Here is what our fearless, intrepid investor did in her “fun” portfolio when the New York Stock Exchange opened yesterday at 9:30 AM.

On Friday, September 24, she was assigned on her Monday, September 20 Novavax (NVAX) covered calls, so she was in cash. She did well last week. Luck, almost entirely!

To continue the game, she bought 1,200 shares as soon as the market opened.  That cost her $241.4820 per share for a total of $289,778.

She then sold 12 NVAX covered call contracts, strike price $242.50, expiry date, October 01.  (C 01OCT21 242.50).

She got $7.0917 per share of premium income for a total of $8,510.04 ($7.0917 times 1,200).

In one week! In her “fun” portfolio! She rarely netted that much in one week while practicing dentistry.

However…

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Here is what our fearless, intrepid investor will do in her “fun” portfolio when the New York Stock Exchange opens today at 9:30 AM.

On Friday, September 24, she was assigned on her Monday, September 24 Novavax (NVAX) covered calls so she was in cash. She did well last week. Luck, almost entirely!

To continue the game, she plans to buy 1,100 shares as soon as the market opens. NVAX closed at $248.16 last Friday. That would likely cost her about $275,000.

MorningStar analysts estimate that Novavax (NVAX) is 6% undervalued now. (See below.)

Accordingly, she plans to go further out-of-the-money to take advantage of the growth which she expects.

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Here  is an update on the outcome of what our fearless, intrepid investor did her “fun” portfolio when the New York Stock Exchange opened at 9:30 AM on Monday, September 21.

The bottom line is that she did well, almost entirely due to luck. Call me (705-441-4566) if you want to review how to do well selling covered calls without relying on luck.

On September 17, MorningStar analysts estimated that Novavax (NVAX) WAS 8% undervalued now. (See below.)

Accordingly, she planned to go further out-of-the-money to take advantage of the growth which she expected.

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On September 20, 2021, From S. B. DDS, Peoria, Arizona, USA

I have not considered borrowing to invest because I was focusing on consistently investing and maxing the 401k plan. What are your thoughts? Thank You.

Our answer

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Greetings everyone,

Time is valuable and irreplaceable! A sincere thank you to all those who took the time to respond!

Below you can see the results of our September 20 survey about members’ debt.

How would you describe your debt?
I don’t have any.	56.8%
It is manageable.	18.9%
Given the present low interest rates, I have borrowed to invest.	24.3%
I am a lost cause. Just send help.	0.00%

Below, you can see responses.

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Here is what our fearless, intrepid investor will do in her “fun” portfolio when the New York Stock Exchange opens today at 9:30 AM.

MorningStar analysts estimate that Novavax (NVAX) is 8% undervalued now. (See below.)

Accordingly, she plans to go further out-of-the-money to take advantage of the growth which she expects.

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In today’s world, it is challenging to find securities that produce decent income. One category of investments that has attracted billions this year is REITs. They own and operate residential and commercial income-producing properties.

As we frequently state, historically, 1.) over the long term, 2.) properly selected US market index exchange-traded funds, 3.) held in tax-advantaged accounts, 4.) in an appropriate asset allocation, have been the investors best way for growing savings and are likely to remain so for many years.

The US market index exchange-traded funds we talk about track the S&P 500.  The S&P 500 is up 20% this year. That rate of growth is as staggering as it is unsustainable. Leading REITs are up close to 30%! Millions of people are jumping on board.

Is that safe? Is it effective?

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We are frequently asked about a good place to park money. The answer is that at today’s interest rates, there are none compared to what was available previously.

However, home buyers today have a major advantage working in their favor. With house prices going through the roof with a sellers’ market in many communities, how is that possible?

The answer is, low interest rates, the very rates which preclude a good place to park money. Here is an example.

The average house price today is $375,000.00.

With a 20% down payment ($75,000.00), a home buyer would need a mortgage of $300,000.00 ($375,000 minus $75,000.00).

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Today is the Lehman Brothers bankruptcy anniversary in 2008, the largest bankruptcy filing in US history. What effect does it have on us today? What effect will it have on us tomorrow?

The bankruptcy triggered a major recession which continues to have a significant impact on society, especially on the millennials, those born two decades before the turn of the century.