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2025 - Week 4 of 52
Net profit: +$1,256 ✅
YTD Net profit: $32,304
YTD return: 15.21%📷
S&P 500 YTD: +2.18%
NASDAQ YTD: +1.18%
Weekly recap and thoughts:
Before diving in, let’s celebrate a win: we exceeded our weekly target return, making this week a success! While it initially looked like we may wind up at number closer to $3k, a couple of tough battles against $CELH and $XSP tempered those ambitions. Regardless, exceeding our target is always something to feel good about.
This week, our $SPY shares were called away at $597, which is notable as $SPY closed at $607.97. While we missed out on roughly $10 of upside per share, the premiums we collected along the way meant our overall return on the cash management portion of our portfolio effectively matched the S&P 500 over the past month. Small win achieved! Moving forward, our cash will transition into $SGOV where it will collect a risk-free 5%, and we’ll gradually sell $SPY puts to re-establish our position in those shares. This experience serves as a reminder to be more patient with covered call strikes to avoid capping future upside.
With the market finishing higher this week, most of our bullish positions delivered solid profits. However, I’m cautious about the current overbought conditions and plan to limit bullish trades in the upcoming week. Instead, we spent the latter part of last week loading up on February expiry bearish positions.
Quantum computing stocks like $IONQ, $RGTI, and $QUBT remain on my radar for short opportunities after any notable pops. Additionally, $PLTR is still a bearish target, with its earnings report less than two weeks away.
Our 2025 trading plan continues to perform well. The combination of cash management ($SPY, $SGOV, $XSP positions) has kept us aligned with the S&P 500’s performance, while our non-index option-selling trades are driving substantial outperformance. The results speak for themselves.
We’re currently on track for a $30k+ January, which is an incredible result. However, it’s important to emphasize that we’re not chasing this level of return every month. The average market return is 9-10% annually, and aiming for unsustainable monthly targets could lead to unnecessary risks. Instead, we’ll stay disciplined, only selling as much as our account can handle in case of assignment. This approach ensures we’re ready to navigate the volatility we expect throughout 2025.
This week showcased the strength of our strategy and the importance of discipline in trading. While we’ll always celebrate wins, we’ll also stay grounded and focused on long-term success. Let’s keep building momentum together, and here��s to another profitable week ahead!
#Investing #StockMarket #OptionsTrading #TradingStrategy #OptionsSelling
GM
Both $TRUMP and $MELANIA are both approved for trading on https://t.co/UI2m95dnch's Institutional OTC Desk.
Feel free to reach out, our desk is on 24/7.
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