This week volatility was the star of the show on Wall Street. Most stocks are still stuck in a trading range because the stock market is reacting to the existing trade war between the U.S. and China.
In markets such as this here is how you put the Wealthy Investor approach to work for you:
I favor in the money covered calls when you are initiating a new trading position. Selling 30 day in the money covered calls, helps the educated trader play defense and still generate residual income.
In this market I favor in the money covered calls on the following stocks:
Cisco Systems, Inc (CSCO)
Starbucks (SBUX)
Take-Two Interactive Software, Inc. (TTWO)
I favor mixing 3 to 4 week out of the money covered calls on existing trading positions.
In my 21 years of trading I’ve seen markets like this come and go. Just like me, over time you’ll be able to generate income and flow with market conditions both bull and bear.
If you use present day market conditions to sharpen your trading skills you will benefit big in the long run.
