Tough Times For Options Buyers (good times for options sellers)

After the Fed’s “no rate hike” yesterday, markets are down.

Investors responded negatively to the Fed’s news.

But it wasn’t the paused rate hike that got them frazzled.

It was the guidance that the Fed provided, saying that rates would remain higher for longer than previously expected.

Some tech stocks that I love, like AVGO, are really taking a hit.

But I’m still a fan of them. And I’ll tell you why.Unlike directional trading, the income trading philosophy I follow is still working even in this market… As it always has.

What I do is:

Instead of betting whether a stock is going up or down, I use a stock as an asset to create an income for yourself.

I firmly believe — and my career has been a testament to the fact that these kind of trades are less risky and more profitable in this market environment.

So if you know how to do it, you can use the volatility in these stocks to set yourself up.

Because options premiums are really high. Which means that options buyers are paying more than they’ve ever paid. And options sellers are MAKING more than they’ve ever made.

And the more volatility rises, the more options prices are going to go up.

And since the pandemic, options sellers have also exploded with all three groups: retail investors, Wall Street and hedge funds pouring into buying options.

So the money here is on the sell side of the equation.

And when you discover to use the volatility of individual stocks to bring in an income, you are setting yourself up in the best possible position.

If you want to see how I do it EVERY SINGLE WEEK, I highly recommend you check out this video right now.

Trade well,

Jack Carter

Facebook
Twitter
LinkedIn