The markets had a down week with the DOW30, S&P500, and NASDAQ ending -1%, -1.49%, and -2.61%, respectively.
Don't panic, as slight pullbacks like this week are perfectly normal. Think of this as a small discount on stocks you want to purchase.
Steve's Trades
AMZN
AMZN Cash Secured Put
Expiration Date: October 20, 2023
Step 1: Have $13,000 of cash as collateral Step 2: Sell 1 $130 strike put option (delta -0.22) for $174 I'm choosing the $130 strike option to get more premium from the at-the-money strike. There's a support level of $125 that we can fall back on. We're also still trending in the upwards yellow channel, continuing from last week.
AAPL
AAPL Cash Secured Put
Expiration Date: October 20, 2023
Step 1: Have $17,000 of cash as collateral Step 2: Sell 1 $170 strike put option (delta -0.24) for $209
I'm choosing longer dated expirations this week because I want to collect more extrinsic value from the premiums. We also might go into a historically rocky period with September 11 coming up and the extrinsic value can give us more premium to lower our overall cost basis of our shares if we were to get assigned.
Because of AAPL's significant drop this week, I'm eyeing on some LEAPS options in the next couple of days. I'll keep you all posted!
Side Notes:
As for long-term investing, I'm going to buy a couple more shares of GOOGL, MA, and V. They seem to be on the uptrend, compared to other stocks. As for ETFs like SPY and QQQ, I'm going to wait until SPY to break above $453 and QQQ to break above $380 to buy any more ETFs for my portfolio. I want to let the stock come to me, rather than chasing down the stock.
Remember, feel free to tweak any of these numbers to fit your own risk tolerance and what your portfolio is able to handle. As always, investing is a marathon, not a sprint. You'll be on your way to financial freedom as long as you invest consistently.
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