Are You Making the Most of Market Volatility?

Volatility is NOT Risk Last week culminated in a nearly 1,000-point loss on the Dow on Friday. It was also the third week in a row that the S&P 500 lost at least 1%. Among the reasons for last week’s selling were the prospect of a half-percentage point interest rate hike in May and downbeat earnings reports from retailers and health care companies. I can understand why some of you may be nervous by the market’s recent gyrations. However, it’s important that traders, specifically option sellers, don’t confuse volatility with risk. Repeat after me: Volatility is NOT risk. Volatility is found in the short-term movements of a stock. Risk is found in the longer-term performance of a company and valuation of a stock. As an option seller, you can use volatility to your advantage, as higher volatility translates into higher option prices. This requires that you think longer term like an investor (i.e., selecting solid stocks to trade) while trading shorter term for cash. That’s exactly what we do at Options Income Blueprint. Last week, we closed two winners on volatile stocks, booking $90 in cash and earning excellent rates of return. With both trades, we were able to use volatility to our advantage. We collected outsized premiums upfront for the sale of the puts, which gave us the flexibility to close the positions early and still exceeded our annualized rate of return goal. In the latest Options Income Blueprint Weekly Income Report, I discuss last week's trades, take a closer look at volatility and risk, and review our recent position in The Trade Desk (TTD). Not An Options Income Blueprint Member? [Learn More Here]( Each month, we dissect a major trend or sector of the stock market to provide you with the time-saving fundamental and technical analysis of stocks you can add to your portfolio or trading list. Get recommendations for the best strategies or tactics to use with each stock in a monthly report, delivered right to your email. [Go Here To Learn More]( [Facebook]( [Twitter]( [YouTube]( [Website]( Copyright © 2022 Traders Reserve, All rights reserved. Our mailing address is: 267 Kentlands Blvd, Gaithersburg, MD 20878 Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](.