WELCOME BACK EVERYONE! to the CPT Newsletter on Writing Covered Calls and Selling Cash Secured Puts. In this Newsletter I will share with you my experiences, trades and other good stuff that should 'Up Your Game!'
Since last Newsletter so many things have been happening ... the markets are rallying to ALL TIME HIGHS, the China Trade Wars are basically ON and OFF which keeps giving us great opportunities to Buy Low, Sell High ... although lately it's been more Highs than Lows ... I just don't see any deals being made until China see's a clear victory for Trump in the 2020 election as I think they are holding out a bit thinking a Democrat will win and all this pressure for trade equality will go away ... just sayin! ... until then we get this, we get that ... its ALL NEWS! ... and news moves stocks in short term trades so as you know, I ALWAYS keep a little cash on the sidelines to take advantage of those times to buy my favorite stocks cheaper. I'm trading more Covered Calls then Cash Secured Puts right now as the markets drift higher ... if we get that pull back I will have my list ready and look to use the Cash Secured Put on stocks I wouldn't mind owning but primarily to play the downward swing. Next month I will update you on how that worked out ... if it plays out as I think it could :)
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| https://cptcoveredcallnewsletter.blogspot.com/2019/11/cpt-covered-call-newsletter-november.html |
| Let's break down the Newsletter because it looks like a TON of blah blah |
1) SHOW ME THE MONEY! No other guru's I give you an up to date yearly trading totals!
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2) CHART OF THE MONTH! See the World Thru My Eyes - Adobe Systems (ADBE)
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3) COVERED CALL 'TIP of the MONTH' - Trading Covered Calls inside your IRA
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4) SPECIAL OFFER - The Upgraded CPT Dashboard is here!
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4) Exclusive Newsletter video - Using TEXT to SPEECH browser extensions for research
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5) ALL Social ALL the TIME! Youtube / Facebook - join our 'like minded community today!'
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| "SHOW ME THE MONEY!" |
| As of this Newsletter post date, this is my Cash on Cash $ and % gains |
| $46,679 | | 20.75% |
KRUMS! I know for some of you that these kinds of profits seems unattainable or like climbing a MOUNT EVEREST of effort … but it really wasn't and what I found if you set your goals like me … make $100, $200 a trade … do that a couple times a month … quickly you will find those profits add up and all of a sudden were talking real money.
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| THE CHART OF THE WEEK |
DISCLAIMER: This chart is based on this date. I'm not suggesting a move up or down. I'm showing a chart I'm watching. I'm not recommending this stock as a purchase. Think of it like this, your seeing the world thru my eyes and how I see this chart. This Chart of the Week was posted for all the Upgraded CPT Dashboard subscribers last month.
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- to fully understand the chart breakdown, read the setup first, then it'll become more clear as you read it -
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THE SETUP: I love making LOW ENTRY stock purchases and have done many videos on the various charting 'indicators' I use when charting a stock. I like stocks that trade with an RSI under 50, trades near traditional SMA 100, 200 support lines, trading under the Keltner Channel MID line and I want to see an UP trending OBV line (see definitions for all of these below)
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| What's the RSI telling me? |
| RSI - The RSI is between 40/50 which represents for me a stock that is 'for the most part' fairly valued with some good upside value if the markets are bullish |
| > ADBE trading anywhere below RSI 50 (for me) is a good time to think about buying shares ... this thing is always at the top of the range. |
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| Support Lines |
| SMA - When looking for a 'Low Entry' purchase we would love to BUY near the 100 day or 200 day support line. It's not 100% but its a 'Buy Low' situation vs 'Buying High' |
| > Again, love that its near Support vs being at the top ... I feel if the markets are sideways to higher, Wall Street will see this great company as a bargain. Sweet time for me to think about buying shares |
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| Keltner Channel Breakdown |
| KC - The stock is trading UNDER the KC MID line which presents more of a 'Low Entry' purchase and now is the time for me to start watching the stock. I like buying for value UNDER the MID line. |
| > Under the Keltner Channel MID means I'm going to get a low entry purchase ... love buying under the mid vs. over the mid line. |
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| On Balance Volume or buying momentum ... is it trending Up? |
| OBV - The 'On Balance Volume' trend line is UP which tells technical traders that the stock has good momentum or in straight talk, people are BUYING IT. This is a 'Green' checkmark for me. |
| > OBV is trending sideways to higher, momentum is good with ADBE |
| Further research with - Using charts for technical analysis, Dividend information and Earnings Report Date |
| RSI, SUPPORT LINES | KELTNER, OBV |
| View Chart-ADBE | View Chart-ADBE |
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| Definition of the various charting indicators I use |
RSI - The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Source - https://www.investopedia.com/terms/r/rsi.asp |
SMA (100/200) - A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of time periods in the calculation average. ... Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react. Source - https://www.investopedia.com/terms/s/sma.asp |
KC - The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility by using the average true range. The Keltner Channel is used to signal possible price breakouts, show trend, and give overbought and oversold readings. Source - https://www.investopedia.com/terms/k/keltnerchannel.asp |
OBV - On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. ... He believed that when volume increases sharply without a significant change in the stock's price, the price will eventually jump upward or fall downward. Source - https://www.investopedia.com/terms/o/onbalancevolume.asp |
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| Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results. |
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| COVERED CALL TRADING 'TIP OF THE MONTH' |
| DISCLAIMER - I'm not a certified tax accountant - always seek tax guidance by a certified tax accountant if you have questions about how Traditional and ROTH IRA's work. This information below is provided as entertainment, my life experiences and my understanding of how the process works ... below this Tip of the Month are some great resources to further your education about tax advantaged accounts. |
Covered Call Profits and Taxes ... the hate love relationship.
The #1 HURDLE with investors is PAYING TAXES! ... "John, I want to do this Covered Call thing but I don't want to pay all the taxes" - "John, how much in taxes to you pay because I don't want to send all that money to the IRS" .... ON AND ON .... and what happens is they end up NOT doing anything, missing all the opportunities for success this Covered Call strategy can bring if you get your education, if you get your experience.
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 So with 2019 ending and 2020 starting a new ... take the time and learn about TAX ADVANTAGED ACCOUNTS like the Traditional and ROTH IRA's ... understand how they work and how they are tax advantaged TODAY which will allow you to trade the stock markets (Sell Premium, Write Covered Calls, Sell Cash Secured Puts) without paying taxes today ... this MIGHT BE the Tip you need to get in the game. |
I'm always trying to Up my Game by reading interesting articles that help me with my investing - this month's video shows you how I use Text to Speech browser extension to consume large amounts of information in a short amount of time. Kiplinger Magazine's Oct 2019 article on 'Why Stocks Belong in a Roth IRA' is a great one because many times people ask me about trading stocks, writing covered calls and paying taxes. How do I deal with taxes ... well, for me I've long gotten over the hurdle that paying taxes is a bad thing and won't let it effect my trading. MANY of you WILL let that affect your trades and in many cases you won't do a trade because it will increase you taxes for the year ... which I totally get and understand ... trust me, if you get to a point where you're paying 'estimated taxes' ... that check quarterly to the IRS is a brutal one...
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So my Covered Call trading Tip of the Month is about encouraging you to learn how opening a Traditional or ROTH IRA can help you with your hurdle of paying taxes (for now anyway)
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Traditional IRA - your contributions are PRE TAX dollars and later in life when you withdraw the funds the withdrawn amount will be considered income for that tax year and taxed accounting. The investments inside these types of accounts grow TAX FREE (again, when you withdraw them you will be taxed) ... so you can trade stocks actively and even if you have gains ... ie, writing covered calls gains, you will not pay taxes until later when you withdraw the money as income in retirement
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ROTH IRA works the same HOWEVER you open these types of accounts with POST TAX dollars ... meaning, you get your payment, its taxed by the Governments ... you have cash ... when you deposit it into a ROTH IRA account that money can grow 100% TAX FREE without being taxed later in life when you pull it out for retirement income ... it's already been taxed... while the money is inside the ROTH IRA, you're writing covered calls, making profit .... no taxes on those gains.
Below are some good articles to check out on the types of tax advantaged accounts, why you would want one or the other and the #1 question ... what is the difference between Long Term vs Short Term Tax rates and how that affects capital gains. Enjoy! |
Kiplinger disclaimer - Kiplinger does not pay me a nickel, I only posted this because these are great articles for us to read and reference learning about tax advantaged investing accounts. Website> www.kiplinger.com
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| SPECIAL UPGRADED CPT DASHBOARD OFFER! |
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Your Exclusive Bonus content includes - The Weekly 'Fab 3' stock chart breakdown (Seeing the World thru my Eyes), You see all my Real Trades and breakdown of why I made the trade, Special 'Ask John' Access where I work with you answering your questions and concerns via email and I do my Special Chart of the Week ... again, breaking down what I see so you can learn this stuff, get quickier in your stock chart reading so you can make better decisions before buying that next great Covered Call stock :)
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| CPT NEWSLETTER EXCLUSIVE VIDEO |
This month's CPT Newsletter Exclusive video I show you one of my favorite things to do in researching many articles, news stories and reading books and other stock market newsletters I receive. Using Text to Speech browser extensions allowing me to consume many more bits of data then I would ever be able to without it :)
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| Are you all caught up on the recent videos? |
Look, I get it … some of my video's rehash common Covered Call and Cash Secured Put topics you may already feel you master … but my weekly videos are generally short and you know I always give you something extra … whether it be a story or a CCW/CSP tip … check it out … I've done 2 this past week … are you caught up?
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 | Click here to watch my most recent video upload |
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Join me on Facebook for the 'Off Youtube' discussion - our like minded community I've started with my CPTDashboard Covered Call Screener Spreadsheet that I offer up for free. Follow our page >
Here's my most recent video upload
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Who is the Core Position Trading guy? |
The first thing you need to know is … I'm not a guru and nor to I pretend to be … I haven't worked on Wall Street and nor do I feel anyone needs too for using this investment strategy I so advocate … I'm a guy just like you that started trading the stock market way back in the late 1990's (pre dot com boom) when eTrade became available for us 'home investors'. I traded all the tech stocks that you might remember … making series bank one year and losing just as much during the crash. Fast forward some 22 years I'm still trading in the stock market with my online brokerage … but the days of swing trading and day trading are over for me … rather instead I use the Covered Call and Cash Secured Put investment strategy for most ALL of my success these days.
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| "Why would I ever 'give away' my trade secrets if you're making that much money?" |
So, the first thing you need to understand with this journey I started 3 years ago is that … I am paying forward a wonderful deed my mentor and best friend Jerry did for me. You can (and I encourage) hear our story on my web site cptdashboard.com click the video 'Meet Jerry' … seeing that I was frustrated and having no success swing trading, day trading he taught me how to sell premium (Write Covered Calls) … he worked with me for over 1 year, mentoring me, answering my questions … I was apprehensive in making a mistake … screwing up … he walked me thru my first trade and that began my new life of success investing and working the stock market. You really need to hear our story if you're skeptical of what I'm doing … only then you will understand our story is genuine … I have no agenda. I show you my trades, we talk about them in hopes you learn something. It really is that genuine and simple.
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how do I get the latest update? I signed up for the upgraded version and received the 12/4/19 update. How do I access the latest?
ReplyDeleteI know this is you Tim, I tried to email you buddy but the email was some outlook email that bounced ... I emailed it to your paypal email... email me at corepositiontrading@gmail.com the email I can rely... actually type it so I can then reply... thanks and sorry about that. Been sending all updates to your paypal
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