably be a month or two. Okay. But I
51:42 am going to give it a shot and try. I
51:44 appreciate you coming on. Sure. Um and
51:46 then I'll we'll follow up in a month or
51:48 two. Again, I doubt if anybody would
51:49 stay this long, but if you guys stayed
51:51 this long to listen to this much, more
51:53 power to you. I appreciate it. Um,
51:56 anyway, Kevin Tucker, uh, if you need to
51:58 get a hold of him, I'm going to add his
51:59 Do you mind people getting a hold of
52:03 you? Uh, do you do you want to answer?
52:05 No, probably not. It does take time.
52:08 People contact me a lot. Well, yeah.
52:10 And, you know, I don't mind teaching one
52:12 or two. I've actually had as many as six
52:14 people at one time. That's a lot. That's
52:16 a lot to teach. But well, get a hold of
52:18 me and then when you get over here,
52:20 we'll discuss about you possibly, you
52:22 know, because he doesn't want to answer
52:24 a million questions to people like I do.
52:25 It's a lot. You can put it in comments
52:27 and ask me questions and stuff, but uh
52:28 when you get over here and you want to
52:30 get a hold of Kevin, I'll I'll ask Kevin
52:32 first if it's okay. Yeah. All right.
52:34 Once I get over here, Yeah. I'll give
52:35 him a messenger and all that. I'll be
52:38 your in between guy. I do that with
52:40 Paul, too, because Paul has so many
52:42 people that want to talk to him and I'll
52:43 say, "Just talk to me. Come over and
52:44 visit. Talk to me." Paul appreciates
52:47 that. Uh he comes on Wednesday uh
52:49 mornings here, which is I saw the the
52:51 one y'all just did. Yeah. And
52:54 unfortunately, we my computer was so
52:56 full of stuff it
53:00 froze. I had so many things running in
53:02 the background and even though I have a
53:07 terabyte hard drive and I have a a a
53:10 multiple CPU, 14 I think there's 14 CPUs
53:13 in this thing. I had so much on it. So
53:16 yesterday we had to clear out thousands
53:19 of files, literally thousands of files
53:21 because it was freezing up. So our our
53:23 normally our twohour was cut down to an
53:25 hour and 8 minutes. I think it just
53:27 froze and we couldn't see we couldn't
53:29 see us moving. We couldn't see anybody's
53:31 questions or anything. Why we going to
53:32 continue with we can't continue with the
53:34 live, you know? We don't know what to
53:35 answer. What we talked about for a
53:36 little bit then we kind of laughed and
53:38 then we and then when I went to go shut
53:41 it off, the laptop wouldn't shut off. It
53:43 wouldn't stop the live. It was pretty
53:44 funny, you know. I tell you what, how
53:47 about this? After you get in it for a
53:49 month or so, if you want to do a live, I
53:52 can answer questions there. Okay, cool.
53:53 And we can go over your results and
53:54 everything. That would be better. Yeah.
53:57 A live. All right. Thank you very much.
53:59 Sure. Appreciate it. Thank you everybody
54:02 if you studied this long. Uh it was uh
54:03 very interesting actually. I'm looking
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