August 16th Daily Market Note: The Next Big Move comes after Traders Decide on Rates Direction
Premium Daily Note: August 16th, 2023
Note: As mentioned in my previous note, all Members will be provided an Options Bootcamp training session in early October ($399 for public). Join our Community today with an annual subscription to add a potentially powerful new skillset for your investing strategy.
Below, I am discussing a few more Options Selling setups that I see arise.
Folks,
The hottest stocks have pulled back from their 2023 highs, and the indices remain expensive. That said, as an Equity Analyst, I believe there is still opportunity in select companies, and using Options Selling as a strategy along side owning Direct Shares, we can position ourselves to generate portfolio income and potentially lower our cost basis.
Members routinely ask me what is the best brokerage for Options. There are many, but sincerely speaking, Interactive Brokers is perfect for Options Sellers because they pay interest on uninvested cash. When you sell options, your uninvested cash balance stays unchanged - meaning you continue to collect interest on the entire portfolio balance.
So not only am I playing with an edge when I sell options, I collect interest at a 4.8% rate at the same time. The edge does not get any bigger than this, in my view.
Join my Community - let me show you how to Sell Options profitably. Use Interactive Brokers as the vehicle to do so.
Daily Market Note: August 16th 2023
Markets wait for FOMC commentary for clues on Rates and Monetary Policy
This is an early session note sent out as I have obligations to attend to in the afternoon.
Forward-looking Conclusions of this note:
Macro: Longer-term yields (20Y and 30Y) continue their drift higher, and this will pose problems for any recovery rally’s sustainability if yields don’t cool down.
U.S. Stock-Specific: TJX, discussed 30 days ago, is now back at all-time highs. While chasing is never a smart play, those who are in may want to keep holding as I see TJX breaking 90 in the foreseeable future. New tactical Sell Put setups are discussed below.
Bonds: Previous views on Bonds stay unchanged.
China: We are soon approaching levels where I will provide guidance on Selling Puts on the sector. Not there yet, but read below for more information.