Time is an irreplaceable resource. Our sincere gratitude to all members who took the time to respond to our Friday, December 24 survey about falling for online scams.

Our members are doing better than most.

The CPA Canada’s 2020 Fraud Survey indicated in 2019, that nearly 45,000 Canadians lost more than $96 million to scams.

In 2019, the New York Post reported that 63 percent of people surveyed were victims of a scam.

You can see our results below.

You can you see several worthwhile comments below.

On Friday, December 17, our fearless, intrepid investor was assigned, and  her 1,000 Novavax (NVAX) shares were called away. To stay in the game, on Monday, December 20,  she bought back 1,000 shares of NVAX. That cost her $226,559.99.

Many investors dislike buying a security at a price higher than the one which they were obligated to sell it for when they were assigned. However, if the returns are good, shouldn’t we want to have more rather than less money invested?

She then sold 10 NVAX covered call contracts, expiry date December 23, strike price $250.00 which allowed $20.00 f0r growth per share. (NVAX C 23DEC21 250.00) She received immediate premium income of $7.05 per share for a possible total of $27,050.00 ($7.05 times 1,000 plus $20.00 times 1,000).

What an exciting possibility – earning $27,050.00 before breakfast on a Monday morning! She needed nearly 4 average weeks’ net earnings to make that kind of money when she was in practice.

However, the best laid-plans of mice and men often go awry. (Thank you Robbie Burns.)

NVAX tanked by $72.75 giving her a loss of $72,750.00 on the security!! That was offset by the $7,050.00 premium income for a loss of $65,700.

2021 was a forgettable year for all of us but especially for our fearless, intrepid investor. In addition to Covid and Omicron, she had her “fun” portfolio to make her miserable.

Mistakes are practice shots. This loss is taking place in her “fun” portfolio which amounts to a small percentage of her investments. Like most “fun” portfolios, hers cannot match the simple act of holding an exchange traded fund which tracks the S&P 500, such as SPY, for example.

As we have previously stated, the risk/reward relationship is inescapable. The greater the reward that we seek, the greater the risk that we need to take. Buying SPY is safe. Therefore, writing covered calls on it is safe. Because it is safe, the reward will not be huge. But it will be an improvement on simply holding SPY, which we agree is a license to print money.

What are her plans when the market opens today at 9:30 AM? What choices is she looking at?

• In 1980, the Wall Street CEO’s income was 42 times greater than the average worker’s. Today, it is more than 280 times greater.
• In 1980, top healthcare professionals earned as much as top bankers. Top bankers today earn $1 million a week net income! Most of you, the Monday Morning Program members, are healthcare professionals. How long does it take you to net a million dollars after expenses?
• CEO of Fidelity Investments, Abigail P. Johnson, earns $50 million annually.
• Top hedge fund managers earn 1.3 billion annually.
• Wall Street banks generated $7.2 billion in fees from rise and fall of GE.

With bonuses, the earnings described above can be much greater. None of these figures are misprints. All the incomes are legally earned. Are they justified morally and ethically? Are they examples of legal crime?

To put these facts into perspective, we will make two points.

First, in less than one hour, the Monday Morning Program can teach a high school student how to outperform most hedge funds and banks.

The second point will shock many readers. As a group, you belong highest earners. You understand big numbers. How well do you understand big numbers? Here is a test.

If you had $1 billion earning no interest and you spent $10,000 a day, how long would it take to use up all that money? For most of us, the answer does not come to mind instantly.

It would take 274 years!

That too is not a misprint.

Another test, now. Where does the money come from for the above incomes?

We don’t think about it often, but the general answer does come to mind instantly. The money comes from investors.

With the habits of the Monday Morning program, luck hardly matters.

Good luck!

___________________________________________________

We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

From all of us at the Monday Morning Program, a warm welcome to our new members (a record) and sincere gratitude to all who sent gift memberships to friends and family!

We send our best wishes for the season and for health, happiness and serenity for 2022, and on and on.

Milan

On Monday, December 13, before breakfast, our fearless, intrepid investor earned immediate premium income of $7,149.00 writing (selling) covered calls on NVAX, strike price $185.00, expiry date Friday, December 17. (NVAX C 17DEC21 185.00) That allowed $10.00 per share for NVAX growth if it were to take place. The combined premium income of $$7,149.00 plus a possible $10.00 per share growth would add up to $17,149.00. ($7,149.00 plus $10,000.00)

As luck would have it, note our use of the word “luck”, the hoped-for NVAX growth did take place and she got her $17,149.00. Added to the previous week’s gain of $17,830.00, her December 2021 covered call sales have earned a total of $34,979.00.

Remember that during the week ending on Friday, December 3, she lost $62.00 per share for a total loss of $62,000.00. Her net December result is a loss of $27,o21.00.($62,000.00 minus $34,979.00)

With two more weeks remaining in December, she might break even writing covered calls for that month.

What are her plans when the market opens today at 9:30 AM? What choices is she looking at?

Since 2019, the stock market is represented by the S&P 500,  has nearly doubled. The table below shows how the market has done recently.

(The above figures are not inflation-adjusted. Over the last 200 years inflation is averaged 1.45%.)

How much longer can the market keep rising?

Over the last few weeks, we have had more new members joining us than at any other time. We want to welcome them and we want to thank all those who have granted gift memberships to others.

As an introduction to new members, we present a summary of the Monday Morning approach to investing in this post. Existing members will find it to be a good review. Call me at 705-441-4566 if you want to discuss any of this. (No charge)

First, over the last 200 years, the US stock market has generally had the best returns of any investment.

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Time is an irreplaceable resource. Our sincere gratitude to all members who took the time to respond to our Friday, December 10 survey. We asked our members whether they feel that money can buy happiness.

You can see the results below.

You can you see several worthwhile comments below.

On Monday, December 6, before breakfast, our fearless, intrepid investor earned immediate premium income of $7,830.00 writing (selling) covered calls on NVAX, strike price $160, expiry date Friday, January 10. (NVAX C 10DEC21 160.00) That allowed $10.00 per share for NVAX growth if it were to take place. The combined premium income of $7,830.00 plus a possible $10.00 per share growth would add up to $17,830.00. ($7,830.00 plus $10,000.00)

As luck would have it, note our use of the word “luck”, the hoped-for NVAX growth did take place and she got her $17,830.00.

She needs that, she needs much more to make up for her December losses. During the week ending on Friday, December 3, she lost $62.02 per share for a total loss of $62,000.00.

What are her plans when the market opens today at 9:30 AM? What choices is she looking at?