Options


Options are for those looking increase income, manage risk and take advantage of time sensitive opportunities. This section is for those who are using Fundamental Trends option strategies:

  • 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:

Don’t You Dare Trade Options Until You Read This!!!

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.

Global Trends ETF Model: December 2019

Global Trends ETF uses tactical asset allocation to find opportunities and manage risk using low cost ETFs. This ETF strategy can be used as a whole portfolio or as the core to build a stock portfolio around.
Our mission with Global Trends ETF is to create a diversified portfolio that uses asset allocation to exploit opportunities and manage risk.

Quick Thoughts On Occidental Petroleum, SunPower, Volatility & Model Portfolios

With more time freed up from simplifying my business model, I plan to write a “quick thoughts” on Tuesday, Wednesday and Thursday now. Today, Monday, I am writing one because I have two macro pieces about half done each: We Are Now On The Peak Oil Plateau Climate Change Is Already The Biggest Investment Trend I will release these on back to back Mondays coming up. Macro pieces will be […]

Shale Stock Cash-secured Puts Attractive Now

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 […]

Quick Thoughts On VXX & QQQ

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 […]

Sell Cash-secured Puts For Income & To Build Positions

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.

Permian Stocks To Buy Stock And Calls On

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 […]

Taking Profits On USO

(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. […]

A Call On Tesla

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 […]

Fade The Market In Early April

Money flows are observable and somewhat predictable for markets. In December, I discussed how money flow was negatively impacting the stock market. Here is that article: 4 Pieces of Missing Money Crushing Markets In short, outflows from liquidating hedge funds, tax-loss selling, a Fed that had ramped up QT to $50 billion a month, virtually no foreign investment (see China’s 90% plus fall off) and the permanent dribble out of […]

Don’t You Dare Trade Options Until You Read This

“You never have played poker before, you say,” says the gambler. “Well, the best way to learn is to jump right in and give it a try,” he encourages. “Sit right down here at the table, you’re smart, you’ll figure it out.” Person who never played poker before sits down at the table and takes out his wallet… If you haven’t done significant studying about options before using these investment […]

Buy Alert – That’s A Lot Of Beans, Soybeans That Is

Summary China in its hunger for, well food, just ordered 2 million tons of U.S. Soybeans. The Teucrium Soybean ETF (SOYB) just turned up off of a bottom, crossed the 20-day moving average, is approaching the 50-day and Chaikin ratio is positive daily and weekly. I am diversifying some of my cash into this commodity on the trough pricing, new uptrend and China trade hopes. I mentioned the  Teucrium Soybean ETF (SOYB) […]

Cleaning Up An Oil Spill – Part 2

Summary Selling all U.S. Oil Fund 3x Leverage (USOU). Replacing with calls on SPDR Oil & Gas Exploration & Production ETF (XOP) and calls on several oil stocks. The algebra of the levered funds is too hard to overcome during declines that last more than a few days. Options are more efficient and more likely to rebound from being down than a levered ETF. Leveraged ETFs are designed for day […]