Stock Trading

[sweetandsour]

I'm interested to see what TGT will do after it's earnings report. The price is near it's 52-week low. It can certainly go lower, but it could gap up, at least momentarily, also. Perhaps a low risk bet for quick reward. We'll see; I haven't bought any, but I'm still interested.

The prospect of a gap up is worth putting a position on.

Next week, I'm going to try Volatility Crush trades on several stocks:

HD Home Depo
TGT Target
WMT Walmart
LOW Lowe's

I had a limit buy order for TGT at 130, but decided to cancel it after seeing that the TGT target price was dropped to $140. If the earnings report beats expectations somehow, then I may jump on if possible. Otherwise I'm looking for other possibilities.

[Del]

Next week, I'm going to try Volatility Crush trades on several stocks:

HD Home Depo
TGT Target
WMT Walmart
LOW Lowe's

I had a limit buy order for TGT at 130, but decided to cancel it after seeing that the TGT target price was dropped to $140. If the earnings report beats expectations somehow, then I may jump on if possible. Otherwise I'm looking for other possibilities.

It's worth considering that Target might pop with the earnings report. Maybe buy some call options, and sell them shortly after earnings for a delta play.
(Of course, I'm selling put and call options -- looking for a volatility crush. So don't let me talk you into a trade that is opposite what I'm doing.)

I'm looking forward to next week. I have those four volatility crush trades teed up. I'll report on how they go.

Trade-by-trade, the goal is to increase my account balance. My target is to wake up on Monday, Aug. 21, with my armpit securely over the wall at $80K or better. I'll need a couple of good hits with my crush trades, and success with my condors next week.

[Del]

This is interesting:

Investor Sues Target Over ‘Disastrous’ 2023 Pride Campaign After Company Loses Billions In Market Value

Mr. Craig owns 200 Target stores. He has insider information on sales and traffic. It is possible that he also holds a lot of Target stock, which he was not allowed to dump swiftly because he is an insider. (The SEC watches and enforces.)

[sweetandsour]

This is interesting:

Investor Sues Target Over ‘Disastrous’ 2023 Pride Campaign After Company Loses Billions In Market Value

Mr. Craig owns 200 Target stores. He has insider information on sales and traffic. It is possible that he also holds a lot of Target stock, which he was not allowed to dump swiftly because he is an insider. (The SEC watches and enforces.)

Yeah I saw that headline today also. Haven't read the article.

BTW, I play golf tomorrow, so we'll see what stock opportunity I miss.

Anyway ...

[Del]

This is interesting:

Investor Sues Target Over ‘Disastrous’ 2023 Pride Campaign After Company Loses Billions In Market Value

Mr. Craig owns 200 Target stores. He has insider information on sales and traffic. It is possible that he also holds a lot of Target stock, which he was not allowed to dump swiftly because he is an insider. (The SEC watches and enforces.)

Yeah I saw that headline today also. Haven't read the article.

BTW, I play golf tomorrow, so we'll see what stock opportunity I miss.

Anyway ...

July CPI inflation news hits tomorrow, before market opens.

Some Fed Reserve officers are saying publicly that they want to cease hiking rates and let the previous rate hikes do their work to brake the economy -- if data support this outlook. So recent inflation at or below expected level could trigger a short boost tomorrow.

We are a long way from lowering rates. And while we may not see a great recession, the risk of prolonged stagnation is high. We still have 17 months of Bidenomics before we can begin to set our economy back on its feet.

It would be great if we could force Biden to let all of those recent immigrants start working legally and paying taxes. They want to.

[Del]

CPI inflation = 3.2% annual. Slightly lower than expected 3.3% Good news for FED watchers.
New unemployment claims this week = 248K. Slightly higher than 231K expected. Also good news for FED watchers, as tight employment market is of great concern.

In the first 15 minutes after data released, market futures are having a schizoid reaction of sudden exuberance, followed by extreme fear, and tending back to middle already. Hmmm....

I am hoping Mr. Market gains a little bit of confidence this morning.

I am building new condors.... I sold put spreads yesterday afternoon when market was trading at support. I want the market to go up a bit toward resistance, so I can sell my call spreads higher.
=======================

Thanks for the intel on TARGET target at 140. That helps me prepare for my volatility crush on TGT.

How do you find data like that?

[sweetandsour]

CPI inflation = 3.2% annual. Slightly lower than expected 3.3% Good news for FED watchers.
New unemployment claims this week = 248K. Slightly higher than 231K expected. Also good news for FED watchers, as tight employment market is of great concern.

In the first 15 minutes after data released, market futures are having a schizoid reaction of sudden exuberance, followed by extreme fear, and tending back to middle already. Hmmm....

I am hoping Mr. Market gains a little bit of confidence this morning.

I am building new condors.... I sold put spreads yesterday afternoon when market was trading at support. I want the market to go up a bit toward resistance, so I can sell my call spreads higher.
=======================

Thanks for the intel on TARGET target at 140. That helps me prepare for my volatility crush on TGT.

How do you find data like that?

https://www.marketwatch.com/investing/s ... quote_news

J.P.M. cut the TGT price target from 144, down to $115 today.

[Del]

https://www.marketwatch.com/investing/s ... quote_news

J.P.M. cut the TGT price target from 144, down to $115 today.

Whoa! They moved the target on TARGET (I just love saying that) from $13 UP to $16 DOWN! That's brutal!

Do they have some intel on TGT earnings, announcing on Tuesday? I wonder....

I had a great trading day. I wanted to catch an uptick on RUT (Russell 2000 midcaps) and SPX. I set my positions around 9:00 am, which happened to be the daily max on both indexes, before the plummet started. My condors are well-positioned for the next week or two. I have a great shot of getting my wing over the goal of $80K.

I could face some trouble if SPX takes a serious dive tomorrow, as my old condor on SPX expires. I have decided to set all of my condors to expire on Wednesdays, and just avoid Fridays entirely. Friday afternoon is too crazy for me.

[MrPiper]

Admittedly I have not read the 100's of posts on this forum so if already discussed, please disregard... I hope some here may find this helpful.

Has anyone here / does anyone here invest in "covered call options"? You CAN NOT lose money, but if a stock shoots up on some good news event, you could forgo the sudden growth. Covered calls are best sold on gigantic stable companies without much volatility.

This is what I do. This is NOT investing advice.

I write 14 day covered calls every Monday morning. The average is that I make about 2.5 to 4% per month on every stock in my portfolio regardless of market direction. Sometimes much more, sometimes less.

On a $100,000 self directed IRA (just for math's sake) I could consistently make $20,000 per year with ease. If the market for the year is up a little more than 20% you COULD, but may not, make a little less than the market. If the market is up LESS THAN 20% per year, you will ALWAYS beat the market and sometimes by a great deal.

Covered calls are considered level 1 options and so safe that they are the ONLY option contracts you can work with in an IRA. Again, can not lose money, only potential sudden large growth.

This is a VERY birds eye view and there is a little bit to learn, but most people can learn to do it if they put in a little time.

Final thought... if you are old and have been consistent, you are looking at $20K at least for every $100k in your retirement account. Do the math. If you have saved $500k, you can make an average $100k per year that you can spend without pulling down your $500k. Covered calls can be a great retirement supplement, or if you have more money, they can be your sole retirement income.

[Del]

Admittedly I have not read the 100's of posts on this forum so if already discussed, please disregard... I hope some here may find this helpful.

Has anyone here / does anyone here invest in "covered call options"? You CAN NOT lose money, but if a stock shoots up on some good news event, you could forgo the sudden growth. Covered calls are best sold on gigantic stable companies without much volatility.

I write 14 day covered calls every Monday morning. The average is that I make about 2.5 to 4% per month on every stock in my portfolio regardless of market direction. Sometimes much more, sometimes less.

On a $100,000 self directed IRA (just for math's sake) I could consistently make $20,000 per year with ease. If the market for the year is up a little more than 20% you COULD, but may not, make a little less than the market. If the market is up LESS THAN 20% per year, you will ALWAYS beat the market and sometimes by a great deal.

Covered calls are considered level 1 options and so safe that they are the ONLY option contracts you can work with in an IRA. Again, can not lose money, only potential sudden large growth.

This is a VERY birds eye view and there is a little bit to learn, but if anyone here is interested you can PM me and I would be happy to explain more of what I have been doing for years.

Final thought... if you are old and have been consistent, you are looking at $20K at least for every $100k in your retirement account. Do the math. If you have saved $500k, you can make an average $100k per year that you can spend without pulling down your $500k. Covered calls can be a great retirement supplement, or if you have more money, they can be your sole retirement income.

I had forgotten that we can do covered calls in in IRA! I knew that, once upon a time. I must look into this.

So how do you get 20% in calls? Or is this total return on typical 10% market growth and 10% covered calls? Because I can only count on 10% in call premium.

I like to go out two weeks or a month at 0.1 delta. What's your strategy? What stocks or ETF's do you like to cover? Do you let them get called out, or roll the trades?