MARKET BACK INTO CORRECTION

I have to admit, I have not been doing too hot lately on hitting the stocks. Oh, Yeah. It's the market. Despite my best attempts, I still cannot predict the market 100%.

In light of that, AAPL, AMZN, LIFC, ININ have all hit the crapper. There are those that are still hanging on, but I don't know for how long so I am protecting my portfolio by getting 60% into cash. Yes, I am still hanging on to a few stocks, but I am going to protect them with covered calls. I am slapping covered calls on HITT, AMZN, WFT,

In some accounts, a trader has the capability of selling a covered call (click on this link to learn more about covered calls). I use them when a stock has made a nice run and I expect the stock to stay neutral meaning I don't see much upside or downside movement. I will gain a lot of money if the stock trades in this neutral fashion. WHY? Well, a covered call loses value over time. WAIT, if a covered call loses value over time, how does that make me money? Simple math, two negatives make a positive right? I SOLD a covered call and the covered call will LOSE VALUE over time. Those two negatives make me positive money. It takes a little getting used to to realize that you can make money if a stock stays neutral so click on this link for covered call strategies.

So needless to say, I am mostly in cash and covering my butt with covered calls.

GOOD LUCK NOT TRADING.
JD