Has the market actually bottomed? That's the big question everyone has been wondering lately.
Federal reserve has raised interest rates 4 times over the last 6 months alone. Once they signal a reduction or slowing in interest rate hikes, I think the market will respond positively.
The time has come to hop back into the stock market, before the masses return. Recently I began to buy back into some stocks that I've had my eyes on over the last year while the market has been getting absolutely shredded. Mainly ones that have good backers and reasonable financials.
Whether or not the bottom is here, or is soon to come there is always money to be made using different market strategies. I am going to begin a new series called the Zero to Hero Challenge which will document my journey from basically nothing back to a decent $100k portfolio.
The rules to the challenge are as follows:
I am able to add on cash at any time (from my bank account) to increase my liquidity
Use any available market strategy such as scalp trading, using options, or anything else that Robinhood brokerage offers
Demonstrating responsible trading and advanced techniques versus pure speculation. Focusing mainly on "The Wheel" options trading strategy.
So far I have added on enough cash to buy my first two stocks- Bakkt Holdings (BKKT) and Vinco Ventures (BBIG). I bought 100 shares of BKKT and 200 shares of BBIG.
My cost basis is ~$314 for 100 shares of BKKT and ~$105 per 100 shares of BBIG.
So far I have earned 12 cents from stock lending BKKT and sold two covered calls using BBIG to collect $30 in premiums. Im waiting for BKKT to move back up to write calls using those shares.
If BBIG closes above $1 on Sept 30th then I will get "called away" and receive $200 for my 200 shares, in addition to the $30 in premiums I collected I will be net +$20 in profit. This cash will then be used to sell cash covered calls, or rebuy the stock using cash depending on volatility.
That is all for the first episode! Check back soon for the next update, I already have my target on the next stock to buy.