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
