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The markets had another red week with the DOW30, S&P500, and NASDAQ ending -2.19%, -1.86%, and -2.27%, respectively.

Steve's Thoughts Markets pulled back this week, but don't panic. Again, I believe this is healthy for us to have this drop since we've ran up quickly for the first half of the year. As a shift in perspective, think of this as a discount or sale for stocks/ETFs that you want to buy.

Remember, we don't try to time the markets. Rather, we should focus on having more time in the markets. As long as you invest consistently, you'll be on the right track towards becoming financially free.

SPY

QQQ

DIA

Looking at the charts for these three indices, we are still on track with our bull market with us progressing with higher highs and higher lows. It's possible that we may start to bounce back up in the next couple of weeks as we may be reaching an area of support.

Steve's Trades

AMZN

As mentioned last week, AMZN ended up filling its gap, down towards the support of the channel. Perhaps AMZN will bounce back off the $133 level?

AMZN Bear Call Spread

Expiration Date: September 29, 2023

Step 1: Buy 1 $165 strike call option (delta 0.03) for $15

Step 2: Sell 1 $147 strike call option (delta 0.22) for $120

Step 3: Set a buy-stop order of 100 shares at $164

Credit/premium received: $105

I want to sell at the $147 strike because this means that AMZN will have to increase around 11% or $14 and make a new all-time-high YTD within a 45 day period. This will give a signal that institutions are putting their capital back into the stock.

AMZN Cash Secured Put

Expiration Date: September 29, 2023

Step 1: Have $12,500 of cash as collateral Step 2: Sell 1 $125 strike put option (delta -0.25) for $216

If you want more premium, you can choose to sell the $133 strike since we are nearing the bottom of our upward trending channel.

However, just to be more on the conservative side, I'm choosing to sell the $125 strike since it looks like there is a level of support in the technicals.

Side Notes:

If you want to do these plays, make sure that you are willing to buy the shares. Remember, I am bullish on AMZN in the long-term. You can look to close any positions early if one side of the trade (BCS or CSP) is 50%+ profit before expiration.

If you had previous trades from earlier weeks, you also can look to close them out at 50%+ profit.

Again, although the markets had a rough week, keep in mind that it's perfectly normal to have pullbacks. We want to remain calm, and as investors, we can look to buy in little by little over the long term. Remember, investing and trading is a marathon, not a sprint.

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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.