In the latest Options Income Weekly, I discuss the recent market sell-off and why we’re making a pivot to selling calls on a number of positions in the current market environment.
Last week, the major indices delivered their worst performance since 2020. Stocks were savaged by fears of inflation, recession and higher interest rates, with the S&P 500 falling nearly 6%.
As I’ve been discussing in recent weeks, we’re adjusting our tactics at Options Income Blueprint in light of recent volatility. This has included selling puts that are further out of the money and closing positions earlier to lock in profits.
Last week, it also involved accepting shares on a number of positions rather than continuing to roll our puts. While I know many option sellers prefer to sell puts, sometimes the math of selling calls is simply much more favorable. Plus, selling covered calls allows us to capture potential appreciation in the underlying shares in addition to generating income.
In today’s video, I take a closer look at the math behind this decision and the benefits of selling calls in the current market.
The whipsaw trading we’ve been experiencing is likely to continue for the foreseeable future. While volatility will not determine the stocks we trade, it will continue to determine the tactics we use to keep the cash rolling in.
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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