Monday, March 26th through Thursday, March 29th was a wild roller coaster ride for active stock market participants.
Non-dividend paying stocks have been reacting to two major factors:
1. President Trump’s insistence on tariffs
2. Facebook’s data mining scandal
These 2 events have been causing large institutional traders to use stop loss orders to capture gains. As a covered call writer, your goal is to capture premiums and ride all options until expiration. These days the market is selling off and retracing every 72 hours. I highly recommend you stick with in and out of the money covered call writing as your primary strategies until the stock market resumes a more predictable pattern.
Although your account value may have declined, there is still call option premium to capture. In the week ahead stay focused on Wealthy Investor disciplines. In the long run you will do very well.
Have a great weekend.
Tyrone Jackson
The Wealthy Investor
