More details when I feel like explaining.
For now. Pick a stock you like and believe in. Not because you’ve been on a ride and liked it. But because you are confident in their business and company.
Next. Pick a company that has been beat up. Who got caught in the wave of the market. Maybe tariff driven. Maybe Political or just in the wrong sector
Ideally find a company that fits both of the above. In my case I narrow that to Apple. Amazon. Google and tqqq.
If you know my portfolio you notice who I left out. Amgen. Meta. Tesla. IBM Lrcx. And many many others.
Now that you have your favorites you have been pummeled? Sell puts for about 10% more. Meaning more dip. Apple been dragged from $250 to $210? Great. Let’s sell puts a few weeks from now at $195. They’re available for about $3.20 each.
So if the market drops more you get a great company at about 8% lower than it is now. And if now you pocket $3.20 a share.
Commit to buying 1,000 shares $195,000. Good price for a great company. And if it pops up you keep $3200 in the bank to keep you company. If it drops below $195 and you have to buy there? Well anything above $192 and you’re already ahead. And if not the stock will pop back up and clear $195 soon. I think this is a win win
Every market has $ to be made in. I get stunned into inaction like anyone else. Then I adjust. Then I attack aggressively. So I make money in falling markets. And I make money in rising ones.
Think of this market as a chance to pick up petty cash. Pocket change. And turn them into more shares. Adding to what you have. And when the market rebounds you’ll have even more to rise and enrich you.
Was anyone stupid enough to follow this advice? Just wondering. sc