Weekly newsletter of MYstylework - Issue #69
MOTIVATION...
MOTIVATION....
What motivates you...what drives you to wake-up everyday filled with power to start the day?
To be honest, most people are least motivated on a Monday and they hope that their Sundays never end because that is the day that they don't do anything and laze around. I used to be the same until I found a passion that drives me forward everyday and looking forward to Mondays.
When you are passionate with something, you will not feel that it is too much work. Just like when I am writing this every weekend for the past 69 weeks. If you take this as "work...work" then you may feel the pain to complete it, but if you like what you do, then it is a different feeling.
If what you do makes a difference in someone's life including yours, then you would have done good with that little effort of yours... you will spend your time anyway doing something else...put it to good use!
Find something that motivates you, it can be anything. Gardening, writing, trading, playing sports, reading etc... You won't find it like a task or duty if you like to do it and you have some sense of accomplishment doing it. Put your time to good use and it will repay you in bundles...be it health, financial or relationship.
"love what you do and you will never work for the rest of your life"
SPX - 3825
SPX is down 86 points (2.2%) for the week, mostly down the whole week and rallied up on Friday's close to 3825, just to give back some money for the 4th of July celebration coming Monday.
As we have said earlier on Traders Talk, the market will only look for directions after Thursday and for next week would likely be the same as Friday is non-farm payroll announcement. Nevertheless, we expect to see some momentum up continuing on Tuesday when market opens before tapering off on Wednesday, as there are some Fed speaking Wednesday through Friday.
It's best that market rallies up one 2 days and then comes back down as these kind of rally up and retracements works very well on our diagonal trades earning premiums by selling the short call on updays and collecting monies or expiring worthless on down days end week. As long as they don't go back lower than entry price, then the diagonals will be very profitable.
This week's SPX trading range would be 3700 to 4050.
NDX - 11585
Almost losing back what it had gain the previous week if not for the late Friday rally. NDX closed, 11585, 4.5% down for the week.
With NDX going nowhere, it does not bode well for GOOGL which has loss its momentum from rallying towards the stock split on 15 July. GOOGL lost 184 points or 7.8% during the week to close at 2174. Hopefully post split, it can be above 100 meaning that the price have to stay above 2000 based on 1 : 20 split. We put in additional investment position at 2150 level averaging down a bit as previous entry cost was at higher levels. Also, leaves this one week for another chance for a runup. Take your profits if it comes...
We expect NDX to continue to move sidewards for a while now. Nasdaq expected trading range this week is 11200 to 12500.
DR BINKIE - TRADE DIGEST
JADE LIZZARD - TWITTER
Here are the notes...
Trade Assumption
Neutral to slight bullish
Best Entry
High IV
Oversold position (but not likely to rebounce so fast)
Trade Setup
Sell Bear Call Spread
Sell OTM Put
Credit from OTM Put have to cover max loss of the Bear Call Spread
eg. Bear Call Spread $1 width, collected $0.30 credit, the short put should collect minimum $0.70 credit. This is to structure a no upside risk if price shoots above the short/long call strikes.
Max Profit
If price stays between short put and short call
Max Loss
The strike value of the short put. eg. short put strike $34, less credit received on trade. Max loss is $3400, less credit received. The max loss comes from the naked put position.
Exit
50% of the credit received
Trade Management
No management if price shoots above short call strikes - no upside risk.
If price drops, you may roll down the bear call spreads for more premium, but not below the short put. As strike width is small, there might not be a lot of premium and hence no adjustments necessary, unless your call spread is with bigger width.
If short put is tested, roll in time for more premium and close the call spread for max profit. Trade may turn into a cash secured put or a new DTE jade lizzard with lower call spread strikes.
Cut loss if price does not seem to have possibilities of recovery. For such trades, we have to be comfortable at the stock as if we want to own the stock like when we do a cash secured put. Don't do it on speculative meme stocks without fundamentals.
We covered above in Traders Talk, go listed to Dr Binkie below.
TRADERS TALK
We added Trade Digest, a new series to dissect a trade which we entered or even a potential trade for learning purposes. If you have any trades for us to digest, please post in advance to our facebook page.
Listen to Traders Talk Series 53 if you have not done so. View Past Traders Talk here.
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THRIVE OPTIONS BUSINESS BUILDER
For those who had the chance to grab the Thrive Options Business Builder last month and had taken action, congratulations. We are excited to have you on board our advance training programme where eventually you will build yourself an Options Business generating high double digit returns but only with a fraction of capital used.
Over a period of 12 months, you will not only learn advanced options strategies, you will also be guided on execution of these strategies. We are still open for new registrations and it is not too late to learn some additional options strategies and implement them still for the new 2022 trading year.
The registration link is here.
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.