(07-01-2023, 09:12 AM)ROFLMAO Wrote: [ -> ]O wait, this youtube was made in 2021 Dec... whoever followed got fcuked! 
He is a genius to make you believe in his hair brain ideas.
Anyway the one good quality about him is he can U turn on his convictions on a dime. He can spend hours making a video to buy more Tesla then one week later U turn on that. Problem is most of his followers just keep following the earlier idea and get burnt.
Previously Chicken Genius was an options course peddler
He will stand in front of the class to teach and claim this method and that "sure work" as if free money ....then leave you to get burnt.
Still his one lucky connon shot fired at Tesla with $250K did net him.millioms. ....to brag about.
(07-01-2023, 09:19 AM)sgbuffett Wrote: [ -> ]He is a genius to make you believe in his hair brain ideas.
Anyway the one good quality about him is he can U turn on his convictions on a dime. He can spend hours making a video to buy more Tesla then one week later U turn on that. Problem is most of his followers just keep following the earlier idea and get burnt.
Previously Chicken Genius was an options course peddler
He will stand in front of the class to teach and claim this method and that "sure work" as if free money ....then leave you to get burnt.
Still his one lucky connon shot fired at Tesla with $250K did net him.millioms. ....to brag about.
see his face can tell just a conman...................as for his 250K bet on Tesla.............where he got the money ?................and if anyone saw his account statement ?
Based on the video he is force to buy the 400 tesla @1000 = 400,000 ( pre split)
After split 1 to 3,
400 shares become 1200 shares.
Each share is $107 now total worth =128,000
Total net loss = 400,000÷128000-106000= $165,000
This strategy is called cash covered put strategy which consists of 2 parts
1. You sell out of money puts at a strike price you are willing to buy the stock
2 You set aside enough money to buy the stock should it fall below the strike price.
This is a highly problematic options strategy taught in options trading course and highly dangerous.
Because it upfront commit you to buy at stock at a target price in the future ...without knowing future developments in the company.
Any company no matter how good can have mishaps that cause sharp falls in the stock price and you lose your flexibility of not buying the stock...no matter what news pop up. Imagine you play this strategy ...company discovered some.qccounting mistakes or theft or major customer collapse.....you end up buying the stock under such circumstances. No company is always good to buy...all sorts of things happen to companies...even Apple can have big negative surprises.
That is the problem.with many options strategy ....it commits you to a future you do not know and you can get killed by it.
In the early part of the video Chicken Genius say it is impossible for Tesla to be below $1000 (after split $333) now it is $107.....60% below
(07-01-2023, 10:04 AM)FartSunKing Wrote: [ -> ]You stupid fcuk!
That idiot sold IN THE MONEY puts!
With long expiry date, 1 year
That is why he is able to collect hefty $266 for each put
You are right. ..was so long ago ...$1000 strike was
AT the money ..he was greedy for the premiums and sure Tesla was moving up.
Rest of the explanation remains the sane whether in the money or not.
The typical cash covered is out of money...
Other screwed up strategies are Wheel strategy....selling covered calls etc.
This woman Chjloe is constant promoter of options.