Covered Calls: Try This Strategy When Momentum Turns Positive

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] [Join me at 1 p.m. ET on Thursday]( to trade the latest escalating developments in a massive energy supercycle. Covered Calls: Try This Strategy When Momentum Turns Positive Dear Fellow Trader: If you own stock for the long term, there are many different strategies you can use to manage risk and maximize your returns. One of the most conservative among professional investors is the use of covered calls. This strategy allows you to generate income on top of your existing stock positions, and it can enhance your returns based on which way the market moves. With our Momentum readings turning positive, we want to talk about how to use covered calls, with a great example of a stock to own right now. What Are Covered Calls? A covered call is an options trading strategy that requires two parts to the trade. You use options on stocks that you already own. So, if you own 100 shares of a stock, you have enough to fulfill the obligations of one option contract. When you sell a call option, you agree to sell 100 shares of the stock at a specific price (strike price) on or before a specific date (expiration) if the stock rises above that price level. Here is how the strategy works. When you sell the call, you receive a payment from the buyer called a “premium.” Here Are the 3 Key Rules • Stock Ownership: For this trading strategy, you MUST own 100 shares of the underlying stock. These shares act as collateral to “cover” your obligation to fulfill the order should the buyer execute the option contract. • Selling the Call Option: Based on the strike price you wish to sell and the date — you sell the call option. You sell one option for every 100 shares that you own of the stock. • Accept the Premium: When you sell a call option, the buyer will pay you (minus a fee) an amount of money called the premium. This becomes yours — so long as you don’t buy back the contract — for the duration of the trade, regardless of the outcome. Trade Example Let’s do an example with a stock that I really like right now in October 2023. Kinder Morgan Inc. (NYSE: KMI) is the largest independent energy terminal operator in North America. It maintains 140 terminals for storage, distribution, blending and logistics. At a time when energy prices are elevated and investors are anxious about the delivery of fuels this winter, KMI is one of the best companies to use for the purposes of generating dividends and upside. But the stock also has been range-bound this year, and it pays a dividend of 6.5%. Let’s say I have 100 shares of KMI. It trades for $17.28 per share. So, the total value of my position is $1,728. Now, I want to sell a covered call on the position. Let’s look at the breakdown: • KMI Ownership: I own 100 shares of Kinder Morgan (KMI). • Call Option Sale: I sell one call option with a strike price of $18.00 for the January 19, 2024, expiration at $0.35 (or $35 — which is 100 shares times $0.35). • Premium Receipt: The buyer of the call option pays you a premium of $0.35. So, your breakeven for this trade is $17.28 minus the $0.35 in premium — or $16.93. Outcome Scenarios Let’s look at the possibilities for this trade. Scenario 1: Stock Price Remains Below the Strike Price — If the stock price remains below $18 when the option expires, the call option buyer will not exercise the option, and I keep the premium of $35. I still own my 100 shares of KMI, and I will continue to collect the dividend on the stock. Scenario 2: Stock Price Rises Above the Strike Price — If the stock price rises above $18, the call option buyer may choose to exercise the option. At that point, I must sell the shares for $18 per share, or $1,800 total. In this case, I will miss out on any gains above that strike price, but I will have scored the $35 in premium and the gains from the current price up to $18.00 per share. Do It Again and Again One of the best things about this strategy is I can do it more than once. If the stock doesn’t rise above that strike price, I can simply sell another one after the contract expires. This is a great way to generate income on top of stocks we already own, and compound the returns based on the dividends. Feel free to also take any of that additional premium generated to buy even more of the stock. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] We Are Now In A Crisis… The Energy Supercycle Has Escalated We have a war between Russia and Ukraine… Another war in the Middle East… And now rapidly depleting oil reserves here in the U.S. The last time dominoes lined up like this… [energy prices skyrocketed 300% in a matter of months.]( Right NOW could be the biggest financial opportunity of 2024 and beyond… And I’m about to expose everything live at 2 p.m. ET on Thursday, Oct. 19. In fact, you probably haven’t heard any of this new information from your financial adviser or on popular news networks. Because what I’ve uncovered could be one of the biggest downfalls in modern human history. [A Potential 21st Century Energy Catastrophe]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] [Join me at 1 p.m. ET on Thursday]( to trade the latest escalating developments in a massive energy supercycle. Covered Calls: Try This Strategy When Momentum Turns Positive Dear Fellow Trader: If you own stock for the long term, there are many different strategies you can use to manage risk and maximize your returns. One of the most conservative among professional investors is the use of covered calls. This strategy allows you to generate income on top of your existing stock positions, and it can enhance your returns based on which way the market moves. With our Momentum readings turning positive, we want to talk about how to use covered calls, with a great example of a stock to own right now. What Are Covered Calls? A covered call is an options trading strategy that requires two parts to the trade. You use options on stocks that you already own. So, if you own 100 shares of a stock, you have enough to fulfill the obligations of one option contract. When you sell a call option, you agree to sell 100 shares of the stock at a specific price (strike price) on or before a specific date (expiration) if the stock rises above that price level. Here is how the strategy works. When you sell the call, you receive a payment from the buyer called a “premium.” Here Are the 3 Key Rules - Stock Ownership: For this trading strategy, you MUST own 100 shares of the underlying stock. These shares act as collateral to “cover” your obligation to fulfill the order should the buyer execute the option contract. - Selling the Call Option: Based on the strike price you wish to sell and the date — you sell the call option. You sell one option for every 100 shares that you own of the stock. - Accept the Premium: When you sell a call option, the buyer will pay you (minus a fee) an amount of money called the premium. This becomes yours — so long as you don’t buy back the contract — for the duration of the trade, regardless of the outcome. Trade Example Let’s do an example with a stock that I really like right now in October 2023. Kinder Morgan Inc. (NYSE: KMI) is the largest independent energy terminal operator in North America. It maintains 140 terminals for storage, distribution, blending and logistics. At a time when energy prices are elevated and investors are anxious about the delivery of fuels this winter, KMI is one of the best companies to use for the purposes of generating dividends and upside. But the stock also has been range-bound this year, and it pays a dividend of 6.5%. Let’s say I have 100 shares of KMI. It trades for $17.28 per share. So, the total value of my position is $1,728. Now, I want to sell a covered call on the position. Let’s look at the breakdown: - KMI Ownership: I own 100 shares of Kinder Morgan (KMI). - Call Option Sale: I sell one call option with a strike price of $18.00 for the January 19, 2024, expiration at $0.35 (or $35 — which is 100 shares times $0.35). - Premium Receipt: The buyer of the call option pays you a premium of $0.35. So, your breakeven for this trade is $17.28 minus the $0.35 in premium — or $16.93. Outcome Scenarios Let’s look at the possibilities for this trade. Scenario 1: Stock Price Remains Below the Strike Price — If the stock price remains below $18 when the option expires, the call option buyer will not exercise the option, and I keep the premium of $35. I still own my 100 shares of KMI, and I will continue to collect the dividend on the stock. Scenario 2: Stock Price Rises Above the Strike Price — If the stock price rises above $18, the call option buyer may choose to exercise the option. At that point, I must sell the shares for $18 per share, or $1,800 total. In this case, I will miss out on any gains above that strike price, but I will have scored the $35 in premium and the gains from the current price up to $18.00 per share. Do It Again and Again One of the best things about this strategy is I can do it more than once. If the stock doesn’t rise above that strike price, I can simply sell another one after the contract expires. This is a great way to generate income on top of stocks we already own, and compound the returns based on the dividends. Feel free to also take any of that additional premium generated to buy even more of the stock. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] We Are Now In A Crisis… The Energy Supercycle Has Escalated We have a war between Russia and Ukraine… Another war in the Middle East… And now rapidly depleting oil reserves here in the U.S. The last time dominoes lined up like this… [energy prices skyrocketed 300% in a matter of months.]( Right NOW could be the biggest financial opportunity of 2024 and beyond… And I’m about to expose everything live at 2 p.m. ET on Thursday, Oct. 19. In fact, you probably haven’t heard any of this new information from your financial adviser or on popular news networks. Because what I’ve uncovered could be one of the biggest downfalls in modern human history. [A Potential 21st Century Energy Catastrophe]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States