Podcast – Episode 105 – How Charles Betz Trades The Wheel Options Strategy


Podcast Transcript

Allen: Passive Traders, welcome to another edition of the Option Genius Podcast. In this episode I have the pleasure of introducing you to a fellow passive trader, Mr. Charles Betz. He is a passive trader and he is gonna talk about how he got started with a small dollar account and how he is using the Wheel Options Strategy to generate some very significant returns. I think you’re gonna enjoy this one. Stay tuned.

Allen: Cool. So tell me, tell me about Chuck, tell me about Mr. Betts, you know, what do you do? Who are you? How’d you get into trading?

Chuck: I’m a high school teacher, I teach math and physics. It’s a second career. My first career was in the restaurant industry. And you know, things just didn’t really work out for me there. So then a teacher for then going into my 10th year of teaching. And the whole reason I got into trading was when I looked at the retirement system, the pension, everything that teachers can earn, it’s like one of the few professions that still has a pension, I looked at how old I was going to be when I was going to be able to collect a decent income. And I thought, wow, I’m not sure I want to work to be that old one. I’m still working and retire at that age, like, how much am I going to have left? Who knows? So I started looking into other things that could maybe do to dial that number back. And I met with a buddy of mine, I have a real estate license, that’s one of the things I got into while I was transitioning careers. He’s he owned a, he ran his own little brokerage for a little while, and I was thinking about maybe, you know, selling some homes or listing some homes in the summer or on the side while I was teaching to make extra money. And he told me about options. He’s like, you got to check this out. This crazy thing, like, and I’d heard of them, I’d looked into different types of trading, trading currencies and, and trading stocks. You know, that’s one of the things I teach in one of my math classes was investing, you know, stocks and what are they and all that stuff. Just the basics, though. And I had never heard of options. So that’s how I found out about options was through my buddy knows about two years ago.

Allen: So okay, only about two years. All right.

Chuck: Yeah.

Allen: Cool. So instead of telling you to “Yeah, come on board and you know, love you sell houses for me”, he just, he put you in a whole different direction?

Allen: Well, he did offer to, you know, give you some leads, I could follow up on his real estate leads. But having done real estate full time in the past, I know how much time and effort and energy it takes to be successful in that industry. Yeah. And as a teacher, you know, I already had a few years under my belt, and I, I love this job. I love what I do. But I just don’t want to do it forever. I couldn’t see doing real estate and then teaching. At the same time, it just I don’t know where I would find the time to do both. So I thought I’d look into options or something to do with the financial markets, because that’s something that can be done without as much time to invest into it, you know?

Allen: Yeah. What state are you in?

Chuck: I’m in California, in Southern California. I live in the city of La Mesa is just outside of San Diego.

Allen: Okay. And so they’re unionized teachers there?

Chuck: I was teaching at a school that had a union I was part of the Union have since left that school for.. Now, I teach from home. I was another thing I reason is because I had more time, I didn’t have to go drive and be in a school building all day. I work with homeschool kids

Allen: Oh, interesting.

Chuck: It’s homeschool them. And, you know, they get to that point in their schooling where they’re like, I can’t help you with that math, or I don’t know how to teach you Physics. So that’s where I come in. But we aren’t part of a union. But we do still pay into the State Retirement where we get our funds from public schools. And from you know, the same way public schools do we are a public charter school. We’re just not part of a union. So, that’s the only difference.

Allen: Okay, so I think you might have touched on this, but besides the money aspect, what drew you to trading?

Chuck: I just wanted to not have to work until I’m in my late 60s. And I knew that if I could somehow increase our income, and put that into retirement savings. You know, we’re we’re starting to fund our Roth IRAs, and we’re starting to give money to our 403B’s. And we’re, we also, you know, my wife’s a teacher, too. So, you know, we’re starting to we pay into the 403B is like a 401k. But..

Allen: ..for teachers

Chuck: For teachers, right. And I was thinking, well, gosh, you know, it’d be really cool if we could just build up our investments faster. That way, we wouldn’t have to rely on you know, that number they’re gonna give you when you reach that age, it’s all this calculator and this crazy math, and they tell you, well, if you teach this many years, and you’re this age, we’ll give you this much money. And I was like, that’s all great, but I don’t want to be 68 when I retire, how can I dial that back? So yes, it was about the money, but it was more about how can I start coming back from 68 and make it more like 65 or maybe 62? Or maybe even younger than that, you know, so yeah, that was really the goal was to not have to work until the 68 and how does your wife feel about that? She is on board like this whole thing is just been a huge eye opener. You know, I’ve kind of been a sucker in my life for all of these crazy money making schemes and it’s something I learned from my mom growing up she got into all these crazy money making schemes and and you know, I’ve met a lot of really bad decisions and so it took a while for me to realize that no, this is legit like this is real. This works this this is not a scam it’s not an overnight get rich quick scheme but but it’s a legitimate way to increase your income and to reach that goal of financial security a lot faster than you normally would. So she’s totally on board.

Allen: That’s awesome. That’s really, I mean, I would say it’s becoming more common. But in the.. Originally when a lot of people come to us, you know, they’re like, yeah, you know, I want to do this, but my wife, she’s totally against it. And she just thinks, like you said, you know, she just thinks it’s another one of those things that I’m getting into, that I’m all excited about, I’m gonna spend money on course, or whatever. And then, either it’s not gonna work, or I’m not gonna do it. So we have that pushback a lot from a lot of people, and I get where you’re coming from. Because I mean, when I was little, you know, I’ve done it all to you know, network marketing, you know, real estate, sales, all that stuff, everything that I could think of, I even did those chain letters. I don’t know if you ever did that, where no, you get a letter..

Chuck: I know what you’re talking about.

Allen: You get a letter, and it has like, 10 names. And you’re like, Okay, you got to send $1 to each people on the name. And then and then you change the last and you put your name there, and then you send out 1000 letters, and then all those 1000 people are supposed to send you $1, and on and on and on. And yeah..

Chuck: Oh my gosh I totally remember those.

Allen: That was cool. I think I got like, $1 back.

Chuck: Yeah well growing up, you know, my mom bought into, I don’t know, if you remember Carlton sheets, you know..

Allen: Yup, we got his programs

Chuck: She was into Amway and selling Avon, and, you know, she was always trying to find that, you know, that next thing and, and so that’s kind of the mindset I had growing up. But, you know, I just didn’t really learn any financial literacy from her, you know, it was, it was kind of a struggle, really. So when I, when it found this, I’ve always, you know, when I got older, a little bit older in life, I started to realize, like, I don’t have a whole lot of good financial knowledge from growing up. So I need to be a little bit more cautious about things. So I kind of made sure that this worked before I introduced it to my wife. And once she saw that it was working, she’s like, Let’s go, this is great. Are you kidding? Wow.

Allen: Okay, so how did you so you said, you made sure that it work? How did you do that?

Chuck: So we had a brokerage account that I had just bought some stocks in, we opened it up when our daughter was born, we had a few thousand dollars in there. And you know, just it was just sitting there not really doing anything and never really appreciated and value never went up. It was you know, over the years, when I was in real estate, some of the guys in the office, we’re doing penny stocks, and maybe have a couple $100 of that. And, and so over the years, there was a total of a couple grand in there, I read that a little over 3000. And so when I first found out about Options, I used that because she really didn’t even know about that. It was like this account that she barely knew..

Allen: She forgot about it..

Chuck: Whatever, it’s no big deal. And so I used that to figure out, is this legitimate? Is this going to work? Or is this another one of those things where I’m just going to be like, oh, there I go again, making poor decisions about things don’t really work. And at first, it didn’t, you know, one of the the the program and the education program that my buddy introduced me to, the thing they used to get me into it was buying options, which totally went against everything that I heard from you, and from another podcast person that I listened to where all you guys talked about as being a seller of options. But the way they presented the course and all the information, it made so much sense. There was logic and you know, a program and a trading plan. And so I put that in, in motion with my little small account and lost a third of it over the course of about four or five months. So that’s my start into option. Yeah..

Allen: Yeah that’s pretty common. A lot of people go that route because it I mean, it’s more appealing because oh, if you buy an option, you can double your money, triple your money 10 times your money overnight, you know. And it’s great, because they have plenty of examples, you know, they can show you Oh, we did this trade. And we had this trade we did this trip, they don’t show you the other 99 trades that didn’t do well. But they show you the few that did. So great. So how did you find out about option genius? How did you get started with us?

Chuck: I was looking for more education, more information. You know, I watched tons of YouTube videos about what options are. All the Greeks and all the details and all that stuff. And I go out, mental part of my daily routine is to go out for an hour long walk, walk about three miles every morning, I’ll put my earbuds in and I started listening to podcasts about investing and and then eventually trading and now options. And yours was one of the few out there that I could find there aren’t that many people doing consistent podcasts about options trading. So between you and this other one that I was listening to. Again, both of you were primarily talking about selling options, and here I was over buying options and like something is.. I’m not doing something right. I’m losing money, and these guys are talking about doing something different. I gotta get this figured out. So that’s how I found you guys was through podcasts. So thank you for putting out the podcast.

Allen: Okay, no, you’re welcome. It’s been a it’s been an interesting journey for the podcast. So what was the the first product that you tried with us? or what have you had?

Chuck: So I went to your website, I signed up for your emails, just your basic emails, here’s what we do that kind of stuff. And you sent out a scholarship request, you were offering a scholarship for your passive trading program. And, you know, like I said, I didn’t have a whole lot of extra money on the side, I was using a really small account, you know, to buy a program is like, Oh, I’m still not sure about this stuff. But you offered a scholarship and your your introductory video for what you want. And you’re like, you know, I’ve offered this before, like, nobody’s ever really done anything with it. I was really kind of disappointed by all the people who, you know, I’ve given the scholarship to I haven’t really had any success stories. So maybe you can be a success story. And I’m like, Yes, that is me. I want to be that guy. So I put together my video and I sent it in and you emailed me, congratulations. You know, we’re awarding the scholarship, and I just about my head exploded, it was fantastic. So I watched all the courses. I take notes on all the courses that you teach. I have my little options notebook here that I write everything down, like, word and awesome. And just right when it all was over started, started working the plan. So that’s how I found you guys.

Allen: And how how’s it been? so far? That was about two years ago. You said?

Chuck: A year and a half ago..

Allen: Year and a half. Okay.

Chuck: It was actually February of 2020. Good Time to get started, right? Yeah, I started placing my first trades, and my first few trades were profitable. I hit my profit margins, just like the plan says everything was going great. Oh, my gosh, let’s keep going. Let’s do the next month beginning of March, you know, open up my trades, and then Coronavirus, right. And so everything went south, but I could see like this is working. I totally get that this works. We just had this huge adjustment in our market based on what was going on. So I just kept going and going after that. And it’s been going great.

Allen: But you had the hope, right?

Chuck: Oh, yeah, no, I can see that it worked. That was the thing I saw the results, I saw that this new strategy I’d never used before. It works. What all of these guys talk about books that I’ve read, talk about selling options is the way to make money. It works. It was the first time I had ever sold an option. I was like, Oh my gosh, this stuff works. Kind of like how you talked about in your story where you’re like, man, I was losing money. And I looked at the this one option. And it was the one I sold. And I was like what it was like a light bulb moment. Right?

Allen: Yep. Yeah. So So how did you handle the the Corona bear market?

Chuck: You know, I lost some money, but I just got right back in. Like, I think it turned around within a few weeks. Like actually, as it started going down, I start I just flipped to the other side of the options chain, you know, and started taking advantage of it on that side. And okay, because I could see, okay, we’re gonna go down for a few days, or maybe a week or who knows how long but that’s the beauty of options is, you know, if there’s a clear trend and what’s going on, you can jump to the other side.

Allen: Awesome, cool. Cool. So how have your trading results been so far?

Chuck: Um, I’m keeping track. So that account was so small, and I really wasn’t doing what I wanted to do based on what the passive trading formula, you know, they’re the three main types of trades and you break it all down by account size and my accounts, I was so small, and I wasn’t having as much luck with what the one strategy to build it up. So I rolled over my 403 beat from my previous employer to my current brokerage as a rollover IRA and got it approved for options and started trading there. That was October of last year.

Allen: Okay.

Chuck: And since October, it’s up 26%.

Allen: Okay, so what does that like nine months or so?

Chuck: Yeah, yeah. And also, if I, if I look at the graph, because most math people would like to graph things. As I look at the graph, I should be right around 30 to 35% on a year over year basis. So using using that strategy.

Allen: Sweet, very nice. So what strategies are you using?

Chuck: Right now and selling puts to get into positions..

Allen: Okay.

Chuck: And once I’m in that position, I do covered calls, and I’m doing them a little closer to the money because I don’t really care if it gets called away. As long as I’m, you know, not negative in that particular option, like position, I should say, I look at each position like a little business, right? If I’m going to put this money out there, I want to make me money. And as long as I’m profitable in that position, if it gets called away as long as I’ve made money on it, you know, when it’s all said and done, perfect. So that’s what I’ve been doing. It’s just kind of been bouncing back and forth right now. I don’t I’m not holding anything right now. I might get assigned this Friday. We’ll see depending on where that put closes. So yeah, that’s what I’ve been doing.

Allen: Then what type of stocks? Are you doing this on?

Chuck: Actually, I’ve only been using ETFs.

Allen: Okay

Chuck: So I found that stocks dip, you know, they move a lot I’ve been I’ve been looking at, I’ve been doing credit spreads a little bit like, you know, you’re taught to do credit spreads. So, I’ve been doing a couple of those here and there, I’m starting to get back into trying those out and making sure I can figure out I know what I’m doing. But I like doing it on ETFs. Because I feel like you know, an ETF isn’t going to go bankrupt, an ETF isn’t going to go down to zero. So I’ve been using, you know, smaller ETFs, some of the different ETFs that have smaller, you know, price per share points. So that, because my IRA account isn’t that big. So, you know, but and I don’t want to put all my eggs in one basket, I don’t want to do all of it one trade, so I want to spread it around. So I’ve been using just this list of ETFs that I found that, you know, fit all the criteria you mentioned in the course and just keep selling puts on them until I get assigned and then doing covered calls. And if it gets called away, then I just go back to selling puts again, and it just keeps going around around around.

Allen: Awesome. So that puts your selling in the covered calls, they are what weekly every two weeks, three weeks a month?

Chuck: They’re on mostly I’m doing monthly, most of the time, I’m looking for like a 30 to 35 days till expiration, put to sell all of the ETFs do offer weekly options, you know, I want to make sure that fit that criteria of having weekly options. And there’s lots of liquidity, you know, not that you necessarily need it if you’re okay with being assigned. But still, you know, if there for some reason you wanted to get out of a trade, you got to be able to get out of the trade. But there is one where I’ve been doing it a little bit more like just testing out this idea of trying it every like two to three weeks. So I’ve been doing puts where they’ll expire anywhere between 18 and 24 days instead of 30 to 35 just to see what the results aren’t, you know, playing around with things and right, keeping tracking data and keeping track of everything to see if it offers any edge whatsoever.

Allen: Right. And you’re not and you’re not keeping the stocks too long. So you’re not really worried about the dividend?

Chuck: No, not at all. I mean, I’m hoping to build, you know, to get to that point. And like you say in your program where it’s like, Okay, you got this host of really good stocks, you get your dividends that are coming in, and then you’re just doing calls on top of that to help juice those returns. So but my accounts not quite there yet.

Allen: Okay, no worries.

Chuck: Or size goes.

Allen: Yeah, no, that’s awesome. So okay, so you’re doing like basic butter, I mean, bread and butter covered or naked puts, get some premium, maybe they expire, maybe they get assigned. And then you turn around right around and you do what like at the money covered calls are a little bit out of the money or..

Chuck: Depending on how if I do get assigned, you know, it depends on where I got assigned at. So if it did go through a couple of dollar drops, let’s say it was trading at $40 a share and I sold that put and and then it drops to 38. You know, I’ll make sure that I sell the call. So that I’m above my cost basis. I want to make sure I’m not losing money on the position. So sometimes it’s a little further out of the money. But most of the time, I’m trying to sell it pretty much right at where I got it sound. Okay, awesome. and collect the premiums to build my account faster.

Allen: That’s cool. Yeah, I mean, congratulations. I mean, you’re doing better than most people out there and a lot of Professionals.

Chuck: Yeah it’s amazing. I’m floored I really am when I started plotting everything and looking at the returns. I was like, Are you kidding me? This is crazy. Unbelievable.

Allen: How long does it take you in the day to do this?

Chuck: Oh, not long at all. I do in the morning. You know, before my workday starts or some sometimes before I go out for my morning walk. You know if it I’ll look Monday or Tuesday. Okay, let’s sell another put in, I just got my list of ETFs that I look at and I say okay, how much did that one expire? Cool, I’ve got some more money in my account. Let’s sell another one. Did I get assigned? Okay, let’s look at the chain where where do I need to do my covered call at. Okay, let’s do it there. And then I go on with my day. That’s it. It’s I love it because it’s so low maintenance during the school year, my days are unswamped. Like I don’t have a whole lot of time to sit here and stare at a screen of the markets and go through and look at charts and all that. So this plan really just fits what I’m looking for.

Allen: Okay, so okay, now, I don’t know if you’ve done this. But if you extrapolate and say, okay, you know, I’m doing about 25-30% a year, if I can do that every year, which you know, with the style that you’re doing, you should be able to do somewhere close to that, right? Does that help you or does that? Have you done the numbers and be like, Well, you know, I could probably retire five years earlier, four years early or something like that.

Chuck: That’s been a moving target. And it’s really been hard to nail down because all of this is just so recent. It’s also very recent, and you sent out that email. I don’t remember like a month or two ago. What’s your number and you linked it to that article. where, you know, that guy offered to give you as much money as you want you write a number down? How much money would you need to never work again for the rest of your life. And I’m going to ask for other people. And whoever gives me the lowest number wins. I thought that was amazing. Because then I got me to think, what is my number? I never, I mean, I know that this whole thing was designed to dial back my my want to work till 68. Right. But what would this get me if I were to project this out? Could I stop teaching at 62? Could I stop teaching at 59, I really need to look at all of the pieces of the puzzle, to get a clear picture of what that’s going to look like and when. But it’s very exciting. This is exciting stuff to get to do, you know?

Allen: Yeah, I mean, you know, I mean, if you, if you’re still looking at that way, that’s great. But I would like you to look at it from a different point of view as well, now that you’ve already seen, you know, that it works is power behind it. Now, let’s figure out okay, how much do you need every month to pay the bills, so that we don’t need to worry about what your big number is in the, you know, in the big number in the sky? Think we need X dollars every month to pay the bills? How much do I need in my account? To cover that amount? Right? So if you want to, you know, like, let’s say your monthly expenses are five, six grand, and you know, as an example, well, hey, if I can make that much five, six grand from my trading account every month doing these simple trades, boom! I can retire today, you know, and then it’s up to you. It’s I could do I want to keep teaching? Yeah, that’s great. Or do I want to go volunteer? Or do I want to teach for free? Or, you know, it, the sky’s the limit at that point? So, you know, definitely, I don’t want people to think that they have to wait till 6568, they could do it a lot sooner. And when you look at it, from that point of view, that’s another like, aha moment like what really that possible? Yeah, it is. And it doesn’t take as much as you would think, especially when you’re, you know, bringing in like, one 2% a month. If you can build it up, then. And once you take a look at it, your expenses. I mean, you’re in California, so maybe a little bit higher with the taxes and whatnot. But if you structure it in a different way, it might be a lot less than you realize.

Chuck: I think I’m going to do that. Just knowing that, you know, I haven’t done a full year, I think once I hit that October deadline, where I’ve been doing this a year, and I see that number, and I know that it works, that’s a really good opportunity to say, hey, how much would I need in my account? In order to do this and live off of it, like pay my bills, pay my expenses, and not have to worry about going to a classroom every day during the school year, or teaching zoom classes or planning lessons or grading papers? Or you know, any of that just, you know, then what would I do with my time? No, I could, like you said, volunteer or tutor for free or do something else. Just Yeah, that’s a that’s a really interesting thought.

Allen: I mean, I wouldn’t want you to leave teaching because I know we need our teachers. But you know, just the fact of not having to worry. Like we’ve had multiple, multiple people that come into our system, where they get to that point, you know, where hey, yeah, I’m making as much as from my job as I am from my trading. But I love my job so much. I want to keep doing it. Yeah. So it feels really good. your self esteem goes up the way you think about yourself, the way you carry yourself all that changes, because now you’re like, wow, you know, I’m in control of my own destiny.

Chuck: Yeah I can see that I just just from the success I’ve had, I can kind of see that mindset shift for me, you know, what my thoughts are about the future and, and what’s possible.

Allen: Like, I know, like, you know, recently after Corona, we’ve had this really great bull market, you know, things have been going up things have been doubled, tripled since when they from the hit the bottom and they went up. So a lot of people have made a lot of money, especially the buying option, guys, right now they’re walking on water, because they’re like, oh, everything that every option I buy, it goes up, every call option goes up. So they’re making money, but the thing that you’re doing, it works in a bull market when things are going up, but it always works when things are going sideways. And it works really good even when things are going down. You know, so if you came to me and said, Oh, yeah, you know, I’ve been buying options, and I made 40% or 30% this year, really Congratulations, but you’re not gonna be able to do that year after year after year. You know, but what you’re doing, yeah, it can be done year after year after year. And then you start compounding that eventually, very quickly, within three, four or five years, you know, that number every month of what you’re bringing in just exponentially grows and grows and grows and it gets huge. So I’m really excited for you. So it’s like the, you know, future looks really really bright for you.

Chuck: It really does. It’s it’s just an having come to you know, financial stability, I will say at a later age in life and thinking about okay, when I got into teaching at least I will be able to retire at some point, you know, even though that was 68 and then stumbling into this It just blows my mind. Because, you know, I wish I had found it sooner just like teaching. I love teaching. I wish I had started doing this earlier in my life. But yeah, the opportunities that trading opens up are limitless. This has just been amazing. And I can’t thank you enough because you guys offered me the scholarship. And here I am. I’m loving it.

Allen: Yep. Okay, so now we’ve talked a lot about the good stuff, right. But what now what was maybe the most challenging thing to get you started to doing this or achieve some success with this?

Chuck: I think well, two things. One was the account size, small account to start with. But the second was more of a mental thing. And again, I don’t know if it had to do with all of those horrible schemes, those money making schemes that I’ve come to in the past to really just trust and believe in this and know that it works and trust in the process and click Submit on that order and just watch it work. But I think the mental part of it was probably the hardest thing to get over. And I hear so many people that I listened to and read about talk about that aspect of what it is we’re doing, where the mental part of trading is probably one of the most important things, because anybody can do a strategy. And anybody can come up with a trading plan. But if you don’t have the right mindset about that plan, it’s not going to work for you. It’s just not. And I think that was the hardest thing that when it clicked for me, it was like, Oh, my gosh, why did it take so long? But I think getting the right mindset was probably the hardest thing for me.

Allen: Okay, and how did you go ahead and get that mindset?

Chuck: Knowing that there’s limited risk, like what we do you limit your risk? You know, the, when there are certain things that you know, people talk about options, I have a friend who used to work in the financial markets. And I was asking him if he knew anything about options, because oh, man, I don’t know, the only thing I know is those are really risky. But what we do you define your risk, right? You You have a, here’s your maximum loss, you are willing to lose, you’re not going to lose your house and your life savings and be destitute living on the street. There’s a and you can make that as small as you want. And I think that helped comfort me a little bit and just saying, Well, look, if it doesn’t work, this is what I’m going to lose. Am I okay with that? Yeah, that’s not going to make a big deal in the long run. So let’s give it a try. So that part of it really helped me get over the mindset of losing, or the fear of losing being greater than the fear of opportunity, or the the actual idea of opportunity. So yeah, just the mindset thing that really took a while for me to wrap my head around, and just do it. But I again, reading so many people talk about it, and great examples of how to get over it. Just, it’s I’m so glad I did.

Allen: Awesome. Awesome. Cool. So let’s say if we have a listener who’s in your shoes, where you were about year and a half, two years ago, what would you tell that person? How would you tell? How would you advise them to get started? Or what should they do first, second, third?

Chuck: Educate yourself. Definitely, you know, I spent several months just educating myself as much as possible with from reputable people. Like I said, I listen to your podcast, I listen to podcasts of other people, I read books, watch the YouTube videos from reputable sources, you can kind of tell the snake oil salesmen out there, so I would always just kind of tell them, you know, ignore those. But, you know, there are plenty of valid sources of free material to educate you about what options are and how they can work for you. So first, make sure you know what you’re doing. But then second, get yourself a somebody who knows what they’re doing to help you out. This has been such a helpful community that you’ve introduced me to everybody in our Facebook group, you offer all of the support, you know, it’s just been so helpful to know that there are people out there doing it with me, even though I’m here alone in my office, you know, watching the screen or doing what I’m doing, but definitely somebody who’s new – educate yourself, find somebody who’s going to help you, and then just do it. You just be okay, with losing a couple 100 bucks. Trust me, I think most people have probably spent a couple 100 bucks on something useless Anyway, you know, and so, I think it’s worth it to see that this works. And that’ll just be a complete different, a complete mind change for you.

Allen: Cool. Okay, so now thinking back to the program that you were in the passive trading formula, give me like maybe two or three takeaways that you know, when you went through it, it really hits you and you’re like, Okay, this you know, this makes a lot of sense. This is good. I need to start using this stuff.

Chuck: There are rules for everything. You have everything there is a template, it’s a pre determined, this is how you do it. This is what you look for this is when you see this go. And as a math teacher math is just rules, right? And what you do when you know there are rules for every type. Math. So if you follow these rules, you’ll get the right answer. So if you follow that trading rule, you will get the desired outcome. You know that I think that was one of the biggest takeaways from your entire program was that there’s a template, it’s laid out for you, you know, here, here’s what to look for, here’s what to do when things go wrong. Here’s what to do when things go right. Here’s how to be successful at this and then just do it. That’s it. That was the beauty of it is how simple it is. And the fact that I don’t have to be glued to my computer screen all day. It’s perfect.

Allen: Mm hmm. Cool. Okay.

Chuck: I hope that answer your question, I hope.

Allen: Yeah, I did. Yeah, it’s up to you is whatever I mean, you know, everybody looks at it from a different point of view. You know, when some people start asking the same question, it’s like, some people they talk about, oh, yeah, you know, I’m gonna be able to do this. With like, some people have certain disabilities, and they can’t, they can’t work or they can’t focus, or they can’t do some some other things. And they get drawn to this. Other people look at it. And their takeaway is like, Oh, you know, I’m coming at this from like, let’s say, a real estate background, we have a lot of real estate investors, they get involved in options, because it makes sense. You know, you’re you’re buying a house, you’re renting it out, you’re cash flowing it, well, you could do that same thing with stocks, you know, your covered call is cash flowing your stocks. So it’s kind of the same thing. And so different, like I love your answer is great. Everybody looks at it from a different point of view. So I just like hearing what attracted and what people took away the template thing, you know, that that’s something, I’ve heard it but not not too much? And I think it is, it’s one of the things we like to do is just keep it simple, you know, you can, like you said, there are other people out there, they’re teaching this stuff. But what I find is that they make it so complicated, that it stops people in their tracks from like, oh, man, I’m never gonna understand this stuff. What is he talking about? i? Geez. So that’s what we kind of, you know, especially this program is like, yeah, this is really simple. You know, like, just get started, start with one foot, start with another foot, you don’t have to go running, you just start walking a little bit, and crawling a little bit, and eventually you’ll, you’ll get the hang of it. So..

Chuck: Yeah, it’s been great. I think the other thing that hooked me the most was you use the analogy of insurance a lot. And that really was like another lightbulb moment. For me. There was a book I was reading, where they talked about it from being an insurance company perspective. You’ve talked about it from that perspective, I used to work for AIG selling life insurance back before they had to get bailed out. That was an interesting time. But insurance for that perspective, and selling options totally makes sense to me. And being able to define your risk, you know, what insurance market Do you want to go into? Do you want to be a reinsurance company where you’re going to handle all the crazy insurance that nobody else will touch? Or do you want to be a super conservative insurance company, that’s really what trading options is, you’re, you’re out there taking on a little bit of risk and collecting some money and just do it month after month. And it’s amazing. It’s just amazing. And that so that whole insurance analogy just really clicked with me. So between that and and the step by step, here’s the template, follow this process, and let it fly. That those two were the huge takeaways for me.

Allen: Okay, cool. Awesome. So based on your experience, would you recommend Option Genius to others?

Chuck: Oh, yeah, I already have! A buddy that I mentioned, options to he used to work for the wealthiest guy here in San Diego County was the guy manages several billion dollars worth of investments. But you know, his portfolio kind of shrank over the past several years, and he’s just looking to hang it up. So he got laid off. And he was the one I asked if he knew anything about options, and he could get all freaked out, oh, they’re risky. And I said, Well, you should look into this guy, you should, you know, go listen to some of his podcasts. That’s how I was introduced. And if what he’s saying makes any sense, you know, I’m happy to turn you on to what they’re doing over there. It’s It’s amazing. It really is. And so, I don’t know if he’s, I haven’t talked to him. I don’t know if he’s listened to the podcast and ran with it or done anything with it. But I’ll probably check in with him here before I go back to school next month.

Allen: I appreciate that. Yeah. I mean, you know, everything that we can do to get the word out there, because the situation for.. I mean, you’re you’re lucky that you’re a teacher, and you have that built in pension, you know, it’s kind of I’ve learned a little bit about it, but it’s like your teachers are kind of in that situation, or better often. Most companies are most people that don’t have that fallback plan. A lot of people are really, really and you have the other thing, I don’t know if you, you’re in high school teacher, right. So I mean, if you were unionized, I’ve seen these, it’s harder to lay off a teacher.

Chuck: Oh, yeah.

Allen: But we have so many, so many people that come to us and say, you know, I was a high level executive. I was making a couple 100 grand a year, but then they decided to lay me off and they brought in somebody that’s, you know, doing the work cheaper. And now I can’t find a job that will pay me the same amount I was making so my family’s used to a certain lifestyle. I can’t provide it anymore. Yeah, I wish I had found this stuff so much sooner. And so that’s why it’s like I’m out there like man, you know, we really need to get this stuff out there. People need to hear about it.

Chuck: I agree!

Allen: Even if they’re doing just the basics, you know, just, you know you already have, most people already have a stock portfolio, they already have their indexes, just, you know, just sell a few options every few years, every month, you know, not even every month, they can do it every few months, they can still make a little bit more than they’re making now. And in the long run, it’ll add up and workout. So Alright, last question for you. What do you think the future holds for you now?

Chuck: That is completely up to me. You know, I’ve always been a believer in that, that I kind of control my destiny and my circumstances, don’t necessarily, I’m here because of who I am. So, but I feel like my future has just, it’s wide open. It really is I daydream a lot more. I think about the opportunities and the possibilities a lot more. You know, it’s like you said, What if 5, 6, 7 years from now, this could replace your teaching income? Would you continue to teach, you know, or would you do something else? And those are the thoughts that I have. And I just, like I said, haven’t really committed it to paper and, and, and talked it over with my wife to figure out okay, if I could, you know, would I? Or could I? Or should I, and what would I do? You know, what would I deal with all that time? But those are the, that’s that’s what I see for me and a future is just so many possibilities. You know, there’s so many things that I thought I would have to wait to do until I’m much much older than I am now. And, and the thought of being able to get to do those sooner rather than later. It’s really exciting.

Allen: Yeah. Is there anything that one thing that you’ve always wanted to do that you’re like, yeah, I’m gonna give it a shot?

Chuck: So interesting story. My last job in the restaurant business, I was a brew master. And I worked for a company called rock bottom breweries. There used to be one I know you’re in. In Texas, there was one in Houston for a long time. I don’t know if it’s still there or not. But I was a Brewmaster for the rock bottom breweries, and I absolutely loved it. It was a fun company. It was a fun job, that beer community, the craft brewing community, and this was back in the late 90s. No, this was before everything blew up like it is now. So and I had to get out because of a workplace injury. Well, you know, so many of these little tiny neighborhood breweries are opening up where it would be super easy to manage on my own and just do it part time, B 4 days a week, I’ve seen people do that business model. I think that would be a fantastic thing to do with my time. Just make some beer for the local community sponsor, some little league teams and some softball teams and just just, you know, work part time and have a great time.

Allen: That sounds awesome. Yeah, yeah. So what are you gonna do it? I know, I’m pushing you here.

Chuck: I know, I think I should I really do. I think if that’s the one thing I could do, if I got out of this, what would I do with my time? I think that’s what I would do. I really do.

Allen: Sweet , cool. I like it. I like it. It’s a good plan. I mean, I wouldn’t want you to stop teaching but you could do this in your afternoons.

Chuck: Tutoring is an option. And with tutoring, you can set your own hours tutors get paid fairly well, you don’t have to, you know, be locked in a classroom for six and a half hours or glued to a computer screen teaching three or four hours a day. Tutoring can just be Hey, an hour here an hour there. And you know, you’re still helping students out you’re still passing down that knowledge that you know, and, and being a part of the education journey, you know, somebody who’s who’s never been, you know, to college, or whatever it may be. But at the same time, having all my other time to do other things that I want to pursue, like, like running my own brewery.

Allen: That sounds interesting. That sounds like a lot of fun. Yeah, I mean, I’m in Houston. Well outside of Houston. So I don’t remember that one. But there are several here. And like, I’ve been to a couple of them. There’s one called St. Arnold. I think they they sponsor, you know, the MS. Ms. 150, which is like a bike race. They’re big sponsors of different charities and stuff around. I don’t drink, but it’s just the vibe when you go there. And it’s just a whole it’s, it’s just different atmosphere. So yeah.

Chuck: Oh, yeah. And that’s what drew me to it was the community, you know, as a job. It’s just a job here. You know, it’s pretty physical manual labor to run one of those breweries. Yeah. But it is more of the community, you know, sponsoring local events and just reaching out, you know, giving giving money away cuz brewing beer is like printing money. The cost of the materials to make that stuff is next to nothing. And they’re selling it for four or five, six bucks a glass that’s, it’s like printing money. It’s crazy. So you know, I would just love to be a part of my community here and give back.

Allen: Yeah, I’ve always thought to get into something like snow cones or something like that. You know, you’re just selling.

Chuck: Yeah. Oh, my gosh, those used to come to my daughter’s Elementary School. Same thing. Yeah. You know, just putting a little flavored syrup on a cup of ice and you’re charging four bucks for that. Oh, my gosh, yeah.

Allen: Fun thing. Cool. All right. So thank you so much for doing this. Thank you for your time. I’m so happy and proud of your success. Had you really, you know, you took that scholarship, you ran with it, it was all on you, you know, I mean, we we did what we could we supported you however we could, but it takes, like I said, you know, when you saw the video, there are several people that have been through that program, and they start everybody starts out fresh and excited. And you know, but then life happens and they kind of fall off. But not you. I mean, you took it, you ran with it, you’re actually doing it. And I think that’s the biggest thing, you know, you want to change your life, you have to set your goal, you have to set it and this is something that I’m going to do. And then you just do it month after month you keep at it and you work on it, like you said you had, you know, you lost a little money in the beginning with the different program, and then you found something that made sense. And that’s like, the biggest thing is, oh, this makes sense to me, okay, I press this, I do this, I do this. And that happens. Okay, let me try, you tried it, it worked.

Allen: And you’re like, Okay, I could do this. And then you just kept building on it and building on it. And like you said, Now you’re getting you know, you’re trying to do the credit spreads, you’re learning a different strategy, you’re getting a little bit more creative and more advanced. You don’t really have to, you know, you’ve had great success, you know, if the S&P was doing 30% every year, like, we’d all be billionaires, we wouldn’t have to do any of this. But it does it. But if you could do that year after year, I mean, you’d be you know, you could be starting your own school and your own Brewmaster school or whatever you want to do. You’d be starting up pretty soon. So I’m really excited for you. I appreciate you. Thank you for taking the time to apply for that scholarship, and then just taking and run with it and doing it and it just makes me so, it makes me so happy. You know, it’s like, yeah, you know something, I’m actually doing something that’s making a difference for somebody.

Chuck: I can’t thank you enough, Allen, for extending that, for offering this all the support, you know, for the past year and a half that I’ve been part of the program, you know, the the coaching and the support community on Facebook, and just, you know, just putting that information out there and sharing your knowledge and your belief in other people. So I just want to extend that thank you to you personally, because I will be forever grateful.

Allen: You’re welcome. You’re welcome. And I mean, you’ve made me come to the decision, that yeah we want to offer this scholarship again this year, you know, in the past? I don’t know, man, is it helping anybody? We just wasting our time? But no, I, you know, I think we need to even if it helps out one person like it’s, I think it’d be worth it. So normally, we do it around Thanksgiving. So those of you who are listening, if you’re interested in the program, you want to wait till Thanksgiving, I wouldn’t advise it. But hey if money’s tight, then maybe that’s what you got to do. Right. So we’re on Thanksgiving, we’ll probably come out with a scholarship again, for a limited number of people. But yeah, thank you so much again, Chuck. This has been awesome. Appreciate it. And we’ll talk to you soon.

Chuck: All right, thanks, again, take care.

Allen: Uh huh. Buh-bye


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  1. Janet on August 25, 2021 at 10:08 pm

    Excellent interview. Passive trading iis a great program

    • Ameen Kamadia on October 26, 2021 at 11:40 am

      Thank you Janet!

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