23d • General discussion
Gary LeBlanc secret sauce to options trading
Gary LeBlanc’s Options Strategy (Explained Like a Teacher)
🧠 The Core Idea (This is EVERYTHING)
Gary is NOT trying to:
• Pick the perfect stock
• Time the market perfectly
• Get rich off one big move
👉 Gary is trying to:
Make consistent income over and over again using time (options decay)
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🏦 Step 1: Own the Stock (Your “Inventory”)
Think of stocks like real estate.
If you own 100–3000 shares of a stock, that’s like owning:
• A house
• An apartment building
👉 Now instead of selling the house…
You rent it out
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💰 Step 2: Sell Covered Calls (Collect Rent)
This is Gary’s MAIN move.
What it means:
You sell someone the right to buy your stock at a higher price.
Example:
• You own BGC at $11.60
• You sell a $13 call
👉 Someone pays you money (premium) for that right
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🧾 Real Life Analogy:
You say:
“Hey, you can buy my house for $13 anytime this month… but you pay me $ first.”
✔ You keep the money no matter what
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🧠 Outcomes:
✅ Stock stays below $13
• You keep your shares
• You keep the premium
👉 WIN
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✅ Stock goes above $13
• Your shares get sold at $13
• You still keep premium
👉 WIN (you made profit + income)
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🔁 Step 3: Repeat (THIS is the system)
Gary does this:
• Every week
• Every month
• Over and over
👉 This is called:
Theta decay farming (time working for you)
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📉 Step 4: Sell Cash-Secured Puts (Buy on Sale)
Now let’s say a stock drops…
Gary doesn panic.
He does THIS:
He sells a PUT
Example:
• Stock at $11
• Gary sells a $10 put
👉 Someone pays him money for the chance to sell him shares at $10
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🧾 Real Life Analogy:
“If this house drops to $10, I’ll buy it—but you pay me upfront.”
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Outcomes:
✅ Stock stays above $10
• Gary keeps the premium
👉 WIN
✅ Stock drops below $10
• Gary buys shares cheaper
👉 WIN (he wanted them anyway)
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🔄 Step 5: Create a “Money Machine Loop”
This is the FULL Gary system:
1. Own shares
2. Sell covered calls (income)
3. If stock drops → sell puts
4. Get assigned more shares
5. Sell more calls
👉 Repeat forever
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⚙️ Why This Works (Big Insight)
Options lose value over time.
This is called:
Theta decay
\text{Option Value} \downarrow \text{ as Time } \downarrow
👉 Gary is ALWAYS the one:
• Selling time
• Not buying it
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⚠️ Big Rules Gary Follows
1. Never over-leverage
Don’t sell more contracts than shares
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2. Always leave flexibility
Example:
• 500 shares → maybe only sell 4 contracts (400 shares)
• Keep 100 shares free
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3. Take profits early
If option loses:
• 25%–70% of value
👉 Buy it back early
👉 Lock profit
👉 Reset trade
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4. Sell into strength / weakness
• Stock going UP → sell calls
• Stock going DOWN → sell puts
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🎯 What Gary is REALLY Doing
He is NOT trading stocks.
He is:
Running a small insurance business
• Selling contracts
• Collecting premiums
• Managing risk
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📊 Simple Example (Put it all together)
You:
• Buy 200 shares BGC at $11.60
Then:
Week 1:
• Sell 2 calls at $13 → collect $150
Week 2:
• Stock stays flat → keep $150
Week 3:
• Sell again → collect $120
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👉 In a month:
• You made ~$300+
WITHOUT needing the stock to move
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🧠 Why This Strategy is Powerful
Most people:
• Try to guess direction
Gary:
• Doesn’t care what direction
He wins if:
• Up ✔
• Flat ✔
• Slight down ✔
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🔥 Final Teacher Summary
Gary’s strategy is:
“Own good stocks and get paid over and over again for letting other people bet on them.”
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1 comment
Gary LeBlanc secret sauce to options trading
skool.com/oil-option-trading-101-1282
How to use options to reduce risk in a portfolio. You can use this for all stocks and commodities but we going to trade Crude oil and oil options.
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