Here's How Options Investors Can Measure Success

[The Option Specialist]( 05/31/2021   |   [View in browser]( --------------------------------------------------------------- [Here's How Options Investors Can Measure Success]( For investors interested in getting started with options, it can be difficult to determine whether an options position is profitable. In this segment from Motley Fool Live that first aired May 7, Motley Fool Canada analyst Jim Gillies and Fool.com editor/analyst Ellen Bowman discuss the way to determine your success. [More...]( SPONSORED CONTENT [You Could Make $300 to $1100 Per Contract With This Simple Trade]( Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits! [CLICK HERE for instant access.]( [Bearish Option Trade On Tesla Stock Could Yield A 56% Return]( The stock market remains under pressure and the leaders of last year continue to falter. Tesla stock is nearly 40% off its high and recently crossed below its 200-day moving average line. This is typically a bearish sign. A bear call spread option trade can profit should Tesla (TSLA) continue to struggle. Tesla stock has a Composite Rating of 76, an Earnings Per Share Rating of 74 and an RS Rating of 88. It's not nearly as strong as it was last year. With a relative strength line trending lower, it's lost its leadership position. Shorting a stock when you're bearish is fine but can have issues. Among them: hard to borrow stocks, restrictions in non-margin accounts, and limiting your risk if you're wrong. A bear call spread solves many of those issues and can secure a profit with defined risk. This option trade on Tesla stock is set up by selling an out-of-the-money call and buying a further out-of-the-money call. On Tesla stock, a bear call spread expiring in June could be set up using the 625 strike as the short call and the 630 strike as the long call. That spread was trading for roughly $1.80 at the close yesterday, which translates to $180 of income for the option trader per contract. [Read more...]( [Options Activity Is Rising in 'Meme' Stocks Like AMC and GameStop]( Heavily shorted stocks like AMC exploded higher in January. Now they may be moving again, with options traders jumping on board. The activity could represent a return to the same volatile and risky names that surged in popularity early this year. Known as "meme" stocks because they're driven by activity on social-media platforms like Reddit, the group mostly focuses on heavily shorted stocks. While they're scattered across retail, software and media, most of them are companies that big hedge funds believed incapable of surviving in the modern digital economy. [Article continues...]( [Yes, You Can Have Too Much Cash]( When it comes to financial security, it's comforting to know that you have adequate cash reserves to tap when you need them. Sure, having a rainy-day fund can help you survive financial jams such as an unexpected car repair or job loss. But cash really shouldn't play a big role in investment accounts meant to fund long-term goals such as retirement or college tuition. "Cash becomes a drag on returns really quick," says Kristin McKenna, managing director at Darrow Wealth Management. Having too much wealth parked in low-return assets can result in "portfolio drag," a term used to describe earning less on your money by playing it safer than you otherwise could. [Click to continue reading this article...]( [Your Residence Is Your Retirement]( For many contemplating retirement, one's future living arrangements is the most thought about - yet least acted upon - aspect of retirement planning. According to the U.S. Bureau of Labor Statistics even though housing is the largest average cost in retirement, older Americans move far less often than the general population. The home is the last bastion of the status quo, and many remain in their existing homes, unless forced to move due to failing health. Yet from a financial standpoint, this rarely makes sense. A house is generally a poorly diversified, cash flow intensive investment that historically only maintains a price commensurate with inflation. At a time when human capital is exhausted and financial capital is being decumulated, a house should be seen as a lifestyle choice, not an investment. Living in place is a consideration, but changing residence at retirement may be the better move. Financial considerations aside, where you live in retirement affects many other aspects of a happy post-employment life. Where you live influences your hobbies, social network, family life, and access to health care. In sum, your residence is your retirement, so you should treat this as a primary decision in retirement planning. [More here...]( SPONSORED CONTENT [I Got Rich While Millions Fell Behind - Here's Why]( Across America, the "light" that should be in us all is disappearing. Few understand why. [Here's the real reason, and how NOT to get left behind...]( --------------------------------------------------------------- [The Option Specialist]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? [Click here.]( All content © 2021 The Option Specialist Neptune Ave, 300 Main Street #711, Madison, NJ 07940 USA Welcome to The Option Specialist, an e-mail service that replaces many of our previous alerts. We hope you enjoy it. 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