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Your Watchlist Is Costing You
Weekly Edition: July 22nd, 2026
Market Movements
Current Level | Weekly Return | YTD | |
|---|---|---|---|
S&P 500 | 7,509.20 | -0.826% | 9.70% |
NASDAQ | 25,837.21 | -1.614% | 11.17% |
Dow Jones | 52,224.64 | -0.722% | 8.66% |
VIX | 17.05 | 5.247% | 14.05% |
Russell 2000 | 2,987.40 | 0.575% | 19.47% |
*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
Inflation Cools: June CPI eased to 3.5% year over year, with lower energy prices helping inflation moderate. Markets continue watching how this influences the Fed's next move.
Earnings Season Accelerates: Major banks have already reported, with Alphabet, Tesla, Intel, and other technology leaders reporting this week. AI spending and forward guidance remain the biggest themes.
AI Infrastructure Spending Continues: Cloud providers and chipmakers continue investing aggressively in AI infrastructure, supporting long-term demand across semiconductors, networking, and data centers.
Oil Remains the Wildcard: Brent crude has climbed back above $90 amid renewed Middle East tensions, keeping inflation risks and market volatility elevated.
Thought Throttle
Most new (and even experienced) traders maintain massive watchlists—50, 100, or even 200+ tickers. They scan dozens of charts daily, chase every headline, and constantly rotate into the “next big thing.”
I used to do this when I had more energy. Now it would give me a headache.
The usual result? Decision fatigue, scattered attention, overtrading, and mediocre results. You end up knowing a little about everything and not enough about anything.
There’s a much better way.
I like to shrink my focus dramatically. A small, high-conviction watchlist of just 10-15 names that we know inside and out beats a sprawling list every single time.
Just an FYI, it doesn’t need to be exactly 10-15, but it would be beneficial to focus your watchlist.
Why? Because depth beats breadth in options selling.
When we intimately understand a handful of quality businesses— their earnings patterns, volatility behavior, long-term prospects, and how they react to market moves—we can execute our process with confidence instead of second-guessing.
As option sellers, our repeatable system stays simple and powerful when paired with tight focus:
Curate 10-15 stocks or ETFs you’d happily own long-term and would study even if you weren’t trading them.
Sell cash-secured puts (or covered calls) at reasonable strikes on those names only.
Collect premium upfront.
Let time decay do most of the work.
Repeat next month.
No more jumping from ticker to ticker hunting for “setups.” No more FOMO when something unrelated moons. Just calm, high-quality repetition on companies you actually understand.
The caveat is that there is less opportunity, but the opportunity quality increases substantially.
Markets already throw endless noise at us.
A massive watchlist amplifies that noise and turns it into emotional trades. A small watchlist filters the noise so we can focus on what matters—theta working in our favor on names we have conviction in.
This focused approach removes much distraction and guesswork. It increases pattern recognition on the names we like. We know when premium is attractive versus when it’s not worth the risk.
Small, consistent wins on a few great underlyings compound far more reliably than mediocre results spread across dozens of positions that are barely followed.
In my experience, it’s best to keep it simple and let time and compounding do the heavy lifting.
I think that difficulty rarely stops people. Complexity does.
Do the same good thing, on the same good names, every month.
Quote(s) I Like
“The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.”
“Don't dwell on what went wrong. Instead, focus on what to do next. Spend your energies on moving forward toward finding the answer.”
Trade Mechanics
Check out this opportunity for a cash-secured put in Microsoft (MSFT).
The strike below represents a ~27-delta put expiring September 18, 2026.
Microsoft Corp. | MSFT |
|---|---|
Current Price | $397.75 |
Put Sold | Sept. 18 $365 Put (~27 Delta) |
Mid-Premium | $11.10 |
Capital At-Risk | $35,390 |
Return if Not Assigned | $1,110 ÷ $35,390 = 3.14% |
Annualized Return | ≈ 21.05% |
Cost Basis if Assigned | $353.90 (11.02% discount) |
If we wanted to buy Microsoft at a discount, we could sell the September 18 $365 Put for about $11.10 in premium. With shares trading near $397.75, that represents roughly a 3.14% return on capital at risk over the next 59 days. If assigned, we'd purchase shares at an effective cost basis of $353.90—an 11.02% discount from today's price.
If MSFT remains above $365 through expiration, the option expires worthless and the premium is kept as income. If the stock falls below the strike, assignment results in purchasing shares at an effective cost basis of $353.90.
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
What if the stock moves against me?
Normal and expected.
We were paid upfront to take the risk. As long as it’s a quality name we’d own, stay patient. Small (or even moderate) moves are why the premium existed.
Manage only if the thesis changes.
Can I actually build real wealth with “just” 1–2% per month?
Absolutely.
Consistency and compounding are the secret. Chasing 10%+ monthly usually ends in big losses.
Steady, repeatable 1–2% wins on capital you like protect your account while growing it meaningfully over years.
Got any questions or comments? Feel free to reply to this email—we’d love to hear from you!
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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.
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.
