On today’s show: (details for each item are down below the video)
- The #1 Thing To Do Before You Place A Single Income Trade
- Getting Over The Fear Of Being “Put” A Stock
- Four Trending Stocks You Can Use To Create Income Right Now
- Teach ’em Young: Passing Knowledge To The Next Generation
Today’s show was chock full of actionable information. You’ll have to watch to show to get everything, but here are some of the most actionable things we discussed:
The #1 Thing To Do Before You Place A Single Income Trade
The top thing you should do before you place a single income trade is to Find A Trending Stock.
Here are the rules I use to find trending stocks:
- The best place to start is by finding a stock hitting a new 52 week high. But that alone is not enough reason to buy it, because it could just be news or a takeover bid that is moving it higher.
- So you also want to find a stock that has a steady 6 month trend higher
- It has to trade on a major exchange
- It has to be optionable – and make sure they’re liquid
- The stock price should be a minimum of $15
- It should trade at least 500,000 shares per day
- IMPORTANT: You want a stock with a beta greater than 1. Beta is the amount that an individual stock moves relative to the broader market. You can find this on most trading platforms, even free ones like Yahoo! Finance.
Getting Over The Fear Of Being “Put” A Stock
“I’m scared of selling a naked put, I don’t want the stock to be put to me.” If this is how you’re thinking, then you picked the wrong stock. You should only be selling puts against stocks that you WANT to own.
Also, if you pick the right stock, you won’t believe how unbelievably hard a time you will have trying to get it “put” to you.
Four Trending Stocks You Can Use To Create Income Right Now
Here are four great tickers right now that meet my criteria.
In addition, if you look at their trend from the start of the year through now, they are picture perfect upward trends:
- NVDA
- ELF
- META
- FTNT
Teach ’em Young: Passing Knowledge To The Next Generation
I bought 7 shares of McDonald’s (MCD) for my son when he was 7 years old. He’s 33 years old now.
Now 26 years after I first bought him those shares, the stock price has increased more than 12x. He’ll probably never see a profit like that again. And now he understands the power of investing early and often.
Closing
Enjoy the show and remember that I’m off next week, so start thinking of some questions about Naked Puts.
I’m going to cover them and all the myths surrounding them on our next show.
Trade well,
Jack Carter
Jack Carter Trading