PAYING THE PRICE...
Have you heard this phrase "Paying The Price"?
I'm sure you did sometime before...
However, there is a good side and bad side to it. Sometimes it is associated to things like "quality" of a product. If you want to have something of good quality and reliable you have to pay a higher price for it.
Or if you want to achieve good grades you will have to pay a price for it by burning the midnight oil studying hard so you will be able to score at the next exam.
Whether it is to pay a bit more to get a better quality flour to make a better tasting bread or study a bit harder to pass their exam or to work a little harder to get that promotion.
What you pay now is what you get in the future...
But are you aware of the negative side of "Paying The Price"? Because there things that people need to pay the price in the future for what they have not done in the past. For example, when you are young you smoke a lot and when you are old, you have some kind of lung disease, that's paying the price by not living a healthy life in the past.
What you don't pay now is going to be what you need to pay in the future...
One thing I found out is that there is no free lunch in life. Everything is all measured with a "Price" tag, if not a "monetary" price tag it will be in terms of "effort" or even "actions".
Either you pay for it upfront now or if you do not do it now you will have to pay in the future. Having a choice, I would rather pay now and enjoy in the future than to pay later and suffer.
Please see what are you not "Paying The Price" now and please go settle your bills...
MARKET UPDATE
SPX - A Stronger Bounce...
SPX ended the month with a down month closing at 4307 down 227 points (5%). However, it started the month of October with a bang moving up 50 points (1.2%) for the first trading day of October.
Recall in the previous few newsletter I was skeptical of bounce 9 and true enough it bounced and then came back down. Last Friday, it bounced again after dipping below EMA100 and closing above on same day. Compared to the previous bounce, this bounce has more probability of a reversal because it has forced bottom to cut below the previous low at 4305 and closed above it with a bullish candle [indicated with the green line between bounce 9 and 9.5]. This is a double bottom scenario which have high chance of a reversal.
The next level we want to keep an eye is at 4465 to see if SPX can breach it. After this it will be the previous high and once that gets past, it will form new high of course.
NDX
It was a volatile week for NDX as it went down around 4.3% from opening the week at 15205 to lowest level of 14555. At the end of Friday, NDX closed 14791 with a bullish bar above the 100 EMA.
Most of the component stocks has retraced during this market retracement and trading at least 10% to 20% below before the retracement happened. below are the past 1 months results of FAANG stock against the market. All is in red and retraced more than market except for Netflix which went up against the general market.
China tech continue to tumble for the week. BABA has reached one year low at 144 dropping 55% from its high. I would keep an eye on a bullish reversal pattern if it tilts its head above 148 with a bullish candle indicator. If it continues to go down the next level would be at 130. You have to have a lot of conviction if you already have this stock on hand and taking a lot of unrealised loss. Because, it can be a very well position if you had held on this for close to one year from its high to finally give up and then see it grinding back to its former glory. If you have dumped it earlier, then you can see if you want to date with this Ex again.
CSP PORTFOLIO PERFORMANCE (UP 15.0%)
(Portfolio performance is on MYstylework's Portfolio and is not a recommendation to buy and for informational purposes only. You are adviced to seek your own professional adviser's views and perform own due diligence when evaluating any stock, options or investment trades)
Not much changes to the overall portfolio with some positions which performed better and some which needs to go into recovery room. KWEB continued to be rolled as the price have yet to recover above the strike price. Fortunately, we are still able to roll it over weekly at very good premiums. It's like your insurance company that pays you allowances by being at the hospital.
For the other position in HKEX (388), it was few dollars ITM on expiry but I decided not to roll it as my cost base is still lower than the current market price and I think the stock price would have a bit more capital upside as the Hang Seng Index seems to have bottomed out, which basically means the HKEX would start to go up in price if the general market goes up. I can start to sell covered call on the assigned stocks when the stock price touches 510.
We also put in some additional positions on RIOT some days just before Bitcoin rallied. RIOT has good premium but it is a bit volatile and has dropped a lot in recent months. It's more of a speculative premium play and big risk involved knowing that it has around 0.4 colleration with Bitcoin.
We are also back into the game with PLTR after some months as it had rallied far too high and we have no insight of the support levels then. But due to the recent pullback of the Nasdaq, PLTR came down together and we were able to do a relatively low strike that we would not mind owning the stock at that level if assigned.
RBLX is going to continue as part of the portfolio after we have now gone into it several rounds now.
FREE iPhone 13 Challenge
Last Week we launched a new challenge following iPhone 13 launch. This challenge is for anybody who wants to get a brand new phone sponsored by Apple Options.
The whole idea is to generate profits from trading of Apple Options. We did the same challenge last year and we managed to get a brand new iPhone 15 Pro Max from the profits generated trading Apple Options.
We had put on our first position and the details are all shared in the Challenge Portal which can be accessed by all challengers. There will be a video explaining on the entry and strategies used.
It is a great learning opportunity as we are practically teaching this for FREE and at the same time you will have an opportunity to potentially get the iPhone 13 at the end of the challenge.
So we kept this week's option learning to the strategy we used in the iP13 Challenge. Access the strategy by registering for the Challenge here [Register Here]. The strategy we used is a great strategy having over 90% probability of profit.
TRADERS TALK
Did you hear last week's Traders Talk?
I was speaking on why you should not invest in property but instead learn how to buy property. Is there a difference, yes for sure!!! Listen to Traders Talk Series 14 if you have not done so. View Past Traders Talk
I have even got the highlights here for a sneak peak...Sneak Peak Traders Talk
Remember to join us every Tuesday 7.30 pm on my Facebook Page. Follow-us so you will be notified when we go live!
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DISCLOSURES
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf
MYstyework is an Online Financial Literacy Educator and materials provided is solely by MYstylework and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. MYstylework, through its contents, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. MYstylework is not in the business of transacting securities trades or an investment adviser.
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