Top Trader's Toolbox

The Super Portfolio


by Chuck Hughes

The Super Portfolio Strategy is a spread strategy that:

  1. Buys stocks/ETFs that are performing well despite Europe and the slow growing US economy
  2. And sells weekly call options on weaker sectors such as Europe, China and energy against the Super Portfolio stocks

This spread strategy allows you to profit from the best performing stocks and at the same time profit from selling weekly calls against weak sectors such as Europe, Brazil, China and energy.


Covered calls place a limit on the profit potential of a trade but this spread strategy does not cap your upside potential if a stock moves up in price.


For example, I currently have a 37% profit on Super Portfolio stock TJX and at the same time I have been profiting from selling call options on Europe, China, Brazil and energy ETFs. Selling ETF option premium against this stock has not capped my upside profit.


Learn how the Super Portfolio can profit during any type of market condition.

Interesting Image

 

 
Share:

FUTURES, STOCKS, BONDS, CURRENCY AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.