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Coltech Investments Group

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Craig Cole

Market outlook for August 4th


📉 At a glance: Key Trends & Sector Performance


📰 Market Forces & Broader Themes


  • The S&P 500, Nasdaq, and Dow all posted sharp drops last week (approximately –1.6% to –2.2%) amid investor concerns over new U.S. tariffs, weak jobs data, and disappointing guidance from major players like Amazon  .

  • These developments pushed sentiment toward possible Federal Reserve rate cuts, which caused Treasury yields to fall and the U.S. dollar to weaken  .


🔄 Market ⚖️ Outlook


  • Markets have rebounded from April lows, with the S&P 500 up around 32%, but analysts warn of a potentially turbulent phase in August–September due to seasonality and stretched valuations  .


Selling Options
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Craig Cole

PFFA currently yields about 9.6–9.7%, paying roughly $0.17/month—about…

PFFA currently yields about 9.6–9.7%, paying roughly $0.17/month—about $2.04/year on a $21.30 share .

Over the next two years, assuming:

• You hold a round 100 shares (~$2,130)

• Monthly payout stays steady at $0.17

You’d receive:

• Year 1: 100 × $0.17 × 12 = $204 (~9.6%)


Selling Options
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Digital V

The Rise of Security Cameras: Safeguarding the Modern World

In an increasingly interconnected and security-conscious world, security cameras have become a fundamental part of public safety, private surveillance, and smart infrastructure. From deterring theft and vandalism to enabling remote monitoring and enhancing emergency response, security cameras are transforming how we protect people, property, and information.

What Are Security Cameras?

Security cameras, also known as surveillance cameras or CCTV (Closed-Circuit Television), are video recording devices used to monitor activity in specific areas. These cameras can record continuously or be triggered by motion, and they can transmit footage to on-site monitors or cloud-based storage systems.

Security cameras are used in a wide range of applications, including:

  • Residential security systems

Selling Options
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Craig Cole
Craig Cole
Jul 24

If you come to the site, just try to sell things then we don’t need you

Craig Cole

I completed Option Trading Important Terminologies!

Selling Options
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Craig Cole

Welcome to the Group!!

Coltech investments is about selling options, not buying options. Selling options gives us cash in our pocket which intern gives us more buying power.

Selling Options
18 Views
Craig Cole
Craig Cole
Jul 13

PFFA currently yields about 9.6–9.7%, paying roughly $0.17/month—about $2.04/year on a $21.30 share .


Over the next two years, assuming:

• You hold a round 100 shares (~$2,130)

• Monthly payout stays steady at $0.17


You’d receive:

• Year 1: 100 × $0.17 × 12 = $204 (~9.6%)

• Year 2: same again, totaling $408 over two years = ~19.2%


Note: Returns fluctuate slightly based on share price and slight dividend drifts (it hovered near $0.168–0.17/month recently) .


⸻


📈 Covered-Call Option Strategy


Selling covered calls on ETFs like PFFA lets you earn premiums but caps upside gains.


Example framework:

1. Own 100 PFFA shares at $21.30

2. Sell one 1-month out‑of‑the‑money (OTM) call, strike $22.00, expiring ~1 month ahead.

• Let’s assume the premium is ~$0.30 (for estimation).


Monthly income:

• Option premium (sold): $0.30


Total monthly potential:

• Dividend $0.17 + Premium $0.30 = $0.47 per share


Annualized:

• $0.47 × 12 = $5.64/year, or 26.5% on capital ($21.30) before considering share appreciation.


Cap and risk:

• If PFFA stays below $22 by expiration, you keep both dividend and premium, and repeat.

• If it rises above $22, your shares get called (sold) at $22.

• You’d pocket: $22 - $21.30 + $0.30 = $1.00 gain ≈ 4.7% profit + the dividends collected to that point.

• After assignment, you no longer hold the shares but keep all income.


Two-Year Projections:


Scenario A: No assignment (PFFA stays ≤ $22):

• Income/year: $5.64 × 100 shares = $564

• Two-year: $1,128 ≈ 53% total return, in addition to price changes.


Scenario B: Assigned in Year 1 (called at $22):

• Year 1: Premium + dividend + gain = ~$0.30 + 0.17 + 0.70 = $1.17 per share = 5.5%

• Year 2: You’d need to rebuy shares and restart covered calls—total may vary.


Even with cautious assumptions, covered calls can boost income from ~9.6% to ~25–30% annually—but be aware this gives up upside beyond strike.

cole_craigcole_craig

Selling options for extra income

What is the difference between buying options and selling options?

Selling Options
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Craig Cole
Craig Cole
May 27

Buying an option, let’s say a call says that you are only willing to pay so much for the stock and you pay premium to have that right. Selling a call says that you are willing to sell your stock at a certain price. Buying a put option says that you’re willing to sell your stock at a certain price selling a put option is saying that you are willing to buy that stock no matter how long it goes.

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