In the latest Options Income Weekly, I discuss last week’s results, recent market action and how to determine companies that are too important to die.
As I mentioned last week, Options Income Blueprint members closed eight winning trades in a row in August. Members who sold just one contract each booked $315 in cash.
We’ve closed three trades so far in September – two winners and one small loser – earning $52 in income.
This marked our second successful trade this year on Block (SQ), the company formerly known as Square and headed by Jack Dorsey, co-founder and former CEO of Twitter (TWTR). The change in name reflects the fintech’s shift to a focus on the blockchain and cryptocurrency.
At one time, SQ was the most traded stock in the Options Income Blueprint service. We began selling puts on it in 2018, back when the company’s focus was growing its credit card-reader business into a payment ecosystem for small- and medium-sized businesses.
Between April 2018 and July 2020, we traded SQ successfully 35 times in a row, earning $2,524 in cash.
I must admit that I am not a huge fan of Block’s shifting focus from a fundamental perspective. That said, I am intimately familiar with the stock after all these years of trading it. Therefore, we are likely to continue with the occasional short-term trade in SQ, but this is not a stock I would consider holding longer term.
As you know, my No. 1 focus is on fundamentals, which is something I go into greater detail on in today’s video. Specifically, I discuss how traders can identify companies that are simply too important not to exist. In other words, their failure would have a significant and lasting impact on the U.S. economy. (Note that this is not necessarily the same as companies that are too big to fail.)
Companies that are too important to die include a number of semiconductor manufacturers, as well as some biopharma firms and one of the major U.S. automakers. And, surprise, surprise, a few of them are Options Income Blueprint core stocks, which means we trade them week after week.
To find out what they are, check out today’s video.
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