What a wild rollercoaster ride this week was! I’m very happy to have the gain I had!
Always remember, It’s news that moves the markets! And nowadays we have plenty of news. The political news will be in our face every day until the election; you can bet on that! The word “impeach” has never been used more than the last 3 years, since President Trump entered office. I think I heard the word the 1st day he was on the job. And every day since! I’ve never seen anything like this in my life. In this latest round of impeachment talks, Pelosi started an impeachment inquiry before the first bit of evidence was released. This is crazy! I cannot believe the U.S. congress (at lease half) started an impeachment process of a U.S. sitting president, voted in by the people, without waiting another day or 2 for the evidence to be released. What is the rush!? This is a U.S. president! They have to get this right. You don’t start a process to remove a U.S. president without looking at some evidence. The fact that Pelosi did this, and the fact that the Dems have been talking impeachment since day 1, proves this is political and not because a law has been broken. They have completely lost respect for the U.S. Constitution and the American way of life. They keep saying “no one is above the law,” referring to President Trump. Well, I think the Dems should look in the mirror to see who is really going against the constitution. I’ve made it very clear that I’m not a big fan of Trump’s crude and derogatory, witless insults, with no subtlety, debasing the position of U.S. president. I do love that he gets his point across, and he wants to ‘drain the swamp,’ but I’d like to see him do this prestigious job with more tact. The bottom line is, you can say what you want to about Trump, but he hasn’t broken any law. I feel he used poor judgement during the infamous phone call, but no law was broken. The Dems will lie and change words to make it look like a law has been broken, but I don’t think it will work. Even if they are successful, with the evidence today, they will never get him removed from office. Removal from office is a huge process. Clinton was impeached but he wasn’t removed from office. Impeachment is only one step. In my opinion, congress should stop the nonsense and get back to work for the American people…. Don’t count on it!
Back to other news, this week started with a bad manufacturing report, which resulted with a 2 and a half day drop in the market where the DOW dropped in the area of 1200 points. Lucky for investors the second half of the week saw a 900 point bounce. Almost negating the 1200 points drop, as a result of great employment numbers.
The news will continue to keep the markets volatile. As long as the Dems hate Trump more than they love the USA, and the corrupt media continues to manufacture stories, we will have no shortage of news moving the markets. Even the financial experts have different opinions on where certain financial reports will take the economy. I believe these opinions are established from their position on Trump. Trump’s ways are really driving many people crazy. lol. If you are an active trader you really have to adjust your strategy for the volatility.
At the beginning of the week I felt some of my positions would need a big rebounding in order to make some money. I figured I’d have to work on my strategy or stay idle for a week or 2. The second half of the week, with the 900 point rebound, positioned me a lot better. Not great but better! On Friday I already got Calls sold on AMD and SQ, bringing in $1300 in premiums for next Friday. If I don’t make another trade next week, I’ll be happy with the $1300 gain.
This past week I had 2 positions expire. 1 was a Call sold on SQ and the other was a Put I sold on MU. SQ was a Covered Call and I was not assigned. I keep my stock and I keep the $700 premium.
9/30/19 – Sell to Open 10 SQ 10/4/19 $63 C @ 70¢ (+$700)
10/4/19 – Expired 10 SQ 10/4/19 $63.00 C
Profit +$700
With MU I sold a PUT. I felt MU would stay above the Strike Price I entered of $42.50, and it did! I sold someone the right to sell me 500 shares of MU at $42.50. For this I received a premium of $225. This was only 5 contracts not, my normal 10. If the stock went below $42.50 I would have had 500 shares sold into my account. Let’s say the stock went down to $41. The Put buyer would have sold me the 500 shares at $42.50. Since the stock closed at $44.55 the Put buyer did not sell me the 500 shares. Why would he sell me 500 shares at $42.50 when the stock is now worth $44.55? Remember, a buyer has the right not the obligation to make the trade. The result of this trade is, the Put buyer lost the $225 he paid me for the right to sell me the stock, and I keep the $225. This deal is over. I made $225 and I didn’t have to make an investment. Since MU closed the way I felt it would this was free money with no lay-out of an investment. This is the best way to make money!
9/30/19 – Sell to Open 5 MU 10/4/19 $42.50 P @ 45¢ (+$225)
10/4/19 – Expired 5 MU 10/4/19 $42.50 P
Profit +$225
Total Weekly Gain +$925
I’ve had better weeks, and I’ve had worse weeks. Making $925 with 2 trades is incredible! I’ll never understand why everyone doesn’t study and become a trader. I will admit it takes money, discipline and time, but if you want to make money and have freedom, you must do it correctly. I already have $1300 coming in next week, and I don’t even have to open my computer. I already have my trades in.
Email me any questions.
Steve
The Options Coach