May Income Report and My Updated Strategy Explained Episode 11

May Income Report and My Updated Strategy Explained Episode 11

Jethro Jones: Welcome to the My Bonus
Money Podcast, where I talk about how

you as an educator can make some side
hustle money and make some bonus money.

That's what it's all about.

And uh, today I'm pretty excited because
I've been trying a new strategy this

last month in my investment arena,
and so I just want to give a report.

On my total passive income for
the month of May, 2023, I had

$1,875 and 15 cents that came in.

The total money that I've invested so
far is 16,272, and so my total passive

income for 2023 is at 3000 318 62.

My monthly rate of return for the
month of May was 11.52%, and my

yearly rate of return was 20.39%.

So, uh, Let's talk about
my strategy This month.

What I've been doing is I've been
following the tips put out by my

bonus, um, and I've
been following the tips in an effort

to make sure that it's actually
working and things are happening.

And, uh, not every single one
of those tips has worked out.

And this is, uh, an instructional.

Idea to help me learn how to understand
investing and do better with it.

So, uh, in the show notes for this,
I encourage you to go check out

the, uh, trade idea that I have, um,
that I highlight for this particular

episode so that you can see it.

Uh, this is an AMC long put and AMC's
in the news and there's a lot going

on and, um, Lots going on with that
stock, and it's kind of a meme stock.

And so there's, um, there's some,
there's just a lot going on,

so there's a lot of volatility.

Um, and again, this is
not investment advice.

This is just me sharing what I'm
doing and what I'm learning and

I'm, uh, sharing it with you.

One, because I'm not using
very much money, Uh, and so

it's not gonna make an impact.

And number two, I'm sharing it
because a lot of people talk about

things hypothetically, and I want
to, I want to help you see that

this is actually possible and you
don't have to be a genius to do it.

So, uh, in the show notes, there's this,
uh, trade idea that you can check out.

And so I'm gonna read to you what it says.

So, Trade ideas to create a long
put on AMC with a $6 strike price.

This, uh, was sent out on May 8th.

Uh, so here's the explanation.

Let's break down this trade
idea using simpler terms.

AMC refers to the stock symbol
for AMC Entertainment Holdings, a

company that operates movie theaters.

A long put is a type of options contract
that gives you the right to sell the

stock at a specific price known as the
strike price before a certain date.


In this trade idea, we are creating a
long put on AMC with a $6 strike price.

This means we believe the price
of AMC stock will decrease

below $6 by a specific date.

By purchasing this options contract,
we have the opportunity to sell

the a M C stock at $6 regardless
of its actual market price.

Now let's discuss risk management.

Risk management is important because
in trading, as it helps us protect our

capital and minimize potential losses
in this trade, uh, it is suggested to

have a predetermined level known as
a stop loss at which you would exit

the trade to limit potential losses.

The recommended stop loss for this
trade is 25%, meaning if the value

of the long put decreases by 25%
from its initial purchase price, it

is recommended to exit the trade.

So in an effort to reduce risk,
reduce risk, we're gonna create a

long put on AMC that helps reduce
the risk because it allows us to

potentially profit from a decrease
in the stock price if the Ammc stock

price does not go below the $6 price.

Our potential loss is limited to
the initial cost of the long put.

That means our risk is limited to the
premium paid for the options contract.

Now let's talk about potential income.

If the price of the mc stock falls below
$6 before the options contract expires,

we can exercise the contract and sell
the stock at the higher price of $6,

even if the market price is lower.

The difference between the
market price and the strike price

represents our potential income.

To summarize, creating long put on
AMC with a $6 strike price allows

us to potentially profit from
a decrease in the stock price.

It's important to set a stop price
of 20 stop loss of 25% to manage

risk and limit potential losses.

This option strategy helps reduce risk
by allowing us to sell the stock at

a specific price, regardless of its
market price and the potential income.

Comes from the difference between the
market price and the strike price.

So what does this actually mean?

Well, here's how it worked for me
on, so this put would expire on

June 2nd, which is actually today
the day that I'm recording this.

And when I did this, uh, trade
on May 8th, the, uh, stock

price was at $5 and 90 cents.

And when I sold.

Or I bought the option on May 8th.

It was $5 and 90 cents.

When I sold it, it was $5 and 14 cents.

So what I paid for it, when I bought
it, when the stock was at, when

it closed that day, uh, five 90.

Um, I bought it for $1 and 1
cent per contract when I sold it.

Uh, one week later on May 15th, the.

Price that I sold it for was $1 and 14
cents per contract, which means that that

was a 12.87% return on my investment.

Now the difference here is that
I bought the put where a lot of

what I've been doing is selling
puts and then selling options.

And this one, um, I felt like I had
a pretty good understanding of what

was going to happen to the stock price
based on things that were going on.

And what I would've done had this not, uh,
gone the way that I wanted, is that if the

price of it had gotten to 75 cents, uh,
to close it, then I would've done that.

And actually I did that
several times this last month.

And, uh, even with the, uh, with
those 25% losses, I still had.

Uh, pretty good returns, uh, overall,
uh, on, on my investments this month.

So I, I closed, uh, a bunch of
trades this month and, uh, some of

my percentages were, I lost 23%, I
gained 81%, gained 55%, gained 79%.

Lost 35%, lost 40% cause I didn't get
to that one fast in those last two

fast enough to get the 25% stop loss.

So this, uh, this is a new
strategy that I'm trying out

and my bonus options, uh, is a.

It's something that I'm
helping provide to you.

Uh, you can go check out all of the and go to

the click on the blog and then, uh, if
you want to see what the ideas were,

you can see, uh, what they all are and
the dates that they were published.

Um, if you're paying for the service,
which is just 50 bucks a month,

Then you can get those in real time.

Uh, they go out as soon as, as
soon as we make the decision.

If you are not paying for that service,
then you'll get them seven days later.

So, for example, the AMC Long put
that I described, uh, put it out on

May 8th and, uh, seven days later.

Uh, Things have changed, obviously.

Um, we're doing this for a couple reasons.

Uh, this is a, a thing that my
brothers and I have created as

we've been learning about this as a
way to help people learn about it,

um, and see how things are going.

Uh, what I would suggest you do is do, uh,
paper trading and watch the trades and see

what the ideas are and, and how they look.

Um, one thing that I need to
keep track of is how long.

I hold onto these, um, over the course of
however long I hold onto 'em, uh, I've had

to readjust how I keep track of things.

So that's made it, um, a little
bit more challenging, but,

uh, still very interesting.

So, um, anyway, if you go to, uh,
my bonus, you can,

you can check this out and see.

What it looks like, uh, for you, you
can look at the, go to the blog tab

in the menu bar and you can look at
all the suggestions that we've made

delayed by seven days, of course.

Um, so anyway, that's, uh, that's
my report for this month Overall.

Let's see.

I got, uh, just wanna reiterate this.

My monthly rate of return was 11.52%,
and, uh, if you want to figure out how

to do all this stuff yourself, uh, you
can go to my bonus

and you'll be able to download my free
course that explains how to do this

and how to get started with just $200.

Cuz you don't need a lot to get started.

And I hope you enjoyed this and,

here's to you making more bonus money.

Nothing in this podcast should be
construed to be giving financial advice.

I'm here to help you learn.

And I strongly recommend.

That you consult with a professional
who is capable and qualified

to give you financial advice.

I'm just some guy on the
internet sharing my story.

Creators and Guests

Jethro Jones
Jethro Jones
Author of #SchoolX #how2be Co-Founder of @bepodcastNet, the best education podcasts out there.