Timely Market Execution. Calls and Puts

This question was posed by Richard Colebourne, dentist from the United Kingdom

Question:

Hi Milan

I’m a dentist in the UK. Really appreciate all the advice and knowledge contained within Monday Morning Millionaire. I have 2 questions I hope you’ll be happy to answer.

1) In regards to keeping the overall portfolio balanced and investing the cash when opportunities present at 10%, 20% and 30% drops in the stock market index ETF, how do you monitor and action this? Markets can fluctuate rapidly and a major change, when it occurs can happen within hours, therefore can alerts be set up and actions be set to occur automatically?

2) I’m particularly interested in learning more about ‘On Monday mornings, sell just-out-of-the-money covered calls or just-in-the-money, cash-secured, uncovered puts’. How much in percentage terms can this strategy add annually? What percentage of the cash do you use for this strategy? I want to be able to correctly perform this selling of derivatives and hoped you could provide extra detail or even better produce a video of how you perform this action on Monday mornings.

Thank you in anticipation.

Richard

Monday Morning Millionaire Program Answer:

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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