The epi center of S&P volatility in my POV is $RKLB (I absolutely LOVE it, but it is not for the faint of heart 😂) $90 in January $57 in March $86 in April $150 in May $85 in June $58 in July $80 in August $73 now in September I bought at $65 in April and sold at $139 in June delivering a nice Multibagger at +112%. I then bought in again in July 100 shares with a cost avg. $75… why 100 shares ? Because it’s a very liquid stock with weekly option dates available and the volatility leads to a high IV which means high premiums for selling covered calls which have made me about $1000 while I wait over the last 3 months. I sell CC on every high beta stock I have with strike prices that are 20%-30% OTM (and ONLY if that strike guarantees 25% or more return on my original investment on top of the options premium) with 15-45 days expiry… I line up my CC sell orders for each month and my expected income on the Oct. 16th expiry will be ~$600 and Nov. 20th on track to bring in about ~$770 worth of premiums all while I wait and do pretty much nothing. I’ll be posting a how to series on options trading next week, including a mandated reading assignment 😂 But, a few disclaimers are warranted first: I believe there is a special place in hell for those who recommend options trading to beginners and I’m not going to be that guy! So, if you’ve been trading for less than 2 years maybe wait a little longer, if you’ve only done index fund investing and prefer the stress free no hassle style (which I greatly respect BTW) maybe this isn’t for you either and if you can’t stomach the volatility then it is surely not the thing for you. I’m going to share how I personally hunt down opportunities, evaluate positions, research for the right options candidates, etc. If you are still interested and not following me yet… I’d invite you to follow to keep track 🚀🚀 Not financial advice, always DYOR.
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11 Comments
Daisy Bear@daisy38 · 9d
Looking forward to it 👍. I agree that RKLB is not for the faint of heart! I’m in for the long term, so just don’t watch too closely day to day/week to week 😁
Vlastimil Cerny
@vlastik · 9d
Already following and appreciating every post 🙏. I have not traded options yet but will wait for your posts to learn.
Michelle Womack@spartangreen · 9d
This is a side note 🎵: MOE I AM SO GLAD YOU ARE “Not going to be that guy!” Huge respect to you!!!! 🌟🍀🌟🍀🌟🍀🌟🍀🌟🍀🌟
Not Financial Advice @anpc86 · 9d
This sounds intriguing , good stuff , look forward to future posts
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