Weekly Raid #58 - Pay Yourself or Else
Goooood Morning Raiders
We finally have a slowdown in news today but the SPY is still in a pretty precarious spot. Loe’s jump in and see what the markets have in store for us today.
News of the day
In terms of actual news today, there isn’t a lot that is considered “market moving” by the news services. But we still have initial jobless claims as well as a few Fed speakers on the day.
Jobless claims I expect to be lackluster, but the Fed Speakers could get funky with the market movements. Just keep your risk defined and you should be fine, if you are feeling at all worried about a trade remember you don’t have to be in the market, and at this point, you can get a 5+% return for idle cash. That’s not a bad position.
This morning I want to touch on a personal finance topic, and that is the notion of “Pay Yourself First”.
You will probably see this term thrown around a lot online, and I am just as guilty of it occasionally, but what does it really mean?
I remember when I was starting out trying to break out of my day job I thought that it meant that I took my “play money’ out of my check first. That’s not right.
What it really means is that you take the amount of constructive cash you are going to use out so that you can’t spend it on bills and/or stuff.
A pretty common way to just build this into your paycheck is to take out a 401k/Roth contribution right from your weekly pay. This is something you should be doing anyway, especially if you have a company match, but if you aren’t now is the time to start.
If you have an employer match and aren’t taking advantage of it, you are leaving a 100% gain on your cash on the table for someone else to take.
If you don’t have an employer match, start up a Roth IRA with Vanguard or Schwab and start moving some money over slowly to it. Roths have a more strict set of rules as far as contributions are concerned, but they have much better tax benefits in the long run. So make sure you are watching that you maintain compliance.
Finally the Good Stuff, what tickers are we watching today?
First up is PLTR. This ticker has been in the news a decent amount recently, and I think there is some great upside potential here. We are just hung out on the yearly POC and we have an LVN below us around the 13.50 level as a potential place to put stops. Upside I would trail your stop assuming it runs in your direction, but scaling out around 20 wouldn’t be a bad move.
Next up GME. This is breaking a yearly range low so I am looking for pops to short with call spreads if I can get a fill. These options are usually extremely liquid and have a decent amount of IV thanks to the Wall St Bets crew, so we may as well profit off some of that elevated options premium.
The last up is MRNA. I don’t particularly like this company or its product line, but I think with Covid coming back into vogue this fall and winter we could see a bump in the pharma stocks. Options are fairly liquid so just be okay with what the Max Loss is on your trade. Some longer-dated put spreads could produce a nice return though.
Trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.