Today is a stock market holiday in Canada, but not in the U.S..  Our fearless, intrepid investor owns only American securities. Based on history, all investors should. The American economy  has been the strongest economy for over 100 years and is likely to remain that way in the foreseeable future. One of the best gifts the Canadian government has given Canadians is to eliminate the foreign content restrictions from registered (tax-advantaged) portfolios in 2005.

Our fearless, intrepid investor was assigned on her covered calls that expired last Friday, July 30th and made significant money from the premium income  and the growth for which she allowed. She is now entirely in cash.

What will she do when the market opens today?

Greetings, everyone,

You will enjoy the link which follows:

https://www.youtube.com/watch?v=sR1U0LMiEvQ

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 😃

When she was assigned on Friday, June 16 she should have stayed entirely in cash. Over the long run, cash loses its purchasing power at the rate of inflation. However, it is the best place to be in a declining market.

In a rising market, simply holding a security will produce better results than writing covered calls on it.

Having misread the put/call ratio prediction, our fearless, intrepid investor bought as many shares of SPY while maintaining her 50/50 asset allocation. The market continued to decline so did her portfolios.

How bad is that?

What will she do when the market opens today?

Greetings, everyone,

You might enjoy the link which follows: https://www.youtube.com/watch?v=7vZTuPmvleI

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 😃

Last Monday, June 12, our fearless, intrepid investor wrote (sold) covered calls on SPY, $5.00 out-of-the-money, expiry date Friday of the same week, that is, June 16 (C 16JUN23 435.00). Combining the premium income with the market rise, she made a decent amount of money. However, SPY rose by more than five dollars, and she was assigned and was entirely in cash.

In a rising market, simply holding a security will produce better results than writing covered calls on it.

What will she do when the market opens today?

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?

• Our fearless, intrepid investor has been following the six habits that we recommend and also writing (selling) covered calls on 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.
• Last Monday, May 29 was a stock market holiday, so she wrote the covered calls on Tuesday,  May 30, expiry date last Friday, June 2nd, strike price $4.00 above market price.
• She also bought some Coca-Cola (KO) board lots in her “fun” portfolio to write covered calls on it.
• Both SPY and KO rose above her strike price, she was assigned on both and was entirely in cash.
• She made a decent amount of money safely but would have made more had she simply held SPY and KO without writing covered calls on them.
• Two points here.
• One, in rising markets, investors do better holding a security than they would do writing covered calls on it.
• And two, there will always be better investments than the ones you have.
• What will she do when the market opens today?
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On May 30, 2023, from a friend of Monday Morning Millionaire 

Question:

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?

Monday Morning Millionaire Program Answer:

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.”