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HIPOS Weekly Update: Bend but Don’t Break

After entering our latest HIPOS trade the underlying Russell 2000 Index has traded higher. Since we are short a call spread, we want the market to remain well below our purple roll curve. While ideally the Russell 2000 Index moves down, a benefit of the HIPOS strategy is markets can move adversely against us. Provided that move is not too far and fast.

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HIPOS Weekly Update: Calls Introduce Themselves

On Wednesday, we entered a new HIPOS primary trade. If you looked at our normal graph above, you probably wondered if we posted it upside down. Well actually this trade uses a tactic many may not have seen in the strategy – or at least advisors who have employed our HIPOS strategy after April of 2013. That was the last time we used a call spread instead of a put spread to generate premium.

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What a difference a year makes!

Friday was February 10th and on that date exactly one year ago in 2016, our Internet Advantage Strategy – Best Equity Picks reached its all time low in performance. That was a day before the S&P 500 reached its low point in 2016 also.

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How to Help Your Clients Invest Comfortably with Markets at All-Time High

In talking to advisors recently, many have relayed client concerns about the markets – which is keeping money on the sidelines. Many just think they have missed the big up move with the markets near all time highs. You have to be invested to grow with the markets. The statistics show that missing out on the 5 or 10 best days of the year will harm your long term returns. Often fear prevents individuals from investing. Instead, they might try to time the market or wait for a pullback. Sometimes that never happens and they miss out on a nice bull run higher. Or they decide to sell and go to cash – only to have to buy back in later at a higher price.

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HIPOS Weekly Update: Wire to Wire Winner

Last week saw our primary HIPOS trade expire worthless – which is our targeted outcome! This generated the full profit for the clients in the strategy. Since we are short the spread, we take in premium then want it to erode to worthless. To get this entry in early January, we capitalized on a small window of opportunity to enter when volatility spiked. Shortly afterwards, the market moved higher and sideways. Thus, never threatening our defensive exit zone.

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HIPOS Weekly Update: Running Out the Clock

This week the primary HIPOS trade is set to expire. While the market gapped down this morning with a small volatility increase, the market remains safely above the purple defensive exit curve. Your clients shouldn’t expect much change in the value of the positions unless the S&P 500 Index were to dramatically move lower. As of the open this morning, the index remained over 16% above our short strikes.

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HiPOS Weekly Update: Slow and Steady

                                After entering our primary HIPOS trade earlier this month, the market moved higher and has remained in a sideways pattern since. Sideways works just fine...

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