First, I wanted to thank all of you for the kind words regarding yesterday’s webinar. I hope all of you found it helpful. As I stated in the webinar, if you have any suggestions, comments or questions please do not hesitate to email me at andy@cabotwealth.com. I appreciate all of your feedback as we want to make all of our webinars an engaging monthly event for everyone.
With the market pulling back significantly last week and into the beginning of this week, I decided to pause on placing a trade in our last underlying ETF, Vanguard Total Stock Market ETF (VTI), for the All-Weather portfolio until today. Again, I plan to take a measured approach to ramping up all of the positions in the five portfolios that reside in the Fundamentals service.
As I stated last week, going forward I plan to shorten the alerts. If you still have any questions, please check out the prior alerts or even better, take a look at the strategy guides on your subscriber page.
I would start with the following:
- A Brief Discussion on Poor Man’s Covered Calls and Our Five Strategies
- A Step-by-Step Approach to Poor Man’s Covered Calls
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) is currently trading for 189.65.
The Trade
Buy to open January 19, 2024, VTI 145 calls for $54.50 (prices may vary, adjust accordingly)
Once that occurs:
Sell to open July 15, 2022, VTI 198 calls for $2.50, if not higher (prices may vary, adjust accordingly)
You could also place the order as a long diagonal debit spread, but I will go over that and much, much more in our upcoming Live Analyst Briefing with Q&A next month. Register here.
Potential Return (premium) – 4.59% over the next 30 days
Breakeven: 52.00
Cost Basis Since Initiated: 52.00
Again, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.