Risk/reward balance
Our October 1 survey indicated that 88.9% of our members would like to see posts dealing with puts and calls. This is an update.
We have been following puts and calls on Novavax (NVAX) for several weeks now. The premiums have been high — 5.65% return last week, which came to $588.00 for each $10,400.00 invested or about $60,000 per million per week. Of course, that means that the associated risk was high — that is the way the world works.
Our September 1 post talked about one of our members who, in short order, lost some $170,000 on a $500,000 investment in NVAX stock. Writing covered calls and cash-secured puts on the stock for several weeks in a row, she is close to recovering the loss. Can she really expect to make money from here on?
What can we expect to see when the NYSE opens at 9:30 Eastern Time today? (The Toronto Stock Exchange will be closed for Canadian Thanksgiving.)
The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me