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When does the 4-1-1 Income Accelerator start, and when does it end?
The challenge starts on Thursday, October 20th running every weekday through Tuesday, October 25th. There is an extra “encore” session on Wednesday, October 26th, and a special session at 8pm that day, for VIP members only.
Will there be a replay of any sessions that I miss?
There will be a recording of each session posted shortly after the session, and the link will be emailed to you. The recording will remain active until the following morning. However, you are encouraged to attend as many sessions live so you can ask questions of Tim and Jay.
Additionally, you can purchase lifetime access to the recordings for a nominal charge right here.
Please note: VIP members do not automatically get lifetime access to recordings.
How will I receive the link to attend the sessions?
You will receive an email for each day’s session with the link to attend. This will be sent to the email that you signed up with. You can also sign up for text alert reminders by clicking here.
I didn’t get an email with the link: what can I do?
Check that your email service provider didn’t accidentally put the session email(s) in your junk or spam folder. If you’re a Gmail user, check the promotions tab of your inbox.
I have a question for Tim and Jay: what’s the best way to get that answered?
Attend the live sessions. With each session, there is a designated time reserved for Questions and Answers.
What’s the Daily Schedule?
DAY ONE:
We set the table. We explain why right now is the best time to use this strategy and everything you need to get started.
By the end of Day One — You have your brokerage account set up for life to use this opportunity.
DAY TWO:
We walk you through how to find your first income opportunity. You’ll see exactly how to find and execute these opportunities for an immediate cash payout.
By the end of Day Two, you will have every tool needed to go out and pull the trigger on your first income opportunity.
Send what you found over to me, and we’ll even review it for you.
You’ll be confident and excited to get this done.
DAY THREE:
This is the most exciting day you collect your first of many weekly cash plays.
We’ll give you feedback on different opportunities we’ve seen in the Event so you can see what works and what pitfalls to avoid.
And, we go deeper. You understand why we’re doing everything; you watch over our shoulders as we find opportunities on camera.
Day FOUR:
We manage the opportunity.
Again, we’re working in the markets here. Markets move every minute. Knowing how to manage your account properly is the difference between walking away with your cash and maybe walking away with nothing.
By the end of Day 4, you see when to close out your opportunity and the exact moment to open up the next.
Day FIVE:
This is going to be a surprise. Stay tuned for more on this…
What level of options trading authorization/approval do I need to make the trades being taught?
It can depend on the broker’s terminology, but generally, it is level 1.
How do I get options trading authorization/approval from my brokerage?
The easiest way to get options authorization is to call your brokerage firm and ask for the options authorization forms. They can send an electronic link, and all the “paperwork” can be done online. To trade covered calls, you need the lowest authorization level, which they will give to anyone and everyone.
Click here to read our guide on how to get covered call options authorization.
How long does it take to get authorization?
It typically takes about 24 hours; however, we got reports from attendees of this taking much longer at the last class. Suppose you do not already have options trading authorization or are unsure whether you do or do not contact your broker as soon as possible. You’ll want to apply for it well before the first class starts, so you’re ready to start trading.
How much money should I have in my trading account for this class? What’s the least amount, and what’s the optimal amount?
There are two answers to this question.
- You need at least $5,000 so that after you learn about covered call trading, you can go into your account and place a couple of low-cost trades.
- To follow all of the trades Jay and Tim recommend in Weekly Income Accelerator, you need a minimum of $25,000. You can easily “size up” the trades if you have more capital available.
How do I calculate the yield from my trade if exercised versus unexercised?
One of the best free tools we’ve found is from Option Strategist. You can access it at https://www.optionstrategist.com/calculators/call-writing
I heard there are prizes that students can win as part of the 4-1-1 Income Accelerator. What are they?
Prizes include one years’ worth as well as lifetime access to hand-picked covered call trade opportunities.
Can you clarify some of the terms used in options trading?
See below for a basic glossary of common options-related terms you should know.
Call: A call gives the buyer the right to buy the underlying stock at a set price (strike price) up until the expiration date. Call sellers (us) receive the price of the call and must deliver the shares if the options are exercised.
Typically a call makes money when the underlying asset (stock, ETF, etc.) goes up. When used in tandem with the stocks (aka the covered call), the call generates income. Ideally, we don’t want the stock price in our covered call to go above the strike price of the call (described below).
Put: A put gives the buyer the right to sell the underlying shares at the strike price.
The put is the opposite of the call. It functions almost exactly the same as a covered call. A cash-secured put just means you have to have the cash available to buy the underlying stock in order to sell the put.
Strike: This is the price the option (call or put) the underlying stock will be bought or sold at expiration, but only if it’s in the money (above the call strike or below the put strike).
Expiration: The month/day our option (call or put) expires. The longer it takes for an option to expire, the more you have to pay for that option.
Premium: The price we sell the option for. Keep in mind; one option contract is the same as controlling 100 shares of stock, so we have to multiply the premium by $100 to get our income. (For example, a $1.25 premium on an option will provide us $125 per option when sold.)
Time Decay: Options eventually expire. When we are short (we sold it) an option, the option loses a little value every day if the underlying stock/ETF doesn’t move. This is called time decay. The decay picks up as we get closer to expiration but only has a small effect when there are multiple months to go until expiration.
Volatility: How much the underlying stock/ETF moves and how fast it moves can have a huge impact on the price of its options. The more volatile the stock is, the more you have to pay for the options. That’s generally why we don’t trade highly volatile stocks, like Tesla (TSLA), for example.
Bid/Ask Spread: There’s a bid price, and an ask price for every option. It would be normal to think we have to sell at the bid price and buy at the ask price as a customer. However, if you set your sell price at the midpoint of the bid/ask spread, your trade can get executed at that price or right around there.
ATM/OTM/ITM (At-the-money/out-of-the-money/in-the-money): Terms used to describe where the option is relative to the price of the underlying asset (also called “moneyness”). We focus on OTM and ATM options in this service.
LEAP: The common name for a long-term, exchange-traded option. They are usually a year or two out until expiration and generally not something we trade in this service (but we do get asked about them regularly, so I thought it would make sense to include them in this list).
Exercise: If you have an in-the-money option (a call with the strike higher than the current stock price or a put with the strike lower than the current price), you will get assigned on that option into shares at expiration. For a call, that means your account will automatically sell 100 shares per contract of the underlying instrument at the strike price. For a put, you’ll own the shares at the strike price. For covered calls, the broker will take our long shares to use when a call is exercised, leave us with a net position of zero—something we will allow this to occur (instead of extending the trade to a later date).
Early Exercise: With individual stocks, you have the potential to be exercised on your shares into stock (see “exercise” entry above) prior to expiration. It rarely happens, and only with in-the-money options.
Rollout: Closing a current position and opening a new one with a different expiration and/or strike. This is typically done as a single transaction but can be done separately. A rollout is generally used to extend the life of a trade or adjust it after a big move in the underlying asset. It’s generally done as a single transaction to lower transaction costs and simplify the process.
Some quick reminders:
Filled = Executed
Long = Buy
Short = Sell
Theta = Another way to say time decay (see definition above)
Covered Call = Buy/Write
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