Market Movements

^{*Weekly Return is calculated as market open of the previous Wednesday, to market close this Tuesday (yesterday); Current Level is Tuesday’s (yesterday’s) close.}

Weekly Watch

• Jobs Report Friday — August hiring and unemployment numbers come out Friday morning. July was weak, so this one could change what investors expect the Fed to do at its mid-September meeting.

• A Few Labor Clues First — Private hiring numbers (ADP) are out Wednesday, followed by weekly jobless claims Thursday. Together, they give an early look at whether the job market is holding up or still slipping.

• Broadcom Tests the AI Trade — The chip company reports after the market closes Wednesday. Investors will be watching its AI-related revenue and what it says about future demand.

• How’s the Rest of the Economy? — Thursday’s services survey follows Tuesday’s factory survey. Together, they show whether business activity outside the job market is holding up.

• September Starts — September has historically been a tougher month for stocks. Useful context, but jobs, inflation, and the Fed are much more likely to drive markets this month.

Thought Throttle

Keeping it short and sweet: simple ≠ easy.

The basic strategy we've talked about since the beginning isn't complicated:

Find good companies. Wait for prices you like. Sell puts at strikes where you'd actually be willing to own them. Collect premium. Be patient. Repeat.

That's pretty much the gist. Yes, there are ways to effectively spice it up too, but this is the core.

And historically, simple investing strategies have worked remarkably well. You don't necessarily need complex models, constant trading, or a prediction about where the market will be next Tuesday.

But again, it is super important to recognize, simple does not mean easy.

It's simple to say you'll only sell puts on companies you want to own. It's harder when some sketchy stock is offering twice the premium.

It's simple to say you're comfortable with assignment. It's harder when your stock falls another 10% after you get assigned.

The complexity isn't necessarily in the strategy. It's in executing the strategy when your emotions are whispering to you.

Quote(s) I Like

Trade Mechanics

Let’s look at an opportunity for a cash-secured put in Robinhood Markets (HOOD).

The strike below represents roughly a 29-delta put expiring October 16, 2026.

If we were excited about buying Robinhood Markets (HOOD) at a discount from today’s price, we could sell the $95 October 16 put for about $4.50 in premium. With shares trading near $103.51, that’s roughly a 4.97% return over 45 days, while giving us an effective purchase price about 12.6% below the current price if assigned.

The $95 strike itself also sits roughly 8.2% below HOOD’s current price, giving the stock some room to fall before the option moves in-the-money.

If HOOD remains above $95 through expiration, the option expires worthless and the $450 premium is kept as income. If the stock falls below the strike, assignment would result in purchasing 100 shares at an effective cost basis of $90.50 per share.

This is for educational purposes only—not a trade recommendation. Remember to always do your own due diligence and consult a financial advisor before making investment decisions.

Throttle Q&A

Isn’t Selling Options Just Picking Up Pennies in Front of a Steamroller?

Selling options stupidly is.

If you size stupidly or sell naked… then yeah, maybe.

Cash-secured puts and covered calls aren’t high-leverage bets. They’re defined-risk trades, setup around businesses you know.

Is Selling Premium in Low Volatility Environments a Waste of Time?

Not at all.

Lower IV means smaller credits, but it often comes with higher probability and smoother theta decay. Many consistent sellers actually prefer calm markets because the risk of sudden losses drops dramatically.

Not a waste of time—but it is different for each person.

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Disclaimer

The information provided in this newsletter is sourced from reliable channels; however, we cannot guarantee its accuracy. The opinions expressed in this newsletter are solely those of the editorial team, contributors, or third-party sources and may change without prior notice. These views do not necessarily reflect those of the firm as a whole. The content may become outdated, and there is no obligation to update it.

This newsletter is for informational purposes only and does not constitute personal investment advice. It is not intended to address your specific financial situation and should not be construed as legal, financial, tax, or accounting advice, or as a recommendation to buy, sell, or hold any securities. No recommendation is made regarding the suitability of any investment for a particular individual or group. Past performance is not indicative of future results.

Options come with inherent risks. We strongly advise you to consult with a financial advisor before making any investment decisions, including determining whether any proposed investment aligns with your personal financial needs.