Speculators can say what they want about a market selloff, but there’s never a bad time to trade.
Right now, everyone looking for airtime and free coffee in those network’s greenrooms is saying the market is due for a selloff.
The market is always due for a selloff. It’s also always due to go up.
There’s never a bad time to trade.
This is your pep talk: Please consider trading despite the rough action in the market lately.
What kind of trading? What you should already be doing: selling puts. You can pick up 0.5% or 1% a week and net 25% to 50% a year.
What kind of stocks? Stocks that belong to great companies, selling at multiples below the average for the market, with options rich in premium.
What looks good right now?
I’m a contrarian, and that means I like the oil complex. ConocoPhillips (COP) closed around $45.50 today. You could have bought the stock and sold the 46 call that expires next Friday and picked up $39 to $41 a contract.
If this expires worthless, that’s 0.8% in a week and 44% for a year.
Whatever you decide to do, trade—but do it the right way. If speculators want to speculate and buy options, sell them what they want.