Monday, August 7, 2023. How our fearless, intrepid investor made out last week and what she will do today

Last Monday, July 31, our fearless, intrepid investor wrote (sold) just-out-of-the-money covered calls on SPY. She collected a nice premium income – safe, secure, adequate.

On Friday, August 4, the put/call ratio showed investor sentiment to be negative suggesting a short-term market decline. The best thing to do at a time like that is to sell just out-of-the-money covered calls on a safe security as our as our fearless, intrepid investor did last week.

The risk of selling covered calls is directly connected to the selected security. The safest security to use is an exchange-traded fund (ETF) which tracks the American economy as a whole. Of the thousands of ETFs that exist, only about six qualify in that respect. Among those, the best is SPY. It is the oldest and the largest ESP tracking the S&P 500 and has the narrowest bid/ask spread.

What will our fearless, intrepid investor do when the market opens today?

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me