Kevin Wenke CFP - Decision Tree Financial

The SP 500 ended up 16%. Including the dividend and assuming it was reinvested, the total return was 17.5%. After the 10% decline in the early part of the year, this worked out pretty good for those 100% invested in stocks.

How did we do?

Our long option position on the S&P 500 appreciated by 8.5% this year. The "decay" of the option premium drags this down.

However...

Our cash position (91% of the portfolio) returned 3.9% this year.

But we leverage that cash as collateral reserves to sell short-term options to speculative investors. Our short-term option-selling strategy returned 20.8% this year.

Therefore, the total return of the "Freedom Leveraged Strategy" was 33.2%

Just to remind you, the Freedom Leveraged Strategy is designed to protect capital. With 91% in cash, your portfolio is safe from crashes.

By leveraging LEAPS on the SP 500, we put you in a position to earn market returns.

By using statistics, trends, and technical analysis, we sell other investors market contracts that are likely to expire worthless, keeping the premium. There is a risk in doing this, but we never leave your portfolio open to losing more than 1% in any given week.

In the next few weeks, I will be launching a new platform with a new message and a rebellious attitude.

Decision Tree Financial will be no more...

Send a message to learn more

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He didn’t get rich by being right all the time. He got rich by being prepared when others were wrong. Taleb’s edge? ✅ Bet small, win big ✅ Embrace uncertainty ✅ Profit from chaos, not predictions In a world chasing stability, he built wealth on volatility.

Below are my COINS Postitions for the week. I am going into the long weekend with a "Call Spread" in anticipation of a down or flat opening on Monday.

For the positions I took and closed this week (assuming SPY closes above 526 today), we made a 2.11% return during a period when the market was Flat.

Yesterday, around 1 pm, I entered a trade because I believed the market would decline or stay flat from that point.

The public information i used was an increase in volume that pushed the price of the market up that 'fizzled out'" resulting in the markets to decline as volume returned to normal. This set-up indicated to me there were more sellers than buyers.

This trade is detailed in my previous posts and their corresponding comments...

About 20 minutes after i entered this trade, a pause on tariffs were announced. This caused the stock market to skyrocket resuling in a 0.7% loss to my portfolio.

Losses happen, they are part of the game.

What shouldn't be part of the game is people who have access to privileged information using that information for their benefit.

If it can be proved others profited from this, I hope they are prosecuted.

If they aren't, the game is rigged infinitely more than I had imagined.

It has always been apparent that congress has used information to make their investments allowing them to receive extraordinary gains andvaccumulate significant wealth.

They are lawmakers do they aren't going to prosecute themselves.

But now, having a set up where government purposefully promotes policies that 'tank' the market, then tips insiders on a pending reversal of that policy so they can be positioned for significant gain, is a new level of corruption.

I asked ChatGPT if those who made these trades broke the law. Here is the response...

What are your thoughts?

I entered a new position for the week.

Selling 530 call expiring Friday for $13.30, purchasing 542 call for $5.74.

In COINS, I sold $495 Calls, expiring Friday, generating $13.50 per share.

I purchased $515 Calls for "insurance", expiring today, for $.45 cents.

With SPY current price at $499.18, I sold some "intrinsic value" as I believe the market will decline. Intrinsic value is the difference between the strike price of the option ($495) and the current price of the underlying stock ($499.18.)

Therefore, as I type this, the intrinsic value of the options we sold is $4.18 and the remaining value ($13.50 - $4.18 = $9.32) is premium that will decay over the next 2.5 days, being $0 at 4:00 pm Friday.

At this time, the value of the option will be what ever the stock price is ABOVE the 'strike price" of the option (strike is $495.

If the stock ends below $495 Friday, the value of the option is $0 and, if we hold it this long, the premium revenue is earnings for the portfolio.