DOW / NASDAQ all time highs... where is the Value???

in #steemleo5 years ago

value.jpeg

As we are closing out the year here in the USA, our equity markets are hitting all time highs.

Yes the economy is the best of my lifetime (Thank you President TRUMP) but I feel the markets are a bit in the FOMO mode. So I am going to sit on my current investments and wait for the next sell off to do some profit taking.

So is there Value in this market ? Well I have 2 ways of looking at this.

  1. Find stocks that are not taking part in this rally. I am currently looking at adding to my Ford (F) position. As this stock is beat up and a great dividend play.

  2. Now for my favorite strategy ..... OPTION SPREADS...
    I am going to be SELLING a ton of OPTION spreads for 60 days out. This strategy I sell the option spread and as long as the market stays above my OPTION spread the closer they get to expiration, the less they are worth.
    So I will sell for a price and buy them back about 45 days from now. What I am doing is collecting money for the time value of the options. This is measured in the THETA metric.

The higher your total THETA of your OPTIONS the more you make per day.

With a market this high and VIX this low... value comes in the form of TIME.

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