Summary

Use options to build and trim positions for your ebb and flow trading style.

I am erring on the side of caution until this market gives back a little.

Still very bullish on oil stocks given manipulated supply, rising demand, lack of long-cycle investment and Iran sanctions.

You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing. --- Warren Buffett

Options

Each month, I will post a new set of option trades that you can look to make over the next month. I will focus on:

  • Selling cash-secured puts on stocks that we would like to own and are approaching support.
  • Covered call writing on stocks that are rallying but hitting resistance, so we can take some profits.
  • LEAPs for gaining leverage on undervalued intermediate term growth ideas.
  • Hedges.

Always use limit orders and set your GTC for a week or two. Review a few times per week. It doesn't hurt to check early each morning after looking at the stock market futures.To read more, a subscription is needed: Click here to subscribe