Monday, May 8, 2023. How our fearless, intrepid investor made out last week and what she will do today

Having lost $US10,990.00 in her “fun” portfolio in one year writing (selling) covered calls, our fearless intrepid investor got five takeaways from the experience.

  1. Only a write (sell) and never buy covered calls and cash secured puts.
  2. Do so on the first trading day of the week (usually a Monday).
  3. The expiry date of choice is the last trading day of the week (usually a Friday).
  4. The ideal underlying security is an exchange-traded fund (ETF) that tracks the S&P 500. SPY is the number one choice.
  5. If assigned in a tax-advantaged portfolio, American investors should write (sell) cash-secured puts just in-the-money. Canadian investors are not allowed to write (sell) cash-secured puts in a tax-advantaged portfolio so they need to buy board lots of SPY to allow them to write (sell) just out-of-the-money covered calls on SPY.

How did she make out last week, and what will she do today 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