Fast Money Blog- 6/10/22

I’d like to take a moment to explain to you what happened in the U.S. stock market this week. Today, Friday, June 10th, the stock market reacted negatively as new CPI data showed that inflation is on the rise.

The CPI (Consumer Price Index) measures the overall change in consumer prices over time in all sectors of the U.S. economy, including shelter, gasoline and food.  The Government released the CPI report Friday morning and it revealed that inflation increased over the past 30 days; we did not get the decline we were all hoping for. This means that the Fed’s recent interest rate hikes did not have the intended outcome.  The CPI is the most widely used measure of inflation, closely followed by the Federal Reserve, financial markets, businesses, and consumers.

How Should You Trade In This Market To Generate Income?

Here’s the Wealthy Investor formula that will generate the most profit over the next 35 days:

On your trading positions you need to sell 30 day out of the money covered calls, in addition to setting up 20 day out of the money Bear Call Spreads. Now is the time to exploit the extrinsic value of out of the money call options.

These current market conditions demand that you be a skillful trader and a patient investor.

Important Note:  As you know, the Google stock split is just around the corner.  I don’t recommend that you rush to purchase shares post-split.  I expect Google to trade in-line with current market conditions.

Be smart. Be patient.