After the October CPI report, the markets saw a strong rally, which helped our struggling puts but hurt our calls. We opened a few Iron Condors a few weeks ago, and when the market rallied, we rolled those calls into puts. But soon after we did that, the markets sold off again, and the puts Continue reading →
Making 45% Annually Trading Options Against Dividend Growth Stocks
Archive for November, 2023
Options Portfolio Management
When buying stocks in a cash account, you can go all in and be fully invested. But when you are buying stocks on margin and, on top of that, trading unsecured options, proper options portfolio management is a must. I learned my lesson the hard way when, during the raging bull market, I invested everything Continue reading →
Apply force on the market and it will distort
When you try to force on the market any agenda you may have, the market will react. And usually not the way you want. We have seen this in 2020 when politicians decided to shut the markets and the entire economies down. They distorted not only the markets but the entire economies. People get this Continue reading →
Expanding the Crumbs strategy to regular stocks
Two months ago I started trading the Crumbs strategy against SPX spreads. The strategy is to move short strikes so low that the trade will be very safe and a likelihood of getting busted is lowered to a very minimum. This type of trading has 97% to 98% probability of profit. Only a black swan Continue reading →
Is the market rally sustainable?
Last week we experienced an incredible market rally. The S&P 500 rallied from a several weeks long bearish craziness to a bullish madness by 5.86%. What is crazier is that this, almost, 6% rally took just 5 days to happen. On average, this rally consisted of a 1% a day move. And now, the question Continue reading →
Technical view: 3M Company (MMM)
MMM is in stage #4 but attempting to create a new base (forming to stage #1). Lately the stock went from an all-time high of $250 a share to last week’s close at $87.52 a share (over 65% decline since 2017). I bought this stock for $202 a share when it first dipped thinking Continue reading →
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