Transcription
In this video, I'm going to go over the three stocks I'm actually selling and the one stock I'm going allin on right now. In fact, there's a Leaps call option opportunity that I'm eyeing in the next few days and I'm going to show you the exact price point that I'm going to grab these leaps call option opportunity at. So, let's go ahead and jump into it.
Remember, this is not financial advice. I'm just sharing what I'm personally doing for educational purposes. Only results may vary. Now, let's go ahead and dive into the portfolio. As you can see, we hit new brand new all-time highs in the portfolio. And if we go to the realized gain loss, I'm going to show you today, you know, did a nice little profit of 2500. Obviously, results vary daytoday. But this was a nice little profit that I took on some stocks that I'm actually selling in the portfolio. So, we're going to go ahead and jump into that.
Now, I'm not the only one doing this. As you can see here in Options Trading University, we now have 300 highlevel investors and options traders in here. And one of our clients shared um a record inspiration here for the month of August. So pretty crazy to see these types of results. Obviously results vary on account size and risk tolerance, but you know, clients sharing their inspiration in the group as you could see um on a daily basis. So pretty cool to see.
But um if you do want access to my trades as well as my leaps, entries, and exits channel, that'll be at the top of the description. Also, if you want my free trade ideas, that'll be on my Instagram and my free newsletter that are both down below in the description. So, make sure to check those out.
Now, let's go ahead and jump into the news. Uh I want to talk about one headline, which was Coreweave. Okay, a very popular stock that lots of YouTubers talk about and this is one that I have not talked about and I do want to talk about it today. Now, this right here is a great example of what not to do, okay? Coreweave down 20%. Going forward, I want you to know that every stock in my portfolio has positive earnings. I do not trade companies that had have negative earnings because of things like this. Okay, this stock went down 20% and we don't know the bottom on this stock. It could go down another 20% because not only do they have negative earnings, but they also have bad guidance going forward. So the this type of company is not a buying opportunity in my opinion because I don't want to put my hard-earned money in a stock that has not proven itself when there's great stocks in this exact space like AI and semiconductors right Nvidia and even dare I say it AMD those stocks have been going up like crazy those stocks are making new all-time highs while you have stocks like Coreweave down 20%. So, in a sector that most of these stocks should be hitting new all-time highs. So, this was a great example of, you know, companies that I don't invest in cuz I do see some comments, you know, asking, "Oh, what about this stock? What about that stock?" If you know me, if you're subscribed to my Instagram, you know that I do not trade negative earning stocks. I only trade companies that have proven themselves to have positive earnings. And even if they have a high PE ratio, then they better have a lot of cash on hand. That's why PE ratio is actually a very important indicator to look at when selecting stocks in your portfolio. Okay, so just wanted to cover that real quick because I know this is was big news um core, but let's go ahead and dive into the inflation.
Okay, inflation data came in yesterday came out really good. Inflation is heading downwards in fact better than expected. And this changed the market fundamentals because as you could see on the CME Fed watch tool, this is what I look at on a week-toeek basis to see if we're getting interest rate cuts. The September cut is being priced in 94%. Earlier today, it was 99%. So, you know, this this tool has been right 100% of the time since 1998. Going into a Fed meeting, if it's over 55%, we're getting a cut. And it looks like the cut is happening. Okay. Now, I am preparing for a potential black swan type of event. If for some reason Jerome Pal does not cut rates, I am preparing for that. But I don't think that's going to happen. Obviously, that's why I'm still pretty heavily invested. But let's go ahead and take a look at the market and we'll talk about it.
Okay, I'm going to talk about kind of how I'm preparing, what is giving me certain indicators of why I'm shoring up more cash right now. QQQ hit all-time highs. we are within that range that I've talked about which is my uh 580 to 590 range. We could head up for another couple days. Okay, we could hit 590. It wouldn't surprise me. All right, but now is the time where I am shoring up cash and that's why I'm going to talk about three stocks I'm selling, one stock I'm buying actively and have a potential leaps call option opportunity.
But if we take a look at the VIX, which is the fear and volatility index of the S&P 500, this tool right here tells me when I should be cash heavy and when I should be cash poor and be allocating most of my cash. Okay. Now, if you aren't looking at this, then you know, you should be. You should be, especially if you're investing or you're trading options like me, okay? Doing the wheel strategy on our favorite stocks. But the VIX fell below 15. Okay, we are officially in the mid14s. 1448 on the VIX, which we have not seen since before the tariff crash. Okay. Now, we saw this level um on February 14th. This was right before the VIX started elevating and the market started falling, right? February 14th was right here. That was kind of the top and then the market started falling over. So, this is a level where I'm definitely a lot more cautious and I'm freeing up some cash.
So, let's go over the VIX cash allocation levels. As you can see, we are officially between VIX 12 and 15. I could be either, you know, 40% of cash on the sidelines to 80% of cash on the sidelines, which is a little aggressive obviously, but for me right now, I have a little bit of cash. I upped it. I was at, you know, 12% just the other day. I'm at 16% and I'm looking to get that up to 20 to 25% before going into this weekend to prepare for a potential downturn or market little correction that I could take advantage of. So, if you have to pause the screen and screenshot this for yourself, these this is the best way to hedge. Okay. Um, how I hedge is I don't pay for hedge hedges. I don't pay for put options or anything like that. I don't want to be losing money in theta decay. I want to just have more cash on the side. Cash is the best best hedge. And it worked out tremendously, especially when the VIX, you know, spiked all the way up to 60 and QQQ hit, you know, lows for the year during the tariffs crash. Most people were freaking out and I actually had a lot of cash on the sidelines that I was deploying during this time. So, do I expect the VIX to spike back up to 20? No, I don't expect it to happen anytime soon. But if it does happen, because the lower this goes, the odds of it spiking are higher and the market correcting are higher, I just want to be prepared.
And I do think what's holding up this market, okay, is actually one stock that I just sold out of today, okay, not completely, but I did take off some positions. And that first stock is Apple. All right, Apple has had a massive runup. All right. If we look at the runup um from this low right here just a week ago, you know, it went up almost 16%. Okay, it's up about 15 and a half%. And that tells me, okay, if this stock starts rolling over, it it has a large weight in the NASDAQ. The NASDAQ will probably roll over. All right? And I expect that on Apple because Apple tends to do that. It tends to fluctuate. You know, it'll it'll go down a little bit, then it'll go back up. And it tends to be kind of a predictable type of stock. Like if you look back here, it doesn't just go straight up. It does come down and goes up and comes down. So that's kind of what I'm expecting when this when Apple starts to roll over potentially this week or next week because that was really the only stock that was up big today. Apple and Amazon. Okay. Uh those are kind of the two big mag sevens that are holding up this market. I think that when these, you know, take a nice little breather, that's when the market will roll over. the VIX will spike back above 1516 and we'll have tons of opportunity to get back in and buy the dip. Okay, so that's kind of what I'm eyeing right now. Um, it's not that I don't I'm not bullish long term. I I think bullish, you know, I think this market can go much higher in the next two years as interest rates are being cut and that's probably what's going to happen. But um on the short term, I'm definitely preparing some cash on the side to take advantage of any dips to lever up my money and exponentially increase returns. Okay? And I'm going to show you how I'm doing that on the last stock that I reveal in this video. Okay.
So, Apple is one that we actually did um release some of the positions. So, let's go ahead and dive into the portfolio. Remember, this is not financial advice. I'm just sharing what I'm personally doing for educational purposes only. Results may vary. Now, if you take a look at the portfolio, okay, you see that I only have two puts, two cash secured puts at the 210 strike? Okay, this I run the wheel strategy on all of these stocks. If you don't know what that is, that there's many tutorials on my channel about the wheel strategy. Okay. Um, but right now I have a 42K position on Apple. This was 100K not too long ago. Okay. So, I'm releasing up some cash on Apple as it's making new highs right in this past month. Um, and that freed up a bit of cash. Okay, so that's going to be the first stock that I did free up cash and you know, it's still a great stock and I do believe it will return to previous all-time highs, but um I think there's going to be a dip before then and I do want to be able to get back in to this stock um at a good at a better price. Okay. Um so what I'm waiting for is, you know, a potential retracement to two maybe 220 222 on this stock. All right. And then I will go sell some more cash secured puts. Um, you know, I'll go out probably third to September 19th and we'll probably sell the 215s or the 220s and pick up, you know, two one and a half to two and a half% depending on um depending on the prices of the options. All right. So, those aren't those numbers aren't uh guaranteed because the stock fluctuates. So, we don't know where it's going to be. But, that's one position that I'm lightening up on. Okay. Apple.
The next one is actually Palanteer. Palanteer is showing a lot of resilience here. It's hugging that upper Ballinger band, but again, if we do see kind of a a rollover in the market, I think Palanteer could potentially head down and bounce off this 170 area. It wouldn't be um far-fetched to see this thing go down um from here to go down, you know, 7 and a half%. That's like barely even a move in pounds here. I've seen this thing go down 25% like down to the lower Ballinger band, right? which would put it at 138. I wouldn't be surprised of that either. Uh but that's probably not going to happen. I'm I'm expecting kind of a pullback to this 170 area. So, what I did was I actually got more aggressive on the position, but I have a smaller position. Okay. So, I'm going to show you exactly what I did here. We're going to go into the account. And as you can see, I currently have 100 100,500 on the line in cash secured puts on Pounder. Okay. So, what I did was I closed out all of my 157 12 put options, cash secured puts, meaning if the stock went down there, I'd have to buy 100 shares at 157 and a half, but I'd get paid a premium. And I went to u I'll show you exactly where I went. I went out September 12th, 30 days. All right? And I went to the 167s to pick up about $3 or 345 bucks, which is a 2.15% ROI. Okay? Um, not the highest return, but hey, that adds up over time, right? And I closed out the previous ones for the same expiration. So, really, I'm going to pick up like 4% ROI on these puts. Obviously, these results vary based off of where the stock is trading. But, um, you know, it's pretty good return. And what I did there was I actually sold less contracts. Okay? So, I sold six contracts as you could see, six right here instead of seven. So, I reduced my overall um the size of my position, but I went closer to where the stock is trading for a little bit more premium. So, the stock basically would have to go um it would have to go all the way down here for me to get assigned below this 170 area, which I don't think it's going to break through, but if it does, that's fine. I'll get assigned at a big discount and get paid a premium to do so. So, from all-time highs, that would be a 12.5% discount, which I'm more than happy to grab the shares at that price on Palunteer. So, that's what I did there. I lightened up the position, but I went more aggressive on the cash secured puts, rolled them up. Same expiration, just a higher strike for more premium. All right, so Palanteer again, another very, very solid stock in the portfolio. It's showing actually a lot of resilience right now trading in this 180 to 185 range and it's just slowly tinkering down below this overbought area on the RSI which is what we want to see. Okay. And the MACD potentially may do a little bearish crossover and that's kind of when we might see this thing come down to 170 if the market rolls over. Okay. And so, um, what I'm expecting on QQQ is that if Apple does roll over, this thing will probably come back down, you know, somewhere to this mid Ballinger maybe to five uh, 570 and worst case maybe 564, okay, before bouncing back up and kind of, you know, continuing along this nice even channel right here. Okay, so Palanteer is the second stock. Again, I love the stock long-term great um opportunity. But if we do see it get down to this 170 area, what a buying opportunity, right? What a buying opportunity and what a good potentially even leaps call opportunity if you like Palance here. Okay. Um so that's another one that I actually am, you know, lightening up in the portfolio.
The next one I haven't changed my position yet, but I do plan on lightening up by selling, you know, closing out some contracts, some put put options, is the is SoFi. All right, SoFi has had a beautiful runup, especially today to 2454. Okay, I think this thing could, you know, pull back to this 22 area again. It's kind of a volatile one. It's it definitely moves up and down quite a bit. And you know, because it's so high right now, I think it would be a good uh moment, especially with VIX in the 14s, potentially going down to the 13s to, you know, free up some cash. All right, so let's go to the portfolio and I'll show you this position. This is actually a bigger position in the portfolio, 139K. So, one of my largest positions. All right, so I have a lot of um cash secured puts here that I'm up 84% um in premium. you know, I could clean out these 10 contracts and free up, you know, 20K in cash, probably more, 25K, uh quite a bit of cash there. All right? And that would help out the portfolio just to have a little bit more of cash on the sidelines. So, you know, I might do that by the end of this week, depending on where SoFi goes. If it goes up to 25 for sure, I I might close this out tomorrow if it's at 25. Okay. Um, but that's going to be the third one that I haven't cleared up yet, but I plan on doing so.
Now, where do I see this thing going and where is the opportunity? So, I do see this thing potentially pulling back again down to this 2230 area, which would give you an opport or which would give me an opportunity to sell the 21 strike puts or even get aggressive and sell the 21s. Okay, so let me show you exactly what I would do. I'd go out 30 days and the 21s are paying out 2.5% ROI right now. But if this thing did get down to 22, it would probably be paying out a closer to 4.6% ROI. Okay. Now, obviously results vary based off of where the price is on the stock, but I think that, you know, this thing would be paying out closer to a 4% ROI and that's kind of when I would, you know, pick up these 21 and a halfs or even 21 strikes. So, I'm waiting for that opportunity, being patient, letting the market come to me instead of chasing the market up, especially at these levels. Okay, so that's going to be that one.
Now, let's go ahead and talk about the stock that I'm buying. Okay, Robin Hood. Robin Hood has been one that, yes, we did hit new all-time highs just a couple days ago, but it had a nice pullback today, quite a big pullback, 4.79%. I think this thing will head down a little bit more potentially tomorrow or the next day or when the market starts rolling over that will help push this thing down. And if this thing gets anywhere in between the mid Ballinger band line and the lower Ballinger band. So anywhere between let's just say 98 and 105. Okay. So this is going to be my target right here. I'm actually going to buy a leaps call option. So let's go ahead and go into the portfolio. I do want to show you my current position, but the reason why is because we're already heading to like we're not overbought on the RSI on Robin Hood on the daily time frame. So, that's a good thing. We have a bearish crossover here. Bearish crossover on the MACD. Okay, if you look at that MACD, it's looking like a small bearish crossover. Let me actually grab this so you can see it closer. There we go. So, this perfect, right? if this thing heads down, right? The reason it headed down today was no reason at all other than people taking profits. So, that's the type of companies I like to trade LEAPS call options on are ones that move fast, that are higher beta, and that are taking a dip not because of some bad news, but rather just a healthy little correction. Okay? And that's kind of what Robin Hood is experiencing here.
So, let's go into the portfolio. All right. Current position 136K. All right. This is I think you know one of the biggest positions if not yeah it's the second biggest position next to Meta in the portfolio. So right now I rolled up my whole position to 105. Okay I had the 94 strike put options rolled those all the way up to 105. So let me show you kind of where I'm at. 105 is right here and you know it's not too far away from there. So by expiration, if we, you know, finish below this 105 area, I will have to buy 100 shares per contract. Okay? So that's the risk I take. Love it. That's a great dip buying opportunity.
Now, I like the leaps here. So what I would do is I'm going to go out to the options chain. I'm going to go out to Jan 15, 2027, 520 days out. The reason I go so far out is because I want the least amount of theta decay in these options. And at the 70 delta, the 100 strike right now, the theta decay is about $3 per day. Okay? If you're playing short-term options, like most people, the theta decay on that same 100 strike um is about $8. So almost three times more, right? So three times less theta decay just because I'm paying more for time. And if this thing heads down to 105, 104, 103, somewhere around that range, I'm probably going to pick up the 95s, which would cost me about, let's just say, 3,800 bucks to $4,000 somewhere in that range to control a 100 shares. That would typically cost me 10,500 if it goes down to 105. So, I'm levering up my money, right? And I'm going to basically get in at that price here. And I'm going to wait for this thing to bounce back up, okay, to this, you know, 113 area. All right, 113, maybe even to 115 um previous all-time highs at 118. Okay, so anywhere in this area, I'll be selling for a quick, you know, 20 to 40% ROI in a shorter time span. I typically get out of my leaps um really quick, okay? Uh because that's just how I play them. icing on the cake and then I roll that money back into cash secured puts for premiums. So that's going to be the play on Robin Hood right now.
If I wanted to play it safe, I would go out to September 12th and I would go to those same strike that 105 strike put option that's paying out 5.69% ROI in 30 days. Obviously results vary because the stock is fluctuating. Okay. So, but if I were to pick it up today, this is how much I would collect. 525 for one put option. And the risk is if it goes down below 105 in 30 days, you know, at the end of 30 days, you're going to have to buy I would have to buy 100 shares at 105 even if the stock is at 99. Okay? But that's fine because if I get assigned at 105, I could go sell, you know, a covered call that's five points away. Let's just say it went down to 100. I'd be able to sell a covered call for like 700 bucks. So, you know, Robin Hood is looking like a safer play in the portfolio. And that's why I'm really liking where it's at right now. It's not going too far too fast. Kind of like Palanteer, you know, Palanteer a little too far too fast. Overextended on the RSI. Even uh Apple overextended on the RSI and SoFi was very very overextended um pre-earnings and it's still technically overbought on the RSI right now. So that's going to be the update. I know it's a shorter one, but if you enjoy these updates, please give it a thumbs up. I appreciate you being here and I'll see you in the next one. Take care.