The TR Ultra Income Portfolio Newsletter
Dear Subscriber,
First off, a hearty welcome to all our new subscribers! To reiterate the Welcome Letter, consider this newsletter and Ultra Income Alert and the May 2020 TR Ultra Income 2020 Special Report newsletter.
Housekeeping: In our Transformity Research PRO service, we are in the process of separating our Ultra Income portfolio/newsletter from our Transformity Research Ultra Growth portfolio/ newsletter.
Our May TR Ultra Growth newsletter introducing our "Next Normal 2022" Secular Growth/High Unit Economics technology favorites and our return-to-normal Time Machine 2022 stocks (i.e., perfectly fine growth companies trading at 70% below 2019 book values) will be out by the weekend (and all Updates/Alerts and Newsletters are posted to our website www.transformityresearch.com the same day thanks to Shauna!).
You DID print out your user name and password for www.transformityresearch.com, right?
Your new Transformity Research membership allows you to receive and access both newsletter services.
PS: We did post some of our ALL-Access weekly options plays on VTIQ on the website for non-All Access members to see. I wanted to give you a taste of the value we deliver in All-Access via timely call option buying/selling and especially weekly put option selling for income. Many members have been selling WEEKLY VTIQ put options in the spikes for $5k-$10k in premium and letting them expire at the end of the week.
In my managed accounts at TR Capital Management, we have been doing the same--sometimes at ridiculous risk/reward profits!
NOTE: Selling weekly put options (i.e., selling a bet against VTIQ with 5 or fewer days of exposure in return for large premium payment) or buying weekly call options (making a bet that the price of VTIQ stock will be higher by the end of a certain week) is NOT something you do But in a rocketship stock like VTIQ, it can make you a ton of cash money every week. For instance, on May 24 with a$30 spike at the open, I sold $25 put options (the right to make me have to buy 100 shares of VTIQ for $25) for $4.50 in option premium or $450 per put contract (representing 100 shares) that expire May 29.
Why? Because in selling 10 contracts, I took in $4500 of income and would LOVE to have to buy 100 VTIQ shares at a net cost of $21.50! So far I have earned 80% of that premium and have a "buy stop" to protect my self on May 29 if the VTIQ shares dropped below $27.
Like I always say--making $5,000 a week buying and selling options contracts in stocks that I know VERY well (as in knowing their trading range tendencies) is not a bad hobby!
Here is the math by the way (and feel free to ignore this if you have no interest!)
Selling Puts for Weekly Income. By selling the June 5 $25 put option with the stock near $30 to someone for $450 per contract ($4.50 per share X 100 shares) means that they have the right to make me buy ("put") the stock to me at $25 by May 29. If VTIQ falls to $20, their put option goes up 3X-5X in value (in other words, they buy the shares for $20 and sell them to me for $25).
But I took in $4.50 already in premium--so I would be buying VTIQ at a net-of-premium received the price of $21.50! Is VTIQ going down 30% on May 29 (knowing the merger closes with Nikola Motors $NKLA on Jan 3 Board of Directors vote and June 4th VTIQ changes its name to Nikola Motors ticker symbol NKlA?).
Anything could happen but odds are way against it.
It's a win-win for me. I'd love to add shares under $22 and I've been paid $4,500 for the right to make me buy shares at $25--which I would do anyway!
Key Point: You ONLY SELL put options on stocks you would be happy to buy at a lower price, ok? And you only sell call options on a stock that it would OK for you to sell at a higher price (and lower your cost basis with the call option premium received.)
If adding option power and income to your Transformity Research portfolio stocks is your thing (and gaining direct access to me and the team during trading hours via text) then, by all means, click here and join us in All-Access! PS the link works!