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 Rollout

• The Dow is hot. The Nasdaq? Not so much

• Historic 41-day shutdown nears end as Senate green-lights funding bill

• Buffett is beginning his exit as the longtime CEO steps into semi-retirement

• From $70K to $269M: Buffett’s protégé shows what compounding IRA habits can do

• Trump’s 50-year mortgage pitch loses steam amid cost-inflation concerns

• U.S. private-sector job losses mount in late October

• $5 Trillion AI build-out will lean on every corner of the debt market, analysts warn

• Are we all getting a tariff dividend?

“Good-To-Know’s”

Understanding opportunity cost forces you to think beyond an immediate trade. It forces awareness. Every dollar, every hour, every effort spent somewhere is a choice not to spend it elsewhere. The most successful investors and business owners don’t just ask, “What am I gaining?” They also ask, “What am I giving up?”

Quote(s) I Like

Thought Throttle

Is selling covered calls or cash-secured puts better?

It’s a question that keeps appearing, particularly for new traders. I’ve been asked this very question multiple times.

To answer, 1.) Cash-Secured Puts (CSPs) and Covered Calls (CCs) are not mutually exclusive. You do not do one at the cost of the other. They often work in tandem, like when utilizing The Wheel.

But also, 2.) a much better question is “Which fits my market outlook and position right now?”

If you’re bullish but don’t own shares yet, a cash-secured put lets you get paid to wait for your entry. You’re essentially saying, “I’d love to own this stock, just at a lower price.”

If you already own shares and think the stock will stall or pull back slightly, a covered call lets you get paid to hold. You’re saying, “I’m fine selling my shares at this level if they get called away.”

A cash-secured put pays you to wait for ownership. A covered call pays you to hold ownership. Both trade time for yield. Both can do wonders for your portfolio when implemented strategically.

Each generates income using collateral, either cash (CSPs) or shares (CCs). Both can profit when the stock is a total snooze.

One hopes to own, the other’s fine to let go. Both, at their best, are disciplined capital allocators disguised as traders.

Covered calls and cash-secured puts are simply two sides of the same coin—income built on patience. The real edge comes not from picking one, but from mastering when to use each.

Check Out These Previous Editions for More Information:

Trade Mechanics

Let’s look at two independent income trades on SPY. One uses a cash-secured put and the other a covered call.

If we wanted to buy SPY at a discount, we could sell the $661 strike Dec 19 ’25 Put for about $5.99 in premium. With SPY trading near $683, this ~25-delta put offers a 0.91% return over 38 days, or roughly 9.14% annualized.

The yield isn’t huge, but it’s consistent with SPY’s lower-risk nature. Its implied volatility sits at 18.12% (12th percentile), meaning the market expects calm ahead. Less volatility means thinner premiums, but steadier expectations.

Alternatively, if we already owned shares, we could sell the $706 strike Dec 19 ’25 Call (also ~25 delta) for $4.15 in premium. That sets an effective sale price of $710.15 if assigned. Should SPY stay below the strike through expiration, we simply keep the premium, an efficient way to extract yield from idle shares.

Keep in Mind…

Assignment isn’t a setback, but a built-in outcome. We should size positions so we’re comfortable with either ownership or sale. Ex-dividend dates, volatility shifts, and macro catalysts can all affect pricing and assignment risk. They should be considered in every trade.

Both structures reward patience. One pays us to wait for a better entry, the other pays us while we hold. There is room for both.

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

How Do We Combat the Bad Decisions We Make When Experiencing FOMO?

FOMO, or Fear Of Missing Out, is what happens when patience loses to comparison. You see a stock ripping, an options premium exploding, and your process suddenly feels too slow. The urge is to chase—to “get in” before it’s gone. But chasing replaces logic with emotion.

The only real antidote is structure. Have your entries, exits, and risk limits written before the emotion hits. Discipline is such a virtue, and developing this skill is one of the best uses of your time. When the market tempts you to react, force yourself to reference your plan, not your feelings.

The goal isn’t to remove emotion, but to make sure it never gets the final say.

I Have $10,000 to My Name. Can I Become a Millionaire With Options?

It depends on what you mean.

In 25 years? Absolutely, it’s possible.

In 1 year? Highly, highly, highly unlikely.

Overnight? No. Just no.

To get from $10,000 to $1,000,000, you need to 100x your money (assuming you make no further contributions). This is a 9,900% return.

I don’t want to say 9,900% is “impossible” in one day, but it might as well be. In other words, it ain’t happening. Forget about it.

If we tried for this kind of return in a year, we would need about a 1.85% return per day, or a ~47% return each month. I cannot stress enough how unlikely this also is. You would literally have to be one of the greatest to ever do it.

However, if we allow for time to do its thing, millionaire status becomes an obtainable goal. Taking the 25-year route, we would need annual returns of ~20.3%, or about 1.55% per month. Much more realistic, especially considering a common monthly target for option sellers is 2% per month. It can be done.

If this amount of time is disheartening, remember that this assumes no additional contributions on top of the $10,000. More contributions = less time required.

Also, the time is going to pass anyway. Is it not best to utilize what time you have?

Don’t try shortcuts for a decade only to realize you’d have reached your goal if you had just stayed the course.

Got any questions or comments? Feel free to reply to this email—we’d love to hear from you!

If you found this helpful, feel free to share or forward this email to anyone who might be interested! We appreciate your support.

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.