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Archive for 2020

Posted by Martin December 21, 2020

Market gapped down on Covid fear, new trades, and adjustments for 12/21/2020

The stock market gapped down more than 2% on renewed fear of the new strain of Covid. That is, what the media are telling us. I don’t think this is the reason for selling. The market was quite over-extended and some sort of a pullback was needed. That is what has happened this morning. Since Continue reading →

Posted by Martin December 19, 2020

Selling Covered Calls below your stock cost basis. What to do?

The covered calls strategy is considered the safest strategy good for beginners and almost all brokers will allow you to trade this strategy in their basic options trading tier level. Yet, that doesn’t mean that this strategy is riskless and has no potential to give you a hard time trading it. It can become a Continue reading →

Posted by Martin December 13, 2020

Would you worry about valuation getting stocks for free? Yes, or no?

What if you could obtain shares of a stock you want to have in your portfolio for free? Would you worry about the valuation of that stock? For example, when looking at the valuation of Apple (AAPL) the stock is permanently, grossly overvalued since 2019:     And what about Coca Cola? A great stock Continue reading →

Posted by Martin October 28, 2020

Stock market plunges on virus fear

Stocks opened lower as expected and crashed -2.40% on virus fear. This makes the market correcting another 7.5% within the original 10.6% correction. Kind of a correction inside a correction since we haven’t fully recovered from the first one. This also breaks all previous patterns (unless we recover by the end of the day) and Continue reading →

Posted by Martin October 27, 2020

A storm is coming

On Thursday, big names are reporting earnings… AMZN, AAPL, GOOG, GOOGL, and FB… and these companies can shake the market for sure. I think the best one can do is to stay away for now until we see what is going to happen.    

Posted by Martin October 27, 2020

FUTURES SET TO OPEN DOWN -1.14%

Selling in Wall Street is set to continue tomorrow. On Monday we saw the indexes declined (SPY ended the session down 0.33%) and the negative sentiment seem to continue. The futures pre-market data indicate the DJI to drop even more. As of now the opening will be down more than 300 points or -1.14%. Of Continue reading →

Posted by Martin October 27, 2020

Cup and handle failed, what now?

The stock market was forming a cup and handle formation, but yesterday, this pattern failed. If we were to continue the pattern, we were supposed to continue higher as indicated in the picture below:     Since this pattern failed, what is ahead of us now?   We can see or identify two other possible Continue reading →

Posted by Martin October 24, 2020

WHEEL STRATEGY

If you are familiar with this strategy, you can pretty much skip this post as you already know all the ropes. If you are a novice investor, this strategy may help you maximize your returns. This strategy utilizes trading stocks and options. I use this strategy myself and it generates consistent returns.   Stock pick Continue reading →

Posted by Martin October 19, 2020

Vaccine and stimulus

Stimulus hopes before the election fade away and investors are dumping stocks (but wait, they will be buying it back like crazy when the hopes renew after the election)… A good start on vaccine hopes diminished on the stimulus failed hopes. But who knows what the hopes are. It is all that media make always Continue reading →

Posted by Martin October 18, 2020

October 16, 2020 expiration

We had a few options positions expiring last week on Friday, October 16:   PPL – Oct 16 (monthly) 29.00 call for +0.35 – WINNER STOR – Oct 16 (monthly) 25 put for +0.68 – WINNER   All other trades were rolled into November expiration day. You can check our open positions on our Trades Continue reading →