InvestorsObserver Workshop

InvestorsObserver Workshop• Market update• What’s going on at InvestorsObserver: • Member-driven content: Questions, site demonstrations,

etc.• Can prepare slides for questions submitted ahead of

time: Mention “workshop”

S&P 500

Major indices

Drilling down

What else is going on?• PPI was higher than expected today, another sign that inflation is rising• Trade: New tariffs announced, still waiting for China to respond• What’s working: Small caps and tech

Diagonal Spreads: Care and Feeding• Diagonal spreads work very much like covered calls

• You can keep selling calls until the bought leg expires

• Just remember that you ideally want the net debit to be less than the strike width

• Net Debit: The sum of all the legs (debits minus credits)

• The hard part is timing, and picking a strike• You don’t want a strike that is too low• You also don’t want to sell a call that doesn’t

bring in any money

SQ Diagonal

$18.00

Strike Width stays the sameNet Debit drops, increasing target profit from $1.00 to $1.92

HON Diagonal

$28.60

Strike Width shrinks from $30 to $28Net Debit drops to $27.90, reducing target profit from $1.40 to $0.10

KRE diagonal

$17.10

Strike Width shrinks from $30 to $28Net Debit drops to $27.90, reducing target profit from $1.40 to $0.10

$16.40

Strike Width shrinks from $18 to $17.50 to $16.50Net Debit drops to $17.10 to $16.40 to $15.78Target profit goes from $0.90 to $1.10 to $0.72