Interim Update July 18, 2022

[bpcw]

Yodean and AstuteShift, very honest and wise advice!

You maybe disappointed to know that this is exactly the advice from the wisest man that ever lived (apart from Jesus).

Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

I have failed at this many times, good job I'm saved by grace and not my own efforts.

[LoriPrecisely]

My reasoning is the markets are at a turning point, what better reason than an earnings report to push VZ up. It doesn't even need to be all that positive just not significantly negative, I'm expecting a 10x bagger on this play. But alas yes I agree it's all speculation

Let us know how it works out for you.

Not good m8

Just like when you buy a carton of strawberries, you expect to throw a couple away.
Or, when you buy something at the store and bring it home, sometimes it works out and sometimes it doesn't.
Think of the market the same way. Sometimes it is exactly what you want, other times not so much. Take it all in stride. That is just the nature of the environment.

When I first got into the market in April, I bought some of the recommended stocks, and promptly lost $10K. I just figured that is the nature of this activity, and I will get it back eventually.
The beauty of Options is that you can work to get your money back,
rather than sit and wait for it to come back to you.
None of my stocks have come back to my purchase price yet (except AMZN), but I have been able to lower my cost basis to current market price or lower on most of them.

In the past 4 weeks, I have made $2000 selling Puts and Covered Calls.
The only time I buy is to Close, except for one LEAP, which has lost money.

[SOL]

Let us know how it works out for you.

Not good m8

Just like when you buy a carton of strawberries, you expect to throw a couple away.
Or, when you buy something at the store and bring it home, sometimes it works out and sometimes it doesn't.
Think of the market the same way. Sometimes it is exactly what you want, other times not so much. Take it all in stride. That is just the nature of the environment.

When I first got into the market in April, I bought some of the recommended stocks, and promptly lost $10K. I just figured that is the nature of this activity, and I will get it back eventually.
The beauty of Options is that you can work to get your money back,
rather than sit and wait for it to come back to you.
None of my stocks have come back to my purchase price yet (except AMZN), but I have been able to lower my cost basis to current market price or lower on most of them.

In the past 4 weeks, I have made $2000 selling Puts and Covered Calls.
The only time I buy is to Close, except for one LEAP, which has lost money.

At this rate, Lori you will be collecting several K per week in the not too distant future. There are so many variations once you master the basics of SCC and SCSP but Wallstreet only pushes the buying of puts and calls as a way to make money.

Since you are into learning, Here is another technique for you Jlshooter and others, that can be used when the market is heading down.

So you wait for 1 or 2 down days as you want the premium to spike, then you sell a put with at least one year if not more of time premium on a stock you would not mind owning several months from today. You then use part of the premium from selling those longer-term puts (a small amount) to purchase puts with roughly six months of time premium. Now you can make money when that stock tanks in the short term and close the short-term position out when it shows gains in excess of 100%. Wait for the rally and then use the money you banked to purchase more puts.

Another variation is to sell 12-24 months puts on a stock A (that you want) and use some of that money to purchase puts on Stock B (6 months or less), one that looks sour, overvalued and ripe to crash, especially in a down-trending market.

Your slogan Could be Lori Precisely, the trader that trades decisively......... Or something to that effect.

[pbsheth1]

Sol and Team
This is fascinating
Can you share your specific option strategies using a few stocks as examples?.
I paid a lot for an option service and have lost a lot of money inspite of the subscription

[DrSven]

Trading options often will wear you out, no doubt about it.

Does this apply to any kind of option trading, i.e. including selling cash-secured puts / covered calls / wheel strategy?

[DrSven]

Sol and Team
This is fascinating
Can you share your specific option strategies using a few stocks as examples?.
I paid a lot for an option service and have lost a lot of money inspite of the subscription

There was an interesting discussion on options and possible strategies not long ago in this thread:
viewtopic.php?t=100&start=720

And based in the interest on options this thread was created to post and discuss option plays:
viewtopic.php?t=505

[AstuteShift]

Trading options often will wear you out, no doubt about it.

Does this apply to any kind of option trading, i.e. including selling cash-secured puts / covered calls / wheel strategy?

That’s a lot easier to do, more relaxed.

[LoriPrecisely]

Trading options often will wear you out, no doubt about it.

Does this apply to any kind of option trading, i.e. including selling cash-secured puts / covered calls / wheel strategy?

That’s a lot easier to do, more relaxed.

That is all I am currently doing. Very profitable.

[Yodean]

So you wait for 1 or 2 down days as you want the premium to spike, then you sell a put with at least one year if not more of time premium on a stock you would not mind owning several months from today. You then use part of the premium from selling those longer-term puts (a small amount) to purchase puts with roughly six months of time premium. Now you can make money when that stock tanks in the short term and close the short-term position out when it shows gains in excess of 100%. Wait for the rally and then use the money you banked to purchase more puts.

Another variation is to sell 12-24 months puts on a stock A (that you want) and use some of that money to purchase puts on Stock B (6 months or less), one that looks sour, overvalued and ripe to crash, especially in a down-trending market.

These sound like quite interesting techniques ...

[jlhooter]

So you wait for 1 or 2 down days as you want the premium to spike, then you sell a put with at least one year if not more of time premium on a stock you would not mind owning several months from today. You then use part of the premium from selling those longer-term puts (a small amount) to purchase puts with roughly six months of time premium. Now you can make money when that stock tanks in the short term and close the short-term position out when it shows gains in excess of 100%. Wait for the rally and then use the money you banked to purchase more puts.

Another variation is to sell 12-24 months puts on a stock A (that you want) and use some of that money to purchase puts on Stock B (6 months or less), one that looks sour, overvalued and ripe to crash, especially in a down-trending market.

These sound like quite interesting techniques ...

Sol I like this. I am going to use the same strike for the BTO and STO for the puts unless you have other advice when doing for the same security for both.

I assume you can do the opposite with calls when prices start to go back up.

[LoriPrecisely]

The Dow triggered another Minor buy signal. A much more robust and potent will be triggered if the Dow can end the week above 31,900 or the SPX ends the week at or above 3960. Either one of these developments should lead to a fast and furious rally. One of the indices might even spike to new highs, while the others put in lower highs. Unless the pattern changes (dramatically), this rally

Aggressive players can use all pullbacks ranging in the 380 to 510 ranges to open additional longs or swing trade via leveraged ETFs such as TQQQ, UWM, XBI, etc

The momentum is shifting to the upside, and the markets should generally trend upwards for the next two weeks.

Did you all see the numbers on Friday???
DOW 31899.29
SPX 3961.63
You called it, Sol!!!!

Yodean, I am sure you can prophecy something out of those numbers with all the 3's,6's, and 9's.

[SOL]

So you wait for 1 or 2 down days as you want the premium to spike, then you sell a put with at least one year if not more of time premium on a stock you would not mind owning several months from today. You then use part of the premium from selling those longer-term puts (a small amount) to purchase puts with roughly six months of time premium. Now you can make money when that stock tanks in the short term and close the short-term position out when it shows gains in excess of 100%. Wait for the rally and then use the money you banked to purchase more puts.

Another variation is to sell 12-24 months puts on a stock A (that you want) and use some of that money to purchase puts on Stock B (6 months or less), one that looks sour, overvalued and ripe to crash, especially in a down-trending market.

These sound like quite interesting techniques ...

Sol I like this. I am going to use the same strike for the BTO and STO for the puts unless you have other advice when doing for the same security for both.

I assume you can do the opposite with calls when prices start to go back up.

The selling long term puts to use some of the premium to buy short term puts strategy should be used when the underlying phase of the market is negative. Right now the market is in intermediate uptrend phase that could be powerful so it would be better to wait around October to test this strategy or use it on stocks that are already oversold (for selling the 12-24 month put) and stocks that are still trading in the overbought ranges that you don't want to buy some puts on.


In an up-trending market, you could do the opposite with calls, but I never follow protocol, so what I tend to do is sell puts on stocks I want to own, but i know the odds are low that they will trade to the strike price, which I sold the puts at. I will sell long-term puts minimum time premium 12 months. However, as the market is in an uptrend, instead of buying puts, I will buy calls lower strike but less time premium (6 months or more) or same time premium but with a higher strike price

So in a uptrend market you can sell puts and use the premium to buy calls. In theory, you could win on both ends.

In a downtrend market, sell puts on stocks you definitely want to own (12-24 months time premium) and buy puts on a stock you don't want to own that are trading in the overbought ranges and or look weak (6 months or more time premium)

Options are often terms as weapons of Mass Destruction, but if you take the time to learn and understand the options markets, but most importantly, focus on low to lower risk strategies, they can become weapons of Massive Wealth Creation. Once you understand the simple strategies of selling cash-secured Puts SCSPs and SCC, you can then modify these strategies in many ways. All these variations I spread off I never read about them in books or studied them; I saw a pattern put into practice and took notes. . I don't even know the exact names for them if there are, then they are net credit spreads. I just look for patterns.

[outof thebox]

I think SOL much like Harry restrains himself with some of the silly subscribers demands. What I say might sound harsh but it should not be viewed in that light. For example a partial statement from the last AI update was posted here and many reacted to in a somewhat negative manner. However here is the other part of the statement that was not published that easily clarified everything

The market is expected to put in a short-term top, which will be bullish as long as the current pattern does not change. The top will likely coincide with the SPX testing the 3970 to 4080 ranges. There are no indications of weakness, so the markets will probably move rapidly towards the Thrust phase after the consolidation. After this level is breached, they should rocket higher (quite rapidly) until roughly October

AI update July 22, 2022

There should have been no confusion. The first statement indicated that some volatility was expected, the second statement clarified that the overall long term trend was intact.

Secondly, I don't think SOL should express the same views in all services. If he says Sell AMD in one and buy in another, it should be taken as opinions on different time periods. Making all these unnecessary demands or trying to contain him and his team could lead to reduction in creativity and I for one don't want that. I don't mix opinions from different service. I view each service as independent from the rest. We are talking about the markets Boys and girls, you adapt or you die, but no one should force another to adapt incorrectly, that could be construed as soft form of Wokism.

Wokism leads to brokism

That my 10 cents, actually 1 cent adjusted for inflation. Don't take what I said the wrong way, but there is constructive, destructive and useless criticism. Most of the current criticism falls under the useless category

[jlhooter]

outof thebox I am more of an observer but your words are accurate. My take away is you dont want to corner Sol into a box. He gives breadcrumbs and leaves it up to you to learn and grow. I am in the hand up camp when needed and never in the hand out one.

Sol thanks for the feedback. I was planning to wait to consider doing the long/short put play until Sep/Oct-ish timeframe when the market starts to tank. I am spending time now thinking about this and other approaches in preparations for the Plunge phase.

[Yodean]

Yodean, I am sure you can prophecy something out of those numbers with all the 6's, and 9's.

Almost never a terrible idea ...