🔴Lot's of people ask me "what happens when the market crashes with portfolio secured puts, won't you get a margin call & get wiped out"

(the answer is no)

Let me explain.

First of all, nobody on earth knows what the market is going to do in the short term. This is why I do longer duration plays with a FAT margin of safety.

This is also why my ratios are always in check & I always assume the worst. Because when you're in this game long enough, worst case scenarios do happen.

I also take in to account the overall macro environment, economy, interest rates, labor market, inflation, valuations, Ai thesis, ect... to build conviction in how much "risk" I am willing to take on.

Let's Do An Example For Right Now:
- I have about $2m invested in the base portfolio that I can sell for cash.
- My total sold put assignment value is 35%.
- That means if every single put I sell gets assigned to me, I need to come up with 700k (35% of 2m)
- So let's say the market falls 50%.
- My base portfolio will be worth $1m, not 2m.
- I can still very easily sell my base portfolio, generate 700k in cash and happily take assignment if I have to.

CRITICAL NOTES:
- I ONLY sell puts on companies I will be happy to own.
- They must have a moat, pricing power, durable competitive advantage, & trading near intrinsic value to start.
- If it fits the test and the macro looks good, I am happy to sell the put for 1 or 2 years out.
- If I get assigned, I do not care. I want to company/ETF anyways + it's cheaper now!
- This is portfolio secured, NOT CASH SECURED (CSP suck)
- Also, I didn't even mention you can roll or take assignment on margin. While those can be more "risky" I just wanted to show that I can always cover the assignment with cash and will be happy to take assignment if I do.
- My ratios are more conservative in a lofty market.
- My ratios are more aggressive in a cheap market.

I know it's hard to make all of this make sense in an X post. To help, I have lot's of videos on YouTube that go in to this, but if you just want my step by step system + discord access, click the first comment to get in.