The video discusses a trading strategy that involves selling far out-of-the-money puts, specifically around a 10 Delta, on stocks with high implied volatility. The narrator emphasizes the advantage of Fidelity's current offer, which gives a 5% return on idle cash. The goal is to sell these puts and allow them to expire worthless monthly, benefiting from high market rates. Additionally, the speaker demonstrates how to find such put-selling opportunities on Fidelity's platform. He mentions the importance of selecting stocks or ETFs that the investor is comfortable holding in the long term. The video concludes by recommending viewers to like and subscribe for more content.
Sure, here are the key facts extracted from the text:
1. The strategy involves selling far out-of-the-money puts with around a 10 Delta on stocks with high implied volatility.
2. Fidelity is currently paying a five percent return for idle cash.
3. The goal is to sell around 10 far out-of-the-money puts each month with the hope that they expire worthless.
4. The success of the strategy depends on not getting assigned shares because assignment would result in losing the five percent return from Fidelity's automatic cash sweep.
5. The text discusses various stock options, including those with lower quality companies and those with higher quality companies.
6. The strategy involves analyzing backtest results, annualized returns, and winning percentages for potential trades.
7. The importance of being comfortable with potentially owning the underlying stock if assigned is emphasized.
8. The text mentions using analyst ratings and fundamental analysis to assess the stocks before executing the strategy.
9. It provides guidance on using Fidelity's tools to find high-probability put-selling opportunities.
10. The video content is focused on helping viewers identify suitable options for put selling using Fidelity's platform.
Please note that these facts are based on the content provided, and any opinions or recommendations from the original text have been excluded.