Retirement ETF asset allocation, dividend stocks and income producing option selling. Designed for more active investors seeking income and growth. Read More
R.A.R.E. Swing Trading
Risk Adjusted Returns Elite all-in-one DIY investing service. Includes all services on Fundamental Trends, plus swing trades and hedging.
Visit the RARE chat regularly to follow trades and talk to other investors.
Before making any options trades, read:
- Don’t You Dare Trade Options Until You Read This!!!
- Characteristics & Risks of Standardized Options
- CBOE Education Center
- Cash-secured Put Selling by Fidelity
- Covered Calls by Fidelity
“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 Options are derivatives and can cause your account destruction. Options are the best tool for managing risk, generating income and occasionally generating asymmetric gains. You are your own worst enemy on options by being greedy, unknowledgeable and inexperienced. Control your emotions, learn how options work, what options are for and practice trade in a paper (no money) account at your brokerage before ever using your hard earned money. […]
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 […]
ol·i·gop·o·ly ˌäləˈɡäpəlē/ noun noun: oligopoly; plural noun: oligopolies a state of limited competition, in which a market is shared by a small number of producers or sellers. The defining characteristic of oligopolies is that pricing power is concentrated with few suppliers of the good or service. This is the case with the DRAM semiconductor market.
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 […]
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 […]
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 […]
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 […]
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.
So this week, I wrote the most popular article on Seeking Alpha: An Iran War Is Coming – Buy Oil Stocks Now I got crushed in the comments section by some people. I was called “delusional, warmonger, stupid, narrow minded, uninformed, asinine, short sighted” – it was quite the barrage. When I write something with that response, it generally means I’m right. The same thing happened when I said the […]