I was buying stock all Spring on the way down – but Today I started selling into what I consider a bear market rally. In my opinion, Retail Investors are fighting the Fed, which is raising rates and shrinking its balance sheet at the same time.
I could be wrong or early, but with Meme Stocks, SPACs, & Cryptos all rebounding – I feel that I should reduce risk now. Along with a lot of large portfolio moves I made today, I initiated one small options trade – but it is worth reviewing.
I made the following Covered Call trade on my existing Kinder Morgan Inc (KMI):
- Sold: Eleven (11) September 16, 2022 Calls
- Strike Price: $19.00
- *Premium Collected: $443.71
As I have stated previously, this is one of my long-time holdings – and I enjoy the 6.00% dividend – but according to Morningstar, KMI’s fair value is only $17.50, so I need to stick to my trading rules.
*Excludes transaction costs.
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