 Hey, what's up YouTube? I'm Zeke and welcome to The Dream Green Show. In this episode, I'm gonna show you guys how you can buy stocks cheaper and get paid for it by using this simple stock option trading strategy. This strategy can help you earn passive income every single week. But before we dive into it, make sure that you hit the thumbs up button on this video. It helps out this channel more than you can even imagine. I'm trying to get my YouTube algorithm game going on. So make sure that you hit that thumbs up button and subscribe to this channel so you don't miss out in any future videos. Before that, this video is brought to you by Weebu. Sign up now by clicking the link down in the description to deposit $100 and receive two free shares valued up to $1,600. Now that is truly passive income. So don't forget to click the link down in the description. But enough talking, I'm gonna show you guys how to use this option trading strategy to generate passive income. So let's go ahead and dive straight into this video. Welcome back dreamers. Here we are on my Robin Hood portfolio. Right now I have a account at a $31,076.49. On the month I'm doing pretty good. So far I'm up 5.76% at $1,691.58. Now the option strategy that I'm gonna show you guys to where you can buy stocks cheaper and get paid for it is that you have to sell puts and collect the premium. Now I'm gonna use AMD to explain to you guys and show you exactly what I mean. So let's scroll down to AMD, here we go. So AMD right now is at $82.99. So pretty much $83. I own 52 shares of AMD with an average cost of $37.96. I'm market value of $4,315. And I'm currently up $2,341.67, up 118.64%. So AMD has been treating me pretty well. I'm trying to build my position up to AMD to 100 shares so I could create another way of generating passive income that I'm gonna talk about in another video. But in this video, I'm gonna show you guys how to buy stocks cheaper by using the sell put strategy. So what you wanna do is hit trade, hit trade option. So right now it's Sunday, Friday would be October 23rd. So this is a trading week away. So I'm gonna click on October 23rd. Now your default settings might be set on buy cause, but we don't buy cause. That is too risky for us to generate passive income. That is a gamble by doing buy cause. So we wanna click on sell puts, all right? Sell puts means that we are agreeing to buy 100 shares at a certain price point. So AMD is at $82.99, it says it right here. So we scroll down to $80 right here where it says $80 put $77.56 chance of profit. We are agreeing, if we click on that one, we are agreeing that we will buy 100 shares of AMD at $80. So we are saying that we are agreeing to buy 100 shares of AMD at $80. Now if AMD does not reach $80, now let's say AMD go up from $83 to $84 at the end of the week and it does not ever reach $80, then right there on the side where it says 83 cents, you multiply that by 100 shares that you agree to buy and you're gonna collect that premium. That's $83. So if AMD does not reach $80 by Friday, Robinhood is gonna pay you out $83. So that means you have to put up around $8,000 in order to even perform this strategy right here. So it is kind of expensive to do this strategy. So as soon as you put up your $8,000, they're gonna hold it in collateral until Friday. But as soon as you buy this option, Robinhood is gonna pay you $83 directly into your bank account. So if AMD does come back all the way down to $81, it didn't reach $80. So you're still gonna collect $83 in premium straight into your Robinhood account immediately as soon as you perform this option strategy. Now let's say AMD does pull back to $80, right? You're gonna buy 100 shares of AMD at $80 but you still get to keep that $83. Now, the only time that you lose on your strategy is if AMD fall down to $79. Therefore, you are still obligated to buy AMD at $80 instead of $79, which would be the price point on Friday if it does close at $79 on Friday. But you still have the $83 that you collected in premiums for them. That means you only really lose around $15 if it does close on $79 by Friday. Now this goes by your own risk strategy. Right now AMD is at $83. You could go all the way down to an 86% chance of win, which was just at $77.50 put right here but you'll only make $41 if you have an 86% chance of win. With AMD pull back to $77.50 by Friday, I don't believe so. That is a much safer strategy than the 77% chance rate of $80. But this is why you buy a company that you truly believe in. If I could get AMD at $80, I am completely satisfied. I would be happy. I'm going to hold on to those hundred shares for the next couple of years. So I'm not doing this on a company that I don't believe in. I'm only using the strategies on companies that I truly believe in. So let's go ahead and click on the $80 put and let's say we wanted to buy one. They're gonna give me a credit of $83 immediately. And if we hit review, they're gonna say I do not have enough buying power. I would need $8,000 worth of cash inside my account in order to perform this trade. So you can't do it if you don't have enough money inside your account. But let's just say that you were able to do a 77% chance of when every single week, you generate $83 worth of income every week. We're gonna hit, we can do $83 times 52 weeks. You would generate $4,316 in a year just from using this strategy. And you could use that passive income to buy even more shares of AMD at any price point that you choose. So this is a great strategy if you have the collateral, if you have the money to buy 100 shares of a company at a cheaper price. And if it does not fall to that price, they are still going to pay you just for putting in that option contract. So don't do it blindly and just say, hey, it says 75%. Let's pull up a market analysis of AMD just so we can see what direction this company is heading in. All right, here we are on Thinkorswim. This is where I do my market analysis. This is AMD only four hours. No, this is AMD on the day chart. Let's pull up the four hour 180 day chart. Here we are, AMD. So yes, I do have up a lot of lines on AMD. I do market analysis on AMD all the time. This is one of my favorite companies. I keep track of this company all the time. So I know AMD is probably gonna keep true and stay above the green simple moving average line right here. This is the 180 days SMA line that is probably gonna use this green line as the resistant line probably not fall below the green line right there. So the price point that we was looking at, let's zoom in. The price point that we was looking at was the 80 data price point, which will be right here. There. All right, so that's the 80 data price point. So I believe AMD is gonna stay up above this green line by Friday, which is the 23rd, which is right here. Then I do not believe that AMD is gonna cross down below the green simple moving average line and break all the way down below the $80 price point. And therefore, me doing the $80 price point on AMD this week would be somewhat of a safe investment. But if not, if AMD does fall to $80, I would be satisfied with buying a hundred shares of AMD at $80. But a super safe investment would be this price point right here that I drew out last week, which is another support line right here, which is at $78, pretty much $78 even. So $78 even will be a fantastic support line, collect as little premium as you can. I think it was around $26, $25 in premiums for the $78 price point on AMD. So that would be the super safe way to go. A little bit more riskier, more risk, more reward would be the $80 price point. Once again, I would not mind picking up AMD at $80 that is beginning at the cheaper price. And I'm also getting paid to buy AMD at $80. I'm getting paid $83 to buy AMD at $80 if it does fall to this price point. So once again, I would be satisfied with AMD just from looking at the charts it is in a uptrend pattern. And they do have good news coming out with a merger they supposed to be having with Xylene. So there we go guys, make sure that on there it is a sale put that is obligating you to buy 100 shares at a certain price point. And if it does not reach that price point they are going to pay you. Well, they're gonna pay you regardless in premiums of the contract of your choosing. So the only drawback of this strategy is that it does cost a lot to do. So you might not wanna do it on a company that costs $80. Let's say you believe in GoPro, which is under $10. That's a company you believe in. This is a strategy that you could use on a company like GoPro or something like that. So yeah, that's the only drawback is that it does cost a lot. But if you have the money, it was $8,000 to do an $80 sale put on AMD. And if you do it every single week for a full year you would generate over $4,000. That is a 50% gain just from doing sale puts on AMD. So that is the amazing part of selling premiums on Robinhood. So down in the comment section let me know have you ever done this strategy before? And if you have, what companies have you done it on? If you have not done it before, what companies are you planning on doing it on in the future or what you even use the strategy at all? Please let me know down in the comment section I'm gonna go through and read every single comment. And while you're down there make sure that you hit the thumbs up button. It really helps out this channel a lot once again and also subscribe to this channel. But other than that, I'm Zeke, ring you to Dream Green Show and I'm out. Peace.