Goodbye, September!

October 1, 2021

Dear Trader

I’m back in Chicago and it’s a gorgeous Fall day in October. 

The recent weakness in the market is an unfriendly reminder that there will be red months and no such thing as a risk-less return. 

Yet, many panic and make poor decisions to jump ship chasing the next shiny object. 

There’s a reason why you won’t see me panic, because I know my risk.

It’s easier said than done, but we focus on executing the best we can and staying the course. 

Luckily, we added another winner to the board for a 121% gain. 

Now, the CBOE Volatility Index (VIX), aka the “fear” index, is at 21 above our key 15 level.

That means volatility increased by 4 points from last week's reading of 17. 

October tends to be a volatile month which is why we see that reading is higher than before. 

But even with the shallow pullback, we still need to see a massive pullback to take us out of the continued bullish regime. 

Things will get very interesting in the coming weeks - buckle up! 

Now let’s talk shop.

Portfolio Update

Here’s a recap of what we did this week.

On Monday:

Sell-to-close OXY October 15, 2021, $27/$30 call spread

Buy-to-open HD October 8, 2021, $345/$350 call spread

On Tuesday:

No action.

On Wednesday:

Buy-to-open the OXY October 29, 2021, $31/$35 call spread

On Thursday:

No action.

On Friday:

No action.

Right now, we’re holding:

  • YELL October 15, 2021, $7.50/$10 call spread
  • ACM December 17, 2021, $70/$75 call spread
  • AAPL October 15, 2021, $150/$155 call spread
  • TROX December 17, 2021, $25/$30 call spread
  • HD October 8, 2021, $345/$350 call spread
  • OXY October 29, 2021, $31/$35 call spread

Trade Journal

This is my journal which is a debrief of every trade closed or expired to analyze what happened, why it happened and how it can be done better — like what the military uses after missions.

OXY October 15, 2021, $27/$30 call spread

Outcome:121% gain.

Notes: We executed this perfectly. We sold into the spike higher to lock in gains and then we followed the continued bullish activity on the pullback into a new position. 

Now it’s time to get my 7 mile run in before I have a fresh jalapeno margarita - TGIF! 

Have a great weekend and talk with you on Monday.

To your wealth, freedom, and options!

Joshua M. Belanger

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%