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 […]
Retirement Income Options
Retirement Income Options Options includes all stock recs from Sustainable Growth and Dividend Collector. What sets RIO apart is the option selling overlay – covered calls and cash-secured puts – that generates extra income and helps manage equity risk.
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:
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 […]
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.” Hello, your membership does not give you access to this page. Please become a member or upgrade your membership.
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 […]
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 […]
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 […]
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 […]
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 […]
The nature of swing trades is that sometimes things swing against you. That is the case in the government shutdown not staying shut down. Our volatility speculation became a lot more speculative this morning when the Senate voted 81-18 to pass a continuing resolution to end the government shutdown for […]
I have been watching the drama in Washington D.C. over the budget. I have no real idea whether they cut a deal or not tonight, but it seems the Republicans don’t have the Senate nailed down. If they don’t get all but one of the Republican Senators, right now they’re […]
Summary Volatility has been remarkably low a long time. The number of days without a 5% correction is close to setting a record. Volatility could return very soon for several reasons. I read a lot so you don’t have to. Sell VXX puts to generate income with your cash and […]
I am a huge proponent of using cash-secured put selling to generate portfolio income and accumulate good stocks at more favorable prices. Whenever we sell a cash-secured put, we are doing so not because of the income, but because we truly would like to own the stock. The income is secondary. It serves to […]
Potash Corp (POT) is merging with Agrium (AGU) imminently. This will create an awesome vertical structure for the new company as Agrium has a large retail network for the combined company’s products. The wholesale distribution of Agrium has the potential to really charge sales of the combined product line. Hello, your membership […]
The oil markets are getting clobbered again because apparently the U.S. has a lot of cheap and easy to get to oil forever, there’s no reason for a risk premium on oil for say a bigger war in the Middle East and because we’ll all be driving electric cars next […]
In my recent Seeking Alpha article I said this: “This time, the only potential downside I see is a secondary offering to raise another quarter billion dollars or so. I expect that soon. However, it will only temporarily hit share prices as people scream, stomp their feet, panic, and sell […]
The energy sector is getting beat up again, especially oil. The charts show a fairly strong support level for oil in the middle $40s which we have discussed before. While there might be a bit more downside if there is strange news out of the Middle East short-term, I think […]