What did she do last Monday?

She sold covered calls on SPY at $8.00 out-of-the-money, expiry date Friday, January 6 (SPY C 06JAN23 390.00)

SPY rose by just under $8.00 last week, giving her a decent return.

What will she do today when the markets open at 9:30 AM?

On September 2 of this year, we sent out the post you see below. Since that time, the market has fallen further.  The material is worth reviewing.

Considering that the money that you will need in the next few years does not belong in the market, if you have not bought into this bargain territory, think about doing so now.

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The S&P 500 is down over 17% year-to-date. Bargain territory! If you have not re-balanced your core portfolio to take advantage of the bargain, consider doing so.

The Muppets are running for the doors. The same people who look for bargains when buying their groceries or clothes for the children or airplane tickets or looking for parking spots are ignoring this bargain.

Muppets (stupid and ineffectual people)? The second largest investment bank, Goldman Sachs, uses the term to describe its clients.

From Greg Smith’s Why I Am Leaving Goldman Sachs: “I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them.”

Investment banks are not our friends. We need to be aware of that even though we do need them to execute our buy/sell orders.

Don’t be fooled by the fact that year-to-date, the Toronto Stock exchange has declined less than the S&P 500. Intelligent investors think long-term. Note the 10-year chart below.

With the habits of the Monday Morning Program, luck hardly matters. Good luck!

Greetings to all!

As 2022 comes to a close, Rosi and I send you our best wishes for the season and for health, happiness and serenity for 2023 and on and on.

Milan

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What did she do when the NYSE opened at 9:30 AM yesterday?

Again, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives.

And again, our sincere gratitude to all members who took the time to respond to our Friday, November 18 survey about what they hope the market does in 2023. Time is an irreplaceable resource. We appreciate your involvement.

Investors who hope that the market will rise will be disappointed often. Investors who selected choice number two or three are only disappointed when the market moves laterally. It rarely does so.

We are delighted to note that 75% of our members are in that group and hope the other 25% start thinking that way.

You can read some helpful comments below.

What will did she do when the NYSE opened at 9:30 AM today?

When SPY rose just to below $US400.00, she brought back the covered calls which she sold (C 25NOV22 400.00), meaning that she was out of her obligation to sell her SPY shares below market price to the buyer of her covered calls. The cost of buying the back was lower than the premium income she received when she sold.

She was now in a position to sell more covered calls on SPY and the new, higher price level.
On 11/25/22, she sold SPY covered calls @ $409.00 and got a decent premium income.

At the money was $403.00, allowing $US6 per share for growth.

What will did she do when the NYSE opened at 9:30 AM today?

Again, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

And again, our sincere gratitude to all members who took the time to respond to our Friday, November 18 survey about time spent driving. Time is an irreplaceable resource. We appreciate your involvement.

You can you read some worthwhile comments below.

Our fearless, intrepid investor spent two weeks sailing on a 42-foot catamaran in the British Virgin Islands with no internet connection. Knowing this would be the case, she wrote covered calls on SPY, strike price $10.00 out of the money, expiry date three weeks away instead of her usual one week away. (SPY C 18NOV22 396.00)

She did lose $US10,990.00 in her “fun” portfolio over one year, writing just out-of-the-money covered calls on Novavax (NVAX) on Mondays, expiry dates on Fridays of the same week.

What she learned from her NVAX experience is to write (sell) covered calls sufficiently out-of-the-money to earn about 1% per month or slightly more. That would significantly reduce the possibility of being assigned!

Using that approach, she has done well, being assigned occasionally, like the BVI case you see above.

What will did she do when the NYSE opened at 9:30 AM today?

The title of this post is the actual title of a ten thousand-word paper by Aizhan Anarkulova et al, published in SSRN on September 22, 2022.