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 […]
- 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.
Micron and Nvidia both have strong long-term upside, however, there could be rough going short-term. That’s an opportunity.
“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 […]
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) […]
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 […]
Summary Today’s webinar will discuss hedging an escalating trade war and cleaning up the USOU mess. The odds of a full trade agreement with China are almost zero, but a coin flip between escalation and “delay more tariffs to work on a deal.” You don’t have to make money back the same way you lost it. Earlier this week I asked Will President Trump Trade America Into Recession? We will not know […]
Summary Leverage is a double edged sword that must be wielded carefully. Overextending on leveraged positions can lead to massive portfolio destruction. Wait for likely turning points and scale in slowly. Waiting for an uptrend is the easiest and safest way to use leverage, though has less profit potential, which might be just fine. Consider risk first, then potential profits when investing. I will start with the last point first […]
Summary Hedges are small positions with potential for large offsets in a falling market. We place hedges when markets are overvalued and there is a discernible catalyst to drive prices down – we try to avoid outright speculation. Our current hedging thesis is almost played out and we need to look for exits. In August we started talking about hedging our portfolios. The first batch of hedges expire in December […]
Summary Selling puts this month could be a boon if there is a small correction and volatility. We will want to be aggressive put sellers into the buyback bubble that is blowing into year-end. I am not too keen on buying calls right now, that seems a time for a bigger correction. Selling covered calls on bigger positions that have RSI near 70 is always a good move. You do […]
Summary Antero ahead of winter natural gas demand. SPWR and FSLR on general solar weakness. Couer Mining on gold weakness but new mine upside. AT&T on merger depression but 5G upside. Below find some revisions to the August Cash-secured puts list that are timely. I noted by bold a few that are close to executing now. Others, I’ve pushed out >>> to a new month expiration.