Greetings, everyone,
You might enjoy the link which follows: https://www.youtube.com/watch?v=qgXvG4l4C6o
The presentation is half an hour long and it is quite likely that you could learn something useful from watching it.
Contact me if you have questions.
I send my best personal regards,
Milan 😃
The most effective, evidence-based way to earn money safely and consistently is to write (sell) covered calls just out-of-the-money and cash-secured puts just in-the-money on a Monday (unless it is a holiday, in which case on a Tuesday) using SPY as the underlying security.
Our fearless, intrepid investor has been following the six habits we recommend and also writing (selling) covered calls each Monday, expiry date Friday of the same week, using SPY as the underlying security. She often selected a strike price a few dollars out-of-the-money to take advantage of any growth if it occurred.
She did so last week and made a decent amount of money, nevertheless, she was assigned and is now entirely in cash.
What will she do when the market opens today?
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us
On May 30, 2023, from a friend of Monday Morning Millionaire
Hi Milan
I think this may be a way to beat the S&P 500.
One year ago I bought an exchange-traded fund (ETF) tracking the the S&P 500 then sold a call against it and received $US43.00 in premium income.
This capped my upside at 12%. If the ETF drops 10% I break even. If it moves up 5% I still make 12% for the year.
What do you think?
Continue reading “Question and answer about how to beat the S&P 500”
Yesterday, Memorial Day, was a stock market holiday in the U.S.. We encourage our members to invest in the New York Stock Exchange which has had the best performance over many decades. It is open today.
Our fearless, intrepid investor has been following the six habits that we recommend and writing covered calls on each Monday, expiry date Friday on the same week using SPY and SCHB as the underlying security.
The results have been decent and safe but the investing has been boring – exactly as it should be according to Paul Samuelson who stated: “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us
Greetings, everyone,
You might enjoy the link which follows: https://www.youtube.com/watch?v=EEAYbP-7VtM
The presentation is half an hour long and it is quite likely that you could learn something useful from watching it.
Contact me if you have questions.
I send my best personal regards,
Milan 😃
Today, Victoria Day, is a stock market holiday in Canada. We encourage our members to invest in the New York Stock Exchange which has had the best performance over many decades. It is open today.
Our fearless, intrepid investor took a long weekend holiday with no market activity last week. She held covered call positions on SPY and SCHB (SCHWAB US BROAD MRKT-ETF) in three tax-advantaged portfolios and one margin account.
The market rose during the week. Covered call positions don’t work as well in a rising market as simply holding the underlying security does. In a rising market, investors would be assigned, and their underlying security would be called away from them requiring them to sell it below market price.
In such cases, investors get into cash and are in a position to sell cash-covered puts, the ideal situation. American investors can do so in their tax-advantaged portfolios. Canadian investors are not allowed to sell cash-covered puts in their tax-advantaged portfolios; therefore our fearless, intrepid investor maintains a margin account where she can do that.
So she sold just in-of-the-money, cash-covered puts on SCHB in that account.
SCHB trades just below $50 a share, allowing investors to purchase board lots under $5,000 each.
Trading at just under $420 a share, investors need to commit about $42,000 to buy a board lot of SPY.
She holds SPY and three tax-advantaged accounts.
So, how did she make out last week, and what will she do today when the market opens?
Our fearless, intrepid investor will be out of internet contact until Tuesday, May 16.
Having lost $US10,990.00 in her “fun” portfolio in one year writing (selling) covered calls, our fearless intrepid investor got five takeaways from the experience.
How did she make out last week, and what will she do today when the market opens today?
“In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal,” wrote Buffett in Berkshire Hathaway’s (BRK-A, BRK-B) 2002 annual letter. Today, more than 20 years later, nothing has changed.
Our fearless, intrepid investor lost $US10,990.00 in her “fun” portfolio in one year writing (selling) covered calls. She bought Novavax (NVAX) to write (sell) covered calls on and as the stock declined, she lost much more than she received in premium income.
To a large extent, due to its derivatives involvement, twenty-five years ago, Orange County, California became the largest municipality in U.S. history ever to file for bankruptcy.
There is a safe way to deal with derivatives, however.
Only sell and never buy covered calls and cash-secured puts on SPY, which is an exchange-traded fund tracking the S&P 500.
How did she make out last week, and what will she do today when the market opens?