Buy Call RSP

March 21, 2024
Sell a Third of Existing Position: Sell a Third of your RSP June 158 Calls for $12.50 or more.

The RSP is breaking out to a new high today, and looks great. And while I like the way the market and the RSP are trading, we are going to stick to the system and lock in a profit of approximately 70% on the second third of our trade.

To execute this trade you need to:

Sell to Close a Third of your RSP June 158 Calls

February 23, 2024

Sell a Third of Existing Position: Sell a Third of your RSP June 158 Calls for $8.70 or more.

The RSP is breaking out to a new high today. And while I think new highs are bullish, this RSP trade is a slow and steady winner, not a home run play (though I would be thrilled if I’m proven wrong on that).

Let’s take a slow and steady profit of approximately 15% on a third of this trade and then go for much greater gains in the weeks/months to come.

To execute this trade you need to:
Sell to Close a Third of your RSP June 158 Calls

As is always the case when we take partial profits, we hope this initial sale is a mistake and the stock and our position trade higher in the months to come.

December 14, 2023
Buy the Invesco Equal Weight ETF (RSP) June 158 Calls (exp. 6/21/2024) for $8.50 or less.

The market is higher again today following the Federal Reserve meeting yesterday. The highlight of sorts from that meeting is that the Fed now sees the potential for three interest rate cuts next year.

And while it’s possible that the market has already run based on the assumption that the Fed would be cutting rates next year, because the market is so strong, I want to add exposure today.

We are going to do so via a buy of the Equal Weight ETF (RSP) which had underperformed the market most of the year (“only” up 12%) but has raced higher recently, and attracted this call buy today:

Buyer of 70,000 Equal Weight ETF (RSP) January 160 Calls for $1.40 – Stock at 157.5

To execute this trade you need to:
Buy to Open the RSP June 158 Calls

The most you can lose on this trade is the premium paid, or $850 per call purchased.

Please note this trade will work or fail mostly based on the market moving higher or lower.

Also, here is some of the description of the RSP, with the highlight being that the RSP “takes out” the overexposure of AAPL/MSFT/etc. in the S&P 500, as the top 10 companies in the S&P 500 make up over 30% of the index:

• The Index equally weights the stocks in the S&P 500^®
• This approach results in an exposure that tilts toward smaller companies in the S&P 500 Index.
• Relative to market cap indexes like the S&P 500, this reduces the concentration risk.
• RSP and the Index are rebalanced quarterly.