A couple large covered call trades in Financial Sector Select SPDR ETF (XLF) imply smart money is taking a moderately bullish position on financial stocks. There is likely a cap to how high financial stocks can go due to lower interest rate expectations.
However, covered calls are mostly considered bullish trades because they generally make money when the stock goes up. These long-term XLF covered calls provide some ability for capital appreciation, add a small amount of yield, and offer a small measure of downside protection.Read this if you've ever lost money trading options
Does everything seem to go wrong right after you place an options trade?
You watch the stock and everything is going right.
Then you open the trade... and within an hour, you've lost money.
It's not your fault. You just simply weren't given the "behind the scenes" knowledge every options professional knows.
If you knew how they worked, in 2018 - when the markets lost 6% - you could've booked gains of:
- 127% in 23 days on GLD
- 148% in 28 days on SQ
- 229% in 36 days on SMH
- 213% in 13 days on Netflix
- 79% in 22 days on SPY
- 63% in 24 days on SPY
- 117% in 21 days on SPY
- 96% in 36 days on QQQ
- 114% in 42 days on MRVL
The road to success for your first big, triple-digit options win is simple.
Have a plan for every trade so you don’t repeat rookie mistakes.
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