What types of trade ideas do you usually go for? Every investor is different, and to be quite honest, we are always changing. My lens as an investor has continued to grow over the years as I learn more about the market and as I adjust my tolerance for risk. As people age, they tend to take on less risk due to getting closer to retirement age. For me so far, the exact opposite is happening, but I’m at that age where I have a particular window as I’m taking in a wealth of information thanks to an investor mentor friend of mine.
You can never have too many trade ideas, but you have to learn how to measure them out and only make moves on the ones that make sense for you. The more you know about the market the better. But you can also absolutely pay too much attention to the market as well. I have learned that for sure. If you don’t know the options market well, I suggest diving headfirst into it to learn more about it based on the volatility of stocks in the 21st century.
It’s good to learn the options market anyway. You can sell calls and puts amid buying shares, increasing your profits and leveraging your money in different directions, creating more diversity. As for specific trade ideas, I like a company whose ticker is RUN, a solar power company. I also like the way the Pet meds industry is thriving and the reasons behind it, so I would suggest PETS being a great future play.
Intel continues to lead innovation in terms of the Internet of Things. Purchase a 100 share block of INTC and write a covered call continuously while collecting dividends. If you’re looking to day trade, well NBEV is one spec stock that seems to be making a name for itself recently.
You can certainly day trade the bigger stocks, too, but you certainly do need the best software and a lot of money to make those daily gains worth the research. Have you looked at the crypto market these days? That’s another place to look, and I will leave you with two more stock picks for trade ideas. They are BGS and YEXT. Take a look at those tickers and see what you think. I have a stockpile of a watchlist, so I never run out of trade ideas.
Looking at my current watchlist (https://tradeideaspromocode.net), I see all kinds of trade ideas for the current quarter. Companies report at different times, but when it’s time for reports to come in, they all seem to hit at once. Earnings time is when companies either hit or miss the mark. If you’re a day trader, you know that sometimes those trades earmarked for a quick sale can sometimes end up being swing trades.
Swing trades can even be held for longer than a quarter, but earnings time is always just around the corner. Even less volatile stocks end up swinging one way or the other. Do you trade options as well? There are all kinds of trade ideas when options come into play.
One of my favorite trade ideas involves writing covered calls for stocks I truly want to buy and hold. Take for instance NWL, which is selling for $20 a share right now. There is a big chance it could start climbing towards $30 in the coming months. Yet I would be comfortable buying 100 shares and then writing a covered call for a $30 strike price in one year. I would collect the premium, realize any gains over the year up to $30 and of course still get the dividends for four quarters.
The stock market, in general, has been volatile as of late, and it makes the options market look like the way to go. You can make money with stock options if you know what you’re doing. Of course, it takes more than just knowing what you’re doing. You do essentially win some and lose some. I would diversify with your options just like you do with stocks in general.
I would sell some puts and calls, all for different lengths of time and for different securities. Forget buying puts and calls. There are a time and a place, but if I purchase anything, I’m purchasing shares. That’s at least how I feel about it right now. I have purchased a call before, but I am just not in the business of doing so.
Those are my current suggestions for trade ideas. What do you think based on what the market looks like today? There are all kinds of great ideas, and you will see that many securities have hit 52-week lows. That doesn’t mean they are going to go up, but you catch my drift.
There are quite a few good trading ideas out there since it’s January, and you know that means we are in a big month for investors. Are you placing quite a few trades? Instead of talking specific securities, let’s talk strategy. I want to tell you about a move I would like to employ more as I continue to delve more into the world of investing.
Let’s say there is a company XYZ. I want to buy 1000 shares of company XYZ. I decide to make that investment, but I want to look at some options, too. I see the covered calls are paying quite the premium, and I decide to go ahead and write 10 of them for the shares I own. Let’s say I write the covered calls to expire in a year, allowing me to collect a heftier premium and also collect dividends along the way.
But I’m not done yet. Let’s say I also want to look at selling puts for XYZ. I am bullish on XYZ and wouldn’t mind owning more shares if the stock went on a temporary decline. And if it goes up too high and my other shares get called away, I collect the premium on the puts, too. So essentially I am buying more insurance, and let’s say the put premiums are too hard to pass up.
They look good so I will control 1000 shares by purchasing them directly and let’s say I sell 10 puts for another 1000 shares. That would be a really interesting way of investing in a stock I was bullish about, wouldn’t you say? You can also buy calls and sell calls at the same time, buy puts and sell puts at the same time, or employ other combinations. The move I described is one I want to use based on being bullish about stocks and collecting the most premiums.
There are all kinds of trade ideas as mentioned. This is just one option I wanted to tell you about as I continue to look forward to investing more, and I figured you might benefit from it as well. You definitely want to get to know the options market if you’re going to invest in the stock market in today’s world. However, that doesn’t mean you dive in too early. You have to really get to know options before you start using them to increase your market profits.