First off, we have a few spots left for our 4th Peak Capital Trading boot camp, where we will help you build a successful and consistent TradeBook. The next boot camp starts on January 10, 2022 and you can sign up here.
This week has been slow. I had some small wins yesterday and today, but I have not done anything particularly aggressive. It is the final week of 2021, when most traders are away, and you can usually expect the week to be slow with significantly lower volumes.
As you know, I have been in a swing position in TNA since last month. I have over 30,000 shares invested, and although I am down over $200,000 unrealized in it, I managed to make $3,000 on my position this week, and without using any of my buying power. I outlined how I made money on this losing position in today’s recap.
This strategy is called a “covered call” and it can be used on positions that you are holding for longer terms. My position is 30,000 shares at an average price of $92. I sold 300 contracts of TNA for the end of this week, at a strike price of $95. If TNA hits below $95, I will collect $3,000 (30,000 x 0.10). If TNA goes above $95, I will make $100,000 plus the $3,000 premium I collected. This might not seem huge, but if I can recover a $3,000 profit from my position every week, it is equal to $156,000 per year, or about a 6% return on my swing position. I explained this math in today’s recap, which you can watch here.
Speaking of options and leveraged ETFs, Ardi and Jarad led a nice webinar last night that is now posted in our Education Center. Tonight, Jarad is presenting another important webinar, this time on Gap Fills. Have you noticed that many stocks that are gapping up or down fill the gap in either direction? There is a literally massive potential for profit in those gaps, and I highly recommend that you join the webinar live and connect with Jarad, the “King of Gaps”.
See you in the webinar tonight!
To your success,
PS: If you have not yet seen it, be sure to check out our free, web-based replay simulator here. While at that site, do register for Aiman and Simon’s lessons, trade ideas, recaps, and webinars. I am very certain you will be able to improve your trading abilities through using this tool.