Each week we update members with stocks that are ripe to have covered calls sold against their position. We also identify cash-secured put selling opportunities on our favorite stocks.
- cash-secured put selling for building stock positions and generating income…
- covered call writing for trimming positions and generating income…
- LEAP call buying for when large opportunities present themselves, such as after major corrections…
- Swing trading of calls and puts for our R.A.R.E. members.
Option selling is a professional strategy that takes some getting used to, however, if you are a long-term investor with a contrarian streak who likes to add income to the bottom line, this is THE strategy worth learning.
Before making any options trades, read Characteristics & Risks of Standardized Options, study the CBOE Education Center and engage in paper (pretend) trading for an extended period before trading options.
Also, read this article:
Most trades are hidden, however, several recent trades and most older trades have been released to serve as samples. More will be released as the options expire.
The oil industry has been getting pummeled for a year now. Many oil stocks are down 50% to 70%. Recency bias is preventing more investors from making a real analysis of the value of these companies. Have no doubt about it, some oil stock prices will never recover. More oil companies will go bankrupt. Mergers, and takeovers without much premium, will remove others from being publicly traded. The majors are […]
The correction we are seeing is a prelude to what I expect in 2020 as the economy softens and buybacks slowdown. Between now and then, we should see choppiness as smart money fades rallies and the oblivious permabulls buy the dips (perma anything are oblivious). I expect a bit of an “end of QT” rally after Labor Day possibly through January, albeit with more volatility than normal. VXX We nearly […]
For those of you active in the chat, you saw that we discussed buying some SPY puts a couple weeks ago and VXX calls on Monday. The SPY puts are up about 50% and the VXX calls have roughly doubled in 4 days. How you manage these depends on how greedy you are.
When the stock market is choppy, unless you are a skilled technical trader, your best bet is to set several GTC orders to tune up your portfolio and then, go do something fun or productive. Setting the limit orders at favorable prices eliminates the emotional aspect of trading. All of the orders I am entering have to do with sustainability or the “smart everything world.” That is where the future lies and where most of the leadership lies long-term.
With Chevron bowing out on the Anadarko battle with Occidental, that leaves quite a few companies in play again. Both Chevron and Exxon are likely to expand their footprint in U.S. shale in coming quarters. A spread of calls across the most attractive buyout and merger candidates could generate outsize returns as M&A activity takes place in the American oil patch. I recently covered 8 Permian Oil Merger & Acquisition […]
Newmont Goldcorp is the global leader in gold production. Their recent merger gives the company synergies for reducing costs and leaves the company in a position to influence gold prices. Gold could be set to rise on the end of Quantitative Tightening by the Federal Reserve.
Kinder Morgan has two little talked about cash flow catalysts that investors should pay attention to. Also, Richard Kinder now owning over a quarter billion shares is about as pro shareholder as it gets.
(Open to the public to demonstrate the regular notes we put out on our holdings. Here we were buyers of calls on USO the last week of December 2019 and are taking profits now as a form of risk management. The “new” Fundamental Trends is in beta and making adjustments based on member feedback.) They say we should learn from our mistakes. This is one thing that “they” have right. […]
Tesla is perhaps the biggest “battleground” stock in the stock market. Bulls are foot stomping bulls and bears are chest thumping bears. It’s quite the site to behold when they get to blogging at each other without really understanding what they are talking about. Tesla might be the company most tied to the sustainable investing trend. It’s a fine poster child if it is. From years of floating along to […]