Week 35 - End of Aug Summary

Week 35 - End of Aug Summary

• Last day of Aug - Markets
• Sept 2024 - What history tells us.
• My returns (YTD) from options (as of Aug 31, 2024).
• Next week passive dividends

Last day of Aug - Markets

Aug 2024 ended up GREEN and the markets are back to hitting new highs.

The first week of August was scary when the markets dropped fast. What a difference a few weeks makes! You might have missed the recovery if you sold and waited on the sidelines.

This is why market timing is so hard.

Sept 2024 - What history tells us.

August 2024 has been a roller coaster of a ride, but everyone is smiling and feeling good. The area where people are not feeling good is watching INFLATION and other costs rise faster than their income.

September is a SCARIER because history has painted a very bad outlook. Now averages do not tell the whole story, but as you can see after a big run can the US pull off a "FLAT" or "GREEN" month? The FED is going to cut at least .25% from the FED RATE as a signal to the rest of the market that inflation has PEAKED and the slowing of the economy is happening.

If you want to read more about monthly seasonality, you can read this :

My returns (YTD) from options (as of Aug 31, 2024):

I copy all my option trade data into an Excel sheet. Then I use a pivot table to view my results. Here is the Monthly/Quarterly breakdown for 2024:
End of week #34:

End of week #35:

This is not bad considering how hard it is to predict the market direction recently. I have been trying very hard to stay disciplined and using my profits from winning trades to offset the RISK of the losing ones. In the end, I think this is going to play out well.

The Focus in Sept:

• Roll COVERED call-up in strike price (especially if they are ITM).
• Use Put Credit spread to on position where I have covered call, especially if I can set them up under the covered call STRIKE price.
• Keep an eye on the possible "downside" risk in Sept. Right now I use 1 or 2 contracts on Put credit spread (so I don't have a big position on the PUT side).

Next week passive dividends

Week #36 will be a good week for my dividend payment. However, in week #34, I sold about $900 worth of stock and I purchased 100 shares of RIOT, since I believe at $8 a share, I would do better than holding only my FORD dividend stock.

I will get new shares in WFC, F, V, JEPI, JEPY, LFUS, QQQY, and RTX.

Have a good weekend and enjoy your LABOR day holiday (If you are in the US)!