Options With Davis Review: "Safe Wheel Strategy" - DUMBEST Strategy EVER? (Beginner Warning!)

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1M ago 18:55

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In this in-depth Options With Davis review, we examine his "safe wheel strategy for beginners," aiming to provide a fair assessment while also highlighting critical flaws. While I believe Davis has good intentions, this video will break down why the wheel strategy, particularly covered calls, dramatically underperforms the market in the long run.

We'll analyze real-world examples from Covered Call ETFs like JPI, QYLD ($26 to $16!), and DYL, showing their poor performance even with dividends. You'll understand why "collecting pennies" means sacrificing massive upside during recoveries (like early 2025's 9-day S&P rally!) and locking in losses during pullbacks.

Then, we dive into Davis's proposed solutions for market crashes, dissecting:

His Nvidia example: Selling aggressive $140 puts on a stock that fell below $90, leading to huge losses.

His "tranches" method: Selling single cash-secured puts at multiple levels. We explain why this approach is foolish, barely allocates capital (earning 2-3% annually vs. a CD!), and relies on knowing market direction.

The DTE (Days to Expiration) discussion: Why short DTE is safer in a crash, but longer DTE (45 days) can lead to massive losses during sharp moves.

His fundamental analysis advice: Why relying on "fair value" sites won't predict future performance.

This episode argues that while intended for safety, this complex strategy is ultimately "complete garbage" and likely to underperform even a certificate of deposit. Watch before you commit to the wheel!

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