Happy Friday, and welcome to your weekly update!
Broad markets are closing on a sour note after back-to-back days of profit-taking in the high-flying tech names.
This little shake-out comes after jobless claims increased and congress not passing a new stimulus program.
Unfortunately, this pumped the brakes on our tremendous winning hot streak.
But that’s expected after the run we've had.
We'll get back to our winning ways, we just need to stick to the system.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is holding at 27.
That means we are still 2x the average level of volatility, so we will continue to see markets whip around.
We’re sitting tight and letting this play out.
This could be a profit-taking shakeout or the start of a larger bigger drawdown.
Either way, we are nimble and can take advantage of any market environment.
Right now, our open positions are sitting in the red, but don’t let that trick you.
Oftentimes we'll enter a new trade only to watch it decline double-digit shortly thereafter…
Don’t let this discourage you, it’s just the instrument works.
As you’ve seen from our previous trades, options move fast.
Which is why we use them to make big weekly gains - that’s the power of options!
But remember, even if an option declines in value right after you buy it; these are only paper losses until you close your position.
Our limited risk options allow us to trade profit opportunities with greater flexibility — and much higher potential gains than buying stocks outright.
- Buy-To-Open the Box Inc. (NYSE: BOX) Aug. 21, 2020, $20 call (BOX200821C00020000) up to $1.00 per contract or better, for the day.
Right now, our open positions are:
- Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 call (NAT201016C00005000)
- China Mobile LTD ADR (NYSE: CHL) Aug. 21, 2020, $40 call (CHL200821C00040000)
- Box Inc. (NYSE: BOX) Aug. 21, 2020, $20 call (BOX200821C00020000)
Now we wait and let the market come to us.
And I’ll be keeping you updated every step of the way.
I’m looking forward to answering your most pressing questions this Wednesday.
If you want yours included, send yours now to [email protected]
Have a great weekend and I’ll have a new trade for you on Monday.
To your wealth, freedom, and options!
Joshua M. Belanger