GEARING UP

GOOD MORNING!

I’m trying to gear up and do more writing here. Here are a few update thoughts;

  1. My family has been in turmoil. My grandson, Thatcher (Age 21 months) has a huge tumor in his abdomen. It’s called a Wilms Tumor. He’s been under Chemo for many weeks, trying to shrink the tumor, so they can go in and take it out. The surgery is scheduled for Monday. Will you add your prayers to ours for this precious little boy.
  2. There are many postings here on many topics—especially items about the stock market. Even there they are divided into specific sections. You can get caught up and learn a lot there.
  3. Go to Facebook and join Wade Cook’s Taxi Cab. It’s FREE.

Later.

Spring is Here

It’s Friday morning.
I’m watching all of the news I can gather. We’re in a few positions—mostly weekly covered calls.
A Few Musings:
1. The jobs report for March just came out. It’s just so-so.
2. It’s good but not great. It’s comical to watch the commentators tie themselves in knots, trying to standout.
3. The economy is just fine. These salvos are just that—negotiations.
Take a look at Blackstone, BS. They are paying a 10% dividend.

Wade Cook’s Taxi Cab.

You can now join Wade Cook’s Taxi Cab (here on Facebook) for FREE. Here is the posting from today. I do real trades, commentary backed by 29,000 trades and years of experience and wisdom, then add in a sprinkling of great thoughts.
Here is a sample posting taken from 2/23.
GENERAL NOTES:
1. The economy is picking up steam. We’re in for a great few years.
2. Corporate profits are up 18% (really more) this year over last year.
3. Over 1,000,000 Americans have over $1,000,000 in their pension type accounts.
4. Generals Mills just offer $8 Billion for Blue Mountain Dog food. I think we’ll see many more Mergers, Buy-Outs—not to mention increased share buy-backs, dividends and expansion.
5.THIS IS A FAR CRY FROM THE OBAMA POLICIES—where we celebrated mediocrity. Remember? We’re going to have to get used to this new normal (1% growth).
This is a time to be bullish on America, OPTIMISM.

DEMOCRATS JUST SAY NO!

DEMOCRATS JUST SAY NO . . .
Democrats say no to Freedom . . .
They say no to prosperity . . .
They say no to small business,
and no to more Jobs.
Democrats say no to letting us keep more of our own money—as if it were theirs.
And the future? They say no to growth, a better way of living, and no to expansion.
And then they’ll probably want us to say yes and vote for them.
Not one Democrat voted yes for Tax Cuts. Not one.

No one is shouting for more government.
Prosperity is all around us. Profits are there for the taking.
JP Morgan Chase (JPM) just announced better profits. They are going to raise the salaries of all employees, because of the new tax cuts.
They will invest 20 Billion Dollars opening hundreds of new branches and hiring thousands of new people.
WOW.

Mr Trump’s Trip

The President will soon be heading off to Davos, Switzerland. There he will mingle with the high and mighty. I wish they were the high, mighty and quiet. Stuart Varney said, “Davos is the home of globalism, climate change, open borders and income inequality. The world’s Billionaires will be talking to other Millionaires about leftist politics. Our President is going to be like a nuke right in the middle of them? This Stuart’s final admonition was, “Stick it to them, Mr. President.”

Here’s is what Keith Fitz-Gerald said later on the same Stuart Varney FBN morning Show: “Davos, this is somewhere between April Fools, Halloween and a Dystopian Universe. It’s about time these guys in Davos get upset, because the Apple Cart needs to change.”

Well, there are many things in our world that are changing, and most of it will be good changes. Long Live Freedom and the Free Enterprise System.”

Weekly Covered Calls

November: A few power-thoughts. We are in the midst of a tremendous market. There is so much optimism. Earnings are up for so many companies.
For those of us who like to use the market as a part-time business, this presents a caution and an opportunity. First off, we like using assets to make money—real spendable income. We use Writing Covered Calls, because it’s simple, powerful and most people can do it—not to mention that you don’t need a lot of money to get started.
If you want information on this strategy, go to wadecook.org and get the report, “Your Money Needs to Get a Job.”

11/8: An Update and Explanation of a process to make more money. In Writing Covered Calls, we usually sell slightly out-of-the-money calls. For example, AMD is $10.80 or so. We buy the stock and use it as an asset to generate income—like rental real estate.

We sell the $11 calls, agreeing to sell this stock for $11 and we get paid cash to do so. The money hits our account in one day. We can now do this on a weekly basis. This is a great money-maker, and you can determine all of these prices before you ever enter the deal.

But what if the stock goes up, and we’re about to get called out, or sell the stock? We decide we want to keep the stock, so we can buy back the sold option. It takes about 18 seconds. We now have no obligation to sell. We’re free and clear—and good to go.

But here’s another scenario. What if the stock moves up. It’s at $11.70. It’s way over the $11 strike price. We know we can buy back the $11 calls for this month or week, but being so far in-the-money, they are a bit expensive. These $11 calls are 90¢ to buy. Again, if we do nothing we will sell the stock.

So, we look at the $11 calls for next week. They are $1.10 x $1.15. It cost us $900 (I’m using 1,000 shares for this example). 1,000 times 90¢ = $900. And on the same phone call or trip to the computer, we sell the same strike price calls for $1.10, Taking in $1,100.

This is okay, but we want to get back to selling a slightly out-of-the-money calls. So, we look at the $12 calls, or even the $11.50s. They are not going for as much money, but if you were to sell this stock, it would be at a higher price.

The reason I’m writing all of this, is that this will be a common occurrence in this market. Stocks are up. But remember, stocks climb a wall of worry. Quite often, the option premium diminishes as stocks get higher. We have lot to think about. But it’s so much fun.

 

WEEKLY COVERED CALLS

The following is a brief statement of why WCCWs work so well. We’re having so much fun exploring this new method. The 50¢ strike prices and the weekly options are about as exciting as any new development in the market as we’ve ever seen.
This list will be our topic points for Tonight’s WWW. We hope to see you there.
GOOD NEWS ABOUT WEEKLY COVERED CALLS
With weekly options available, there is a greater opportunity to write covered calls—a true passive income generator. And with 50¢ incremental strike prices, the profits come fast and furious.
1. The option premiums from week to week are relatively uniform. There is not a huge drop-off. For example, one weekly option chain had option bid (sale price) at 19¢ 22¢ 25¢ 28¢ and 32¢. Look at these numbers. Selling the option out in five weeks would generate $320 (1,000 shares). But, what if we only received one-half of the weekly sale price? That would be about $600 plus, over double the one-week options. A little more work, a lot more profits.
2. Not only do the weekly options give us more profits (that’s what our study and trades say so far), but there are 50¢ incremental strike prices. i.e. $4.50, $5, and $5.50. You don’t know how important this is until you see the new potential profits, and compare it to the old days.
3. We can calculate the profits, even weekly, before we ever decide to Write a Covered Call. The only variable is the movement of the stock. Use protective strategies.
4. We use volatility, either: A. Coming Up on News; or B. A solid rolling pattern.
5. Use charts—preferably 6 months—to ascertain movement, including support and resistance levels.
6. OI, or Open Interest is vastly important. The numbers will keep you out of trouble and in the game to make more money. In short, stocks seem to move to a price where the most options expire worthless. This is why most people lose with regular options.
7. There is time before each Friday expiration to fix any problems—buy-back, roll-outs, etc. These options seem to hang on to their premium right up to the last day, even the last hour. We are making correctable decisions, not just correct decisions.
8. We do these trades so as not to need any movement. We call it No.R.M. No Required Movement. It’s okay if the stock stays right where it is.
9. Don’t forget the 3rd Friday options in your calculations. At that time, it’s just another weekly option.
10. We don’t have to be right for very long. These are 4 and 5-day trades.
11. We can then use the profits to buy more stocks—if the profits are not needed to pay the bills—and continue to build up our income-producing asset base. More profits as we go.
© 2017 Wade B. Cook and Wealth Information Network, Inc. All Rights Reserved.

SLEAZY PEOPLE

SLEAZY PEOPLE: An update on happenings around the world.
1. The news is coming fast and furious. Earnings yesterday and today (with huge announcements expected tomorrow from MSFT, AMZN and GOOGL) show how well these companies are doing. Visa, Boeing and Coca Cola (KO) are beating their expected numbers.
2. The economy rolls on. Better Profits are fueling this increase—not just the potential tax-cuts.
3. There are reports that treatment for Alzheimer’s Disease is coming. Over 5,000,000 people in the US are affected. This new medicine may delay and prevent this horrible disease.
4. Reports out that the Clinton Campaign and the DNC funded the terrible report (From Fusion GPS), called the dozier which tried to damage President Trump during his campaign. Sleazy People do Sleazy Things. They can’t help it.
5. There is so much legerdemain in politics and government.
I’ll keep reporting. Check out AMD and V, KO and BA. Later. Visit wadecook.org.

HAPPENINGS—10/23

It’s always fun to come and update my friends on things going on in the world. So here goes:
1. Virtually every CEO who gets on TV says they’ll hire more people with the tax cuts.
2. One prescient CEO wants small business to get better rates—2/3 of all new jobs are from small business, defined as companies with under 50 employees.
3. We’re in earnings season. 87 of the S & P 500 have already posted their earnings. Of these, their earnings are up 9.4%.
4. 73% had higher revenues. 71.3% had earnings surprises to the positive. 70.1% beat revenue estimates. Consider carefully how you want to participate. Do you want growth or income or growth?
We’re in for some nice surprises. We play the market at hand—trying to get our money in the way of growth.

Get a FREE Report at wadecook.org