In the latest Options Income Weekly, I discuss the recent market action and how we are generating a ton of cash following our pivot to selling calls on a number of our positions.
Last week was one of the busiest in the history of Options Income Blueprint. Members generated a total of $913 in cash by selling options. The bulk of last week’s income – $742– came from selling calls on stocks we owned.
As I mentioned last week, we decided to accept shares on most of our positions rather than continuing to roll our puts. The reason was simple: I saw greater opportunity for members in selling calls, both from an income and capital appreciation standpoint.
Some hardcore put sellers view accepting shares and selling calls as admitting defeat. But nothing could be further from the truth.
These are likely the same traders who like to bemoan “forgone profits” when they do sell calls. But there is no such thing. A profit is a profit. A loss is a loss. There is nothing in between.
This bear market has savaged nearly every corner of the market, leaving the majority of investors in the red. But the cash you generate from selling options can help offset those losses and yield attractive rates of return.
For instance, I said earlier that we generated $742 in cash last week from selling calls. The capital needed to support those positions was $35,816. So, we earned a 2.1% return on our capital last week. If you could repeat that 52 times a year, your annualized rate of return would be over 100%.
Our focus will remain on selling calls in the weeks ahead, rolling to higher strikes if necessary. Of course, we will continue to add new put positions as well. Because when it comes to selling options, its not put options or call options that’s king. It’s cash.
As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?
What does all of this mean for the future? Are the jobs reports good or bad?
Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.
We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.
Keep reading to learn more about the one symbol that could have a strong August.
As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.
This one trade has a 90% accuracy rate. Keep reading to find out more.
It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.
The Mediots Are At It Again
As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).
It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.
Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.
What can learn from the major companies that reported earnings?
Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.
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