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Monday, August 18th
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”
– George Bernard Shaw
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Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Down
⚡Crypto: Down
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Targeting Quick Wins Right at the Market Open?
Here’s How One Trader Is Doing It!
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Major Market Events
- Trump–Zelensky Meeting in Focus — U.S. and European leaders gather, with Ukraine’s future and Fed policy dominating investor attention
- Fed Policy Signals from Jackson Hole — Central bankers weigh rate path amid resilient U.S. economy and global inflation pressures
- Novo Nordisk Jumps on FDA Approval — Wegovy cleared to treat liver disease, extending the drug’s blockbuster reach
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🤔 My Thoughts
How I’m Playing AI’s Power Problem (Why I’m in CEG)
Starter shares now, “get paid to wait” with puts
AI isn’t just chips. It’s power. Big data centers need steady, 24/7 juice. That’s why I’m leaning into nuclear-backed utilities instead of chasing the next headline stock.
My pick here is Constellation Energy (CEG). They’re a major nuclear operator with real power on the grid and growing deals to serve data centers.
I don’t need fireworks. I want a calm leader I can own — and a simple way to lower my cost while I wait.
My Plain English Plan
1) Starter buy. On Friday’s Profit Panel, I opened a position in CEG and kept it small. Price has been hovering near the 50-day moving average — a level that often acts like support after an uptrend. If it holds, great. If it wobbles, I’ve planned for that.
2) “Get paid to wait” at my next price. I like using cash-secured puts under price:
- Sell a $300 put for a short date (about three weeks out). If I collect roughly $4.50 for selling that put and I get assigned, my effective cost is $295.50.
- Or sell closer to the money, for example, a $310 put and collect about $7.30. That lets me collect more cash up front and makes my effective cost roughly $302.70 if I get assigned.
Either way, I’m getting paid today.
If CEG stays above my strike by expiration — it’s currently above 320 — I just keep the premium. If it dips and I’m assigned, I own shares at a discount in a name I already like.
3) Simple alternative (defined risk). If you don’t want shares at all, a small bull-put spread works: for example, sell $300 / buy $290 on the same date. The credit is smaller, but your risk is capped from day one.
How I’ll manage it
- Size small. I buy in small chunks, not all at once. No hero moves.
- Have a line in the sand. A hard break below the 50-day on volume tells me to slow down and let it settle.
- Take base hits. If my puts hit ~50% profit, I buy them back. If shares bounce, I trim into strength and look to sell covered calls on rallies.
Risks
Headlines can hit utilities. Rates, plant issues, or policy shocks can shake the group. That’s why I scale in, use income, and let the chart confirm.
I’ll keep sharing what I’m doing and why — in simple steps you can copy.
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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