Hi Wealth Builders! 👋
The markets had a down week with the Dow, S&P 500, and Nasdaq decreasing -2.0%, -1.2%, and -0.9%, respectively.
Steve's Trades
If your previous cash secured puts decayed by around 50%, you can consider buying them back to close your position. This will allow you to lock in your profits and you can consider selling a new round of cash secured puts.
If you sold covered calls or cash secured puts on SBUX and are still holding onto the shares, you can continue to sell them at the strike price where they were assigned to you. Let's be patient with this one since we do see a support level at around $96.
As you continue to collect premiums from your wheels and deposit money into your account each month, you can consider investing in long-term holds such as SPY and QQQ, as well as individual stocks like COST, MA, V, and MSFT. These are the assets I'm currently adding onto my positions right now.
Right now, I would hold off on buying LEAPS as earnings are approaching. IV is going to increase, meaning that option prices are going to rise. I would also wait to see how well each company does and what the market sentiment is like.
Remember, always assess your risk tolerance and see if these trades fit your portfolio. AMD has higher IV and premiums, but you may need to stomach the fluctuations. If you want to go for a more conservative approach, you can consider AAPL, which is part of the DOW30 and pays a dividend.
AMD Trades
AMD Cash Secured Put
Expiration Date: August 18, 2023
Step 1: Have $10,500 of cash as collateral
Step 2: Sell 1 $105 strike put option (delta -0.29) for $335
Credit/premium received: $335
AAPL Trades
AAPL Cash Secured Put
Expiration Date: August 18, 2023
Step 1: Have $18,000 of cash as collateral
Step 2: Sell 1 $180 strike put option (delta -0.22) for $197
Credit/premium received: $197
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