You Don’t Know How Risky This Is

Market crash fatigue is affecting many people who are tired of hearing bad news. I want to diversify my $250K portfolio. Inflation is really making retiement so difficult so i want to be finacially secure.

I have no idea what they're talking about and that's probably a good thing. 😂

It's like calling a Muslim to ask for tips for BBQ pork. SMH

Covered calls are not the same as naked calls

I love Dave’s steps but I don’t think he understands what covered calls are

Jade obviously doesn’t have a flipping clue what they’re talking about….should probably just not say anything.

Comment added Monday August 5, 2024. Bet he wishes he took Dave's advice last Friday.

He called the wrong person to discuss this. Dave only does mutual funds and that’s it.

He’s fundamentally wrong about covered call risk.

Holy shit, Dave has no idea what a covered call is lmao.

No, Ramsey don’t know how sell cover call works. And this dude is calling the wrong show . 😂

The only risk with covered calls is that you limit upside potential. You ‘cover’ the option with shares you already own. If you’re comfortable with selling your shares at a given price to take some profit, then selling some covered calls at the same price provides a little income and if share price rises to or above the price you sold the call at, the buyer has the option to exercise (but doesn’t have to - they are not obligated). If they exercise, you made a little income on the covered call and the buyer, if they exercise their right, pays you the price set by the option. You don’t have those shares anymore. So if that stock goes on to double or triple - or more - in price, you’ve lost all that growth for a little income. DISCLAIMER: Just a guy on the internet…not financial advice. 😂

If i am not mistaken this might be the first time i did not hear Dave say.... sell the car... or.... Drive Uber... get a 2nd/3rd/4th job lol

Dave: "I do not own a single, single stock." Jade: "That's so cool." Uuuggghhh. Face palm

The riskiest case for covered calls is if someone buys the stock off you in a profit, but not as much of a profit as if you had just kept holding the stock. You have cash in hand, but the stock is going on without you because someone bought it off you. That's the worst case for a covered call. Dave is thinking of naked calls.

I know what Dave means about them playing you. Years ago, a local 7-11 offered a free Big Gulp to anyone who could drop a quarter into a shot glass at the bottom of a jar of colored water. Some people would drop in five dollars' worth, and get so excited when they finally won.

My mom has 1 killer stock that is up but she refuses to sell it to pay her mortgage. Frustrating.

I'm not sure what Dave is talking about. The guy is writing calls. The worst is if his stock got called away he give up the stock and any future potential gain. It's not naked calls. He can't lose more than his investment.

Selling Covered calls are the least riskiest options to deal with. He just missed out on the upside gain. Dave is clueless. That said almost all options strategies underperform buy and hold S&P.

"Me and my genius beer-drinking buddy" LOL