🔒Premium Membership Positions - October 13, 2023

The markets had a green week with the DOW30, S&P500, and NASDAQ ending +0.78%, +0.65%, and +0.83%, respectively.

Markets are on its second green week in a row. Earnings are coming up so there might be some sideways trending movement until the reports come out.

 SPY

QQQ

As you can see, markets are still in the upwards trends. Let's see how the market reacts within these upcoming two weeks.

Steve's Trades

AMZN

AMZN Cash-Secured Put

Expiration Date: November 17, 2023

Step 1: Have $12,500 of cash as collateral
 Step 2: Sell 1 $125 strike put option (delta -0.35) for $410
 Credit/premium received: $410
 
 I'm choosing the $125 strike because AMZN had a strong bounce up from the $123-124 level last week. AMZN has its earnings coming up in about two weeks, so if you don't feel comfortable with the volatility increase, you can still hold until after the earnings report.
 

I was also going to buy a LEAPS option for June 20, 2025 at the $100 strike, but I can't at the moment because I'm in the process of transferring one of my accounts from TD Ameritrade to Fidelity. I normally don't buy LEAPS options right before earnings, but AMZN is still in its trendline and looks like it can still go up from here. Keep in mind that when earnings are near, implied volatility will increase the premium of options, and after earnings, implied volatility will be crushed. Again, if you are aware of the risks, you can consider this trade, but if you're more on the conservative side, you can wait until after earnings to see how well the company did.

Earnings
 
 As a friendly reminder, here are the upcoming earnings dates for the companies that we currently invest in:
 
 GOOGL Oct 24, 2023
 MSFT Oct 24, 2023
 MA Oct 26, 2023

V Oct 26, 2023
 AMZN Oct 26, 2023
 AAPL Nov 1, 2023
 AMD Nov 7, 2023

DIS Nov 8, 2023

HD Nov 8, 2023

Investing
 
 I'm switching over one of my accounts from TD Ameritrade to Fidelity because they currently offer a 4.99% interest rate compared to Schwab's 0.45% interest rate on uninvested cash. This also includes the uninvested cash collateral from cash-secured puts and bear call spreads. I'm basically able to "double dip" by using my money to trade while collecting interest on it. Here's the website if you're interested in switching over!

Manage Your Cash Against Rising Costs | Compare Our Rate | Fidelity
 

 As always, stay consistent with your investing and you'll be on the right track to financial freedom.

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-Steve and the Call to Leap Team

The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.