Cashflow Triggers Q&A Episode 3

[00:00:00.610] – Jake: All right. Hey, everybody. Welcome to Episode 3 of the Weekly Cashflow Triggers Q&A podcast. I'm here with Josh. My name is Jake. I'm filling in for Katie this week. So we didn't have any submitted questions from the previous week. So if you guys have any questions about any of the trades that Josh has done or any upcoming trades or you're looking at something, you have a question specific to Weekly Cashflow Triggers, submit your questions, and we'll get to them every week. For this week, Josh is going to kind of just give an update on the last three trades we've done so far. So, Josh, if you want to jump in and get started.

[00:00:40.140] – Josh: Yeah, we'll jump in here. And the questions that we had previous week were pretty good, and they probably covered a lot. But just keep making sure you fill in those questions and send them over so I'll be able to help you, and we could be able to do this every week.

[00:00:52.770] – Josh: But more importantly, right now, we need a market update. And the reason why is because the S&P 500 specifically or the overall markets are seeing some pain right now. So the S&P 500 specifically is just that June lows. If you remember back in June, that's when inflation was rearing its head up really aggressively. That's where it peaked. And it's looking at inflation is probably going to push through that level here. So the S&P is selling off in anticipation of that.

[00:01:24.160] – Josh: Now, the three positions that we have on are McDonald's, Iron Mountain, and CCI. So McDonald's today specifically is down about 2%. And I know people are feeling some pain here. It's the first time. And even if it's a paper trading account, it's like, oh, man. But this is the reason why we like to and me specifically like to sell puts in a marketplace like this. Now, it's obviously not where we want to be in a position of having to look at what I refer to as right on the screen, meaning a loss. But we collected that income, and now we just let the market play around in its expected area. So for McDonald's specifically, McDonald's is about 10% off from where we got in here. And one of the reasons why that is because inflation in Europe is looking to be more aggressive than it was projected.

[00:02:13.330] – Josh: Now, it's not a surprise to me, but it's a surprise to those talking heads out there. And that's the aspect of what we're seeing in the marketplace and why we're seeing the market sell-off because of the inflation here. Now, with McDonald's specifically, McDonald's is a multinational corporation, and the dollar has been very aggressive and moving higher here. And you've heard probably the pound selling off and then also the euro. And those are currency risks or headwinds for a company like McDonald's. And the reason why McDonald's is down 2% today.

[00:02:51.010] – Josh: Now, we sold that $2.30 put here, and prices are just $8 off here. So even though it's not looking good, it's still in our range here. And if we need to make an adjustment, we'll make an adjustment and we'll be able to take on more risk here. So we're not ignoring anything. I'm not ignoring. We're here. We're buckled up, but you just got to take a deep breath. It's always the game plan once we're in here and navigating the marketplace is that, hey, things go right sometimes and things don't really go well all the time. So you just got to take a breath, relax a little bit, and we'll get through this. And once we close out a winter, you go, wow, this is really great. This part is fun, closing out these winters, but just wanted to give a brief update on the marketplace here because it's painful. It's painful for most people, but you just got to take a deep breath.

[00:03:45.350] – Josh: When there is pain, there is opportunity. And we're going to continue to be aggressive in this marketplace. The strategy that we do is perfect for this because, again, we collect cash upfront and we play defense. We let the market play the offense. We play defense. And even though it doesn't go in our direction all the time, at this point, we're looking and what I'm seeing here, the market starting to firm up a bit, and we probably see a rally. And that's what we want. We want the market just to jump back and forth between that range and during that time. If you remember the example that I used in the quick start, it's like a melting ice cube. So, yeah, we sold off here. McDonald's rises back higher again. It's melting away. And once it melts away, that's where we lock it in and we lock in that profit. So we're here. We have new opportunities and just got to take a deep breath and just relax and focus on opportunity and execution.

[00:04:44.090] – Jake: Awesome. And just to kind of reiterate what Josh said earlier, it's important that if you guys have any concerns or questions or you're wondering anything about where the market is or where the market is headed or any of these trades, be sure to submit questions via the question form in the members area, and then we can get to those questions specifically on these Q&A call. So please submit questions. Thank you for giving an update on the previous three trades. And everyone should look out for the next trade this Friday. And keep on the lookout.

[00:05:27.930] – Josh: Keep a lookout, keep engaged and keep active. There's a lot of opportunity in there, and we're going to be, again, very active in a bear market because this is one of the best strategies to take advantage of because, again, we're collecting that cash flow. So it's important to stay calm and also manage risk. When I talk about managing risk managing what you outlay. Don't get too aggressive. Don't take on bigger positions than you think, and you know, you couldn't or you shouldn't be taking. So that's always the best step forward. So even in a paper trading account, you don't want to get silly and start risking all your paper trading money on just one opportunity. This is where you start to learn the basics and start to learn how to do this. And navigating a bear market is going to be if you can navigate this, you can navigate any market. So this is a great opportunity to start learning.

[00:06:24.210] – Jake: Cool. Thanks, everybody, for tuning in, and we'll see you for Friday's trade and next week for the Episode 4 of the Q&A.