Fast Money Blog- 10/4/24

The week on Wall Street saw stocks pull back because of the on-going war in the Middle East.  Historically, the U.S. stock market does not like war or unrest.

The 5-day price action of the following stocks with consistent revenue growth illustrate how the U.S. market is affected by war.

NVIDIA Corp. (NVDA)

Closed on Monday, September 30th at $121.44

Closed today, Friday, October 4th at $124.92

Amazon.com, Inc. (AMZN)

Closed on Monday, September 30th at $186.33

Closed today, Friday, October 4th at $186.51

Microsoft Corporation (MSFT)

Closed on Monday, September 30th at $430.30

Closed today, Friday, October 4th at $416.06

Experienced traders know that when stocks pull back due to outside events, profits can be made using covered calls and bear call spreads in combination.   

In a market like this, 30 day November option calls are usually filled with extrinsic value, whereas 10 day bear calls spreads tend to work best because of their shorter duration.

Be a smart Wealthy Investor, sell 30 day covered calls and shorter bear call spreads where applicable.

Tyrone Jackson, The Wealthy Investor