We're now in the merry month of May, and let's hope it is more joyful for stock market investors than last month was.
An old Wall Street adage advises us to "sell in May and go away." That refers to the stock market's "Best Six Months" strategy, which notes that the market has historically produced worse performance from May through October.
But is it good advice to sell everything and sit out the next six months? Not really, as I explain in my video below. I'll also share a better approach, especially in an election year like this one.
Constant Cash Flow has closed out 383 winning trades out of 387 total closed trades since Constant Cash Flow launched over a year ago. This includes the Berkshire Hathaway (BRK.B) 10 May 24 $375 put option we alerted you to close out yesterday. If you missed that special trade alert, go here.
This gives Constant Cash Flow a terrific win-rate of 98.9%! And we're getting ready to cash in two more trades tomorrow at the close.
One of our trades due to expire Friday is the elf Beauty Inc. (ELF) 3 May 24 $155 Put, which is about $3 out of the money right now. No immediate attention is required, but we will be monitoring this position closely.
You can view the full list of trades ready to cash in and holding steady below. Plus, you can always access your Constant Cash Flow portfolio here. Be sure to select "Constant Cash Flow" from the Email drop-down menu.
Every Thursday, we divide the open portfolio into three sections...
Getting Ready to Cash In: These trades will simply expire and be removed from your portfolio at the end of the day tomorrow. No action is required on your part.
Holding Steady: These trades are playing out as I hoped but are too far from their expiration date to consider them "ready to cash in."
Needs Attention: This section will provide more detail as needed, but the trades in this category are either going in the opposite direction and need to be sold prior to expiration, or I may elect to have them expire in the money and have the shares put to us. From there, I will recommend a covered call you could sell, but I will not follow that covered-call trade in the Constant Cash Flow portfolio.
Each section is organized by expiration date, then alphabetically by ticker.
Getting Ready to Cash In
The following trades are right on track to expire out of the money tomorrow (May 3, 2024) ...
ELF 3 May 24 $155 Put
IWM 3 May 24 $180 Put
Holding Steady
The following trades continue to play out just as we hoped...
DIA 10 May 24 $350 Put
NVDA 10 May 24 $690 Put
TSLA 10 May 24 $130 Put
AVGO 17 May 24 $1100 Put
DG 17 May 24 $125 Put
EFX 17 May 24 $190 Put
GOOG 17 May 24 $155 Put
GS 17 May 24 $350 Put
LRCX 17 May 24 $725 Put
MOD 17 May 24 $70 Put
NFLX 17 May 24 $430 Put
PANW 17 May 24 $240 Put
RH 17 May 24 $195 Put
TSLA 17 May 24 $148 Put
WING 17 May 24 $320 Put
AVGO 24 May 24 $1130 Put
META 24 May 24 $360 Put
Needs Attention
There are no trades in the portfolio that currently need attention.
Thank you as always for being part of Constant Cash Flow. And stay tuned for plenty of new money-making trades to come soon to take the place of expiring options.
If you're new to Constant Cash Flow, here are a few resources for you:
I highly recommend reading your Quick-Start Guide before diving into your daily trades. To access it, first you'll need to login to TradeSmith Finance here. In this manual, I'll do a deep dive into the emails you'll receive each week, how to set up your brokerage account to trade options, a complete "Options 101" glossary for the Constant Cash Flow strategy, and more.
To view the entire Constant Cash Flow portfolio, visit the Top Trades page on TradeSmith Finance and select "Constant Cash Flow" from the Email drop-down menu.
A full archive of our weekly updates is also available on TradeSmith Finance. Go to the My Services tab, then under Newsletters, click "Constant Cash Flow."
If you have any questions or concerns, reach out to me at emailmikeburnick@tradesmith.com and include "Constant Cash Flow" in the subject line.
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