The markets had another down week with the DOW30, S&P500, and NASDAQ ending -0.34%, -0.70%, and -1.71%, respectively.
Markets came down again, but don't panic, it's perfectly normal. While we can't control what the market does, we can decide on what strategies we can make and what discounts we can secure. DJI (DOW JONES 30)
SPX (S&P 500)
QQQ (NASDAQ 100)
Steve's Trades
AMD
AMD Bear Call Spread
Expiration Date: October 27, 2023
Step 1: Buy 1 $145 strike call option (delta 0.02) for $11 Step 2: Sell 1 $115 strike call option (delta 0.20) for $138
Step 3: Set a buy-stop order of 100 shares at $114
Credit/premium received: $127
This week, I'm choosing longer dated expirations because I want to collect more extrinsic value from the premiums. The volatility is pretty low right now, so I believe now is a good time to go further out in expiration.
Side Notes:
If you have any covered calls in your positions, you can close some of them out and sell new calls for further expiration dated calls. This way, we can collect more extrinsic value. As for long-term investing, I purchased a couple more shares of GOOGL, MA, and V this week.
As a friendly reminder, pay yourself first by contributing money into your accounts each month. If possible, make it a goal to max out your contributions for your retirement funds to get those tax advantages.
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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-Steve and the Call to Leap Team
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