Today we will continue our discussion of both SVXY and the actual portfolio we are carrying out with only two positions. Every Friday, we will make a trade in this portfolio and tell you about it here.
Our goal is to earn an average gain of 3% a week in this portfolio after commissions. So far, we are well ahead of this goal.
I hope you find this ongoing demonstration to be a simple way to learn a whole lot about trading options. We will also discuss some other options concepts today,
Ongoing SVXY Spread Strategy – Week 5
Near the open today, SVXY was trading about $86. We want to sell a put that is about $1 in the money (i.e., at a strike one dollar higher than the current stock price). Our maximum gain each week will come if we are right, and . . .