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.

Hedging Trump Trade And Cleaning Up An Oil Spill

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 […]

Leverage For When The Market Turns Up

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 […]

Managing Your Hedges

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 […]

October Options

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 […]

A Few Timely Cash-Secured Puts

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.  

Oil Stock Swing Trades

Summary I am adding to oil stock positions ahead of this week’s and next week’s earnings. Some of the positions are brand new. Added are Centennial Resource Development, Pioneer Natural Resources and Continental Resources. Because we already have LEAPs to 2020, these new positions are calls to winter 2019. As a sample of the swing trading service I am preparing to launch, which has been in great demand, I give […]

August 2018 Options

Summary Use options to build and trim positions for your ebb and flow trading style. I am erring on the side of caution until this market gives back a little. Still very bullish on oil stocks given manipulated supply, rising demand, lack of long-cycle investment and Iran sanctions. You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come […]

June Options

Summary After a mini-correction, the market is warming up again. Maybe it lasts, maybe it doesn’t. Sometimes doing little to nothing, while waiting for existing positions to move or expire (options) is the right thing to do. There are a few new ideas, but not many. That is par for the course. You do things when the opportunities come along. I’ve had periods in my life when I’ve had a […]

Printing Money Selling Puts

When you see something interesting on the menu that you think might taste great, do you ask a few questions and then try it, or, do you say, “nahhh, I might like it and then I’d want more, so I better not try it.”  Options are like that new dish on the menu for a lot of people. Unfortunately, many never will try the dish. And, they’ll never get to experience […]

Why $80 Is The Peak Oil Plateau

Oil prices are taking a hit right now as the media and markets are fooled by a narrative that new oil supply is coming onto the market from Saudi Arabia and Russia. That is not the real story. In fact, it’s #fakenews. Good traders took some profits on oil positions in the middle of last week. Smart investors will be expanding their asset allocation to oil investments in the next […]

May Options

Summary The market is in rally mode, likely short-term, there’s very few options to be traded. Sometimes doing little to nothing, while waiting out existing positions is the way to go. There a few new ideas, but not many. Sometimes the market is just too hard. Each month, I will post a new set of option trades that you can look to make over the next month. I will focus […]

April Options

Each month, the week after options expiration, I will post a new set of option trades that you can look to make over the next month. I will focus on: Selling cash-secured puts on stocks that we would like to own and are approaching support. Covered call writing on stocks that are rallying but hitting resistance, so we can take some profits. LEAPs for gaining leverage on undervalued intermediate term […]

Last Chance On These Energy LEAPs?

I am reiterating buying LEAPs on the following energy stock and energy ETF. Read this article to know why oil is going up soon: Oil Price’s Goldilocks MomentOil Price’s Goldilocks Moment Read this article for the explosive reasons why oil migh be headed much higher. President Trump Just Signaled The End Of The Nuclear Deal With Iran And Higher Oil Prices Here are the two options trades:

Time To Short Europe

Before I start, let’s remember our asset allocation approaches and what applies to each of us. From the “Getting Started” report “Intelligent Asset Allocation: Better Returns & Lower Risk.”

Options For February/March

Each month at about options expiration I will post a new set of option trades that you can look to make. I will focus on: Selling cash-secured puts on stocks that we would like to own and are approaching support. Covered call writing on stocks that are rallying but hitting resistance, so we can take some profits. LEAPs for gaining leverage on undervalued intermediate term growth ideas. Hedges.

Selling VXX Positions For Good Gains

This will be very quick before I head out to play poker, which is sort of appropriate for talking about our volatility trade (VXX). Virtually everybody should have made money on this trade. The question to ask if you still own the calls is what now? Do you take the big profits to close out the week and see what happens or do you let it ride into another government […]

Trimming VXX Calls, Playing With House Money

Summary I am selling the February VXX $27 calls for $2.75. This represents a 36% gain in a little over a week. It’s a good trade, but let’s not get greedy, these options move a lot and have a structural disadvantage. I’m essentially playing with house money on the February VXX $32 calls after buying back in puts last week and selling the $27 calls as noted

Antero is a Gas

One of the things that those who are calling for lower oil just don’t understand is that the fracking industry is just not going to flood the market with oil. That means there won’t be this sudden influx of associated gas – gas that comes with oil production.  How do I know this. I talk to the oil people. While there is still somewhere between 6,000 and 10,000 DUC wells […]

SunPower Stock & Option Trades

This is an add-on to the article on winners and losers in the solar space from tariffs.  I am a buyer of SunPower (SPWR) stock for an initial position of about 2% of portfolio value. I am a seller of cash-secured puts designed to increase my position to 4%. I am selling the SPWR March $8 puts for about a buck.  I am also starting to buy the SPWR January […]