Speculators can say what they want about a market selloff, but there’s never a bad time to trade.
Before I dig in, let’s make one thing clear: This is not a political statement. This is a mere examination of facts.
Speaking of facts…
The latest fact-checking on Donald Trump’s statements shows he tells the truth 2% of the time.
He’s qualified to be a commentator on CNBC or Fox Business.
“Tell us what you really think, Shulman.”
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 today.
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 $44.40 today. You could have sold the 42.50 call that expires next Friday and picked up $22 to $24 a contract.
If this expires worthless, that’s 0.5% in a week and 26% 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.