Recently, the premiums on NVAX derivatives have been exceptionally high. However, with annoying regularity, a market drop in the underlying security can exceed the premium income.
That is precisely what happened with NVAX yesterday.
What is the Monday Morning Program approach to this situation?
The Program views the underlying security as a money tree. The tree grows, and at other times, it withers, then grows again. It remains a money tree at all times. The derivatives premiums can stay attractive.
Monday Morning members can write their covered calls or cash-secured puts as they usually do, selecting the closest expiry date available. The money tree keeps throwing off cash.
In the case of NVAX, the cash amount remains unusually high.
The Monday Morning Millionaire Program was designed to offer compressed investment convictions. Over the last two decades, the Program has outperformed over 90% of portfolios including professionally managed ones.
The Program does not provide any investment advice or endorsements.
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