How I “Rent” Strong Stocks: My CEG/GEV Plan

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Wednesday, August 13th

“The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.”

– Bertrand Russell

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Markets Today

🌏 Asia-Pacific: Up

🇪🇺 Europe: Up

🇺🇸 United States: Up

🛢️ Oil: Down

⚡Crypto: Up

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Major Market Events

Stocks Rise on Hopes for Fed Rate Cut — as investors bet on easing after inflation data
China’s Lead in Open-Source AI Jolts Washington and Silicon Valley — spurring a race to counter Beiing’s gains
Cava Stock Pluges, CoreWeave Slides — weak results spark sharp market moves

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🤔 My Thoughts

How I “Rent” Strong Stocks: My CEG/GEV Plan

Two simple trades— small risk, steady cash

I like getting paid while I wait. Yesterday I put on two “rent“ trades in names that look strong: CEG and GEV.

Here’s the plain-English version:

A bull-put spread is a way to collect cash today while giving the stock room to wiggle.

I sell a put at a price I’m fine with
and I buy a lower-priced put as my safety

That limits my risk. If the stock stays above my sell price by expiration, the spread expires worthless and I keep the premium I collected up front.

On the other hand, if it dips, my loss is capped by the put I bought at the width of the spread.

Why these two? Utilities/nuclear have been steady leaders, so I don’t need a moonshot. For a trade like this, I want strength, calm charts, and decent option prices.

How I set it up (simple steps):

Pick the zone. I choose a level under recent support. Far enough to breathe.
Pick the date. About 30–40 days out is my sweet spot. Time decay acts fast in this range.
Check the payoff. On these two, I’m seeing “pretty juicy premiums… like, 200-some bucks… going out to September 19th.”
Size small. One spread is fine. I can always add later.
Have exits. I take profits quickly when decay shows up. If the stock breaks support, I’m out and I move on.

Example from yesterday — this is just for context, not a trade signal:

CEG: sold a put near a level I’d be happy owning, bought a lower put for protection, out to the mid-September cycle.
GEV: same idea—sell below support, buy the next strike down, similar date.

What I like about this approach: no need to nail the exact top or bottom.

I don’t have to chase a stock. If price just holds up, I get paid. If I’m wrong, my risk is defined up front.

Risks to know: bad headlines, downgrades, or sharp drops can test your level. That’s why I cap size, use defined risk, and don’t “average down” when a chart breaks.

I’ll keep sharing the plays I like and the rules I use to stay out of trouble.

We’re back at it today with more under-the-radar edges and calm, rules-first trading.