Jack Carter Trading

Brokers label levels differently

It seems like each broker (Schwab, WeBull, Robinhood, etc) use different “levels” (some start at Level 0, some Level 1; some have 3 levels, some 5).

Ignore the number — focus on which strategies that level allows. For the Triple Crown, you’re generally looking for access to:

Covered Calls

Cash-Secured Puts (CSEP) — the rookie-friendly way to “sell a put” where you have enough cash in your account to cover the stock if you get assigned

Vertical Credit Spreads — spreads that let you know from the moment you place the trade what your max loss is

Quick note: some brokers list “covered puts.” That’s not what you’re looking for. For the Triple Crown, you want cash-secured puts, not covered puts.

How to find the switch at your broker

Most firms have an Options Approval page in your account settings. If you don’t see it, a short phone call does the trick. You can simply ask:

“Can you enable covered calls, cash-secured equity puts, and basic credit spreads on my account? These are income strategies with limited/defined risk. Which approval level is that here?”

They’ll point you to the right box to check.

Why I’m reminding you now

Heading into Q4, I want you ready to collect premium whether the market grinds, chops, or drifts. That’s the whole point of the Triple Crown:

Own shares? Sell covered calls and collect rent.

Want shares lower? Sell cash-secured puts at a price you’d be happy to own.

Prefer defined risk? Sell credit spreads on liquid names with a clean trend.

Make sure your account has the right access now so you’re not stuck watching from the sidelines when the next clean setup shows up.

If you can’t find the page on your broker’s site, just call them up. This is something they do every day and can easily help you figure out how to get approved.

Trade well,

Jack Carter

P.S. Forget the news… follow the hidden money trails. Open this and thank me later.

If you followed the headlines… You would have missed this move on AVGO!
Here is another reason why you should never trade on the news

To help you discover the power of trends, every week I share with you a handful of the top trending stocks.

These stocks are picked by my purpose-built, custom-made TrendPoint software to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Even with a government shutdown on the horizon, markets just keep marching higher.

At this point, the SPY has barely been below its 20 day trendline since all the way back in May.

Remember May? Markets were still shaking off the effects of the Liberation Day tariffs… traders were scared.

But those who took the bull by the horns and paid attention to the TREND instead of the headlines have made out like bandits.

And right now the trend is still bullish, so here’s 3 bullish tickers for you that just came across my scanner:

DINO
CENX
MUX

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

Buy or short — For bullish stocks, this is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for upward-trending stocks we’re long on.

For downward-trending stocks (those that we’re bearish on), you can short them. This is a little more advanced, so if you’re just getting started, I wouldn’t recommend this play. Remember, just like buying a stock, shorting comes with unlimited risk if the stock moves against you, so always have a clear stop-loss in place.
You could buy an option.

For bullish stocks, this means buying a call option.
For bearish stocks, this means buying a put option.

You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Just remember, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move.

So think about your risk tolerance when you consider buying calls on bullish stocks or buying puts on bearish stocks.
You could collect instant income.

If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they massively increase your odds of winning. We do this by SELLING options instead of buying them.

Not only do income plays let you get paid instantly — as soon as you place the trade. You massively increase your odds of winning, because the way we trade them, you don’t have to be 100% right about the direction of the stock.

If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself. Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

Income plays on bullish stocks can be naked puts, covered calls or a bull put spread.

Income plays on bearish stocks will be a little more complicated. But if you’re a more advanced trader, you can look into doing a short term bear call spread, which involves selling an out-of-the-money call and buying a call one strike price higher.

That’s all for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)