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Zach Scheidt

Helping families build wealth so they can focus on what really matters

Quarterly Trading Update — March 2022

March 31, 2022 at 6:18 pm by Zach Scheidt

Quarterly Trading Update

Aaaannd that’s a wrap!

We’ve reached the end of the first quarter of 2022. And it’s been full of twists and turns!

Today, I recorded some thoughts on the performance of our two trading models for this quarter. Take a look and let me know what you think!

More information on the Speculative Trading Model (including historical trades) here: https://zachscheidt.com/trading-program/

And you can see more about the Put-Selling Income model (with historical trades) here: https://zachscheidt.com/income-model/

Thanks for watching!

My Two Investment Models

  • I manage two different investment models for subscribers
    • One conservative – it sells put option contracts on some of my favorite stocks
    • One very aggressive – buying in-the-money call and put option contracts
    • I like using a barbell approach
    • Some of my investments are aggressive and some conservative.
    • I can adjust how much is invested in each side to match my objectives.
  • Both strategies are “real money” models
    • I place recommended trades in my own account.
    • But I give subscribers the chance to act first.
    • And then I place trades for my own family’s money.

The Speculative trading Model

  • The Speculative Trading Model started the quarter with a value of $100k.
    • As of Wednesday’s close, the model’s value is a little over $159,000.
    • This, after distributing profits of $65,000.
    • Altogether, that’s a gain of more than $124,000 from a $100k starting balance.
  • This is NOT a “normal” quarter for the Speculative Trading Model.
    • The performance does include all winning and losing trades for the quarter.
    • Past performance is no guarantee of future returns.
    • I’m confident we will NOT have many quarters as strong as Q1 2022.
    • Speculative trades can lead to significant losses.
    • Never invest money you can’t afford to lose in a speculative trading program.
  • In January, we had a mix of profits from both bullish and bearish trades.
    • We bought puts on expensive stocks like ROKU, SHOP, AMC & TSLA
    • Many of these did well as speculative stocks fell out of favor.
    • We bought call contracts on blue chip tech (GOOG), computer chip stocks (NVDA)
    • We also bought call contracts on cybersecurity stocks like PANW & ZS.
    • We had mixed results on bullish trades as the market declined.
  • In February market volatility continued.
    • We locked in healthy gains on the bullish side from stocks like COST & EXPE.
    • We continued to profit from selloffs for speculative stocks (SHOP, SPOT, CVNA).
    • One particular trade that has worked well this quarter is buying puts on TLT.
    • TLT is a proxy for long-term treasuries, which are falling as interest rates rise.
  • March has also been a healthy period for the Speculative Trading Model.
    • We closed profitable bearish trades on SHOP, SPOT & TSLA.
    • We changed our perspective on some speculative tech stocks mid-month.
    • After selling off sharply, many of these stocks were poised for a bounce.
    • Gains on FB, ROKU and COIN bullish plays ere helpful
    • These were offset by some losses on our bearish TSLA bet.
  • Heading into Q2, the model is invested in a mixed bag of bullish and bearish positions.
    • We are also holding a significant cash position.
    • This reflects uncertainty with the overall market
    • War, higher interest rates and inflation concerns may pressure stocks.
    • But the job market, economic reopening and a healthy U.S. consumer are bullish.

The Put-Selling Income Model

  • Returns for the put-selling model have not been as strong as I had hoped in Q1.
    • This strategy collects up-front payments from selling put contracts.
    • In exchange, promise to buy shares at a specific price in a specific time period.
    • We can “buy out” of these promises by re-purchasing the contract.
    • The strategy is an overall bullish approach.
    • So as the overall market moved lower our investment model declined.
    • As of Thursday morning, the Put-Selling model was down a bit less than 2%.
    • This compares favorably to the 3.09% decline for the S&P 500.
    • But it’s still disappointing to post a negative return for the quarter.
  • Our losing trades included several different areas of the market.
    • Travel & Leisure (WYNN & RCL) – hurt by Omicron concerns.
    • Steel (STLD & CLF) – under pressure as reopening plays stalled.
    • Tech (RBLX & MU) – were hurt by the broad tech selloff.
  • I prefer to close out positions that are not working (risk management).
    • Ironically, as the market recovers, we’re setting up some of the same plays again.

Both the Speculative Trading Model and the Put-Selling Income Model are open for new subscribers.

  • Some like to follow the recommendations with their own investment accounts.
  • Others pick and choose which ideas make the most sense for their account.
  • However you invest, I’d like to invite you to try these models out yourself.
  • Subscriptions come with a 30-day money-back guarantee.
  • You can request a full refund in the first 30 days.
  • After that, you can still get a pro-rated refund on any unused portion.

Please remember all investments involve risk.

  • Past performance does not guarantee future returns.
  • The information here is intended to be accurate and transparent.
  • But there is no guarantee of accuracy or future returns

Please leave a comment — or send me an email ([email protected]) with any questions.
Here’s to growing and protecting your wealth!Zach

(Trade procedure: 5 minutes after this notification posts, I will enter the trade on my brokerage platform. Once filled I will edit this post to include execution prices.)

Please note: I am placing these trades in my own account. And while I notify the group of all trades 5 minutes before I place my own personal trades, this creates a conflict of interest. Please review all disclosures and agreements included with your subscription packet.

Filed Under: Markets, Public Tagged With: investing, trading

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DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose.

This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this page. The past performance of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc., discussed on this page are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained on this site or in any correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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