After the recent pullback, the All-Weather portfolio is now up 0.55%, with the Vanguard Total Stock Market ETF (VTI) doing the heavy lifting, up 7.19% since it was introduced to the portfolio back on 6/15/23. Besides DBC, we’ve rolled all of our positions to the April 21, 2023 expiration cycle. Our DBC 24 calls are due to expire this week. I will most likely allow them to carry through expiration and sell more calls after expiration, unless we have an opportunity to buy back our DBC 24 calls for $0.05 or less.

Thanks to the bulls, we are seeing a nice pop in all of our portfolios.


While our passive portfolios continue to perform well, our Dogs of the Dow portfolio, particularly the Small Dogs portfolio, has shined, up 12.51% in just over a month’s worth of performance. In fact, all but one of the stocks that reside in the Small Dogs are seeing positive performances with CSCO being the laggard, down -2%.

We finally added our Dogs (and Small Dogs) of the Dow portfolio to the mix! As it stands, we have five portfolios in the Fundamentals service, three passive portfolios and two active. While our passive portfolios are fully up and running, we still need to add several more positions to our active portfolios to get them fully situated.

We have some exciting times ahead as our Dogs and Small Dogs portfolios will be coming on board at the beginning of 2023. I will be discussing the details of the approach, strategy, positions and potential trades in our subscriber-only webinar tomorrow so you will not want to miss the event. If you do happen to miss, no worries, if you sign up at least you can immediately receive the recording once it’s available.

There really isn’t too much to report at the moment. Our passive portfolios continue to impress in the midst of a challenging market which displays the overall power of the passive approach. And I continue to mostly sit on the sidelines in our active portfolios, although that approach will be changing soon. I intend on adding several new positions to the active portfolios this expiration cycle as we are starting to see some good entry prices for several of the companies on our watchlist.

At the close of the August expiration cycle, back on the 19^th, the SPDR S&P 500 ETF (SPY) was trading for 422.14. Now it’s trading 3.7% lower at 406.60.

For the year the S&P 500 (SPY) is down 14.7%, while the tech-heavy Nasdaq 100 (QQQ) and small-cap Russell 2000 (IWM) indexes are lower by 22.8% and 15.7%, respectively.

Nothing has changed from last month’s issue. I still expect to see bouts of volatility going forward. I would like to say that most of the weakness is behind us, but unfortunately, I don’t have a crystal ball. Although, I will say that barring any real setbacks in inflation data or ongoing geopolitical concerns, I expect the market to hold the 2022 lows and potentially rally, particularly if inflation data subsides.

At the close of the August expiration cycle, back on the 19^th, the SPDR S&P 500 ETF (SPY) was trading for 422.14. Now it’s trading 3.7% lower at 406.60.

For the year the S&P 500 (SPY) is down 14.7%, while the tech-heavy Nasdaq 100 (QQQ) and small-cap Russell 2000 (IWM) indexes are lower by 22.8% and 15.7%, respectively.



Nothing has changed from last month’s issue. I still expect to see bouts of volatility going forward. I would like to say that most of the weakness is behind us, but unfortunately, I don’t have a crystal ball. Although, I will say that barring any real setbacks in inflation data or ongoing geopolitical concerns, I expect the market to hold the 2022 lows and potentially rally, particularly if inflation data subsides.

What a difference an expiration cycle makes!

The close of the June expiration cycle, back on the 17th, marked the low set in 2022. The SPDR S&P 500 ETF (SPY) hit an intraday low of 362.17 before rallying to close the June expiration cycle at 365.86.



Who knew that was just the beginning of what would become a historic short-term rally? Since then, the market has rallied an astounding 16.7%.

The close of the June expiration, back on the 17th, was witness to the low set in 2022. The SPDR S&P 500 ETF (SPY) hit an intraday low of 362.17 before rallying to close the expiration cycle at 365.86.

Since then, the market stalwart ETF has rallied 6.2%.



To put things into perspective, SPY was trading for over 410 when we first established positions back on June 3 before losing roughly 11% into the close of the June expiration cycle.



Thankfully, the bulls stepped back into the fray when the July expiration cycle began, prompting the 6% rally.

So far, so good. As of Friday, all three of our open positions are in the green, even though the overall market has pulled back rather significantly.

We still have a lot of trades to place as we begin to build out each one of the portfolios. So, that being said, I’m going to keep it rather short today as we are just in the early ramp-up phase of the five portfolios that reside in the Fundamentals service. This will no doubt be the shortest issue you will ever receive. Enjoy!

Today, I simply want to go over the ins and outs of the service so that you can efficiently and effectively take advantage of all the content provided including details on issues, trade alerts, webinars and more.

That being said, expect to start seeing several trade alerts over the next week. I will begin trickling out positions over the five different portfolios over the next few weeks. So have an understanding of what each portfolio is trying to accomplish.

Cabot Options Institute Fundamentals is focused exclusively on the Poor Man’s Covered Call strategy, which is a way to collect reliable gains from a relatively simple options strategy, without the substantial up-front cost of a regular covered call strategy.

Cabot Options Institute Fundamentals is focused exclusively on the Poor Man’s Covered Call strategy, which is a way to collect reliable gains from a relatively simple options strategy, without the substantial up-front cost of a regular covered call strategy.

I’ll be sending out alerts for several of our Fundamentals portfolios over the next several days, most likely stretching into early next week, as we stay mechanical and roll our February 16, 2024, calls into various March expiration cycles.

Like most of our bullish-leaning positions, our AMGN trade has moved sharply higher since the onset of 2024. We are up over 18% on the trade since we initiated it on January 5, 2024.

For those who are new and wish to enter a trade, all of the details are listed in the alert (as always) for those wanting to initiate a position. As always, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.

For those who are new and wish to enter a trade, all of the details are listed in the alert (as always) for those wanting to initiate a position. As always, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.

Like most of our bullish-leaning positions, our VZ trade has moved sharply higher since the onset of 2024. We are up over 22% on the trade since we initiated it on January 4, 2024.

Google (GOOGL) continues to rally higher and has now pushed past its short call strike. As a result, the stock is up 26.3% since we introduced GOOGL. By comparison, our poor man’s covered call position in GOOGL is up over 85%.

After selling premium today, our IBM position is already up 31.6% since we initiated it just three weeks ago.

Our IBM position is already up over 12% since we initiated it just over two weeks ago.

I’ll be sending out alerts for several of our Fundamentals portfolios over the next two days as we stay mechanical and roll our January 19, 2024, calls into the February/March expiration cycles. For those who are new to the service and wish to add a position, please read through the alert carefully.

I’ll be sending out alerts for several of our Fundamentals portfolios over the next two days as we stay mechanical and roll our January 19, 2024, calls into the February/March expiration cycles. For those who are new to the service and wish to add a position, please read through the alert carefully.

Okay, now that we have initiated all the Small Dogs positions, I’m going to place trades on the remaining five Dogs of the Dow positions.

The Dogs of the Dow is an investment strategy that involves investing in the top ten Dow Jones Industrial Average stocks with the highest dividend yields. The theory behind the investment strategy is that the highest-yielding stocks have most likely lagged the market and as a result, are undervalued and due to outperform in the year ahead.