How We’ve Already Banked $2,496 In The First Week of 2021
January 8th, 2021
On Wednesday, Democrats won two Georgia Senate runoff races, giving the party control of both houses of Congress. This news was overshadowed as President Donald Trump’s supporters rioted on Capitol Hill, delaying proceedings to certify President-elect Joe Biden.
A few years ago, an event as monumental as this would have caused the Dow to plummet hundreds, and more likely thousands, of points. Yet, the index finished the day up 437.8 points, or 1.4%, as investors chose to focus on the implications of potential further economic support with the Democrats in control.
On Friday, the Labor Department’s monthly jobs report showed the economy lost 140,000 jobs in December. This was the first monthly decline since April and well below the 50,000 job gain economists had been expecting. Yet, all three of the major indexes closed the week at record highs.
If I were an optimist, I’d say perhaps the market is anticipating no further violence as we transition the presidency and further economic recovery as the COVID-19 vaccines are rolled out. Of course, the pessimist in me would point out that the events that transpired at the Capitol this week were deeply troubling and that the vaccine rollout has been dismally slow.
So, I’ll split the difference and be a realist.
It’s impossible to know what will happen in the next few weeks — in the world or in the markets. But I plan to trade though whatever may come, staying nimble and taking profits off the table when it’s prudent.
At Options Income Blueprint, we started the new year off strong with a flurry of profitable closeouts:
If you followed me throughout 2020, these names should look familiar to you — and that is by design. Part of our strategy is “trading the familiar,” i.e., selling options on the same names over and over to generate income.
As we look ahead to the new year, I wouldn’t be surprised to see more trades in these names, as well as other favorites of ours like Marvell Technology Group (MRVL), Peloton Interactive (PTON) and Chewy (CHWY).
And that’s just the tip of the iceberg.
If you’re hoping to start 2021 on the right financial foot — or perhaps just branch out and try something new — I urge you to consider an options selling strategy.
If the new year is anything like the previous one (and the first week of it is leading me to think it may be), volatility levels are likely to remain elevated. And one of the best ways to take advantage of that is by selling options for income.