Last week was a good one for the market. SPY rose 2.2%, a wonderful week. The actual options portfolios we carry out at Terry’s Tips had a stellar week as well. Nine of our ten portfolios gained at least 5%, and 3 of them gained over 33% in a single week.
Nike (NKE) announced blow-out earnings and the stock rose 6.4%. Our portfolio that trades NKE options gained 13.5%, double the increase in the stock price. This was far less than we usually do compared to stock price changes, however.
We have proved over and over that if you can find a stock that will increase if value, you can usually make 3 or 4 or more times as much with an options strategy as you could by simply buying the stock.
Of course, buying options is not quite so simple as buying stock. To do it right requires gaining some understanding that most people just don’t have the energy or willpower to learn.
Trading Options Can be a Lifetime Learning Experience
If the truth be known, investing in stocks is pretty much like playing checkers. Any . . .